An overview of the expenditure limit in Paradise Valley

Arizona’s expenditure limitation laws ensure that you, the voter, decide the level of local government that is right for your community.

Dawn-Marie Buckland

Dawn-Marie Buckland

On Nov. 8, Paradise Valley voters will be given the choice to permanently adjust the expenditure base. The original limitation sets the base at the amount that was budgeted in fiscal year 1979-80, then allows it to grow only by population and inflation each year to ensure that voters decide if they want something different.

Each city and town then goes to the voters to address the unique characteristics of each community.

Paradise Valley is very unique. Resorts drive the majority of the town’s growth but are not included in the population adjustment. As Paradise Valley resorts continue to develop and flourish, they generate the revenue to cover their additional costs, but voters still need to approve the legal authority to spend it.

These revenues can be used to pay for sewer and police services as well as associated capital improvements.

The Town also faces an $18 million unfunded public safety pension liability. Recent legislation has fixed the pension structure moving forward, but the Town will continue to be assessed 8 percent each year until the outstanding balance is paid.

With the current expenditure limitation, many expenditures such as additional liability payments have been deferred while the town’s reserves continued to grow. Should voters choose to approve the updated expenditure limitation, existing funding is available to begin paying down the police pension unfunded liability.

Local government is personal and individual. Arizona provides voters the opportunity to determine the right level of government for each specific community.

On Nov. 8, Paradise Valley voters will decide through Proposition 499 whether to increase the town’s permanent expenditure base to accommodate anticipated expenditures such as those for resort growth and unfunded police pension liabilities.

Editor’s note: Ms. Buckland is the administration and government affairs director for the Town of Paradise Valley

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