City of chandler Home RULE February 22, 2018 GFOAz Winter Conference

Home Rule Origin State Law Effective June 3, 1980 for Cities and Towns to Limit Municipal Spending Maximum Spending Limit Formula Fiscal Year 1979-80 Expenditures Population Increase GDP Inflation Increase Allowable Exclusions Alternatives to Formula: One-Time Override Local Alternative Expenditure Limitation (Home Rule) Permanent Adjustment of Base Limit

Home Rule Provisions Allows City to Override State-Imposed Alternative Expenditure Limitation Provides Flexibility to Establish Budget Based on Anticipated Revenues, Programs and Services Based on Existing Income Sources Approval Does Not Authorize Increases to Tax Rates or Revenues Failure Does Not Cause Tax Rates or Revenues to Decrease Authority Re-established Every 4 Years If Vote Fails, 2 Year Waiting Period Before Next Vote

Chandler Home Rule Process Publish 2 Notices of Public Hearing Dates Conduct 2 Public Hearings Prior to Council Action Approve Resolution by 2/3 Council Majority Vote to Place Home Rule on Ballot Publish Record of Council’s Vote Submit Calculations to Auditor General for Approval Hold Public Vote (Primary or General Election)

Chandler’s Last Home Rule Election Financial Implications FY 2015-16 State Computed Spending Limit (FY 1979-80 budget x growth factor x inflation factor) City’s FY 2015-16 Anticipated Revenues with Allowable Spending Exclusions ($911 million Adopted Budget) Difference of $104,124,300 in FY 2015-16 Spending Authority Not Available Without Approval of Home Rule Base Calculation + Exclusions Total $ 220,971,405 $ 246,384,295 $ 467,355,700 Base Calculation + Exclusions Total $ 325,095,705 $ 246,384,295 $ 571,480,000

Chandler’s Last Home Rule Election Potential Impacts if Chandler’s 2014 Home Rule Election Failed Reductions in Street Maintenance Funding Reductions in Public Safety Funding Deferral or Cancellation of Capital Projects (Arterial Street Improvements, Construction of Neighborhood Parks, etc.) Reductions to Recreation, Aquatics and Library Programs

Chandler’s Last Home Rule Election Used Independent Spokesperson(s) Interfaced with Public and Educated Voters Launched Print/Media Campaign Encouraged Submittal of Publicity Pamphlet Arguments Supporting Home Rule Councilmembers Chamber of Commerce Employee Bargaining Units

Chandler’s 2018 Election Schedule Date Action April 12, 2018 Conduct Public Hearing #1 April 26, 2018 Conduct Public Hearing #2 (following Public Hearing #2) Council Votes on Resolution April 27, 2018 Publish Record of Vote April 30, 2018 Financial Information Submitted to Auditor General May 10, 2018 Council Adopts Resolution Calling Election June 1-8, 2018 Publicity Pamphlet Draft Submitted to Auditor General August 28, 2018 Public Vote - Primary Election September 13, 2018 Canvass Election – City Clerk Submits Results to Auditor General

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