HomeMy WebLinkAboutRes 2016-40RESOLUTION 2016-40
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, AMENDING THE STANDARDS OF
FINANCIAL DISCLOSURE FOR LOCAL ELECTED OFFICIALS; AND
DECLARING AN EMERGENCY.
WHEREAS, pursuant to the provisions of ARIZ. REV. STAT. § 38-545, as amended, the
Town of Fountain Hills (the "Town") is required to adopt standards of financial disclosure
consistent with the provisions of Title 38, Chapter 3.1, Article 1, Arizona Revised Statutes, as
amended; and
WHEREAS, on January 16, 1990, the Town Council of the Town of Fountain Hills (the
"Town Council") adopted Resolution 1990-3, establishing standards for financial disclosure for
the Town (the "Original Financial Disclosure Standards"); and
WHEREAS, the Town Council has determined that the Original Financial Disclosure
Standards require amendment to be consistent with the disclosure forms provided by the State of
Arizona; and
WHEREAS, the amended financial disclosure requirements hereinafter adopted are, with
respect to the Town, consistent with such standards of financial disclosure within the meaning of
ARIZ. REV. STAT. § 38-545.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE TOWN OF FOUNTAIN HILLS, ARIZONA, as follows:
SECTION 1. The recitals above are hereby incorporated as if fully set forth herein.
SECTION 2. The following amended standards of financial disclosure for local elected
officials are hereby adopted.
SECTION 3. DEFINITIONS. In this Resolution, unless the context otherwise requires:
1. "Business" includes any enterprise, organization, trade, occupation or profession,
whether or not operated as a legal entity or for profit, including any business trust, corporation,
partnership, joint venture, LIMITED LIABILITY COMPANY or sole proprietorship.
2. "Compensation" means anything of value of advantage, present or prospective,
including the forgiveness of debt.
3. "Controlled business" means any business in which the local public officer or any
member of his household has an ownership or beneficial interest, individually or combined,
amounting to more than a fifty percent interest.
4. "Dependent business" means any business in which the local public officer or any
member of his household has an ownership or beneficial interest, individually or combined,
2833806.1
amounting to more than a TEN PERCENT INTEREST, AND DURING THE PRECEDING
CALENDAR YEAR THE BUSINESS RECEIVED FROM A SINGLE SOURCE MORE
THAN TEN THOUSAND DOLLARS AND MORE THAN FIFTY PERCENT OF ITS GROSS
INCOME.;.F4. f*...,o..,.e.,+ ;,,+o,.aS*
5. "Gift" includes any gratuity, special discount, favor, hospitality, service,
economic opportunity, loan or other benefit received without equivalent consideration and not
provided to members of the public at large. "GIFT" DOES NOT INCLUDE TRAVEL -
RELATED EXPENSES THAT ARE PUBLICLY REPORTED AS REQUIRED BY LAW OR
POLITICAL CAMPAIGN CONTRIBUTIONS THAT ARE PUBLICLY REPORTED
PURSUANT TO TITLE 16, CHAPTER 6.
6. "Local public officer" means a person holding an elective office of the Town.
7. "Member of household" means a local public officer's spouse and any minor
child of whom the local public officer has legal custody.
8. "TRAVEL -RELATED EXPENSES" MEANS ANY COSTS ASSOCIATED WITH
TRANSPORTATION, FOOD, LODGING AND REGISTRATION FEES AND OTHER
EXPENSES DIRECTLY RELATED TO TRAVEL TO, OR FROM, A MEETING,
CONFERENCE OR OTHER EVENT WHERE THE LOCAL PUBLIC OFFICER IS
PARTICIPATING IN THE LOCAL PUBLIC OFFICER' S OFFICIAL CAPACITY.
SECTION 4. DUTY TO FILE FINANCIAL DISCLOSURE STATEMENT;
CONTENTS; EXCEPTIONS.
A. In addition to other statements and reports required by law, every local public
officer, as a matter of public record, shall file with the Town Clerk on a form prescribed by the
Town Clerk a verified financial disclosure statement covering the preceding calendar year ending
December 31. The statement shall disclose:
1. The name and HOME OR WORK address of the local public officer,
WHETHER THE LOCAL PUBLIC OFFICER'S SPOUSE IS A MEMBER OF THE LOCAL
PUBLIC OFFICER'S HOUSEHOLD, THE NUMBER OF MINOR CHILDREN WHO ARE
MEMBERS OF THE LOCAL PUBLIC OFFICER'S HOUSEHOLD AND ALL NAMES AND
ADDRESSES UNDER WHICH EACH DOES BUSINESS. IF DISCLOSURE OF THE
IDENTITY OF THE LOCAL PUBLIC OFFICER'S SPOUSE OR MINOR CHILDREN IS
OTHERWISE REQUIRED, A LOCAL PUBLIC OFFICER MAY COMPLY WITH THE
IDENTIFICATION REQUIREMENT BY USING THE TERM "SPOUSE" OR "MINOR
CHILD," AS APPLICABLE.
2. The name and address of each employer and of each other source of
compensation other than gifts amounting to more than one thousand dollars received during the
preceding calendar year by the local public officer and members of his household in their own
names, or by any other person for the use or benefit of the local public officer or members of his
household, a description of the services for which the compensation was received and the nature
2833806.1
2
of the employer's business. This paragraph shall not be construed to require the disclosure of
individual items of compensation that constituted a portion of the gross income of the business
from which the local public officer or members of his household derived compensation.
3. For a controlled business, a description of the goods or services provided
by the business, and if any single source of compensation to the business during the preceding
calendar year amounts to more than ten thousand dollars and is more than twenty-five percent of
the gross income of the business, the disclosure shall also include a description of the goods or
services provided to the source of compensation. For a dependent business the statement shall
disclose a description of the goods or services provided by the business and a description of the
goods or services provided to the source of compensation from which the dependent business
derived the amount of gross income described in Section 13, paragraph 4 ABOVE. If the source
of compensation for a controlled or dependent business is a business, the statement shall disclose
a description of the business activities engaged in by the source of compensation.
4. The names and addresses of all businesses and trusts in which the local
public officer OR of members of his household, or any other person for the use or benefit of the
local public officer or members of his household, had an ownership or beneficial interest of over
one thousand dollars at any time during the preceding calendar year, and the name and addresses
of all businesses and trusts in which the local public officer or any member of his household held
any office or had a fiduciary relationship at any time during the preceding calendar year, together
with the amount or value of the interest and a description of the interest, office or relationship.
5. All real property interests and real property improvements, including
specific location and approximate size, located in the Town, in which the local public officer,
any member of his household or a controlled or dependent business held legal title or a beneficial
interest at any time during the preceding calendar year, and the value of any such interest, except
that this paragraph does not apply to a real property interest and improvements thereon used as
the primary personal residence or for the personal recreational use of the local public officer. If a
local public officer, any member of his household or a controlled or dependent business acquired
or divested any such interest during the preceding calendar year, he shall also disclose that the
transaction was made and the date it occurred. If the controlled or dependent business is in the
business of dealing in real property interests or improvements, disclosure need not include
individual parcels or transactions as long as the aggregate value of all parcels of such property is
reported.
6. The names and addresses of all creditors to whom the local public officer
or members of his household, in their own names or in the name of any other person, owed a
debt of more than one thousand dollars or to whom a controlled business or dependent business
owed a debt of more than ten thousand dollars which was also more than thirty percent of the
total business indebtedness at any time during the preceding calendar year, listing each such
creditor. This paragraph shall not be construed to require the disclosure of debts owed by the
local public officer or any member of his household resulting from the ordinary conduct of a
business other than a controlled or dependent business. Nor shall disclosure be required of credit
card transactions, retail installment contracts, debts on residences or recreational property
exempt from disclosure under paragraph S of this subsection, debts on motor vehicles not used
for commercial purposes, debts secured by cash values on life insurance or debts owed to
2833806.1
3
relatives. It is sufficient disclosure of a creditor if the name and address or a person to whom
payments are made is disclosed. If the local public officer, and any member of his household or
a controlled or dependent business incurred or discharged a debt which is reportable under this
subsection during the preceding calendar year, the report shall disclose that the transaction was
made and the date it occurred.
7. The identification and amount of each debt exceeding one thousand
dollars owed at any time during the preceding calendar year to the local public officer and
member of his household in their own names, or to any other person for the use or benefit of the
local public officer or any member of his household. The disclosure shall include the
identification and amount of each debt exceeding ten thousand dollars to a controlled business or
dependent business which was also more than thirty percent of the total indebtedness to the
business at any time during the preceding calendar year. This paragraph shall not be construed
to require the disclosure of debts from the ordinary conduct of a business other than a controlled
or dependent business. If the local public officer, any member of his household or a controlled
or dependent business incurred or discharged a debt which is reportable under this subsection
during the preceding year, the report shall disclose that the transaction was made and the date it
occurred.
8. The name of each source of any gift, or accumulated gifts from a single
source, of more than five hundred dollars received by the local public officer and members of his
household in their own names during the preceding calendar year, or by any other person for the
use or benefit of the local public officer or any member of his household except gifts received by
will or by virtue of intestate succession, or received by way of distribution from any intervivos or
testamentary trust established by a spouse or by an ancestor, of gifts received from any other
member of the household or relatives to the second degree of consanguinity. TRAVEL -
RELATED EXPENSES AND POLITICAL CAMPAIGN CONTRIBUTIONS SHALL NOT BE
CONSTRUED AS GIFTS IF OTHERWISE PUBLICLY REPORTED AS REQUIRED BY
LAW.
9. A list of all business licenses issued by the Town, or by any other
governmental agency which requires for i�6 THEIR issuance the consideration of the application
for such license by the Town Council of the Town, to, held by or in which the local public
officer or any member of his household had an interest at any time during the preceding calendar
year, including the name in which the license was issued, the type of business and its location.
10. A list of all bonds, together with their value, issued by the Town, any
industrial development authority of the Town or any nonprofit corporation organized or
authorized by the Town held at any time during the preceding calendar year by the local public
officer or any member of his household, which bonds issued by a single entity had a value in
excess of one thousand dollars. If the local public officer or any member of his household
acquired or divested any bonds during the preceding calendar year which are reportable under
this paragraph, the fact that the transaction occurred and the date shall also be shown.
2833806.1
4
11. THE NAME OF EACH MEETING, CONFERENCE OR OTHER EVENT
WHERE THE LOCAL PUBLIC OFFICER IS PARTICIPATING IN THE PUBLIC
OFFICER'S OFFICIAL CAPACITY IF TRAVEL -RELATED EXPENSES OF ONE
THOUSAND DOLLARS OR MORE WERE INCURRED ON BEHALF OF THE LOCAL
PUBLIC OFFICER AND THE TRAVEL -RELATED EXPENSES ARE NOT PAID BY THE
LOCAL PUBLIC OFFICER.
B. If an amount or value is required to be reported pursuant to this section, it is
sufficient to report whether the amount or value of the equity interest falls within:
1. Category 1, one thousand dollars to twenty-five thousand dollars.
2. Category 2, more than twenty-five thousand dollars to one hundred
thousand dollars.
3. Category 3, more than one hundred thousand dollars.
C. This section does not require the disclosure of any information that is privileged
by law.
D. The statement required to be filed pursuant to subsection A shall be filed by all
persons who qualified as local public officers at any time during the preceding calendar year on
or before January 31 of each year, with the exceptions that a local public officer appointed to fill
a vacancy shall, within sixty days following his taking of such office, file a financial disclosure
statement covering as his annual period the twelve month period ending with the last full month
prior to the date of his taking office, AND A LOCAL PUBLIC OFFICER WHOSE FINAL
TERM EXPIRES LESS THAN THIRTY-ONE DAYS INTO THE IMMEDIATELY
FOLLOWING CALENDAR YEAR MAY FILE THE LOCAL PUBLIC OFFICER'S FINAL
FINANCIAL DISCLOSURE AT THE SAME TIME AS THE DISCLOSURE FOR THE LAST
IMMEDIATELY PRECEDING YEAR.
E. The Town Clerk shall prepare written guidelines, forms and samples for
completing the financial disclosure statement required by this section. A copy of the guidelines,
forms and samples shall be distributed to each local public officer and shall be made available to
each candidate required to file a financial disclosure statement pursuant to Section 5 of this
Resolution.
F. ANY STATEMENTS THAT ARE REQUIRED TO BE FILED BY A LOCAL
PUBLIC OFFICER PURSUANT TO THIS RESOLUTION ADOPTED PURSUANT TO
A.R.S. § 38-545 MAY BE FILED IN AN ELECTRONIC FORMAT AS PRESCRIBED BY
THE SECRETARY OF STATE.
SECTION 5. DUTY TO FILE FINANCIAL DISCLOSURE STATEMENT BY
CANDIDATE FOR LOCAL PUBLIC OFFICE. A candidate for local public office as specified
in Section 4-3, paragraph 6 ABOVE, shall file a financial disclosure statement covering the
preceding twelve month period and containing the information described in Section 2-4 on a form
prescribed by the Town Clerk at the time of filing nomination papers.
2833806.1
5
SECTION 6. The immediate operation of the provisions hereof is necessary for the
preservation of the public peace, health and safety and an emergency is hereby declared to exist,
and this Resolution shall be in full force and effect from and after its passage by the Town
Council and it is hereby exempt from the referendum provisions of the constitution and laws of
the State of Arizona.
SECTION 7. The Mayor, the Town Manager, the Town Clerk and the Town Attorney
are hereby authorized and directed to take all steps and execute all documents necessary to carry
out the purpose and intent of this Resolution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills,
Arizona, December 15, 2016.
FOR THE TOWN OF FOUNTAIN HILLS:
mda M. Kava agh, May
REVIEWED BY:
Grady E. Mi ler, own Manager
2833806.1
6
ATTESTED TO:
12 UIOAFAME�AWNZ�
11,101 a, mumme-W.W.0
4 Af
APPROVED AS TO FORM:
Andrew J. McGuire, Town Attorney