Discussion and possible action on any and all matters regarding Resolution No. 2322. A resolution of the City of San Luis proposing an Alternative Expenditure Limitation and that it be submitted to the voters of the City of San Luis at the general election scheduled for November 5, 2024. (Roula Encinas, Acting Finance Director)

[This item requires five (5) votes in favor to refer the matter to the voters under the Arizona Constitution Article 9 § 20(9).]

The Alternative Expenditure Limitation, also known as the Home Rule Option
Rather than using State-imposed expenditure limitations on cities and towns, local control through an alternate expenditure limitation (Home Rule Option) is permitted under the Arizona Constitution Article 9 § 20(9). A detailed financial analysis for a proposed alternative spending limitation is attached. The Auditor General reviews this analysis before the proposed amount goes to the voters.

The process of submitting to the voters
Arizona State Constitution Article 9 § 20(9) permits the submission to the voters who are residents of the city an Alternative Expenditure Limitation, the "Home Rule Option" for the municipality. The process to submit the Home Rule Option to the San Luis voters on November 5, 2024, General Election is:

• to hold two (2) properly noticed public hearings (which were noticed and set for July 3 and July 10, 2024),
• for the City Council to convene in a special meeting immediately after the second public hearing, and 
• for the City Council to have five (5) favorable votes to place the Home Rule option on the ballot. 

Deadline for statement for and against

Statements for and against inclusion in the ballot pamphlet must be submitted by August 7, 2024, at 6:00 p.m. to the City Clerk.

Process after Home Rule goes to the Voters

The Local Alternative Expenditure Limitation (Home Rule Option) allows a local determination of the expenditure limitation to equal the annual budget, which is vetted through a public process.

• Approval of the Home Rule Option does not authorize increases to tax rates or revenues.
• Failure of the Home Rule Option does not cause tax rates or revenues to decrease but does limit the city spending to the state-imposed limit, which does not reflect the desires regarding programs and services at the local San Luis level.

If the voters approve the Home Rule Option, then as part of the annual budget process, the City Council will annually adopt the voter-approved Alternative Expenditure Limitation for four(4) consecutive fiscal years starting the fiscal year after adoption (which will start July 1, 2025).