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ACMA Legislative ReportWinter 2014

Ken StrobeckLeague of Arizona Cities and Towns

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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

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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

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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

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Questions?

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ACMA Legislative ReportACMA Legislative Report~~Winter 2014~Winter 2014~

Craig SullivanExecutive Director

CSA Legislative PrioritiesCSA Legislative Priorities

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• 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.

CSA Priorities CSA Priorities

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: FY09-FY14 Aggregate Impact FY15 Restoration

SVP HURF CAF SVP* HURF^ CAF Total

Apache $15,068 $3,014,041 $1,923,260 $ - $618,596 $ 550,035 $1,168,631

Cochise $214,905 $3,619,392 $1,923,260 $64,480 $740,250 $ 550,035 $1,354,765

Coconino $231,818 $4,187,035 $1,923,260 $22,366 $857,022 $ 550,035 $1,429,423

Gila$0 $1,671,839

$1,923,260 $ - $342,221 $ 550,035 $892,256

Graham $0 $1,072,445 $1,923,260 $ - $217,826 $ 550,035 $767,861

Greenlee $0 $360,983 $1,923,260 $ - $73,107 $ 550,035 $623,142

La Paz $0 $1,665,847 $1,923,260 $ - $337,173 $ 550,035 $887,208

Maricopa $13,781,318 $48,704,843 $1,123,489 $3,641,071 $8,491,425 $249,772 $12,382,268

Mohave $385,699 $5,930,578 $1,923,260 $89,844 $1,036,766 $ 550,035 $1,676,645

Navajo $274,378 $3,627,440 $1,923,260 $71,974 $746,317 $ 550,035 $1,368,326

Pima $3,736,229 $21,650,854 $1,123,489 $910,035 $3,799,058 $259,772 $4,968,865

Pinal $1,077,725 $8,169,329 $1,923,260 $246,898 $1,388,137 $ 550,035 $2,185,070

Santa Cruz $282,672 $1,340,061 $1,923,260 $72,990 $272,364 $ 550,035 $895,389

Yavapai $1,474,083 $5,667,886 $1,923,260 $284,167 $992,791 $ 550,035 $1,826,993

Yuma $17,724 $4,749,697 $1,923,260 $17,724 $979,537 $ 550,035 $1,547,296

Total $21,491,618 $115,432,270 $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

Payment in Lieu of Taxes (PILT)Payment in Lieu of Taxes (PILT)

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State Fiscal Year 2013 PILT Payment Compared to Property Tax Rate PILT

Payment*Net Assessed

Value**Equivalent Property

Tax RateActual Primary

Property Tax Rate^PILT Payment as a Percent

of Property Tax Rate

Apache $1,595,835 $544,620,229 $0.29 $0.41 71.47%Cochise $1,986,080 $1,038,327,080 $0.19 $2.63 7.27%Coconino $1,572,295 $1,747,818,103 $0.09 $0.45 19.99%Gila $3,197,536 $490,120,381 $0.65 $4.19 15.57%Graham $2,636,873 $208,931,298 $1.26 $2.09 60.39%Greenlee $783,176 $378,114,177 $0.21 $0.62 33.41%La Paz $1,800,102 $227,958,224 $0.79 $1.86 42.46%Maricopa $2,781,842 $34,263,842,274 $0.01 $1.24 0.65%Mohave $3,238,586 $1,791,765,155 $0.18 $1.82 9.93%Navajo $1,417,672 $974,292,390 $0.15 $0.64 22.74%Pima $2,924,105 $8,073,937,734 $0.04 $3.42 1.06%Pinal $1,153,625 $2,153,783,739 $0.05 $3.80 1.41%Santa Cruz $910,527 $369,498,126 $0.25 $2.82 8.74%Yavapai $2,960,656 $2,405,473,723 $0.12 $1.64 7.50%Yuma $3,244,942 $1,186,605,732 $0.27 $1.88 14.55%Total/AverageTotal/Average $32,203,852 $55,855,088,365 $0.30 $1.97 15.43%

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.

*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

Payment in Lieu of Taxes (PILT)Payment in Lieu of Taxes (PILT)

FY2013 Annual PILT Payments – County by County Breakdown

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CSA Legislative AgendaCSA Legislative Agenda

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• 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)

Tax PolicyTax Policy

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• 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)

Fire DistrictsFire Districts

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• 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)

AnnexationAnnexation

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• 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)

Forest HealthForest Health

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• 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)

Courts / Criminal Justice Courts / Criminal Justice

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• 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)

Other IssuesOther Issues

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• 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)

Questions?Questions?

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