HomeMy WebLinkAboutCouncil Presentation 03/03/2020-A1.1 - Alternative Expenditure LimitationALTERNATIVE EXPENDITURE LIMITATION
(Home Rule Option)
SUMMARY ANALYSIS
The voters of the Town of Marana on November 8, 2016 adopted an alternative expenditure limitation (Home
Rule Option). The purpose of this election is for the continued use of the Home Rule Option.
Pursuant to the Arizona State Constitution, the Town of Marana seeks voter approval to adopt a Home Rule
Option to apply to the town for the next four years beginning in 2021-2022. Under a Home Rule Option if approved
by the voters, the town estimates it will be allowed to expend approximately $139,453,470 in 2021-2022,
$115,299,188 in 2022-2023, $117,834,509 in 2023-2024 and $107,137,202 in 2024-2025.
W ith approval of the Home Rule Option, the town will utilize the expenditure authority for all local budgetary
purposes including general government, public safety, highways and streets, economic and community
development, culture and recreation, water utility, wastewater utility, airport, debt service and capital improvement
projects.
Under the state-imposed limitation the town estimates it will be allowed to expend approximately $75,763,332 in
2021-2022, $45,875,971 in 2022-2023, $60,031,399 in 2023-2024 and $56,005,742 in 2024-2025 for the
operation of your local government. These expenditure estimates include expenditures of constitutionally
excludable revenues.
The amount of revenue estimated to be available to fund the operation of your town government is $139,453,470
in 2021-2022, $115,299,188 in 2022-2023, $117,834,509 in 2023-2024 and $107,137,202 in 2024-2025. These
revenue estimates are the same under the Home Rule Option or the state-imposed expenditure limitation.
Any and all dollar figures presented in this summary are estimates only and are based upon information available
at the time of preparation of this analysis. The budget and actual expenditures in any of the four years may be
more or less than the expenditures noted above depending on available revenue.
If no alternative expenditure limitation is approved, the state-imposed expenditure limitation will apply to the town.
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ALTERNATIVE EXPENDITURE LIMITATION
(Home Rule Option)
SUMMARY ANALYSIS WORKSHEET
POPULATION FACTOR COMPUTATION
Fiscal Year
Prior Fiscal Year
Population / 1978 Population = Population Factor
2021-2022 51,000 / 1,425 = 35.7895
2022-2023 52,600 / 1,425 = 33.9123
2023-2024 54,300 / 1,425 = 38.1053
2024-2025 55,900 / 1,425 = 39.2281
STATE-IMPOSED EXPENDITURE LIMITATION
Fiscal Year
1979-80 Base
Limit x
Population
Factor x Inflation Factor =
Projected State-
Imposed
Expenditure
Limitation +
Estimated
Exclusions =
Total
Expenditures
Under State-
Imposed Limit
2021-2022 $ 202,239 x 35.7895 x 3.2190 = $ 23,299,227 + $ 52,464,105 = $ 75,763,332
2022-2023 202,239 x 33.9123 x 3.2998 = 24,633,359 + 21,242,612 = 45,875,971
2023-2024 202,239 x 38.1053 x 3.3840 = 26,078,382 + 33,953,017 = 60,031,399
2024-2025 $ 202,239 x 39.2281 x 3.4695 = $ 27,525,111 + $ 28,480,631 = $ 56,005,742
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ALTERNATIVE EXPENDITURE LIMITATION
(Home Rule Option)
DETAILED ANALYSIS
Pursuant to the Arizona State Constitution, the Town of Marana as authorized by Resolution No. 2020-_____
passed on ___________, 20__ will seek voter approval to adopt an alternative expenditure limitation (Home Rule
Option) to apply to the Town for the next four years beginning in 2021-2021.
Under a Home Rule Option if approved by the voters, the town estimates it will be allowed to expend
approximately $139,453,470 in 2021-2022, $115,299,188 in 2022-2023, $117,834,509 in 2023-2024 and
$107,137,202 in 2024-2025.
With approval of the Home Rule Option, the town will utilize the expenditure authority for all local budgetary
purposes including general government, public safety, highways and streets, economic and community
development, culture and recreation, water utility, wastewater utility, airport, debt service and capital improvement
projects. We estimate that the expenditures for the next four years under the Home Rule Option will be as follows:
ESTIMATED AMOUNTS TO BE EXPENDED IN SPECIFIC AREAS
Purpose 2021-2022 2022-2023 2023-2024 2024-2025
General Government $ 24,193,385 $ 24,677,253 $ 25,170,798 $ 25,674,214
Public Safety 19,282,457 19,668,106 20,061,468 20,462,697
Highways and Streets 10,694,341 10,908,228 11,126,393 11,348,921
Economic and Community
Development 6,110,405 6,232,613 6,357,265 6,484,410
Culture and Recreation 5,133,573 5,236,244 5,340,969 5,447,788
Water Utility 6,951,588 7,090,620 7,232,432 7,377,081
Wastewater Utility 2,335,496 2,382,206 2,429,850 2,478,447
Airport 646,187 659,111 672,293 685,739
Debt Service 10,807,815 10,760,600 10,664,684 10,571,405
Capital Improvement Projects 53,298,223 27,684,207 28,778,357 16,606,500
Total Expenditures $139,453,470 $ 115,299,188 $ 117,834,509 $ 107,137,202
If approved, the expenditures authorized will be funded from revenues obtained from federal, state and local sources. It
is estimated that the amount of revenue from each source for the next four years will be as follows:
ESTIMATED AMOUNTS OF REVENUE FROM EACH AND ANY SOURCE
Source 2021-2022 2022-2023 2023-2024 2024-2025
Federal $ 23,415,961 $ 8,535,177 $ 14,996,754 $ 1,568,897
State 20,417,735 20,826,090 21,242,612 21,667,464
Local 95,619,774 85,937,921 81,595,143 83,900,841
Total Expenditures $ 139,453,470 $ 115,299,188 $ 117,834,509 $ 107,137,202
(The town property tax shall be limited to the amount prescribed in the Arizona State Constitution).
In determining the revenue sources to fund the authorized additional expenditures under the alternative
expenditure limitation, it is assumed that the federal, state and local revenues received by the town will continue
to be available in 2021-2022 as they have for the past four years. Their continued availability is also assumed
for the next three consecutive years following 2021-2022.
Any and all dollar figures shown in this analysis are estimated figures only and are based upon information
available at the time of preparation of this report. The budgets and actual expenditures in any given year may
be more or less than the figures noted above depending on available revenues. The actual expenditure limitation
for each fiscal year shall be adopted as an integral part of the budget for that fiscal year.
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