By Councilwoman Betty Janik
Prop 491 asks voters to approve a $22M adjustment to the base expenditure limit. This amount is
calculated and regulated by the state.
The ballot language (tagline text) with the $22M request is standard text used by Scottsdale in the past
along with all other cities. Additionally, Arizona League of Cities and Towns provides this draft ballot
language.
The spending limit for Scottsdale is based on the limit set by the State of Arizona back in 1979. This
spending limit is adjusted annually for inflation and population growth. Additionally, our expenditure
limit was increased by over 40% in both 1998 and 2006. The 1998 increase lasted 8 years and the 2006
increase has lasted over 10 years due to the great recession and pandemic which reduced our revenues
and expenses. We have gone 18 years without an adjustment. Of 14 area cities, there is only one city
with a lower expenditure limit per capita than Scottsdale, we are due for a raise.
Our FY 24/25 Expenditure Limitation is $613,422,568. With the passage of Prop 491, the permanent
base adjustment will increase our expenditure limit by 44% from $613M to $884M. Actual expenditures
are NOT going up by 44% next year. The new limit is expected to last about 10 years as we incur new
operating expenses over time.
All expenses are subject to the Expenditure Limit except 8 categories with the primary one being capital
infrastructure (ex., our bond projects) that we own and operate. Also excluded are debt service, federal
and state grants, HURF (highway) funds above 1.47M, most interest earnings, internal charges, fire
insurance/tort judgements, and special districts.
This is NOT a tax or a bond override. This simply allows us to spend funds we have.
Examples of necessary services that we have funding for, but won’t be able to fund unless the spending
limit is increased:
1. Ambulances and their operational expenses.
2. PSPRS payments for which we have $50M set aside to pay down the police pension liability.
3. New facilities operating costs for voter approved bond financed projects that opened since 2006
such as trailheads, parks, sports fields.
NOTE: This measure was referred to the voter with City Council unanimous vote 7/0.
Vote Yes 491 to enable the city to meet current and forecasted needs for services and programs
with existing revenue sources.
Respectfully,
Betty
Scottsdale City Councilwoman Betty Janik