ARIZONA STATE SENATE
Phoenix, Arizona
Requests voter approval to allow political subdivisions to incur debt up to 20 percent of the taxable property value within the political subdivision for the construction and maintenance of roads.
Article IX, Section 8 of the Arizona Constitution stipulates that cities, towns, school districts, and counties (political subdivisions) cannot incur debt greater than six percent of the taxable property value in that political subdivision without voter approval. Even with voter approval, the political subdivision cannot incur debt exceeding 15 percent of the taxable property value. However, the Constitution allows political subdivisions to become indebted up to 20 percent for sewers, lights, water supplies, and the acquisition of land for parks and preserves.
H.C.R. 2010 adds the construction and maintenance of streets, highways, and bridges to the items that political subdivisions may incur debt up to 20 percent and requires the Secretary of State to submit this proposition to the voters in the next general election.
There is no anticipated fiscal impact to the state general fund associated with this measure.
1. Allows an incorporated city or town, with voter approval, to become indebted to an amount over 15 percent but not more than 20 percent of the taxable property in the city or town for the purpose of constructing, reconstructing, improving or acquiring streets, highways, or bridges or interests in land for rights-of-way for streets, highways or bridges.
2. Specifies that the last assessment for state and county purposes must be used to assess the value of taxable property in incorporated cities and towns instead of the last assessment for city or town purposes.
3. Requires the Secretary of State to submit to the general electorate these proposed changes in the Arizona constitution regarding local government debt limits.
4. Makes technical and conforming changes.
5. Provides for a general effective date.
CM 1/30/01 DP 10-0-0-0
WM 2/13/01 DP 10-0-0-0
Prepared by Senate Staff
March 29, 2001