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County presenter says Proposition 482 would raise Coconino County's expenditure limit by $7.7 million, not a tax

Page City Council · October 9, 2024
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

A Coconino County representative told Page City Council that Proposition 482 on the Nov. 5 ballot would increase the county's expenditure limit by $7.7 million over the next 20 years to let the county spend revenue it already collects; the presenter said the measure is not a new tax and warned services could be cut if it fails.

Miss musan, the Coconino County representative listed on the agenda, told Page City Council on Oct. 9 that Proposition 482 is not a tax but a request to adjust the county's long-standing expenditure limit.

"This is not a tax," Miss musan said, emphasizing the measure would only increase the county's allowable spending base to match population and inflation since the cap was set in 1980. She said the proposal would raise the base by $7.7 million and that the increase was projected to be sufficient across the next 20 years.

Miss musan said the expenditure limit constrains how much revenue counties and cities may spend in a year, even when revenues rise because of new tourism or development. She told council that when the county has come up against the cap it has sometimes used debt service to continue projects, which incurs interest costs and reduces funds available for direct services.

A council member asked whether a county that collects more revenue but is at its cap can spend the excess; Miss musan replied, "That is correct," meaning the county cannot spend revenue above the cap unless authorized by voters or other legal mechanisms.

The presenter listed services that could be affected if the measure fails, including road maintenance, search and rescue, law enforcement, emergency services and human services, and said informational brochures and a FAQ are available on the county website and at the county clerk's office.

The presentation did not propose any action by the Page City Council. Councilors asked clarifying questions about the mechanics of the expenditure limit and where revenues are held; the presenter said the county has used borrowing where necessary and that the revenues are used but at a higher net cost because of interest paid on debt.