HB2364 - 452R - House Bill Summary

House of Representatives

HB 2364

city and town unification

Sponsors: Representative Flake, Senator Brown: Representative Nelson

dpa	Committee on Counties & Municipalities
DPA	Caucus and COW
x	Third Read
	As Passed the House

HB 2364 establishes a mechanism for a city and town to unify.

Current Status

HB 2364 was amended in the Counties & Municipalities Committee to exclude land or improvements utilized for mining, metallurgical or related environmental remediation purposes from being included in the petition from the unincorporated area of the county without written consent of the landowner. The CM amendment was adopted in the Committee of the Whole.

History

A.R.S. § 9-121 outlines a process by which two incorporated towns may unify. The statute states that the two towns must have a common boundary and be located in a county having a population of less than 150,000 persons. In general, the process consists of both town councils passing a resolution requesting an election on the matter, followed by the actual election.

Currently, there is no statutory mechanism for the consolidation of a city and town.

Provisions

· Requires the county board of supervisors to adopt a resolution calling an election on the question of unifying a city and town if the following conditions are met:

Ø The councils of a city and town, whose boundaries are located within five miles of each other, pass a resolution requesting an election for the purpose of unifying the city and town; and

Ø A petition is received with the signatures of at least 10% of the qualified electors that reside within unincorporated areas separating the city and town boundaries.

· Outlines what the resolution must include and outlines various public notice and election requirements.

· Requires the election to be held within 180 days of the county board of supervisors adopting the resolution calling for the election.

· Requires the board of supervisors to declare, by order, the unification and the unified city’s new name, if a majority of the qualified electors vote for unification.

· Stipulates that the board of supervisors shall appoint the first common council of the new city. States that council shall consist of seven members and, of the seven members, two must be from each of three areas unified.

· Requires the council to appoint one of its members to serve as mayor.

· States that the appointed council, at the earliest date following the formation of the unified city, shall divide the new city into six districts and requires an election to be held to fill the council districts and elect a mayor at large.

· Stipulates the mayor and council members shall serve staggered four-year terms and outlines the staggered terms.

· Outlines the incorporated limits of the unified city and states that the ordinances and resolutions of the former city, town and county including franchises and transaction privilege taxes, unless repealed or changed by the new common council, shall be continued.

· Stipulates that the ordinances or resolutions of the former city with the largest population shall remain in effect in the case of conflict. Exempts zoning ordinances, which remain in effect until adoption of new zoning for the property in question.

· States that the unified city shall be liable for all debts and liabilities of the former city and town and transfers all property and rights of action belonging to the former city and town to the new city.

· Provides the unified city with all powers, duties, rights, and privileges granted to incorporated cities and towns under the laws and constitution of this state.

· Combines the state shared revenues of the former city and town and distributes the combined amount to the unified city until a combined census count including the unincorporated areas can be obtained. Once the combined census count is obtained, the updated census will be used to determine the distribution retroactively to the first of the month following unification.

· States that the Department of Economic Security’s annual population estimate of the unified city shall be used for distribution of local transportation assistance fund monies.

· Calculates the unified city’s property tax levy limit as the combined maximum allowable levy limit of the former city and town unless the voters of the new city approve another levy limit.

· Stipulates that the expenditure limit of the new city shall be the alternative expenditure limitation of the largest city until the fiscal year following the unified city’s first general election.

· Authorizes the council to propose an alternative expenditure limitation or permanent base adjustment at the unified city’s first general election. If the voters reject the alternative expenditure limitation, then the expenditure limitation is calculated using the formula provided for a newly incorporated city.

Amendments

HB 2364 was amended in the Counties & Municipalities Committee as follows:

· Excludes land or improvements utilized for mining, metallurgical or related environmental remediation purposes from being included in the petition without written sent of the landowner.

The CM amendment was adopted in the Committee of the Whole.

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45th Legislature