5/8/12

Fiscal Year 2013 Recommended Budget Discussion: Council Member Fimbres Questions Dated 5/8/12 with Staff Responses in Bold

How does the "Home Rule Initiative," which was not approved by the voters in 2009, play into this proposed budget? Since the Home Rule Initiative was not approved by the voters, the City now falls under the expenditure limitation approved by Arizona voters on June 3, 1980. Where does this proposed budget fit on the scale of the limitations placed without the "Home Rule Initiative," in terms of what is being proposed and the ceiling of a spending limit the City is under? The amount of the City's expenditure limitation for FY 2013 is $650,408,944. The limitation applies to expenditures from local revenues (e.g., local taxes, state-shared revenues, charges for services, licenses and permits, fines and forfeitures, impact fees). Allowable expenditure exceptions include federal and state grants, debt service payments on long-term obligations, reimbursement from agencies for services provided, interest earnings and internal charges between city funds. The City's adopted budget for those expenditures subject to the States limitation will be at a level that is below the limitation amount. Some of the City departments have in their budgets "grant capacity," can it be explained how it factors in the budget, in terms of the proposed budget and if the capacity is not reached or any "grant capacity" funds are received? ARS 42-17106 requires that no expenditures be made for a purpose not included in the adopted budget in any fiscal year in excess of the amount specified for each purpose in the budget. Therefore, departments that anticipate receiving grants for the fiscal year put into the budget expenditure capacity so that they may begin spending on the grants when awarded. Unused budget capacity is reduced during the fiscal year. How much of the overall "General Fund" budget proposed are "General Funds Restricted?" In the FY 2013 Recommended Budget, General Fund restricted expenditures are $19,191,750. This includes $9,416,000 for the COPs debt restructuring.