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ACMA Legislative Report Winter 2014

Ken Strobeck League of Arizona Cities and Towns

Legislative Stats

• • • • • • Leadership still in place; no new committee chairs Two new members: – Senate: Dallesandro replaces Lopez – House: Demion Clinco replaces Dallesandro Senate Bill Deadline: Monday, Feb. 3 House Bill Deadline: Monday, Feb. 10 Bill pace—slightly slower than recent years Budget negotiations reportedly already underway; may signal short session 3

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City & Town Bills

• • • SB1413: Electricity Tax Exemption – Eliminates State and Local TPT tax on electricity sales for power used in: • • Manufacturing Smelting SB1161: Municipal Policies; authority – Voluntary “charter” provisions SB1151: Chickens – A chicken (or fowl) in every yard

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City & Town Bills (cont.)

• • • • SB1307: Fee Consultant; Indemnity Agreement – Requires indemnity agreement with impact fee consultants HB2091: Just Compensation; Tolling; Time – Adds time to the length of Prop 207 appeals Exercise of Religion: HB2153, SB1062 – Private transactions vs. public regulation SB1405: Public employee misconduct; civil action

City & Town Bills (cont.)

• • • • • • • •

GOOD BILLS

Annexation: HB2126; HB2148; HB2330; SB1210; workgroup on “streamlined” process HB2378: Municipal Taxes and Fees; Prohibition HB2387: SLIDs HB2050: ASRS Membership; Section 218 HB2203: ASRS/PSPRS; Board Membership HB2178: LTAF Restoration Budget: HURF Restoration 6

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Questions?

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ACMA Legislative Report

~Winter 2014~

Craig Sullivan

Executive Director

CSA Legislative Priorities

• Eliminate payments to the Arizona State Hospital (ASH) for the Sexually Violent Persons (SVP) population • Re-establish the county share of lottery revenues for all 15 counties • $550,000 for rural counties • $250,000 for urban counties • Increase investment in transportation infrastructure, by: • Stopping the diversion of local government HURF revenues • Identify and enact enhanced revenue options and efficiencies

In addition to the restoration of HURF, CSA urges the legislature to work with stakeholders to identify and enact revenue enhancements for the existing HURF distribution system, and to pursue policies that improve efficient utilization of transportation resources.

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: Apache Cochise Coconino Gila Graham Greenlee La Paz Maricopa Mohave Navajo Pima Pinal Santa Cruz Yavapai Yuma Total

CSA Priorities

FY09-FY14 Aggregate Impact SVP

$15,068 $214,905 $231,818

HURF

$3,014,041 $3,619,392 $4,187,035

CAF

$1,923,260 $1,923,260 $1,923,260 $1,923,260 $0 $0 $0 $0 $13,781,318 $385,699 $274,378 $3,736,229 $1,671,839 $1,072,445 $360,983 $1,665,847 $48,704,843 $5,930,578 $3,627,440 $21,650,854 $1,077,725 $282,672 $8,169,329 $1,340,061 $1,474,083 $5,667,886 $17,724 $4,749,697 $21,491,618 $115,432,270 $1,923,260 $1,923,260 $1,923,260 $1,123,489 $1,923,260 $1,923,260 $1,123,489 $1,923,260 $1,923,260 $1,923,260 $1,923,260

SVP*

$ $64,480 $22,366 $ $ $ $ $3,641,071 $89,844 $71,974 $910,035 $246,898 $72,990 $284,167 $17,724

FY15 Restoration HURF^

$618,596 $740,250 $857,022 $342,221 $217,826 $73,107 $337,173 $8,491,425 $1,036,766 $746,317 $3,799,058 $1,388,137 $272,364 $992,791 $979,537

CAF

$ 550,035 $ 550,035 $ 550,035 $ 550,035 $ 550,035 $ 550,035 $ 550,035 $249,772 $ 550,035 $ 550,035 $259,772 $ 550,035 $ 550,035 $ 550,035 $ 550,035

Total

$1,168,631 $1,354,765 $1,429,423 $892,256 $767,861 $623,142 $887,208 $12,382,268 $1,676,645 $1,368,326 $4,968,865 $2,185,070 $895,389 $1,826,993 $1,547,296 $27,248,998 $5,421,550 $20,892,590 $7,659,999 $33,974,139

*Estimated amount using FY12 actual billings ^Assumes FY14 HURF sweep of $120 million is completely eliminated

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Payment in Lieu of Taxes (PILT)

The purpose of PILT is to offset losses in tax revenue and to reimburse counties for services provided on, or associated with federal public lands.

Apache Cochise Coconino Gila Graham Greenlee La Paz Maricopa Mohave Navajo Pima Pinal Santa Cruz Yavapai Yuma Total/Average State Fiscal Year 2013 PILT Payment Compared to Property Tax Rate PILT Payment*

$1,595,835 $1,986,080 $1,572,295 $3,197,536 $2,636,873 $783,176 $1,800,102 $2,781,842 $3,238,586 $1,417,672 $2,924,105 $1,153,625 $910,527 $2,960,656 $3,244,942 $32,203,852

Net Assessed Value**

$544,620,229 $1,038,327,080 $1,747,818,103 $490,120,381 $208,931,298 $378,114,177 $227,958,224 $34,263,842,274 $1,791,765,155 $974,292,390 $8,073,937,734 $2,153,783,739 $369,498,126 $2,405,473,723 $1,186,605,732 $55,855,088,365

Equivalent Property Tax Rate

$0.29

$0.19

$0.09

$0.65

$1.26

$0.21

$0.79

$0.01

$0.18

$0.15

$0.04

$0.05

$0.25

$0.12

$0.27

$0.30

Actual Primary Property Tax Rate^

$0.41

$2.63

$0.45

$4.19

$2.09

$0.62

$1.86

$1.24

$1.82

$0.64

$3.42

$3.80

$2.82

$1.64

$1.88

$1.97

PILT Payment as a Percent of Property Tax Rate

71.47% 7.27% 19.99% 15.57% 60.39% 33.41% 42.46% 0.65% 9.93% 22.74% 1.06% 1.41% 8.74% 7.50% 14.55% 15.43%

*PILT using actual FY13 payment reduced which was reduced by 5.1% due to sequestration **Net Assessed Value as reported in Arizona Department of Revenue (ADOR) Average Statewide Property Tax Rates 2012 ^Actual Primary Property Tax Rate as reported in ADOR Average Statewide Property Tax Rates 2012 Tax Year Report

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Payment in Lieu of Taxes (PILT)

FY2013 Annual PILT Payments – County by County Breakdown

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CSA Legislative Agenda

•

HB 2149

state parks; SLIF fund distribution (

Borrelli

) •

HB 2218

fire districts reorganization elections (

Fann

) •

HB 2224

sale of fireworks; counties (

Fann

) •

HB 2240

developmental disabilities; client income; retention (

Brophy-McGee

) •

HB 2320

county seals; approval of use (

J. Pierce

)/

SB 1116

county seal; board approval

(McGuire)

•

HB 2531

court-ordered evaluation services; payment

(Brophy-McGee)

•

SB 1271

county liens; abatements

(Ward)

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Tax Policy

•

HB 2379

special districts; secondary levy limits (Olson) •

HB 2386

special districts; elections; financing; limits (

Olson

) •

SB 1264

county motor vehicle fuel taxes

(Farley)

•

SB 1413

taxes; manufacturers’ electricity sales; exemption

(Yarbrough)

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Fire Districts

•

SB 1231

countywide fire districts (

Crandell

) •

SB 1348

special districts; audits; budgets; boards (

Crandell

) •

SB 1387

fire districts; board size; formation (

Crandell

) •

SB 1459

fire districts; directors; requirements; modifications (

Crandell

) 16

Annexation

•

HB 2126

municipal annexation; size; exception (

Pratt

) •

HB 2148

municipalities; counties; transfer; right-of-way (

Borelli

) •

HB 2330

municipalities; deannexation; public right-of-way (

Livingston

) •

SB 1210

municipalities; county park annexation (

Griffin

) 17

Forest Health

•

HB 2536

best land management practices; appropriation (

Otondo

) •

HB 2578

municipalities; counties; wildland-urban interface regulation (

Pratt

) •

SB 1268

natural resource protection fund (

Pierce

) •

SCR 1007

wildfires; forest management (

Griffin

) 18

Courts / Criminal Justice

•

HB 2463

Arizona sentencing commission (

Farnsworth

) •

HB 2457

mental health; veterans courts; establishment (

Farnsworth

) •

HB 2460

probation; community supervision; search; seizure (

Farnsworth

) •

HB 2461

probation officers; authority (

Farnsworth

) 19

Other Issues

•

HB 2013

counties; flood control districts; rules

(Ugenti)

•

HB 2225

county medical examiner; autopsies; images (

Fann

) •

HB 2178

lottery; funding; LTAF; restoration (

Orr

) •

SB 1357

county boundary change; vote (

Griffin

) •

SB 1483

county supervisors; population threshold; membership (

Griffin

) •

SB 1405

public employee misconduct; civil action (

Murphy

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Questions?

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