If Oro Valley already uses the Home Rule option, why is the Permanent Base Adjustment being brought before voters now?
The Permanent Base Adjustment allows for certainty in budgeting beyond a four-year planning period. It also saves administration and election costs every four years.
What happens if Proposition 480 is not approved?
If not approved, the Home Rule Option would be in effect for two more years (through FY 2022-23), and future extensions of Home Rule would have to be approved by the voters in subsequent elections.
What happens if Proposition 480 is approved?
If approved, the Town would use the permanent base adjustment formula for budgeting expenditures. This would be permanent, and the Home Rule Option would no longer appear on the ballot.
Will Proposition 480 increase my taxes?
Proposition 480 will not increase taxes. If Proposition 480 passes, the only outcome is that it provides the Town of Oro Valley the ability to budget for and spend the revenues it already collects. The Permanent Base Adjustment option does not empower the Oro Valley Town Council to create new and additional taxes, nor does it enable the Town to spend beyond the revenues it receives.
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 constitutional 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 is the difference between Home Rule and Permanent Base Adjustment?
Home Rule—Arizona Constitution, Article IX, §20(9), allows a City or town to adopt an alternative expenditure limitation (Home Rule) with voter approval at a regularly scheduled election for the nomination or election of its governing board members. Home Rule prescribes the method the city or town will use to calculate its expenditure limitation each year. Voters must approve Home Rule before the first fiscal year to which it applies. Home Rules apply for four succeeding fiscal years, after which the constitutional expenditure limitation becomes effective unless voters adopt a new Home Rule.
Permanent Base Adjustment—Arizona Constitution, Article IX, §20(6), allows a city or town to permanently adjust its base limit with voter approval at a regularly scheduled general election or a nonpartisan election held for the nomination or election of its governing board members. The Economic Estimates Commission will use the adjustment to calculate the constitutional 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.