FLAGSTAFF, Ariz. — This November, Coconino County voters will have the opportunity to vote on Proposition 482, which proposes a permanent base adjustment to the County’s expenditure limit. The County Board of Supervisors has referred Prop 482 to the ballot to bring the decision to voters. If approved by voters, Prop 482 will allow the County to expend revenues that have already been approved by voters but can’t be spent due to the expenditure limit.
Proposition 482 proposes a permanent base adjustment of $7.7 million to the expenditure base. In 1980, Arizona voters set an annual expenditure limit for all cities, counties, towns, and community college districts. The expenditure limit is the maximum amount that the County may spend each year on services such as law enforcement, road maintenance and improvements, healthcare, and disaster response. The County’s expenditure base was set at the County’s actual spending in fiscal year 1979-1980, which was $10,268,127.
Each year, the expenditure limit is adjusted for the County’s population growth and national inflation rate. Over the past decade, state-collected sales taxes that are shared with the County have increased an average of 6.7% each year. Over the same period, the expenditure limit has increased on average 2.7% per year.
If approved by voters, Prop 482 will allow the County to spend revenues that have already been approved by voters but can’t be spent due to the current expenditure limit. For example, the Road Maintenance Sales Tax (RMST) was passed by about 65% of Coconino County voters in 2014 for road repairs and improvement projects. Expending all RMST revenues would put Coconino County over the expenditure limit.
Last year, rather than putting projects on hold, the County issued debt, instead of employing pay as you go funding. This allowed the County to expend voter-authorized RMST without exceeding the limit. Debt financing comes at a cost to taxpayers, but it also creates an allowable exclusion to the expenditure limit.
To date, the County has invested $92 million from RMST into road maintenance and projects, bringing the percentage of County maintained roads in poor or very poor condition from 36 percent in 2014 to 3 percent in 2023.
Adjusting the expenditure base does not allow Coconino County to spend more revenues than it receives and will not increase property taxes or other County taxes. Prop 482 will only raise the expenditure base, which increases how much the County is allowed to spend.
The County has many expenses now that did not exist in 1980. Having an economy heavily based on tourism increases demand for services from law enforcement, road maintenance, search and rescue, and other services. The expenditure limitation does not adjust for these costs or advances in technology, tools, and equipment.
For more information, frequently asked questions, timeline, handout, and presentation videos visit www.coconino.az.gov/prop482. Specific questions can be sent to prop482@coconino.az.gov.
