HomeMy WebLinkAbout12/16/2008 Council Presentation - Alternative Expenditure LimitationAlternative Expenditure
Limitation (Home Rule Option)
Tuesday, December 16, 2008
State imposed limitation
o In 1980, Arizona voters imposed an
expenditure limit formula on
municipalities, school districts and
counties based on the 1979 level of
spending.
o The amount grows each year based on
population and inflation.
State limitation -Calculation
1979-80 Projected
Base Population Inflation State-Imposed
Fiscal Year Limit x Factor x Factor* = Expenditure Limitation
2009-10 $ 202,239 x 27.3761 x 2.7298 = $ 15,113,579
Prior Fiscal Population
Fiscal Year Year / 1978 Population = Factor
Population**
2009-10 39,011 / 1425 = 27.3761
* Inflation factor provided by Arizona Department of Revenue
** Population estimate provided by Arizona Department of Commerce
Expenditure Limitation Comparison
Projected State-Imposed Expenditure Limitation
Estimated
Amount
Fiscal Expenditure Estimated Under Home
Year Limitation Exclusions Total Rule
2009-2010 $15,113,579 $45,017,683 $60,131,262 $149,929,592
2010-2011 16,762,269 45,626,712 62,388,981 $151,957,938
2011-2012 18,426,665 46,376,286 64,802,951 $154,454,365
2012-2013 $20,153,601 $47,244,783 $67,398,384 $157,346,860
Home Rule Option
o Allows elected officials to set a spending
limit based on local priorities
o Annual adopted budget, based on
available revenues, sets the annual limit
o Allows the Town to provide essential
services like public safety, streets
maintenance and parks programs
Home Rule Option
o Home Rule is critical to growing
communities, especially those with no
property taxes
o Without the Home Rule Option, the Town
would be required to reduce essential
services and related costs