Permanent Base Adjustment-English

Arizona law establishes an expenditure limitation for each city and town in the state. The limitation is based on expenditures of local revenues from Fiscal Year (FY) 1979-1980, as adjusted each year for inflation and population growth.

The Town of Marana’s current base limit is $202,239. For FY 2022-2023, based on the Town’s current base limit, the formula results in an expenditure limit as follows:

• Base limit: $202,239
• Inflation adjustment: x 3.310
• Population adjustment: x 38.7186
• FY 22/23 expenditure limit: = $25,918,356

For comparison, the Town’s approved budget for FY 22/23 is $233,493,137.

Voters of a city or town may approve adjusting the expenditure limitation in a few different ways. Since 1985, Marana voters have approved the “Home Rule Option” every four years, which has provided the Town an increased, alternative expenditure limitation.

To allow for more certainty in budgeting, and to save administration and election costs associated with Home Rule elections every four years, the Town is now seeking a Permanent Base Adjustment. A Permanent Base Adjustment would change the Town’s $202,239 base limit established by the state in FY 79/80.

Proposition 495 is proposing to permanently adjust the Town’s base limit to $2,000,000 by adding $1,797,761 to Town's current base limit of $202,239. Replacing the Town’s current base limit with the proposed base limit of $2,000,000 would produce the following results:

• Base limit: $2,000,000
• Inflation adjustment: x 3.310
• Population adjustment: x 38.7186
• FY 22/23 expenditure limit: = $256,317,132

Under the proposed formula, the Town’s expenditure limitation for FY 22/23 would have been $199,844,183, excluding expenditures from certain revenue sources, such as bond proceeds, interest income, grants and intergovernmental revenues.

Like the Home Rule Option, a Permanent Base Adjustment will not raise or impose taxes and it does not allow the Town to spend more than it receives in revenue.

What is the difference between Home Rule and Permanent Base Adjustment?

Home Rule allows a City or town to adopt an alternative expenditure limitation (or “Home Rule”) with voter approval. Home Rule prescribes the method the city or town will use to calculate its expenditure limitation each year. Home Rules apply for four fiscal years, after which the expenditure limitation established by the state becomes effective unless voters adopt a new Home Rule.

Permanent Base Adjustment allows a city or town to permanently adjust its base limit with voter approval. The Economic Estimates Commission will use the adjustment to calculate the expenditure limitation beginning with the fiscal year immediately following the fiscal year that voters approve the Permanent Base Adjustment. Permanent Base Adjustments apply to all future years; however, voters may adopt additional adjustments.

Will Proposition 495 increase my taxes?

Proposition 495 will not increase taxes. The Permanent Base Adjustment does not authorize the Marana Town Council to create taxes, nor does it enable the Town to spend beyond the revenue it receives.

If Marana already uses the Home Rule Option, why is the Permanent Base Adjustment being brought before voters?

The Permanent Base Adjustment allows for more certainty in budgeting beyond a four-year planning period. It also saves administration and election costs every four years.

May a city or town under Home Rule adopt a Permanent Base Adjustment?

Yes. A city or town under Home Rule may adopt a Permanent Base Adjustment. The Economic Estimates Commission will use the adjusted base limit to calculate the city’s or town’s expenditure limitation for the year following a Permanent Base Adjustment’s voter approval. Until the Permanent Base Adjustment is applied, the city or town is still subject to Home Rule, if the Home Rule authorization has not expired.

What happens if the Permanent Base Adjustment is approved?

If approved, the Town will operate under the Permanent Base Adjustment option for budgeting its expenditures, and the Home Rule Option would no longer appear on the ballot every four years.

What happens if Permanent Base Adjustment is not approved?

If not approved, the Town will operate under the current, voter-approved, Home Rule Option for two more years until the next Home Rule election.

Expenditure Limitation – Permanent Base Adjustment Summary Analysis

Pursuant to the Arizona State Constitution, the Town of Marana seeks voter approval to permanently adjust the expenditure base of the Town as determined by the Economic Estimates Commission. If approved by the voters, the Town’s 1979-80 base expenditure limitation will be increased by $1,797,761 adjusted each future year for population and inflation growth since 1979-80.

With voter approval, in 2023-2024 the Town’s expenditure limitation will increase by $249,040,333, from $28,015,775 to $277,056,108. The Town will utilize the additional expenditure authority for any local budgetary purposes including Public Safety, Street and Road Maintenance, Development Services, Parks and Recreation, Tourism and Economic Development, Water and Water Reclamation Utility, Magistrate Court, Administration, Capital Improvements, Debt Service and Contingency Reserves. The dollar figures in this statement are estimates only.

If approved, the additional authorized expenditures will be funded from revenues obtained from federal, state and local sources.

Expenditure Limitation – Permanent Base Adjustment Detailed Analysis

Pursuant to the Arizona State Constitution, the Town of Town of Marana, as authorized by resolution NO. 2022-057, passed on June 7, 2022, will seek voter approval to permanently adjust the expenditure base of the Town as determined by the Economic Estimates Commission.

With voter approval, the Town will permanently increase the 1979-80 expenditure base of the Town by $1,797,761 beginning in fiscal year 2023-2024 and utilize the additional expenditure authority for all local budgetary purposes including Public Safety, Street and Road Maintenance, Development Services, Parks and Recreation, Tourism and Economic Development, Water and Water Reclamation Utility, Magistrate Court, Administration, Capital Improvements, Debt Service and Contingency Reserves.

If approved, the additional expenditures authorized will be funded from revenue obtained from federal, state and local sources. In 2023-2024, the Town’s expenditure limitation will increase by $249,040,333 from $28,015,775 to $277,056,108. In Fiscal Year 2023-2024, $5,176,597 of the revenue required to fund the additional authorized expenditures will be obtained from federal sources while $50,249,286 will be acquired through state sources and the remaining $221,630,225 will be funded through local revenue sources. All dollar figures in this analysis are estimates only.

In determining the revenue sources to fund the authorized additional expenditures, it is assumed that the federal, state and local revenues received by the Town will continue to be available and increase as they have in fiscal year 2021, excluding Federal relief funding related to the pandemic. In fiscal year ended June 30, 2021, federal revenue had decreased by approximately 76.5% while state revenue had increased by approximately 9.8% and local revenue had increased by approximately 12.1%. Although federal funding has decreased in fiscal year 2021, there is still sufficient revenue from federal, state and local sources to fund this permanent base adjustment.

Important Dates

• October 11, 2022: Last Day to Register to Vote
• October 12, 2022: Early Ballots Mailed & On-Site Early Voting Begins (Pima County Recorder’s Office)
• October 28, 2022: Last Day to Request a Ballot by Mail
• November 1, 2022: Last Day to Mail Back an Early Ballot
• November 4, 2022: Last Day for On-Site Early Voting
• November 8, 2022: General Election Day

Vote Centers

The Pima County Board of Supervisors approved the use of Vote Centers for the 2022 election cycle. Voters may vote at any Vote Center in Pima County. A list of Vote Center locations and an interactive map can be found at the following web addresses:

• https://webcms.pima.gov/UserFiles/Servers/Server_6/File/Government/Elections%20Department/Vote%20Centers/20682%20V22%20-%20%20Media%20Kit%20-%20Vote%20Centers%2011x17%20RTP.pdf
• Pima County - Early & Emergency Voting Sites

For the most up-to-date Vote Center location information, please contact the Pima County Elections Department.

Vote Centers will be open from 6:00 a.m. to 7:00 p.m. on November 8, 2022. Voters waiting in line to vote at 7:00 p.m. on Election Day will be allowed to cast a ballot. If you are not voting an early ballot, you must vote at a Vote Center.

Pima County will accommodate special needs. If special assistance for voters with disabilities is required, please call (520) 724-6830 or (520) 724-6871 (TTY) at least 72 hours before Election Day.