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What happens when Home Rule Fails Florence's Home Rule election defeat Steps for a Special Election.

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Presentation on theme: "What happens when Home Rule Fails Florence's Home Rule election defeat Steps for a Special Election."— Presentation transcript:

1 What happens when Home Rule Fails Florence's Home Rule election defeat Steps for a Special Election

2 Alternative Expenditure Limitation Options  Allowed to use an alternative to the state-imposed limitation (3 options)  Home Rule Option  Option must be renewed/approved by voters every four years  Pure Home Rule option - Utilizes the approved annual budget amount as the limit for the fiscal year  This option is used by many municipalities  Capital Projects Accumulation Fund Option  Allows a municipality to exclude capital projects and the accumulation of funds for such projects  Permanent Base Adjustment Option  Allows a municipality to approve an adjustment to the base expenditure level and use the new base going forward

3 Prior Year Election Results  Town voters have approved all the Home Rule Option alternative questions since the constitution was amended in 1980  1982 – FY 1982/83 to FY 1985/86 ---- passed (could not determine margin)  1986 – FY 1986/87 to FY 1989/90 ---- passed 3 to 1  1990 – FY 1990/91 to FY 1994/94 ---- passed 4 to 1  1994 – FY 1994/95 to FY 1997/98 ---- passed 3 to 1  1998 – FY 1998/99 to FY 2001/02 ---- passed 2 to 1  2002 – FY 2002/03 to FY 2005/06 ---- passed 2 to 1  2006 – FY 2006/07 to FY 2009/10 ---- passed 3 to 1  2010 – FY 2010/11 to FY 2013/14 ---- passed 3 to 1

4 The ballot question for home rule August 26, 2014  A “YES” vote will extend the Town Council’s ability to set the budget, thereby determining the alternative expenditure limitation for the Town for the next four years  FY 2015-16 through FY 2018-19  The Town will be required to hold another home rule option alternative expenditure limitation in four years.  A “NO” vote will place the Town under the state-imposed expenditure formula and will result in a reduction in budget and service cuts for at least the next two years  FY 2015-16 and FY 2016-17  The Town would be eligible to hold another home rule option alternative expenditure limitation in 2016 for FY 2017-18 through FY 2020-21

5 How did we explain what would happen if Home Rule Failed?  The total estimated reduction in expenditures over four years is $65 million  Town loses ability to set its budget based on current needs for at least two years  State-imposed Expenditure Limitation limits expenditures, not revenues  Town receives revenues, just cannot spend them  Projects could be completed by issuing debt or other lawful long-term obligations

6 August 26, 2014 Home-Rule Option Election  Home Rule Option failed  YES – 622 votes, 48.25%  NO – 667 votes, 51.75%  Voter turnout was 36 percent.  The Town is now subject to the State-Imposed Expenditure Limitation for at least the next two fiscal years - FY 2015-2016 and FY 2016-2017  Cannot seek Home-Rule Option until FY 2017-2018.  Home Rule can only be placed on a ballot that Council Seats are Elected.  Ballot question moves Home Rule Option to the Mayoral Election Home Rule Fails…..

7 What Changed in 2014  2014 – FY 2015/16 to FY 2018/19  Change in state statute moved elections from spring to fall  New spending philosophy practiced in FY 2013/14 and FY 2014/15  From May, 2014 to August, 2014 the following occurred:  Town received voter authorization to purchase Johnson Utilities in May, 2014  $121,000,000 purchase price  A deal was not reached and the Town did not purchase  Padilla Park Developed  $700,000 cost  Project Completed in October 2014  Project included a controversial splash pad  New Library and Aquatics Center –  $13,000,000 cost  Estimated project completion date is June 2015  Town Council and Council Candidates debated issue on floor  Covered extensively in the newspaper  Council discussed adding a fitness center to the project  $7,000,000  Town Council did not authorize

8 Highlights from Letters to the Editor  “This project is going to drive us to the poor house.”  “Thank you to the Council who displayed the moxie to question and vote against expensive undertakings.”  “Rushing too fast …. This pretty much sums up the problem.”  “Town is well funded, but residents also know that just having the money, is not reason enough to spend it carelessly.”  “Although the Town’s financial path may seem rocky at this point, its still possible to lead Florence down the path to a bright future.”  “Home Rule is the right thing for Florence, but we believe that in order to have this occur, the Town must demonstrate sound and sensible financial responsibility.”

9  August 26, 2014 – Alternative Expenditure Limitation Home Rule Option Failed  Town now be subject to the State-Imposed Expenditure Limitation for at least the next two fiscal years  2015-2016  2016-2017  The Town’s future budgets will be significantly lower than the current Town budget  Reduced spending  Revenues remain intact Failure of the Election


11 Penalities  The state-imposed expenditure limitation hefty penalties if exceed Amount exceeded Limit by PenaltyEstimated Maximum Penalty < 5 percentexcess amount$852,800 Between 5 and 10 percent 3 times excess amount up to next year’s state-shared income tax $3,343,300 ≥ 10 percent 5 times excess or 1/3 of next year’s state- shared income tax $1,114,400

12 State-Imposed Expenditure Limitation Exclusions  Expenditures for natural or man-made disasters subject to certain requirements regarding declaration of Governor, Town Council  possible voter-approval requirement  Expenditures made with certain revenues, including:  Bond and other long-term debt proceeds  Debt service  Interest income  Grants and donations  Quasi-external interfund transactions  Voter-approved use of revenue for land, buildings or improvements  HURF revenue in excess of FY 1979/80 ($64,189)  Unspent revenue from above carried forward

13 State-Imposed Expenditure Limitation Calculation

14 State-Imposed Expenditure Limitation, Budget Impact Impact of the State-Imposed Expenditure Limitation on the Town Budget 2015-2016 Budget Scenario Amounts Operating/Recurring$19,114,000 New Operating/Recurring$794,300 New Operating/Recurring$0 Capital/Non-recurring$7,982,900 Contingency$2,000,000 Total subject to Limit$29,891,200 Operating/recurring = based on FY 2014-2015 budget Capital/non-recurring = based on CIP

15 State-Imposed Expenditure Limitation Budget Impact Impact of the State-Imposed Expenditure Limitation on the Town Budget 2015-2016 Reduction Amounts Expenditures subject to Limit$29,891,200 State-imposed Limit$17,056,500 Budget reduction$12,834,700 Expenditures not subject to limit HURF = $3,121,800 Debt Service = $1,155,200 Grants

16 State-Imposed Expenditure Limitation Budget Impact 2015-2016 Reduction Scenario Amounts Budget reduction$12,834,700 Eliminate Capital/non-recurring($7,982,900) Eliminate Contingency($2,000,000) Remaining reduction needed (from Operating/recurring) $2,851,800

17 Council Work Session  Work Session with Town Council held to discuss options  Determine what options Council is willing to consider  Immediate options allowed under the State Constitution  Hold election on third Tuesday in May to ask voters to approve a specific amount above the State-Imposed Expenditure Limitation  Issue debt prior to expenditure  Discuss options to consider in future  Election asking voters to approve Alternative Expenditure Limitation Home Rule Option for four years beginning with FY2017-2018  Election asking voters to approve a Permanent Base Adjustment  Election asking voters to approve revenue used for acquiring and/or constructing land, buildings or improvements (Capital Projects Accumulation Fund)

18 “Shall the Town of Florence regain local control and exceed the state-imposed expenditure limitation for Fiscal Year 2015-2016 by $15,000,000, to allow the Town to adopt a budget no greater than the amount that was adopted for Fiscal Year 2014-2015?” May 19, 2015 Special Election –Ballot Language

19 A “YES” vote shall have the effect of continuing existing services by regaining local control of the expenditure of existing revenues by Florence residents. May 19, 2015 Special Election – Ballot Language

20 A “NO” vote shall have the effect of preventing the local control of expenditures by Florence residents and will require expenditures instead to be limited by the state-imposed expenditure formula based on Fiscal Year 1979-80 expenditures, resulting in cuts in existing Town services and programs. May 19, 2015 Special Election- Ballot Language

21 Election Process Thursday, November 13, 2014 Monday, November 17, 2014 Monday, December 01, 2014 Monday, December 15, 2014 Public Hearing Ad to Paper - Ad in Paper November 20 and 27, 2014 and December 4 and 11, 2014 Agenda items for December 1 meeting due Hold second Work Session with Council on Plan First Public Hearing on election Second Public Hearing on election Adjourn Regular meeting to Special Meeting. Council Vote – on Resolution 2/3 Vote Required

22 Special Election - Steps to Note The one-time Election can occur if two-thirds of the members of the council and majority of qualified electors approve in the fiscal year prior to the fiscal year in which the excess is to occur A council contemplating an election for a one-time override must hold two public hearings on the proposed action Notice of these hearings must be published once a week for at least two consecutive weeks in a newspaper of general circulation within the city or town Immediately following the second public hearing, the council must convene in special meeting and vote on the proposed excess expenditure A record of the vote and, if approved, the purposes of the excess expenditure must be published in a newspaper of general circulation within the city or town

23 Election Process Continues Monday January 5, 2015 Thursday January 29, 2015 Thursday March 13, 2015 Friday March 20 –April 20, 2015 Call the Election IGA for Election Services (All Mail Ballot) Call due to paper will appear in paper February 5 and 12, 2015. weekly – once a week 2 consecutive weeks Daily – 4 consecutive days Invitation to Submit Arguments Appears in Appear March 19 and 26 April 2 and 9, 2015 Receive Arguments in favor or against. Town Charges $250 retainer for translation and printing cost.

24 Special Election - Notes Call to election ARS 16-227. This provision requires content in the published call that addresses: The purpose of the election The date of holding the election The last day to register to vote in the election The proposed boundaries of the district The date the mail ballots are mailed to qualified electors of the district

25 Special Election - Notes There is a publicity pamphlet requirement for this election, and there are two unique provisions for the pamphlet. A.R.S. §41-563.02, subsection B, paragraph 8 calls for the city or town to prepare and publish the argument in support of the override. There is a 200 word limit. This requirement that the city or town supply the argument in favor conflicts with A.R.S. §9-500.14 which prohibits the use of city or town resources in an attempt to influence the outcome of an election. Arguments for or against may be submitted by others if received by deadline.

26 Special Election - Notes The second requirement that is different from other publicity pamphlets is one of timing. A.R.S. §41-563.02 sets a deadline of 30 days before the election for the submission of arguments. This is a logistical problem for many reasons. The most important is the relationship of this deadline to the deadline for distribution of mail ballots. The Town will hold ballots until the publicity pamphlets are mailed. The last possible mail date is 10 days before the election.

27 Election Process Continues Friday March 20 – April 20, 2015 Thursday April 16, 2015 Monday April 20, 2015 In this order Receive Arguments in favor or against Town Charges $250 retainer for translation and printing cost Sample Ballots prepared and posted Early ballots are ready to be distributed Deadline for submission of arguments Voter registration closes Publicity pamphlets mailed Ballots mailed Post on line

28 Election Process Continues Friday May 8, 2015 Friday May 15, 2015 Monday May 18, 2015 Tuesday May 18, 2015 Appoint and send letters to election board Pre-Election Campaign Finance Reports Due County on site early balloting ends Publish notice Logic and Accuracy Testing Instructional meeting with County and election board Logic and Accuracy Testing Election Day - last day to return your mail ballot

29 Election Process Continues Monday June 2, 2015 Thursday June 18, 2015 Tuesday September 8, 2015 Canvas the electionPost-Election Campaign Finance Reports due 500 threshold termination statements due

30 Voter Education and Outreach March 2, 2015 - Council Presentation at Regular Meeting Filmed and Aired on Channel 11 – Affixed to Town Election Page March 5, 2015 – HOA Meeting - Caliente Area March 5, 2015 – Rotary Club March 9, 2015 – Three sessions for employees March 16, 2015 - Chamber of Commerce Meeting March 18, 2015 – Lions Club March 19, 2015 – Sheriff’s Posse March 26, 2015 – Senior Center April – School Board – Anthem HOA – Florence Gardens HOA

31 Final Steps – Adopt a budget per ARS

32 Questions?

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