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ACMA Legislative Report Winter 2014 Ken Strobeck League of Arizona Cities and Towns 2

Legislative Stats Leadership still in place; no new committee chairs Two new members: – Senate: Dallesandro replaces Lopez – House: Demion Clinco replaces Dallesandro Senate Bill Deadline: Monday, Feb. 3 House Bill Deadline: Monday, Feb. 10 Bill pace—slightly slower than recent years Budget negotiations reportedly already underway; may signal short session 3

City & Town Bills SB1413: Electricity Tax Exemption – Eliminates State and Local TPT tax on electricity sales for power used in: Manufacturing Smelting SB1161: Municipal Policies; authority – Voluntary “charter” provisions SB1151: Chickens – A chicken (or fowl) in every yard 4

City & Town Bills (cont.) SB1307: Fee Consultant; Indemnity Agreement – Requires indemnity agreement with impact fee consultants HB2091: Just Compensation; Tolling; Time – Adds time to the length of Prop 207 appeals Exercise of Religion: HB2153, SB1062 – Private transactions vs. public regulation SB1405: Public employee misconduct; civil action 5

City & Town Bills (cont.) GOOD BILLS Annexation: HB2126; HB2148; HB2330; SB1210; workgroup on “streamlined” process HB2378: Municipal Taxes and Fees; Prohibition HB2387: SLIDs HB2050: ASRS Membership; Section 218 HB2203: ASRS/PSPRS; Board Membership HB2178: LTAF Restoration Budget: HURF Restoration 6

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ACMA Legislative Report ~Winter 2014~ Craig Sullivan Executive Director

CSA Legislative Priorities 10 Eliminate payments to the Arizona State Hospital (ASH) for the Sexually Violent Persons (SVP) population Re-establish the county share of lottery revenues for all 15 counties $550,000 for rural counties $250,000 for urban counties Increase investment in transportation infrastructure, by: Stopping the diversion of local government HURF revenues Identify and enact enhanced revenue options and efficiencies In addition to the restoration of HURF, CSA urges the legislature to work with stakeholders to identify and enact revenue enhancements for the existing HURF distribution system, and to pursue policies that improve efficient utilization of transportation resources.

CSA Priorities 11 : FY09-FY14 Aggregate ImpactFY15 Restoration SVPHURFCAFSVP*HURF^CAF Total Apache $15,068$3,014,041 $1,923,260$ -$618,596$ 550,035$1,168,631 Cochise $214,905$3,619,392 $1,923,260$64,480$740,250$ 550,035$1,354,765 Coconino $231,818$4,187,035 $1,923,260$22,366$857,022$ 550,035$1,429,423 Gila $0$1,671,839 $1,923,260$ - $342,221 $ 550,035$892,256 Graham $0$1,072,445 $1,923,260$ -$217,826$ 550,035$767,861 Greenlee $0$360,983 $1,923,260$ -$73,107$ 550,035$623,142 La Paz $0$1,665,847 $1,923,260$ -$337,173$ 550,035$887,208 Maricopa $13,781,318$48,704,843 $1,123,489$3,641,071$8,491,425$249,772$12,382,268 Mohave $385,699$5,930,578 $1,923,260$89,844$1,036,766$ 550,035$1,676,645 Navajo $274,378$3,627,440 $1,923,260$71,974$746,317$ 550,035$1,368,326 Pima $3,736,229$21,650,854 $1,123,489$910,035$3,799,058$259,772$4,968,865 Pinal $1,077,725$8,169,329 $1,923,260$246,898$1,388,137$ 550,035$2,185,070 Santa Cruz $282,672$1,340,061 $1,923,260$72,990$272,364$ 550,035$895,389 Yavapai $1,474,083$5,667,886 $1,923,260$284,167$992,791$ 550,035$1,826,993 Yuma $17,724$4,749,697 $1,923,260$17,724$979,537$ 550,035$1,547,296 Total $21,491,618 $115,432,270$27,248,998$5,421,550$20,892,590$7,659,999$33,974,139 *Estimated amount using FY12 actual billings ^Assumes FY14 HURF sweep of $120 million is completely eliminated

Payment in Lieu of Taxes (PILT) 12 State Fiscal Year 2013 PILT Payment Compared to Property Tax Rate PILT Payment* Net Assessed Value** Equivalent Property Tax Rate Actual Primary Property Tax Rate^ PILT Payment as a Percent of Property Tax Rate Apache$1,595,835$544,620,229$0.29$ % Cochise$1,986,080$1,038,327,080$0.19$ % Coconino$1,572,295$1,747,818,103$0.09$ % Gila$3,197,536$490,120,381$0.65$ % Graham$2,636,873$208,931,298$1.26$ % Greenlee$783,176$378,114,177$0.21$ % La Paz$1,800,102$227,958,224$0.79$ % Maricopa$2,781,842$34,263,842,274$0.01$ % Mohave$3,238,586$1,791,765,155$0.18$ % Navajo$1,417,672$974,292,390$0.15$ % Pima$2,924,105$8,073,937,734$0.04$ % Pinal$1,153,625$2,153,783,739$0.05$ % Santa Cruz$910,527$369,498,126$0.25$ % Yavapai$2,960,656$2,405,473,723$0.12$ % Yuma$3,244,942$1,186,605,732$0.27$ % Total/Average$32,203,852$55,855,088,365$0.30$ % The purpose of PILT is to offset losses in tax revenue and to reimburse counties for services provided on, or associated with federal public lands. *PILT using actual FY13 payment reduced which was reduced by 5.1% due to sequestration **Net Assessed Value as reported in Arizona Department of Revenue (ADOR) Average Statewide Property Tax Rates 2012 ^Actual Primary Property Tax Rate as reported in ADOR Average Statewide Property Tax Rates 2012 Tax Year Report

Payment in Lieu of Taxes (PILT) FY2013 Annual PILT Payments – County by County Breakdown 13

CSA Legislative Agenda 14 HB 2149 state parks; SLIF fund distribution (Borrelli) HB 2218 fire districts reorganization elections (Fann) HB 2224 sale of fireworks; counties (Fann) HB 2240 developmental disabilities; client income; retention (Brophy-McGee) HB 2320 county seals; approval of use (J. Pierce)/SB 1116 county seal; board approval (McGuire) HB 2531 court-ordered evaluation services; payment (Brophy-McGee) SB 1271 county liens; abatements (Ward)

Tax Policy 15 HB 2379 special districts; secondary levy limits (Olson) HB 2386 special districts; elections; financing; limits (Olson) SB 1264 county motor vehicle fuel taxes (Farley) SB 1413 taxes; manufacturers’ electricity sales; exemption (Yarbrough)

Fire Districts 16 SB 1231 countywide fire districts (Crandell) SB 1348 special districts; audits; budgets; boards (Crandell) SB 1387 fire districts; board size; formation (Crandell) SB 1459 fire districts; directors; requirements; modifications (Crandell)

Annexation 17 HB 2126 municipal annexation; size; exception (Pratt) HB 2148 municipalities; counties; transfer; right-of-way (Borelli) HB 2330 municipalities; deannexation; public right-of-way (Livingston) SB 1210 municipalities; county park annexation (Griffin)

Forest Health 18 HB 2536 best land management practices; appropriation (Otondo) HB 2578 municipalities; counties; wildland-urban interface regulation (Pratt) SB 1268 natural resource protection fund (Pierce) SCR 1007 wildfires; forest management (Griffin)

Courts / Criminal Justice 19 HB 2463 Arizona sentencing commission (Farnsworth) HB 2457 mental health; veterans courts; establishment (Farnsworth) HB 2460 probation; community supervision; search; seizure (Farnsworth) HB 2461 probation officers; authority (Farnsworth)

Other Issues 20 HB 2013 counties; flood control districts; rules (Ugenti) HB 2225 county medical examiner; autopsies; images (Fann) HB 2178 lottery; funding; LTAF; restoration (Orr) SB 1357 county boundary change; vote (Griffin) SB 1483 county supervisors; population threshold; membership (Griffin) SB 1405 public employee misconduct; civil action (Murphy)

Questions? 21