The City of Holbrook will be asking voters to approve an alternate expenditure limit known as home rule at an election to be held in March 2015.
If approved, city officials will be able to spend at the limits set by voters rather than those set by the state for the next four years. City Clerk Cher Reyes explained that the city has operated under voter-approved home rule for at least the last 12 years, but it was not placed on the 2013 ballot.
“Voters did approve it, but we let it expire and now we’re taking it back to the voters,” she noted.
Two hearings regarding the ballot measure are scheduled for 6 p.m. on Tuesday, Oct. 28, and Tuesday, Nov. 4, at city hall.
The state expenditure limit is based on 1980 numbers and does not take into account actual revenue, but is instead based on a fixed formula. Under that limitation, the city can only spend a certain amount, even if revenues far exceed that amount, and regardless of the need for specific services and improvements.
Home rule allows a city to ask voters to set an expenditure limit based on anticipated revenues and expenditures. It eliminates the state requirement and allows cities to create a budget based on individual needs rather than a one-size-fits-all formula.
Reyes explained that for the current fiscal year, the city had to ask voters to approve a one-time budget override. It is valid only for this year, and if it were not approved, the city could not spend as much as planned for street improvements.
According to Reyes, the home rule request can appear on the spring ballot thanks to a successful lawsuit by the Cities of Phoenix and Tucson. State law had sought to limit certain local elections to be held only in conjunction with statewide elections on even-numbered years. The law was successfully challenged, however, so the city can put the question of home rule to voters in March 2015.
“If voters approve the alternate expenditure limit in March, it becomes effective for the next four fiscal years,” Reyes said.
Home rule does not increase taxes or allow the city to spend more than it generates in revenue. If it is not approved, city spending would be limited based on 1980 levels and it could not spend any more than the state formula allows, regardless of how much revenue is received.
City Manager Ray Alley previously explained that if the city must abide by state limits rather than home rule, the number of street and infrastructure improvements would be drastically reduced, and cuts in other services may be necessary.
