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NOTICE OF THE
SPECIAL SESSION OF THE
FOUNTAIN HILLS TOWN COUNCIL
Mayor Linda M. Kavanagh
Vice Mayor Dennis Brown
Councilmember Nick DePorter
Councilmember Henry Leger
TIME: 5:30 P.M.
WHEN: TUESDAY, JANUARY 30, 2018
WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS
Councilmember Alan Magazine
Councilmember Art Tolis
Councilmember Cecil A. Yates
16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ
Councilmembers of the Town of Fountain Hills will attend either in person or by telephone conference call; a quorum of the Town's
various Commission, Committee or Board members may be in attendance at the Council meeting.
Notice is hereby given that pursuant to A.R.S. § 1-602.A.9, subject to certain specified statutory exceptions, parents have a right to
consent before the State or any of its political subdivisions make a video or audio recording of a minor child. Meetings of the Town
Council are audio and/or video recorded and, as a result, proceedings in which children are present may be subject to such recording.
Parents, in order to exercise their rights may either file written consent with the Town Clerk to such recording, or take personal
action to ensure that their child or children are not present when a recording may be made. If a child is present at the time a
recording is made, the Town will assume that the rights afforded parents pursuant to A.R.S. § 1-602.A.9 have been waived.
SPECIAL SESSION AGENDA
CALL TO ORDER AND ROLL CALL — Mayor Linda M. Kavanagh
1. CONSIDERATION of RESOLUTION 2018-01, ordering and calling a special election to be held
on May 15, 2018, for the purpose of submitting to the qualified electors of the Town of Fountain
Hills the question of levying a primary (ad valorem) property tax, in an amount not to exceed
$7,000,000.00.
2. ADJOURNMENT.
DATED this 25th day of January, 2018.
Bevelyn J. Bender, Town Clerk
The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-
5100 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in this
meeting or to obtain agenda information in large print format. Supporting documentation and staff reports furnished the Council
with this agenda are available for review in the Clerk's office.
z:\council packets\2018\spll80l3O\l8Ol3Oa.docx Last Printed: 1/25/2018 3:14 PM Page 1 of 1
D
NOTICE OF THE
SPECIAL SESSION OF THE
FOUNTAIN HILLS TOWN COUNCIL
Mayor Linda M. Kavanagh
Vice Mayor Dennis Brown
Councilmember Nick DePorter
Councilmember Henry Leger
TIME: 5:30 P.M.
WHEN: TUESDAY, JANUARY 30, 2018
WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS
Councilmember Alan Magazine
Councilmember Art Tolis
Councilmember Cecil A. Yates
16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ
Councilmembers of the Town of Fountain Hills will attend either in person or by telephone conference call; a quorum of the Town's
various Commission, Committee or Board members may be in attendance at the Council meeting.
Notice is hereby given that pursuant to A.R.S. § 1-602.A.9, subject to certain specified statutory exceptions, parents have a right to
consent before the State or any of its political subdivisions make a video or audio recording of a minor child. Meetings of the Town
Council are audio and/or video recorded and, as a result, proceedings in which children are present may be subject to such recording.
Parents, in order to exercise their rights may either file written consent with the Town Clerk to such recording, or take personal
action to ensure that their child or children are not present when a recording may be made. If a child is present at the time a
recording is made, the Town will assume that the rights afforded parents pursuant to A.R.S. § 1-602.A.9 have been waived.
SPECIAL SESSION AGENDA
CALL TO ORDER AND ROLL CALL — Mayor Linda M. Kavanagh
1. CONSIDERATION of RESOLUTION 2018-01, ordering and calling a special election to be held
on May 15, 2018, for the purpose of submitting to the qualified electors of the Town of Fountain
Hills the question of levying a primary (ad valorem) property tax, in an amount not to exceed
$7,000,000.00.
2. ADJOURNMENT.
DATED this 25th day of January, 2018.
Bevelyn J. Bender, Town Clerk
The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-
5100 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in this
meeting or to obtain agenda information in large print format. Supporting documentation and staff reports furnished the Council
with this agenda are available for review in the Clerk's office.
z:\council packets\2018\sp1180130\180130a.docx Last Printed: 1/25/2018 3:14 PM Page 1 of 1
Meeting Date: 1/30/2018 Meeting Type: Regular Session
Agenda Type: Regular Submitting Department: Administration
Staff Contact Information: Grady E. Miller, Town Manager
REQUEST TO COUNCIL (Agenda Language): CONSIDERATION OF Resolution No. 2018-01 ordering and calling a
special election to be held on May 15, 2018 for the purpose of submitting to the qualified electors of the Town of Fountain
Hills the question of levying a primary property tax in an amount not to exceed $7,000,000.00 and declaring an
emergency.
Applicant: N/A
Applicant Contact Information: N/A
Owner: N/A
Owner Contact Information: N/A
Property Location: N/A
Related Ordinance, Policy or Guiding Principle: 2017 Strategic Plan Goal #4: Ensure that Fountain Hills
Finances are Stable and Sustainable
Staff Summary (background): On November 21, 2017, the Council unanimously approved Resolution 2017-47
referring a $7 million primary property tax question to voters and set the date for a special election to take
place on May 15, 2018. The Town Council took this action to address the projected revenue shortfall that will
begin in fiscal year 2018-19 and resulting in an average deficit of $6.4 million over the next ten years. The
Council also agreed to eliminate the $36 annual environmental fee if voters approve the primary property tax
question. Due to a state law requiring a 60 day notice to taxpayers regarding proposed tax and fee
adjustments, the Town Council is required to vote a second time on referring a proposed primary property tax
and calling for a special election.
On October 10, 2017, the Town Council met in a special session to address the projected deficit of $6.4 million
over the next ten years that will begin in FY 2018-19. After numerous meetings were held leading up to the
special session, the Town Council unanimously agreed to a $7 million primary property tax that would be
referred to the voters for consideration. The Town Council arrived at this conclusion after reviewing other
financial options including a public safety fee, increasing the sales tax rate, establishing a fire district, and other
options. After reviewing these options, the Mayor and Council agreed that there were no other viable,
equitable, and sustainable revenue options available to the town to address the town's financial issues. The
Council directed staff to move forward in planning for a $7 million primary property tax question on the May
2018 ballot and to bring this proposal back for formal action at a subsequent Town Council meeting. The
Council also agreed to eliminate the $36 annual environmental fee if the primary property tax question passes.
Page 1 of 3
If approved, the primary property tax would generate additional funding to avoid revenue shortfalls and enable
the town to invest up to an additional $4 million annually in street reconstruction projects and major street
maintenance. The additional funding will also ensure that our police and fire services ($8 million in FY 17-18)
continue to be fully funded and help the town absorb future contract increases passed on to the town by Rural
Metro and Maricopa County Sheriffs Office.
The majority of full service communities in the Valley (and elsewhere in the state) have a primary property tax.
Scottsdale, Chandler, Tempe, Queen Creek, Phoenix, Glendale, Peoria, Avondale, Goodyear, Surprise, EI
Mirage, Buckeye, and others utilize a primary property tax to help fund municipal services. Those full service
communities without a primary property tax have other signficant revenue sources that are unique to their city
and are able to generate sufficient revenues without the need for a primary property tax.
The attached resolution orders and calls for a special election on May 15, 2018, for the purpose of referring the
proposed primary property tax to voters for consideration and also indicates that the $36 environmental fee will
be eliminated if the ballot item is approved.
Additional Background Information
During the Town Council Retreats held on February 11, 2016, and on February 9, 2017, Finance Director Craig
Rudolphy outlined financial challenges the Town will be facing starting in FY 2018-19. According to the
financial forecast for the next five years, the Town will be facing cumulative budget shortfalls averaging $6.4
million over ten years. The Town has significantly reduced staffing levels and contracted out a number of
services over the years to address this problem. In fact, at one time the Town of Fountain Hills had a total of
115 full-time equivalent employees. Today there are 55 full-time equivalent employees. Ina number of critical
service areas, staff members have taken on additional responsibilities to assume the additional workload and
service functions that were previously handled by former employees. The budget cuts enabled the Town to
pare down expenditures while preserving the core services and amenities that make Fountain Hills a desirable
place to live. If the Town's financial situation is not addressed in the next six months, then the Town will be
forced to look at more severe budget reductions for next year that will result in a reduction of service levels that
will affect our residents' quality of life in our community.
Summary of Financial Challenges Facing Fountain Hills:
• Increased costs for maintenance, repair and/or replacement of aging. infrastructure (roads, buildings, parks,
the Fountain, etc.)
• Dependence upon State shared revenues to fund operating expenditures
• Dependence upon economically volatile local sales tax to fund operational expenditures and capital
improvement projects
• Decreased share of State shared revenues due to increased population of surrounding communities
combined with negligible population growth or decreased population in Fountain Hills
• Lack of a growing, sustainable, and diversified revenue base to fund on-going operating costs
• Potential state legislation impacting revenues, e.g., sweeping of State shared revenue or unfunded mandates
• Maintaining adequate staffing levels to provide current service levels
• Public safety costs as an increasing proportion of total expenditures, resulting in less funding for other core
services
Risk Analysis (options or alternatives with implications): Other financial options were considered such as a
public safety fee, increased sales tax, a fire district, and other similar alternatives. None of these options
provide a viable, equitable, and sustainable revenue source like a primary property tax.
Fiscal Impact (initial and ongoing costs; budget status): $7 million
Budget Reference (page number): NIA
Funding Source: NA
If Multiple Funds utilized, list here:
Budgeted; if No, attach Budget Adjustment Form: NA
Page 2 of 3
Recommendation(s) by Board(s) or Commission(s): N/A
Staff Recommendation(s): Staff recommends approval of Resolution 2018-01
List Attachment(s): Resolution 2018-01 - Ballot Language and Argument Notice
January 2018 Presentation
Targeted dates for the Town's Public Information Plan
2018 Public Information Pamphlet and Sample Ballot
Answers to Frequently Asked Questions (FAQs)
Instructions and online calculator to estimate primary property tax
Information on Assistance Programs to help qualifying residents with property taxesB
SUGGESTED MOTION (tor council use): Move to approve Resolution 2018-01 ordering and calling a special
election to be held on May 15, 2018 for the purpose of submitting to the qualified electors of the Town of
Fountain Hills the question of levying a primary property tax in an amount not to exceed $7,000,000.00 and
declaring an emergency.
Prepared by:
NA 1/23/2018
Director's Approval:
A 1/23/2018
Ap oved:
Grady E. Miller, T ager 1/23/2018
Page 3 of 3
RESOLUTION NO. 2018-01
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN
OF FOUNTAIN HILLS, ARIZONA, ORDERING THAT A SPECIAL
ELECTION WILL BE HELD ON MAY 15, 2018, IN AND FOR THE
TOWN OF FOUNTAIN HILLS, ARIZONA, TO SUBMIT TO THE
QUALIFIED ELECTORS THE QUESTION OF WHETHER TO LEVY
A PRIMARY (AD VALOREM) PROPERTY TAX; AND DECLARING
AN EMERGENCY.
WHEREAS, the Mayor and Council of the Town of Fountain Hills, Arizona (hereinafter referred
to as the "Town"), determined that the Town should levy primary (ad valorem) property taxes in the
next and each succeeding tax year for the purposes permitted by applicable law; and
WHEREAS, the Town has determined that the Town's Environmental Program fee will no longer
be collected upon the voters' approval of the primary (ad valorem) property tax; and
WHEREAS, the Town must submit the proposed amount to be raised by primary (ad valorem)
property taxes for approval of the qualified electors of the Town;
WHEREAS, the Town may consolidate the special election (the "Election") with any other
election conducted in the Town on May 15, 2018;
WHEREAS, the Town Council previously approved by Resolution 2017-47 the submittal of the
primary (ad valorem) property taxes for approval of the qualified electors of the Town, but to
comply with Arizona law the Town must provide written notice of the tax sixty days prior to the
date the matter is approved; and
WHEREAS, the Town provided written notice of the proposed tax on November 27, 2017, and the
Town Council desires to reapprove the submittal of the primary (ad valorem) property taxes for
approval of the qualified electors of the Town;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN
OF FOUNTAIN HILLS, ARIZONA, AS FOLLOWS:
SECTION 1. Pursuant to Arizona Revised Statutes § 42-17056, as amended, the Town must
submit the proposed amount to be raised by primary (ad valorem) property taxes for approval of the
qualified electors of the Town; and
That the Election, in and for the Town, is hereby ordered and called to be held on
May 15, 2018, at which time there shall be submitted to the qualified electors of the Town the ballot
question of whether the Town is authorized to levy a primary (ad valorem) property tax not to
exceed $7,000,000.00.
SECTION 2. That the official ballot for the Election (hereinafter referred to as the "Official
Ballot") shall be in substantially the form attached hereto as Exhibit "A."
SECTION 3. That notice of the Election is ordered to be given by causing the mailing of an
informational/publicity pamphlet (hereinafter the "Information Pamphlet") with a sample of the
Official Ballot ("Sample Ballot") to every household within the Town in which a registered voter of
the Town resides, as shown by the Maricopa County Recorder's register. The Information
Pamphlet and Sample Ballot shall be mailed before the earliest date for receipt by registered voters
of the ballot for the Election
The Town Clerk is hereby directed to cause the preparation and distribution of
the Information Pamphlet and Sample Ballot for the Town pursuant to Arizona Revised Statutes §
42-17056. The officers of the Town are hereby authorized to prepare and deliver, or cause to be
prepared and delivered, to the Town Clerk the information necessary or appropriate for completing
the Information Pamphlet, including the amount proposed to be raised by primary (ad valorem)
property taxes in the first year such a tax is levied and that this amount will be the base for
determining levy limitations for the Town in subsequent years.
The Town Clerk is hereby directed and authorized to request arguments "For"
and "Against" the subject matter of the Election by providing the notice in the form and by the
means provided in the form attached hereto and marked Exhibit "B" (hereinafter referred to as the
"Request for Arguments"). The Town Clerk is authorized to revise the form of notice hereto as
necessary to comply with all applicable laws. Pursuant to Arizona Revised Statutes § 19-124, as
amended, the Town hereby sets the period from January 31, 2018, through 5:00 PM on February
14, 2018, as the period to submit arguments "For" or "Against" the question of whether the Town
should levy primary (ad valorem) property taxes in the next and each succeeding tax year.
The Town Clerk is authorized to publish a notice stating the deadline for filing
with the Town of arguments "For" or "Against" the subject matter of the Election for inclusion in
the Information Pamphlet. Such notice shall be published in a newspaper of general circulation
within the Town.
Each argument "For" or "Against" the subject matter of the Election shall be
submitted electronically through the Town's web site portal: www.fh.az.gov. Each argument must
include a sworn statement from the person sponsoring the argument; for organizations submitting
arguments, the sworn statement must be from two executive officers; and for political action
committees submitting arguments, the sworn statement must be from the committee's chairman or
treasurer.
Arguments are limited to 300 words in length. With each argument supporting or
opposing the subject matter of the Election, the sum of One Hundred Dollars and No/100 ($100.00)
shall be deposited with the Town to offset a portion of the proportionate cost of paper and printing
the argument in the Information Pamphlet. Electronic submittal of the payment shall be completed
at the end of the argument submittal process on the Town's web site: www.fh.az.gov.
SECTION 4. The Election will be conducted as an all -mail ballot election, and the votes cast
shall be counted and tabulated and the returns thereof will be made in the manner provided by law.
Only persons who are qualified electors of the Town will be allowed to vote. A qualified elector
must be registered to vote by April 16, 2018, to vote in the Election. Official Ballots for the
Election will be mailed to qualified electors beginning April 25, 2018.
SECTION 5. The Town Clerk is hereby authorized and directed to cause ballots to be printed
and delivered to the election boards to be furnished to the qualified electors. The Town Clerk is
hereby authorized and directed to enter into a contract with the Maricopa County Recorder to obtain
precinct registers for the Election, and to enter into an agreement with the Maricopa County
Elections Department to conduct the Election on behalf of the Town. The Town Clerk is hereby
authorized to take all necessary action to facilitate the Election.
SECTION 6. To comply with the Voting Rights Act of 1965, as amended, the following
information pertaining to this Election shall be translated into Spanish and posted, published and/or
recorded in each instance where posting, publication and recording of such proceedings are
required: this call of the election, ballot and any instructional materials, and the Information
Pamphlet.
SECTION 7. A Ballot Center shall be located at the Fountain Hills Community Center, 13001
N. La Montana Drive, Fountain Hills, Arizona 85268. The Ballot Center shall be open ten (10)
days prior to the Election between the hours of 10:00 AM and 6:00 PM. The Ballot Center shall be
open between the hours of 6:00 AM and 7:00 PM on the day of the Election.
SECTION 8. A sealed ballot drop-off box shall be located at the Fountain Hills Town Hall,
16705 E. Avenue of the Fountains, Fountain Hills, Arizona 85268. The sealed ballot drop-off box
shall be available beginning on April 25, 2018 between the hours of 7:00 AM and 6:00 PM,
Monday through Thursday.
SECTION 9. All expenditures as may be necessary to order, notice, hold and administer the
Election are hereby authorized, which expenditure shall be paid from current operating funds of the
Town.
SECTION 10. The election officials will forward the votes cast to the Town Council for
canvassing the results. The Mayor and Council will meet in the Fountain Hills Council Chambers
on a day that is within twenty (20) days after the Election date to canvass the returns of the
Election. The Mayor and Council will be governed by the vote of the majority on the question
submitted.
If the Election results authorize implementation of the primary (ad valorem)
property tax, a copy of the approved resolution shall be sent to the Arizona Property Tax Oversight
Commission, and Maricopa County shall be notified that the Town will be levying a property tax in
the fiscal year following the Election.
SECTION 11. That, by reason of the urgent need for the proceeds of the collection of the tax
herein sought to be authorized, the immediate operation of this Resolution is necessary for the pres-
ervation of the public peace, health and welfare, an emergency is hereby declared to exist and this
Resolution shall be in full force and effect from and after its passage and approval by the Mayor
and Council as required by law and is hereby exempt from the referendum provisions of the
Constitution and laws of the State of Arizona.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, on
January 30, 2018.
FOR THE TOWN OF FOUNTAIN HILLS:
Linda M. Kavanagh, Mayor
REVIEWED BY:
ATTESTED TO:
Bevelyn J. Bender, Town Clerk
APPROVED AS TO FORM:
Grady E. Miller, Town Manager Fredda Bisman, Interim Town Attorney
CERTIFICATION
I, Bevelyn J. Bender, the duly appointed Clerk of the Town of Fountain Hills, Arizona, do hereby
certify that the above and foregoing Resolution No. 2018-01 was duly passed by the Mayor and
Council of the Town of Fountain Hills, Arizona, at a regular meeting held on January 30, 2018, and
the roll call of the vote thereon was Ayes, Nays, and that the Mayor and
Councilmembers were present thereat.
Bevelyn J. Bender, Town Clerk
Town of Fountain Hills, Arizona
EX14TRTT A
OFFICIAL BALLOT
FOR SPECIAL ELECTION IN AND FOR THE TOWN OF FOUNTAIN HILLS,
ARIZONA ON MAY 15, 2018.
QUESTION
PURPOSE:
PRIMARY (AD VALOREM) PROPERTY TAX IMPLEMENTATION
Shall the Mayor and Council of the Town of Fountain Hills, Arizona, be authorized to levy a
primary (ad valorem) property tax not to exceed $7,000,000.00? If such amount is approved
by the voters, it will be the base for determining levy limitations for the Town for
subsequent fiscal years.
PRIMARY LEVY, YES ❑
PRIMARY LEVY, NO ❑
FXNTRTT R
REQUEST FOR ARGUMENTS "FOR" OR "AGAINST"
THE TOWN OF FOUNTAIN HILLS, ARIZONA
PROPERTY TAX QUESTION
Notice is hereby given that the Town of Fountain Hills will hold a Special Election as follows:
Special Election Tuesday, May 15, 2018
Question: Shall the Mayor and Council of the Town of Fountain Hills, Arizona, be
authorized to levy a primary (ad valorem) property tax not to exceed $7,000,000.00? If such
amount is approved by the voters, it will be the base for determining levy limitations for the
Town for subsequent fiscal years.
SUBMITTING ARGUMENTS. Pursuant to the Arizona Revised Statutes §§ 19-124 and 19-
141, as amended, the Town hereby sets the date of February 14, 2018, at the hour of 5:00
PM, as the deadline to submit arguments "For" or "Against" the Town's primary property tax
ballot question for inclusion in the Information Pamphlet.
Filing period to submit arguments: January 31, 2018, to 5:00 PM on February 14, 2018.
Each "For" or "Against" argument shall not exceed 300 words in length and shall contain the
sworn statement from the person sponsoring the argument. Any persons wishing to submit an
argument "For" or "Against" the property tax question may do so by submitting it electronically
through the portal available to the public on the Town's web site: www.fh.az.gov. If the
argument is sponsored by an organization, it shall contain the sworn statement of two executive
officers of the organization; or if sponsored by a political committee, it shall contain the sworn
statement of the committee's chairman or treasurer. The person or persons signing the
argument shall also identify themselves by giving their residence or post office address and a
telephone number, which information shall not appear in the Information Pamphlet.
Payment, in the amount of One Hundred Dollars and No/ 100 ($100.00), shall be deposited with
the Town to offset a portion of cost of paper and printing the argument and must be received
before the argument can be officially received as filed. Electronic submittal of the payment shall
be the final step when submitting the electronic "For" or "Against" argument on the Town's
web site.
This election shall be an all -mail ballot election. The last day to register to vote at this election
is Monday, April 16, 2018.
For more information, please contact the Town Clerk's office at: 16705 E. Ave. of the
Fountains, Fountain Hills, AZ 85268; telephone: 480-816-5115
Bevelyn J, Bender, Town Clerk Date
Published in the Fountain Hills Times: January 31, 2018 and February 7, 2018
TOWN OF FOUNTAIN HILLS
e"v
yT AIN
z
b
January 30, 2018
Major Expense Drivers
Major Drivers of Future Budgets
pavement management program
pavement replacement - new program
increased pavement maintenance
public safety
Rural/Metro
U4301
Capital Reserve
Facilities replacement funding
Fire Department
staffing for Station #3
operating costs
TOTAL
Annual Cost 10 Year Cost
$2M
$20M
$2M
$20M
$3,508,054 - 3% annual
$40M
increase
$3,715,447 - 5% increase
$47M
annually due to unfunded
PSPRS costs
$960K
$10M
$1.3M
$8.6M
$370K
$2.4M
$13.9M J$148M
10 Year Financial Projection
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24
-Total Revenues $18,690,617 $18,446,200 $19,279,826 $19,444,266 $20,516,556 $21,425,517 $21,830,558
Total Expenditures $19,563,047 $22,847,592 $24,525,484 $25,519,522 $28,388,520 $30,138,528 $28,827,455
FY24-25 FY25-26 FY26-27
$22,180,292 $22,648,155 $22,954,019
$30,574,918 $30,430,475 $31,426,714
3
$45
$40
$35
$30
a $25
$20
$15
$10
$5
10 Year Projection
FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 FY25-26 FY26-27
� Projected expenditures - 10 Year -Projected Revenue - 10 year
rd
RECAP — 10 Year Financial Projection
June
Projection
10
year
Operating Revenue
$186.9M
10
year
Projected Revenue
$222.OM
10
year
Operating Expenditures
$191.7M
10
year
Projected Expenditures
$286.5M
10
year
average projected revenue
$22.2M
10
year
average projected expenditure
$28.6M
10 year
deficit
average annual projected
<$6.4M>
$40.0
$35.0
$30.0
$25.0
$20.0
$15.0
$ 10.0
55.0
Long Term Financial Picture
(originally projected in 2006)
GENERAL FUND PROJECTED OPERATING REVENUES & EXPENDITURES
FY 2007 - FY2025
(in millions)
pp-
FY19 through FY25
® OPERATING EXPENDITURES --0— TOTAL REVENUE
Addressing the Revenue Shortfall Issue
• Over the past two years, the Town Council has studied the
revenue shortfall issue and evaluated the following options to
address the problem:
— Raise local sales tax rate
— Impose a public safety fee
— Levy a primary property tax
— Create a special district, such as a fire district or a
community facilities district
— Implement a franchise fee
— Increase Town fees
— Expenditures - Reduce service levels or staff
Addressing the Revenue Shortfall Issue
• At the Town Council meeting on October 10, 2017, the Town
Council unanimously came to the conclusion that the best
option for addressing the revenue shortfall was to ask voters
to approve a primary property tax of $7,000,000 annually
• A primary property tax
has
the
following advantages over
other options reviewed
by
the
Town Council:
— It is viable, equitable, and sustainable
— State law limits property tax increases
— Ease of collection and high collection rate
— Tax deductible versus a fee which is not
Primary Property Tax
• Consider primary property tax — would require a vote of the
residents
• FY 17-18 assessed valuation $444,649,617 for Fountain Hills
• (FY 16-17 valuation was $423,652,443 —increase of 5% for FY17-
18)
Primary Property Tax - continued
Impact of Property Tax (per annum)
Estimated Taxable
Value of Home
(Limited Property
Value — LPV)
Estimated Annual
Primary Property
Tax
Monthly Amount
$150,000
$236.14
$19.68
$250,000
$393.57
$32.80
$350,000
$551.00
$45.92
$450,000
$708.42
$59.04
$550,000
$865.85
$72.15
$750,000
$1,180.70
$98.39
Next Steps
• Develop a Public Information Plan
• Arrange and hold public information meetings
• Prepare Frequently Asked Questions (FAQs)
• Publish and distribute an information
pamphlet
Coordinate with Maricopa County Elections,
Assessor and Treasurer
9 Plan for all ballot -by -mail election for a Special
Election on May 15, 2018
Sources and Uses
Proposed
Sources and Uses of Primary Property Tax
SOURCE:
primary property tax amount
USES:
additional funding for street maintenance
offsetting of public safety costs (Rural metro and MCSO)
funding for Facilities Replacement Fund
replacement of environmental fee
$ 7,000,000
$ 4,000,000
$
1,500,000
$
1,000,000
$ 500,000
TOTAL $ 7,000,000
QUESTIONS.?
PUBLIC INFORMATION PLAN
Property Tax Web site available
1/31/2018
"For and Against" Arguments notice published in Times
1/31/18 & 2/07/18
Announce Town Halls at the Council Meeting
2/6/2018
1st Town Hall @ Community Center, Ballroom 1
2/07/18 @ 6:30 PM
"For and Against" Arguments - Electronic submission deadline
2/14/18 (a 5:00 PM
Town Council meeting - announce 2nd Town Hall
2/20/2018
First Post Card - Mailing
2/21/2018
Video Recording Begins Airing - set schedule
3/2/2018
2nd Town Hall @ Community Center, Ballroom 1
3/08/18 @ 9:00 AM
Second Post Card - Mailing
3/15/2018
Town Council meeting - announce 3rd Town Hall
3/20/2018
Publicity Pamphlets mailed around
4/10/2018
3rd Town Hall @ Community Center, Ballroom 1
4/11/18 @ 6:30 PM
LAST DAY to register to vote (by midnight)
4/16/2018
Maricopa County Recorder Fontes @ Council Meeting - Tentative
4/17/2018
Town Council meeting - announce LAST Town Hall & when ballots
mailed
4/17/2018
First day of early voting
4/18/2018
Hold Editorial Roundtable with the local newspaper
4/23/2018
Ballots Mailed and the ballot box available at Town Hall to deposit
voted ballots
4/25/2018
4th Town Hall a�, Community Center, Ballroom 4
4/30/18 @ 3:00 PM
Town Council meeting - Reminder for citizens to vote
5/1/2018
FH VOTE CENTER OPENS @ Community Center/Art Room - 5/5/18 - 5/15/18
Hrs: M -F, Sat & Su - all days open 10 AM - 6 PM - Ballot box
available to deposit voted ballots
ELECTION DAY - Vote Center Hours are 6 AM - 7 PM
5/15/2018
Official Canvass of the May 15, 2018 Election/ Special Council
Meeting
5/22/2018
Copy of certified resolution sent to the Property Tax Oversight
Commission (if successful); notify County of the tax levy
approved for the fiscal year following the election
5/23/2018
1/25/2018
TOWN OF FOUNTAIN HILLS, ARIZONA
INFORMATION PAMPHLET AND SAMPLE BALLOT
PRIMARY PROPERTY TAX
May 15, 2018
(Spanish version begins on page 9)
blo de FOUNTAIN HILLS
Folleto de Publicidad / Formato de la Boleta
Propuesta que se le presentard a los electores habilitados del
Pueblo de Fountain Hills, Arizona
ELECCION ESPECIAL
15 DE MAYO DE 2018
(La version en Espanol empieza en la pdgina 9)
IMPORTANT VOTER MESSAGE FROM THE
FOUNTAIN HILLS TOWN CLERK
To our Town of Fountain Hills voters:
GENERAL VOTING INFORMATION
May 15, 2018, the Town of Fountain Hills is conducting a
Ballot -By -Mail -Election.
All qualified Town electors as provided in A.R.S. §16-101,
who will be: (i) at least 18 years old on Tuesday, May 15, 2018,
(ii) who have resided in the of Town of Fountain Hills for at
least 29 days before the election, and (iii) who are registered to
vote or who's registration has been received by the Elections
Department of Maricopa County, Arizona prior to midnight,
the 29'i' day preceding the date of the Election.
Check your registration status, get registration information and
access online and printable registration forms at
http://maricot)a.vote. If you have questions on voter
registration status, please call the Maricopa County Recorder's
Office at 602-506-1511, or the Fountain Hills Town Clerk's
office at 480-816-5100.
INFORMATION PAMPHLET
Only one Information Pamphlet containing the sample ballot
will be mailed to each household in which a registered voter
resides. Please make the pamphlet available to all registered
voters in the household.
The Town of Fountain Hills, Arizona (the "Town") has prepared
this Information Pamphlet with Sample Ballot, and the pamphlet
contains the complete text of the primary property tax ballot
question, ballot format, official title, descriptive title, and the
question number, as well as arguments filed for and against the
question, if any. _ -
This Information Pamphlet is required byY-Arizona Revised
Statutes Section §42-17056 and has been prepared in order to
provide voters with factual information regarding the special
election ballot question.
Electors are urged to carefully read the information contained in
this Information Pamphlet so that you will be an informed
elector and fully prepared to exercise your right to vote.
BALLOT -BY -MAIL -ELECTION
Ballots will be mailed to all registered voters beginning,
Wednesday, April 25, 2018. The last day to register for the
Election is Monday, April 16, 2018.
Ballot Drop Off Location - Fountain Hills Town Hall,
located at 16705 E. Avenue of the Fountains, Fountain Hills,
AZ 85268, will serve as a designated ballot drop off location
beginning Wednesday, April 25, 2018, Monday through
Thursday, 7:00 AM to 6:00 PM.
Ballot Centers are also designated ballot drop off locations.
Voted mail ballots must be returned to the Maricopa County
Elections Department using their postage prepaid mailing
affidavit envelopes in order to be verified and counted.
REPLACEMENT BALLOTS
The Fountain Hills Community Center (Ballot Center) will be
open ten (I0)__days prior to the date of the Election, including
Saturdays and Sundays, for the purpose of replacing ballots
that have been lost, spoiled, destroyed or not received by the
elector, and for qualified electors to receive and vote a
replacement ballot in person.
- BALLOT CENTER HOURS OF OPERATION
Fountain Hills Community Center (Ballot Center)
• 13001 N. La Montana Drive, Fountain Hills, AZ 85268
Beginning Saturday, May 5, 2018, through Monday, May
14, 2018 - Voting Hours: 10:00 AM - 6:00 PM.
Maricopa County Recorder Offices (Ballot Centers):
• 510'South 3rd Avenue, Phoenix, AZ 85003;
Wednesday, April 18, 2018, through Monday, May 14,
.2018; Voting Hours: 8:00 AM - 5:00 PM (Monday -
___ Friday), and 8:00 AM - 5:00 PM (Saturday and Sunday)
111 South 3rd Avenue, Suite 102, Phoenix, AZ 85003
222 East Javelina Drive, Mesa, AZ 85210
Wednesday, April 18, 2018, through Monday, May 14,
2018; Voting Hours: 8:00 AM - 5:00 PM (Monday -
Friday)
Ballot Centers are also designated ballot drop off locations.
Other Ballot Centers are located throughout Maricopa County.
Visit the website: http://www.locations.Maricopa.Vote for a
complete list of Ballot Center locations and hours of operation
available or call (602) 506-1511.
ELECTION DAY — TUESDAY, MAY 15, 2018
The Fountain Hills Community Center (Ballot Center) and
any Ballot Center within Maricopa County will be open from
6:00 AM - 7:00 PM on Election Day.
Any qualified voter, who at 7:00 PM on Election Day is in the
line of waiting voters, shall be allowed to cast their ballot.
For compliance with the Federal Voting Rights Act, this
Information Pamphlet has been prepared in both English and
Spanish.
Sincerely,
/s/ Bevelyn J. Bender, Clerk
on behalf of the Mayor and Council of
the Town of Fountain Hills, Arizona
PURPOSE OF THE ELECTION
The Mayor and Council of the Town of Fountain Hills, Arizona
(the "Town"), passed and adopted on January 30, 2018,
Resolution No. 2018-01 calling an election to authorize the
Town to levy a primary (ad valorem) property tax in an amount
not to exceed $7,000,000. If such amount is approved by the
voters, it will be the base for determining levy limitations for
the Town for subsequent fiscal years.
The proceeds of the levy can be used for the operating expenses
of the Town. However, the Mayor and Council have declared
their intent to use the proceeds for road maintenance, public
safety, fire, and emergency medical services, and
environmental costs.
AMOUNT OF TAX TO BE AUTHORIZED
primary levy by dividing the property's Assessed Limited
Property Value by 100 and multiplying the result by the tax rate
of $1.XX.
The following tables show examples of this calculation.
RESIDENTIAL PROPERTY
(Assessed at 10% of Limited Property Value)
The tax impact on an owner -occupied residence valued by the
county assessor at $100,000 is estimated to be $157.43 per year.
Limited Property Net Assessed Estimated Estimated
Value ,LPV). LPV Annual Cost Monthly cost
The Prnnary Property Tax will be levied against the Net
Assessed Limited Property Value of each individual property
within the Town. The Assessed Limited Property Value -As
calculated as set forth below.
The Maricopa County Assessor assigns a_Full Cash Value to
each taxable property in the Town. The Full Cash Value should
approximate the market value of the property. Based ,on a
statutory formula that limits the amount of increase each:rte
the Assessor also determines the Limited Property Value dor _
each property. The Limited Property Value cannot exceed the T
Full Cash Value.
The Assessor then determines the Net Assessed Limited
Property Value (also referred to as the Net Assessed LPV) by
multiplying the Limited Property Value by the applicable
Assessment Ratio. The amount of tax on any property is
determined by applying the Primary Tax Rate, expressed as a
dollar amount per $100 of Assessed LPV, to -the Net Assessed
LPV of the property.
The estimated aggregate Net Assessed Limited Property Value
for fiscal year 2018-2099 of all taxable property in the Town is
$XXX,XXX,XXX. If the primary levy of up to $7,000,000 is
approved, the maximum tax rate is estimated at $ LXX per $100
of Net Assessed Limited Property Value.
The cost on any individual property will depend on that
property's Net Assessed LPV and the final tax rate. A property's
Net Assessed LPV is shown on the Assessor's Notice of
Valuation and on the Tax Bill from the Maricopa County
Treasurer. The Net Assessed LPV can also be found on the
Maricopa County Assessor's Office website. A property owner
can determine the estimated maximum tax impact of the Town's
The tax impact on commercial property valued by the county
assessor at $250,000 is estimated to be $708.44 per year.
Limited Property
$
100,000
$
10,000
$
157.43
$
13.12
The amount to be raised by the primary property tax in fiscal
$
200,000
$
20,000
$
314.86
$
26.24
year 2018-2019 will not exceed $7,000,000. If such amount is
$
250,000
$
25,000
$
393.58
$
32.80
approved by the voters, it shall be the base for determining levy
$
300,000
$
30,000
$
472.29
$
39.36
limitations for the Town in subsequent fiscal years.
_ $
350,000
$
35,000
$
551.01
$
45.92
EFFECT OF TAX
$
400,000
$
40,000
$
629.72
$
52.48
$
$
500,000
$
50,000
$
787.15
$
65.60
If the tax is authorized by the voters, it will be levied on all
$
800,000
$
80,000
$
1,259.44
$
104.95
taxable property in the Town. The Town does not currently levy
--
a primary (ad valorem) property tax.
COMMERCIAL AND INDUSTRIAL PROPERTY
--
(Assessed
at
18% of Limited Property
Value)
The Prnnary Property Tax will be levied against the Net
Assessed Limited Property Value of each individual property
within the Town. The Assessed Limited Property Value -As
calculated as set forth below.
The Maricopa County Assessor assigns a_Full Cash Value to
each taxable property in the Town. The Full Cash Value should
approximate the market value of the property. Based ,on a
statutory formula that limits the amount of increase each:rte
the Assessor also determines the Limited Property Value dor _
each property. The Limited Property Value cannot exceed the T
Full Cash Value.
The Assessor then determines the Net Assessed Limited
Property Value (also referred to as the Net Assessed LPV) by
multiplying the Limited Property Value by the applicable
Assessment Ratio. The amount of tax on any property is
determined by applying the Primary Tax Rate, expressed as a
dollar amount per $100 of Assessed LPV, to -the Net Assessed
LPV of the property.
The estimated aggregate Net Assessed Limited Property Value
for fiscal year 2018-2099 of all taxable property in the Town is
$XXX,XXX,XXX. If the primary levy of up to $7,000,000 is
approved, the maximum tax rate is estimated at $ LXX per $100
of Net Assessed Limited Property Value.
The cost on any individual property will depend on that
property's Net Assessed LPV and the final tax rate. A property's
Net Assessed LPV is shown on the Assessor's Notice of
Valuation and on the Tax Bill from the Maricopa County
Treasurer. The Net Assessed LPV can also be found on the
Maricopa County Assessor's Office website. A property owner
can determine the estimated maximum tax impact of the Town's
The tax impact on commercial property valued by the county
assessor at $250,000 is estimated to be $708.44 per year.
Limited Property
Net Assessed
-Estimated
Estimated
Estimated
Value (LPV)
LPV
Annual Cost
Monthly cost
Monthly cost
$
100,000
$ 18,000
$
283.37
$
23.61
$
200,000
$ 36,000
$
566.75
$
47.23
$
250,000
$ 45,000
$
708.44
$
59.04
$
500,000
$ 90,000
$
1,416.87
$
118.07
$
1,000,000
$ 180,000
$
2,833.74
$
236.15
$
2,500,000
$ 450,000
$
7,084.35
$
590.36
$
5,000,000
$ 900,000
$
14,168.70
$
1,180.73
AGRICULTURAL PROPERTY/VACANT LAND
(Assessed at 15% of Limited Property Value)
The tax impact on agricultural property/vacant land valued by the
county assessor at $100,000 is estimated to be $236.15 per year.
Linked Property Net Assessed
Estimated
Estimated
Value (LPV)
LPV
Annual Cost
Monthly cost
$ 25,000
$
3,750
$
59.04
$
4.92
$ 100,000
$
15,000
$
236.15
$
19.68
$ 200,000
$
30,000
$
472.29
$
39.36
$ 400,000
$
60,000
$
944.58
$
78.72
RESOLUTION CALLING ELECTION
RESOLUTION NO. 2018-01
A RESOLUTION OF THE MAYOR AND COUNCIL OF
THE TOWN OF FOUNTAIN HILLS, ARIZONA,
ORDERING THAT A SPECIAL ELECTION WILL BE
HELD ON MAY 159 20189 IN AND FOR THE TOWN OF
FOUNTAIN HILLS, ARIZONA, TO SUBMIT TO THE
QUALIFIED ELECTORS THE QUESTION OF
WHETHER TO LEVY A PRIMARY (AD VALOREM)
PROPERTY TAX; AND DECLARING AN
EMERGENCY.
WHEREAS, the Mayor and Council of the Town of Fountain
Hills, Arizona (hereinafter referred to as the "Town"),
determined that the Town should levy primary (ad valorem)
property taxes in the next and each succeeding tax year for the
purposes permitted by applicable law; and
WHEREAS, the Town has determined that the Town's
Environmental Program fee will no longer be collected upon
the votersapproval of the primary (ad valorem) property tax;
and
WHEREAS, the Town must submit the proposed amount to__be
raised by primary (ad valorem) property taxes for approval: f
the qualified electors of the Town;
WHEREAS, the Town may consolidate e special elec
(the "Election") with any other election Oft in the Ti
on May 15, 2018;
WHEREAS, the Town Council previously approved by
Resolution 2017-47 the submittal ofthe primar:_ad valorem)
property taxes for approval of the N qfiedualiolectors -bf the
Town, but to comlyLLv�tith Arizona �a the Town trust provide
written notice of tie tax sixty daysprom the date the matter
is approved; and
WHEREAS, the Town pravtded written notio- of the proposed
tax on November 27, 2017, and the Town Council desires � to
reapprove the submittal of the px nary (ad va4** property
taxes for approval of the qualified electors of t�t�_gown;
NOW, THEREFORE, BE IT RIES-011 D BY THE
MAYOR AND COUNCIL OF THE TOW'OF FOUNTAIN
HILLS, ARIZONA, AS FOLLOWS:
SECTION 1. Pursuant to Arizona Revised Statutes §
42-17056, as amended, the Town must submit the proposed
amount to be raised by primary (ad valorem) property taxes for
approval of the qualified electors of the Town; and
That the Election, in and for the Town, is
hereby ordered and called to be held on May 15, 2018, at which
time there shall be submitted to the qualified electors of the
Town the ballot question of whether the Town is authorized to
levy a primary (ad valorem) property tax not to exceed
$7,000,000.00.
SECTION 2. That the official ballot for the Election
(hereinafter referred to as the "Official Ballot") shall be in
substantially the form attached hereto as Exhibit "A."
SECTION 3. That notice of the Election is ordered to be
given by causing the mailing of an informational/publicity
pamphlet (hereinafter the "Information Pamphlet") with a
sample of the Official Ballot ("Sample Ballot") to every
household within the Town in which a registered voter of the
Town resides, as shown by the Maricopa County Recorder's
register. The Information Pamphlet and Sample Ballot shall be
mailed before the earliest date for receipt by registered voters
of the ballot._fbr_ the Election.
The Town Clerk is hereby directed to cause
the.- on and distribution of the Information Pamphlet
and Sample Ballot for the Town pursuant to Arizona Revised
statutes § 42 I7056. The officers of the Town are hereby
authorized to prepare and deliver, or cause to be prepared and
delivered, to the T 6W. n_ -;_Clerk the information necessary or
appropriate for completinghe Information Pamphlet, including
the amount,,proposed to be xaised by primary (ad valorem)
property taxes in the first year such a tax is levied and that this
amount wi11 "be the base for deternU ring levy limitations for the
To in' subsequent years.
The Town Clerk is hereby directed and
authorizedbequest arguments "For" and "Against" the
subj
t, matter 0f the Election by providing the notice in the
form ani by the means provided in the form attached hereto and
Marked t ibit "B" (hereinafter referred to as the "Request for
Arguments "JThe Town Clerk is authorized to revise the form
of notice hereto as necessary to comply with all applicable laws.
ursuarit to Arizona Revised Statutes § 19-124, as amended, the
'-own hereby sets the period from January 31, 2018, through
`5:00 PM on February 14, 2018, as the period to submit
arguments "For" or "Against" the question of whether the Town
should levy primary (ad valorem) property taxes in the next and
each succeeding tax year.
The Town Clerk is authorized to publish a
notice stating the deadline for filing with the Town of
arguments "For" or "Against" the subject matter of the Election
for inclusion in the Information Pamphlet. Such notice shall be
published in a newspaper of general circulation within the
Town.
Each argument "For" or "Against" the
subject matter of the Election shall be submitted electronically
through the Town's web site portal: www.fh.az.gov. Each
argument must include a sworn statement from the person
sponsoring the argument; for organizations submitting
arguments, the sworn statement must be from two executive
officers; and for political action committees submitting
arguments, the sworn statement must be from the committee's
chairman or treasurer.
Arguments are limited to 300 words in
length. With each argument supporting or opposing the subject
matter of the Election, the sum of One Hundred Dollars and
No/100 ($100.00) shall be deposited with the Town to offset a
portion of the proportionate cost of paper and printing the
argument in the Information Pamphlet. Electronic submittal of
the payment shall be completed at the end of the argument
submittal process on the Town's web site: www.fh.az.gov.
SECTION 4. The Election will be conducted as an all -mail
ballot election, and the votes cast shall be counted and tabulated
and the returns thereof will be made in the manner provided by
law. Only persons who are qualified electors of the Town will
be allowed to vote. A qualified elector must be registered to
vote by April 16, 2018, to vote in the Election. Official Ballots
for the Election will be mailed to qualified electors beginning
April 25, 2018.
will be governed by the vote of the majority on the question
submitted.
If the Election results authorize
implementation of the primary (ad valorem) property tax, a
copy of the approved resolution shall be sent to the Arizona
Property Tax Oversight Commission, and Maricopa County
shall be notified that the Town will be levying a property tax in
the fiscal year following the Election.
SECTION 11. That, by reason of the urgent need for the
proceeds of the collection of the tax herein sought to be
authorized, the immediate operation of this Resolution is
necessary for'the preservation of the public peace, health and
welfare, an emergency is hereby declared to exist and this
ResolutloS� Flall be in full force and effect from and after its
SECTION 5. The Town Clerk is hereby authorized and
passage and'approval by the Mayor and Council as required by
directed to cause ballots to be printed and delivered to the
law and is hereby exempt from the referendum provisions of the
election boards to be furnished to the qualified electors. The
Constitution and laws of the State of Arizona.
Town Clerk is hereby authorized and directed to enter into a
contract with the Maricopa County Recorder to obtain precinct =
=PPASSED AND ADOPTED by the Mayor and Council of the
registers for the Election, and to enter into an agreement with =
Town of Fountain Hills Arizona, on January 30, 2018.
the Maricopa County Elections Department to conduct the
Election on behalf of the Town. The Town Clerk is hereby
FOR THE TOWN OF FOUNTAIN HILLS:
authorized to take all necessary action to facilitate the Election.
ATTESTED TO:
SECTION 6. To comply with the Voting Rights Act of
--
1965, as amended, the following information pertaining to this
Election shall be translated into Spanish and posted, published
- h~inda M. Kavanagh, Mayor
and/or recorded in each instance where posting, publication and
Bevelyn J. Bender, Town Clerk
recording of such proceedings are _required: this call of the
election, ballot and any instructional materials, and the
Information Pamphlet.
REVIEWED BY:
SECTION 7. A -Ballot Center shall be located at the
— == APPROVED AS TO FORM:
Fountain Hills Community Center, 13001 N. La Montana
Drive, Fountain Hills, Arizona 8526& he Ballot Center shall
=_ -
be open ten (10) days prior to the Elecfionbetween the hours of
10:00 AM and 6:00 PM. The Ballot Center shall be open
Grady E. Miller, Town Manager
between the hours of 6:00,AM and 7:00 PM on the day of the
Fredda Bisman, Interim Town Attorney
Election.
SECTION 8. A sealed ballot drop-off box shall be located
at the Fountain Hills Town Hall, 16705 E. Avenue of the
Fountains, Fountain Hills, Arizona 85268. The sealed ballot
CERTIFICATION
drop-off box shall be available beginning on April 25, 2018
between the hours of 7:00 AM and 6:00 PM, Monday through
Thursday.
SECTION 9. All expenditures as may be necessary to
order, notice, hold and administer the Election are hereby
authorized, which expenditure shall be paid from current
operating funds of the Town.
SECTION 10. The election officials will forward the votes
cast to the Town Council for canvassing the results. The Mayor
and Council will meet in the Fountain Hills Council Chambers
on a day that is within twenty (20) days after the Election date
to canvass the returns of the Election. The Mayor and Council
I, Bevelyn J. Bender, the duly appointed Clerk of the Town of
Fountain Hills, Arizona, do hereby certify that the above and
foregoing Resolution No. 2018-01 was duly passed by the
Mayor and Council of the Town of Fountain Hills, Arizona, at
a regular meeting held on January 30, 2018, and the roll call of
the vote thereon was Ayes, Nays, and that the
Mayor and Councilmembers were present thereat.
Bevelyn J. Bender, Town Clerk
Town of Fountain Hills, Arizona
1MvuTnTm A
OFFICIAL BALLOT
FOR SPECIAL ELECTION IN AND FOR THE TOWN
OF FOUNTAIN HILLS, ARIZONA ON MAY 159 2018.
PURPOSE: PRIMARY (AD VALOREM) PROPERTY
TAX IMPLEMENTATION
Shall the Mayor and Council of the Town of Fountain Hills,
Arizona, be authorized to levy a primary (ad valorem) property
tax not to exceed $7,000,000.00? If such amount is approved by
the voters, it will be the base for determining levy limitations
for the Town for subsequent fiscal years.
PRIMARY LEVY, YES ❑
PRIMARY LEVY, NO
lVVLTTDTT D
so by submitting it electronically through the portal available to
the public on the Town's web site: www.fh.az.gov. If the
argument is sponsored by an organization, it shall contain the
sworn statement of two executive officers of the organization;
or if sponsored by a political committee, it shall contain the
sworn statement of the committee's chairman or treasurer. The
person or persons signing the argument shall also identify
themselves by giving their residence or post office address and
a telephone number, which information shall not appear in the
Information Pamphlet.
Payment, in the amount of One Hundred Dollars and No/100
($100.00), shall be deposited with the Town to offset a portion
of cost of paper -and printing the argument and must be received
before the:.argument can be officially received as filed.
Electroxi,G`ubmittal of the payment shall be the final step when
submit electronic "For" or "Against" ar ument on the
g g
Towh's wed site.
This election shall be wan all -mail ballot election. The last day to
register to vote at this _election is Monday, April 16, 2018.
For more information, please .contact the Town Clerk's office
16705 E ,Ave. of the Fountains, Fountain Hills, AZ 85268;
telephone : 4
80-816-5115.
3ev l_yn J Bender, Town Clerk
Inti-
REQUEST
nti
REQUEST FOR ARGUMENTS `F R" OKffAGAINS T'
Y
THE TOWN OF FOUNTAIN .:ILLS' ARIZONA �- Published-ir`the Fountain Hills Times: January 31, 2018 and
February 7, 2018
PROPERTY TAX QUESTION
Notice is hereby given.. -.i th_*'**e Tomm of Fountain Hills will hold
a Special E ection.zd fa_ laws:
Special Election = Tuesday, May 15 2018
uestion: Shall the Mayor and Council of the Town of
Fountain Hills, Arizona, h- authorized to levy_; a _,primary (ad
valorem) property tax not $750005004.00? If such
amount is approved by the voters, it will bo the base for
determining levy limitations for the Am for:subsequent fiscal
years. .._...._...__:._ _._.
SUBMITTING ARGUMENTS. Pursuant to the Arizona
Revised Statutes § § 19-124 and 19-141, as amended, the Town
hereby sets the date of February 14, 2018, at the hour of 5:00
PM, as the deadline to submit arguments "For" or "Against"
the Town's primary property tax ballot question for inclusion
in the Information Pamphlet.
Filing period to submit arguments: January 31, 2018, to 5:00
PM on February 14, 2018.
Each "For" or "Against" argument shall not exceed 300 words
in length and shall contain the sworn statement from the person
sponsoring the argument. Any persons wishing to submit an
argument "For" or "Against" the property tax question may do
BALLOT FORMAT
Town of Fountain Hills, Arizona
Primary Property Tax Ballot, May 15, 2018
Frequently Asked Questions (FAQs)
The Issue:
What is the purpose of the election?
The Town is requesting voter approval to levy a primary (ad valorem) property tax not to exceed
$7,000,000.00 for the purposes permitted by applicable law. If such amount is approved by the
voters, it will be the base for determining levy limitations for the Town for subsequent fiscal years.
Basics:
When is the deadline to register to vote for the property tax election?
The deadline to register to vote in an upcoming election is midnight on the 29th day before the
election. Close of registration for the May 15, 2018, election is April 16, 2018.
How/Where can I register to vote for the election?
The Town does not handle voter registration. Please visit the Maricopa County Recorder's Office
for more information at https://recorder.maricopa.gov/.
What are primary and secondary property taxes?
Primary property taxes fund the maintenance and operation budgets for local governments. The
Town does not currently have a primary property tax. A Yes vote would create a primary property
tax. Secondary property taxes pay for bond issues, budget overrides, and special districts and these
tax rates are separate from the primary property tax rates. Your Fountain Hills tax bill shows a
listing of separate state, county, and local entities who collect a primary and/or secondary property
tax.
When would the property tax become effective?
If the election results authorize implementation of the primary property tax, Maricopa County shall
be notified that the Town will be levying a property tax in the fiscal year following the election.
Therefore, the tax would be effective for fiscal year 2018-2019 (tax year 2018) with the first
payments due October 1, 2018.
How are primary property taxes collected?
Primary property taxes for Fountain Hills are billed and collected in the same manner as current
property taxes are collected by the Maricopa County Treasurer's office. Any property tax due to
Revised 01/25/2018
the Town would not change any of the Maricopa County Treasurer's current processes, and would
be collected with the annual bill mailed out by the Treasurer's office.
When is the tax paid/due?
Based on the Maricopa County Treasurer's current procedures, property tax is due in two (2)
halves. The first half is due on October 1 of the tax year. The second half is due on March 1 of the
subsequent year. This process will remain consistent whether the voters approve a primary tax or
not.
If voters approve the primary property tax ballot question, is there an end date set?
If the election results authorize implementation of the primary property tax, the amount proposed
to be raised in the first year will be used as a base for determining levy limitations for the Town in
subsequent years. No end date is included in the election initiative.
Background.-
How
ackground:
How does Fountain Hills compare to other Arizona communities?
The majority of full service municipalities in the Phoenix area and elsewhere in the state have a
primary property tax. Scottsdale, Chandler, Tempe, Queen Creek, Phoenix, Glendale, Peoria,
Avondale, Goodyear, Surprise, El Mirage, Buckeye, Tolleson, and others utilize a primary
property tax to help fund municipal services. The full service municipalities without a primary
property tax have other significant revenue sources that are unique to their city/town and are able
to generate sufficient revenues without the need for a primary property tax.
Why is a Town of Fountain Hills primary property tax needed?
Our local government needs a sustainable source of revenue in order to maintain levels of service
in Fountain Hills. This property tax is one-step towards that goal. Funds will help to provide a
reliable source of revenue for street improvements, as well as investing in public safety,
environmental issues, and other Town services.
What specific financial challenges are being addressed by this ballot question?
A primary property tax will help to alleviate many of the financial challenges facing Fountain Hills
including:
• An increasing proportion of total expenditures for public safety costs, along with increased
costs for maintenance, repair and/or replacement of aging infrastructure (roads, buildings,
parks, the Fountain, etc.), resulting in less available funding for other core services;
• dependence upon State shared revenues that are subject to State legislative adjustments,
e.g. sweeping of State shared revenue to fund operating expenditures; as well as a decreased
share of these monies for Fountain Hills due to increased population of other surrounding
communities combined with negligible or decreased population growth in Fountain Hills;
• dependence upon economically volatile local sales tax to fund operational expenditures
Revised 01/25/2018
and capital improvement projects;
lack of alternate revenue sources sufficient to maintain current service levels;
other potential state legislation impacting revenues, e.g., unfunded mandates;
maintaining adequate staffing levels to provide current service levels.
What other financial options have been considered?
The Town Council considered a public safety fee, increasing the sales tax rate, establishing a fire
district, as well as other options. After reviewing the options, the Mayor and Council agreed to
refer a property tax to the voters to help the Town to address the Town's financial issues. The
Town Council also decided to eliminate the $36 annual environmental fee if the primary property
tax ballot question is approved. One additional consideration taken into account by the Council
was that property taxes may be deductible on income tax returns, but a fee is not.
Do commercial businesses/property owners pay the same rate as residential/individual
homeowners?
While the tax rate is the same for all property types, the calculation for commercial and residential
property values is different, resulting in residential properties generally owing and paying less than
commercial properties. All properties have a Limited Property Value (LPV) assigned by the
Maricopa County Assessor. A percentage of that LPV is then calculated based on rates established
by the voters to establish a Net Assessed Limited Property Value. Residential properties are
assessed at 10% of the LPV, commercial properties are assessed at 18%, and agricultural
property/vacant land is assessed at 15%. These Net Assessed Limited Property Values are then
multiplied by the various tax rates.
What is the formula to calculate the property tax?
The Limited Property Value (LPV) assigned by the Maricopa County Assessor for a property is
multiplied by the assessment rate (also known as Ratio) for the property type. That result is then
multiplied by the property tax rate and divided by 100. For example, if your home's LPV is
$300,000, multiply $300,000 by 10% to arrive at the `assessed valued' of $30,000. Multiply
$30,000 times the property tax rate of $1.5743 to obtain $47,229. Divide $47,229 by 100 to obtain
the tax due of $472:29. A property tax estimating tool is available on the town's website along
with more information.
Who is responsible for paying the property tax? Is it the landlord, the tenant, or the owner?
The owner of any parcel is ultimately responsible for making sure that property taxes are paid.
What happens if I do not pay the property tax?
Interest is assessed by State law for property taxes not paid by the due date. This interest rate is
currently set at 16% per annum, prorated monthly. If the taxes are not paid in full within 13 months,
an advertising fee of the greater of 5% or $5 will be assessed.
During the 16th month, the County Treasurer's office offers a tax lien on the property for sale. If
Revised 01/25/2018
the tax lien is not redeemed within three (3) years from the date of sale, the purchaser may initiate
foreclosure proceedings. Parcels with prior year delinquent taxes still owing at the end of
December become candidates for the Maricopa County's Back Tax Lien Sale the following
February. The Maricopa County Treasurer's office is responsible for all collection activities. Their
website is https:Htreasurer.maricopa.gov.
How is the amount of property taxes pro -rated if I do not pay the entire amount due?
Maricopa County does not prorate taxes. If a tax bill is not paid in full, the bill is considered
delinquent. Taxpayers have the ability to pay the bill in full when the bill is received in October or
pay in two installments (October and March). Additionally, the taxpayers who own homes with a
mortgage may have their bank withhold money monthly into escrow to pay the taxes.
Past, present, and future:
If approved at the election, how much property tax is to be authorized? If approved, will/can
it increase in subsequent years?
Initially, $7,000,000 is being referred to voters for consideration. If the voters approve the property
tax ballot question, the rate established in the initial year will be used as a basis for future year
calculations. The amount of increase (if -any) is limited to not more than 2% annually.
What is the history of a primary property tax ballot question in the Town of Fountain Hills?
Since the Town was incorporated, there have been three unsuccessful attempts to introduce a
primary property tax levy in Fountain Hills. The elections were held on May 21, 2002, May 21,
2003, and, May 20, 2008.
How has the Town reduced staff over the years in order to stay within its budget?
In FY 2001-2002, the number of Full -Time Equivalent (FTE) employees was 115. That number
was significantly reduced in FY 2003-2004 to 77 and again in FY2010-2011 to 61. The current
FTE count is 56 for FY 2017-2018.
How the tax dollars will be spent:
Why does the Town need a primary property tax now, after all these years without one?
For many years, the Town has relied on revenues from building permits, as well as State -shared
revenues and other revenues. Due in part to the past and current economy and in part due to the
Town's near build -out status, revenues from building permits have significantly declined. State -
shared revenues have also declined, in part due to population issues, and in part due to the State's
potential for utilization of these revenues. While cuts have been made in an attempt to curb
expenses, these cuts can only address shortfalls to a limited extent. Rising costs, due in a large part
to aging infrastructure and increasing public safety costs, also affects the timing of the need to
address revenue issues.
Revised 01/25/2018 4
If approved, how would the additional funds be utilized?
If approved, the primary property tax would generate additional funding to avoid revenue shortfalls
and enable the Town to invest up to an additional $4 million annually in street reconstruction
projects and street maintenance. The additional funding would also ensure that police and fire
services ($8 million in FY17-18) continue to be fully funded and help the Town absorb future
contract increases passed on to the Town by Rural Metro and Maricopa County Sheriff's Office.
With the elimination of the $36 environmental fee, funds will be needed to continue the tasks
required for maintaining and protecting the environment, including darn and wash maintenance,
street sweeping and dust control, storin water management, and a household hazardous waste
collection event.
What happens if the property tax ballot question does not pass? What services might be
reduced or eliminated?
If the property tax ballot question does not pass, other options will have to be utilized to balance
the budget. There are two other options to accomplish this:
• increasing revenue and/or
• reducing expenses.
While specific items have not yet been planned, some potential reductions might include programs
currently offered, customer service levels, road maintenance, as well as reductions in fire and
safety programs. Included in the options available to the Town are raising the local sales tax,
increasing fees, reducing service levels, making further staff reductions, as well as other
considerations.
I already pay property taxes. How are these taxes now used?
Your detailed property tax statement will itemize the amounts charged for various items included
in the tax bill. More information may be obtained from the Maricopa County Treasurer's
Resources site, Understanding Your Tax Bill. The taxes included in the bill are made up of a
number of service items, including education, county, and special district taxes.
The cost.
If the election is successful, how much would the Town levy on taxable property?
As currently proposed, the Town would levy a property tax not to exceed $7,000,000.00. This
equates to a tax rate of $1.5743 per $100 of assessed value (based on Limited Property Value
(LPV); see below for LPV information.)
What would it cost the average taxpayer on an annual basis for this new property tax?
According to recent calculations, the average residential limited property value in Fountain Hills
Revised 01/25/2018 5
is $305,967. A property with this Limited Property Value would pay approximately $481.69
annually for this new primary property tax.
How much will I pay?
How much the individual property owner would be charged for a new primary property tax
depends on the Limited Property Value of their property. The Maricopa County Assessor
determines the Limited Property Value for each property. According to recent calculations, the
average residential limited property value in Fountain Hills is $305,967. A property with this
Limited Property Value would pay approximately $481.69, which equates to $40.14 monthly, or
$1.32 per day, for this new primary property tax.
Are there any Exemptions or Assistance Programs available?
Yes, Maricopa County offers Seniors Valuation Protection, the Widows/Widowers/Disabled
Exemption, and the Elderly Assistance Fund. Information about these programs is available at
treasurer.maricopa.gov. Click the link for Assistance Programs under the Resource tab.
What is the breakdown of the current property tax?
Current property tax dollars are broken out approximately as follows: out of each dollar, $.53 is
spent towards Education, $.19 for Maricopa County government expenses, $.13 for Sanitary
District expenses, $.06 for Town of Fountain Hills bonds, and $.09 for other items.
The numbers:
What is the average home value in Fountain Hills?
According to recent calculations, the average residential limited property value in Fountain Hills
is $305,967.
Who determines the Net Assessed Value (NAV)?
The Maricopa County Assessor determines the Limited Property Value. Voter -approved initiative
established the Net Assessed Value at 10% for residential properties, 18% for commercial and
industrial properties, and 15% for agricultural property/vacant land.
Obtaining more information:
Will there be any additional information available for residents about the primary property
tax?
Yes. There are multiple resources for residents to learn more about the primary property tax. The
Town is planning several informational open houses that will be held at the Community Center.
Dates and times will be available on the Town's website www.fh.az.gov. In addition, the
Information Pamphlet regarding the property tax ballot question will be mailed around April 10,
Revised 01/25/2018
2018, to each household in which a registered votes resides. Please read the information in this
FAQ, go to the Town's web site on property tax www.fh.az.gov/property-tax, attend an
informational seminar, or read the information in the publications of Fountain First and the
Fountain Hill Times.
Does the Town have a web site devoted to the property tax?
Yes. Go to www.fh.az.gov/property-tax.
Revised 01/25/2018
How Fountain Hills Residents can look up property tax information
The easiest way for a Maricopa County resident, including residents of Fountain Hills, to look up
property tax information for their property is by using the Parcel ID number. To find that number, you
may use one of several sources of paper documents. The original documents that you received from
closing when you purchased the property should contain that number. Annual property tax statements,
as well as property valuation notices, also contain the Parcel ID for your property. If you know the Parcel
ID number, you may skip the next two paragraphs.
If you do not have the Parcel ID number, it is easy to look up the Parcel ID number on the Maricopa
County Assessor's site. You can find the site by typing Maricopa County Assessor in a search engine, or
just go to h_ttps://mcassessor.maricopa.gov/. A large box will be open on that page with the words
"Search for Parcels, Addresses, and more!" in it. In that box, we suggest you enter either your name,
particularly if it is an uncommon name, or the numerical part of your address. If you enter a name such
as John Smith, a number of records will be found. The first 25 will be displayed. Scan through the results
to see if your address appears. If it does not, click the View more results option, which will display up to
1,000 results. If you enter the numerical part of your address, such as 16715, you will again see the first
25 results. Scan through, or click the View more results option, until you find the correct address. You
may also enter the street name or the subdivision name, which allows you to find your address.
Once you have located an address that matches yours and the owner name listed matches your name,
click on the APN number, which is the Parcel ID. This will take you to the Assessor's informational page
about that parcel. There are several links on that page, one of which is $ View/Pay Tax Bill. Clicking on
that link will take you to the Tax Summary for that parcel.
If you have not already gone there via a link, go to the Maricopa County Treasurer's site. This can be
found by typing Maricopa County Treasurer in a search engine orjust go to
https://treasurer.maricopa.gov/. The link from the Assessor's site will automatically populate the
information from the Parcel ID, or you may enter it in the Parcel Inquiry section on the top left part of
the screen, then clicking the Go to my Parcel button. Basic information about the current year's taxes
will be available from the main screen. There are various links also available from the black box below
the picture displayed at the top of the screen. Particularly useful information might be obtained by
clicking View Your Tax Bill or various items listed under Tax Information. You can also select options for
updating addresses and paying online, or go to the Treasurer Home to obtain more information,
subscribe to services available from the Treasurer's office, or peruse various resources available from
the Treasurer's office.
G:\Primary Property Tax FY17-18\How Fountain Hills Residents Can Look Up Property Tax Information.Docx
links to county websites: Maricopa County Treasurer
Maricopa County Assessor
Estimated Taxable Value of Home
Estimated Primary
Monthly Amount
(Limited Property Value - LPV)
Property Tax
$150,000
$236.14
$19.68
$250,000
$393.57
$32.80
$350,000
$551.00
$45.92
$450,000
$708.42
$59.04
$550,000
$865.85
$72.15
$750,000
$1,180.70
$98.39
$1 million
$1,574.27
$131.19
$1.5 million
$2,361.41.
$196.78
$2 million
$3,148-.55
$262.38
For tax purposes, 'assessed' value is 10% of the limited property value
To compute tax: assessed value multiplied by levy rate of $1.5743 and divided by 100
Notes:
1) LPV cannot increase by more than 5% annually
2) Total tax levy cannot increase by more than 2% annually
GAPrimary Property Tax FYI 7-107M Property Tax - Monthly.xlsx
Estimated Property Tax Bill Showing Impact of Proposed Fountain Hills Property Tax - residential properties only
Disclaimer: This estimator will not be accurate for other property types. Information is based on 2017 tax year
assessed values and rates and is subject to change.
Please enter or select values in all yellow highlighted fields
Scroll down for results
Enter Limited Value (primary)
Do not enter Full Cash Value (secondary)
Assessment Ratio/Assessed Value
Is this your primary residence?
Do you live in the Eagle Mountain community?
Primary District Information:
Yes
fs
$ 300,000
10% $ 30,000
Rate 100 Taxes
General County Fund
$ 1.4009
$ 420.27
State Aid (for primary residents only)
0.0102
(238.80)
State Equalization
0.4875
146.25
Community College
1.1956
358.68
Fountain Hills Unified School District (FHUSD)
1.6869
506.07
Town of FOUntain Hills Property Tax
0.3944
7 , „r 471!W
Primary Tax Totals
$ 6.3452
$ 1,664.76
Secondary District Information:
Central Arizona Water Conservation District
$ 0.1400 $
42.00
Fire District Assistance District
0.0102
3.06
Flood Control District
0.1792
53.76
Library District
0.0556
16.68
Maricopa County Special Health District
0.1931
57.93
Fountain Hills Unified School District (FHUSD) Overrides
0.3944
118.32
Community College Bonds
0.2140
64.20
Fountain Hills Unified School District (FHUSD) Bonds
0.3684
110.52
Maricopa County Special Health District Bonds
0.0920
27.60
Town of Fountain Hills Bonds
0.4259
127.77
Secondary Tax Totals
$ 2.0728 $ 621.84
Special District Information:
Additional Education Aid - Fountain Hills Unified School District (FHUSD) $
Eagle Mountain Community Facilities District
East Valley Institute of Technology (EVIT)
Fountain Hills Sanitary District
Total for Special Districts $
Grand Total - Estimated Property Tax
Impact of Fountain Hills Primary Property Tax
0.4477 $ 134.31
0.0500 15.00
0.9836 295.08
1.4813 $ 444.39
Grand Total without Fountain Hills Primary Property Tax
$ 2,730.99
$ 2,258.70
C:\Users\crudolpiry\Desktop\Property Tax With Estimated Impact of Prirnary Tax.xlsx
Tax Guide
Page 1 of 2
Assistance Programs
• Seniors Valuation Protection
The Seniors Valuation Protection program is designed "to freeze the full cash value of a primary
residence owned by seniors based on income and age."
More information is available on this program from the Maricopa County Assessor at one of these
two locations:
o Senior Valuation Protection
o http://www.azieg.gov/viewDocument/?
docName=http://www.azleg.gov/const/9/18.htm under sub -section 7
WidowsMidowers/Disabled Exemption
The Arizona Statutes 42-11111 provides in part:
"The property of widows, widowers and disabled persons who are residents of this state is
exempt from taxation to the extent allowed by article IX, sections 2, 2.1, 2.2 and 2.3,
Constitution of Arizona, and subject to the conditions and limitations prescribed by this
section."
You can review the statute at the Arizona Legislature website (ALIS):
http://www.azleg.gov/viewDocument/?
docName=http://www.azleg.gov/ars/42/11111.htm
The form to file is available at the Arizona Dept. of Revenue site:
http://www.azdor.gov/LinkClick.aspx?fileticket=RQCcwcXL2vk%
3d&tabid=262&mid=864
Elderly Assistance Fund (EAF)
The Elderly Assistance Fund (EAF) was established by the Board of Supervisors in February
2007. The Maricopa County Treasurer's Office administers the fund to reduce the property tax of
qualified elderly taxpayers.
Qualified applicants have limited income, live within an organized school district, and have
enrolled in the Seniors Valuation Protection program. If you do not live within an organized
school district, you already have reduced property tax rates since you are not funding a local
school system, and therefore do not qualify for the EAF.
The EAF collects money from Certificates of Purchase (CP) redemptions; the difference between
the statutory rate of 16% and the rate stated on the CP is deposited into the fund. On June 30th
of each year, the County Treasurer determines the amount of funds available and the number of
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Tax Guide Page 2 of 2
qualified taxpayers who have applied. The monies in the fund will be distributed proportionately to
these individuals to reduce the primary school district taxes that are levied against property for
the following Tax Year.
For more information or to determine your eligibility status, please visit the Frequently Asked
Questions page or contact our customer service department at (602) 506-8511.
https://treasurer.maricopa.gov/Pages/LoadPage?page=TaxGuide 1/24/2018