May 20, 2009 Budget Retreat of the Miami Town Council and Staff

May 20, 2009 Budget Retreat of the Miami Town Council and Staff



Report to be Announced

May 18, 2009 Special Meeting of the Miami Town Council

Special Meeting to Approve the Demands

May 11, 2009 Miami Town Council Meeting

TOWN OF MIAMI
REGULAR MEETING OF THE MAYOR AND COUNCIL
MIAMI TOWN COUNCIL CHAMBERS
500 SULLIVAN STREET, MIAMI, ARIZONA 85539


PUBLIC HEARING
6:00 PM

The Town of Miami will be holding a public hearing at 6:00 p.m. regarding the usage of CDBG funding.


WORKSHOP
6:15 PM

Council will hold a workshop at 6:00 pm to go over demands for the period of May 5th, 2009 to May 11th, 2009.

AGENDA

MONDAY, May 11th, 2009
6:30 PM


I. CALL TO ORDER

II. PLEDGE OF ALLEGIANCE / INVOCATION

III. ROLL CALL OF COUNCIL MEMBERS

IV. CONSENT AGENDA

A. No business scheduled under this section of the agenda

V. APPROVAL OF MINUTES / DEMANDS

A. Review & Approval of the Demands for the period of May 5th, 2009 to May 11th, 2009.
B. Review & Approval of the minutes from May 4th, 2009 special meeting.

VI. REPORTS / RECOGNITIONS

A. Administrators Report
B. Department Reports
C. Mayor/Council

VII. CALL TO THE PUBLIC
Pursuant to Arizona Revised Statutes 38-431.01 (G) a public body may make an open call to the public during a public meeting, subject to reasonable time, place and manner restrictions, to allow individuals to address the public body on any issue within the jurisdiction of the public body. At the conclusion of an open call to the public, individual members of the public body may respond to criticism made by those who have addressed the public body, may ask staff to review a matter or may ask that a matter be put on a future agenda. However, members of the public body shall not discuss or take legal action on matters raised during an open call to the public unless the matters are properly noticed for discussion and legal action.


VIII. UNFINISHED BUSINESS

Information / Discussion / Action

A. Information, discussion and action: On the need to meet and agree on a set date in order to formulate an agenda for the recommended budget retreat. Along with focusing on a retreat date I feel we as individuals need to start listing the questions that our constituents would be asking. (Requested by Councilman Medina)

B. Information, discussion and possible action to adopt the suggested Underage Drinking Social Host and Noisy Assembly Ordinance, as submitted by the local Copper Basin Youth Partnership program organization.

IX. NEW BUSINESS

Information / Discussion / Action

A. Information, discussion and action: Under what circumstances is it warranted to bring in volunteers to help in town hall or elsewhere within the town? What is the approval process? What skills or criteria are required to even be considered for a volunteer position? What are the protections to make sure that once allowed to volunteer, they follow procedures? What and who are responsible for the review process to make sure they are effective in what they are doing? (Requested by Vice Mayor Black)

B. Information, discussion and action: The Miami Business Project would like to co-sponsor with the Town of Miami the Fiesta next September 2009. We are especially excited to have Bob Zache (One of the original founders of the festival) along with numerous other citizens that are ready & willing to make this Fiesta a great success. (Requested by the Miami Business Project)

C. Information, discussion and action: A presentation by Ms. Rebecca Millar, the Mahoney Group on cost saving of employees insurance. (Requested by Mayor Canizales)

D. Information, discussion and action: On enforcement of municipal traffic laws. (Requested by Mayor Canizales)

E. Information, discussion and action: Setting summer pool rate. (Requested by Marty Feldhake)

F. Information, discussion and possible action to set new goals after discussing current projects and their status. (Requested by Mayor Canizales)

G. Information, discussion and action on purchasing a security system for the Miami Memorial Library. (Requested by Vice Mayor)

H. Council to adjourn into executive session for legal advice possible law suit.

I. Information, discussion and action: approving Town Attorney involvement in the matter of The State of Arizona, Plaintiff vs. Mary Margaret O’Donnell, and Defendant in response to motions filed by Defendant.


X. CALL TO THE PUBLIC

Pursuant to Arizona Revised Statutes 38-431.01 (G) a public body may make an open call to the public during a public meeting, subject to reasonable time, place and manner restrictions, to allow individuals to address the public body on any issue within the jurisdiction of the public body. At the conclusion of an open call to the public, individual members of the public body may respond to criticism made by those who have addressed the public body, may ask staff to review a matter or may ask that a matter be put on a future agenda. However, members of the public body shall not discuss or take legal action on matters raised during an open call to the public unless the matters are properly noticed for discussion and legal action


XI. CALL TO THE COUNCIL

XII. ADJOURNMENT

NOTICE:

Pursuant to A.R.S. Section 38-431.03 Paragraphs (A)(1), (A)(3), (A)(4), (A)(7), the Council reserves the right to move into executive session as provided for by Arizona State Statute for any or all of the agenda items noticed herein.

Persons with disabilities requiring special accommodation to participate in this meeting should contact the Miami Town Clerks Office, as soon as reasonably possible, by phone at (928) 473-4403, by e-mail at townofmiami@cableone.net, or in person at 500 Sullivan Street, Miami, Arizona 85539.

Town of Miami, AZ; Special Town Hall Meeting May 4th

TOWN OF MIAMI

SPECIAL MEETING OF THE MAYOR AND COUNCIL
MIAMI TOWN COUNCIL CHAMBERS
500 SULLIVAN STREET, MIAMI, ARIZONA 85539
AGENDA
MONDAY May 4, 2009
6:30 p.m.

I.             CALL TO ORDER

II.       PLEDGE OF ALLEGIANCE / INVOCATION

III.       ROLL CALL OF COUNCIL MEMBERS

IV.       APPROVAL OF MINUTES / DEMANDS

       A.       Review & Approval of the Payroll and Demands for the period of April 27th, to May 3rd, 2009.

       B.        Review & Approval of the minutes from the Regular Meeting on ; April 27th, 2009

V.       UNFINISHED BUSINESS

       A.       Council workshop to form departmental committees. (Tabled on Monday April 17th,2009 meeting)

       B.       Information, discussion and action on assignment of departmental council committees.

       C.       Information, discussion and action for council's approval to donate the old Fire Alarm

System

andother historical items to the Bullion Plaza Museum. (A request from call to the council at the

April 27th meeting)

       D.       Information, discussion and action on approval for the Engineering contract for the sewer line

repairs under Highway 60. (Requested by Bill Hare tabled at the Monday April 17th, 2009

emergency sewer line meeting)

       E.       Information, Discussion and action on town's endorsement and support of an urgent care

facility. (This item was on the April 27th meeting for discussion only)

VI.       CALL TO THE PUBLIC

VII.       ADJOURNMENT NOTICE:

Pursuant to A.R.S. Section 38-431.03 Paragraphs (A)(l), (A)(3), (A)(4), (A)(7), the Council reserves

the right to move into executive session as provided for by Arizona State Statute for any or all of the

agenda items noticed herein.

Persons with disabilities requiring special accommodation to participate in this meeting should

contact the Miami Town Clerks Office, as soon as reasonably possible, by phone at (928) 473-4403,

by e-mail at townofmiami@cableone.net, or in person at 500 Sullivan Street, Miami, Arizona 85539.

State Budget Law Requirements; Chapter Two

CHAPTER TWO

STATE BUDGET LAW REQUIREMENTS

While the general concept behind the budgetary process in a city or town is relatively simple, there are a number of requirements in Arizona State law which adds a certain amount of complexity to this process. To familiarize local officials with the State budget law, this chapter wfll cover the topics of funds, the State imposed expenditure limitation, alternatives to the State expenditure limitation, the property tax levy limitation and budget deadlines.

FUNDS

A fund within a municipal budget is a sum of money set aside as a separate and independent fiscal and accounting mechanism. Since a fund is only an accounting mechanism, a separate bank account is not required for each fund. State law requires only two budgetary funds, however, as indicated later in this chapter; additional budgetary funds may be created.

First of all, a city or town must have what is commonly called a "general fund." The term general fund is only a descriptive name, and there is no specific legal requirement to establish an account by this particular name.. A general fund is required by state statute, which stipulates that each city or town "prepare a full and complete statement of the financial affairs of such political subdivision for the preceding fiscal year and an estimate of the different amounts which will be required to meet the public expense of each such political subdivision for the current fiscal year.” 33

The second fund which each city and town in the State of Arizona must establish is the "highway user revenue fund."34 The monies which go into this fund are collected by the State from the tax on the sale of gasoline, diesel fuels and other transportation related fees. The State then passes a certain amount of this revenue on to cities and towns. As mentioned in Chapter One, the expenditure of highway user revenues is limited to projects within the public right-of-way.35

As indicated in the foregoing paragraphs, a total of two funds are required as a minimum in a city or town budget. This, however, does not restrict a city or town budget to only two funds as optional funds are a common occurrence in Arizona municipal budgets.

There are several national accounting standards which may be used as a guide to fund types you may wish to establish. For example, you may wish to establish a library or utility fund. If bonds are outstanding, certain funds may be required by the bond resolution, and there are also special requirements for improvement districts.

STATE IMPOSED EXPENDITURE LIMITATION

Provisions of the State imposed expenditure limitation appear in both the State Constitution and the Arizona Revised Statutes.36 The constitution sets forth the framework in some detail of the expenditure limit and the remaining details are provided in State law.
33 A,R.S.§ 42-17101
34 A.R.S.128-6533
35 General Counsel Opinion 4-20-1987
36 Article IX, Section 20, Arizona State Constitution

13

The State imposed limitation uses actual payments of local revenues for FY1979-80 as the base limit. TheEconomic Estimates Commission has determined this base limit for every city and town based oninformation supplied by each community in 1980. This base consists of those expenditures "controlled"
by the State limitation and does not include those revenues specifically exempted from the limitation. The UERS Manual clarifies that the expending of development/impact fees are not excludable expenditures and this will be enforced beginning FY 2000-2001.

As a blanket statement, everything not specifically excluded is included under the expenditure limitation. Consequently, only the following items are exempt from the expenditure limits?

1. Revenues received from the issuance of bonds or other long-term obligations.
   
2. Bond principaland interest payments are also exempt.
   
3. Revenues received as payment of dividends or interest.
   
4. Trust and agency accounts.
   
5. Federal grants and aid of any type.
   
6. Other grants, aid, contributions or gifts of any type.
   
7. Amounts received from the State that is included under the State's own
   appropriationslimitation. Unfortunately, this does not exclude revenues
   received from regular State sharedsources, but it does exempt such things as
   flood control money appropriated by the State anddistributed to a particular
   city. It also exempts local transportation assistance funds (lotterymoney)
   from the local expenditure limit..
   
8. Interagency or interdepartmental transfers which are funded with monies
   already subject to theexpenditure limit. This means that you won't have to
   double count expenditures within thelimit.
   
9. Amounts or property accumulated for the purchase of land, buildings or
   improvements or forconstructing buildings or improvements if the voters have
   approved such accumulation andpurpose. This is a voter approved public works
   reserve fund for limited purposes.
   
10. Amounts received from the highway user revenue fund over and above that
    received in 1979-80.
    
11. Revenues received from another political subdivision pursuant to an
    intergovernmental contractas long as the other entity includes the payments
    under their expenditure limit, if applicable.Political subdivision as used
    for this exemption includes a city or town, county, school district
    orcommunity college district. Intergovernmental contracts with the State are
    also exempt underthis provision.
    
12. Amounts expended for the construction, reconstruction, operation or
    maintenance of a hospitalfinancially supported by a city or town prior to
    January 1, 1980.
    
13. Amounts to pay off warrants issued prior to July 1, 1979.
    
14. Refunds, reimbursements or other recoveries of amounts expended which were
    already includedonce under the expenditure limit or otherwise excluded from
    the limit.
    In addition to the constitutionally specified exemptions from the
    expenditure limit, involuntary tort judgments are not subject to the
    expenditure limitation.38
    37 Article IX, Section 20, subsection 3 D, Arizona State Constitutions

38 Attorney General Opinion (186-031)

14





The Economic Estimates Commission (EEC) will determine each year just how much each city and townunder the State imposed limit can increase its budget for the next fiscal year. This determination will bemade on the basis of a standard increase in inflation and the population growth of your particular
community.39 The inflation increase is to be measured by an index called the GDP implicit price deflator which is a U.S. Department of Commerce statistic. Population figures to be used in the calculation will be supplied by the Arizona Department of Economic Security (DBS).

State law requires that the EEC provide each city and town with a preliminary estimated expenditure limit for the coming fiscal year by February i, and a final expenditure limit figure by April i. If the estimate received by February i is felt to be inaccurate for any reason, you may appeal to the EEC for an adjustment through a process detailed in Exhibit B in the appendix.

In addition, cities and towns should report all annexations to the Population Statistics Unit at the Department of Economic Security and your local council of governments (COG). The population in the annexed area will be considered when developing the population estimate which is used in determining the expenditure limitations by the EEC as well as for distribution of lottery funds.

Annexations occurring after the EEC determines your expenditure limit (on or before April 1) but before the beginning of the fiscal year can also be used to adjust your population estimate for that year if they are submitted in time for both DES and the EEC to act. The EEC requires that requests for such adjustments be provided to them at least three weeks prior to the adoption of that city's tentative budget. Also, prior to action by the EEC, DES must review the requested population increase. The necessary materials should be provided to DES with sufficient lead time for their review.

If, on the other hand, the estimated State imposed limit appears to be correct but does not allow for the expenditure of sufficient funds to meet local needs, the budget law provides four options to potentially solve this problem:

1. A Local Home Rule (Alternative Expenditure) Limitation.40
   
2. A Permanent Base Adjustment. 41
   
3. A Capital Projects Accumulation Fund.42
   
4. A One-time Override.43
   

All of these options require voter approval and, therefore, entail a certain amount of risk. If the voters say "no," then the city or town will be under or subject to the State imposed limitation. Procedures required to seek each of these options are detailed later in this chapter.

It is critical to note that a city or town cannot use its personnel, equipment, materials, buildings or other resources to influence the outcome of any election and city or town employees cannot use the authority of their position to influence the vote or political activities of a subordinate. 44

NEW CITY OR TOWN LIMITATION

The Economic Estimates Commission by law must determine the base limit of a newly incorporated city or town. This will be accomplished by calculating the average amount of actual FY1979-80 per capita payments of local revenues for all cities and towns within the county in which the new city or town is located. This average per capita figure will then be multiplied by the population of the new city or town resulting in the base limit for such community.45




39a.r.s.s, 41-563
40Article IX, Section 20, subsection 9, Arizona State Constitution
41Article IX, Section 20, subsection 6, Arizona State Constitution
42 Article IX, Section 20, subsection 3 d viii, Arizona State Constitution
43Article IX, Section 20, subsection 2, paragraph C, Arizona State Constitution
44 A.R.S. §41-500.14
45A.R.S. §41-563 A (6)

15