ARIZONA STATE SENATE
Phoenix, Arizona
FINAL
REVISED
city and town
unification
Creates a mechanism to unify a city and a town.
Statute provides a mechanism for consolidation of two incorporated towns having a common boundary if the towns are located in a county having a population of less than 150,000. However, state law does not authorize consolidation of a city and a town.
A community with a population of at least 1,500 but not more than 3,000 incorporates with the status of a town. If a community with a population of 3,000 or more incorporates as a city or as a town attains a population level above 3,000, it may change its status to a city with approval of the voters.
The City of Globe, Town of Miami and several unincorporated areas between or adjacent to Globe and Miami have been studying the possibility of unification for the last several years. These rural communities are experiencing dwindling population and decreasing local resources making it difficult to meet the needs of their citizens.
Incorporated municipalities are entitled to state shared revenues, consisting of state transaction privilege tax, state income tax, vehicle license tax, highway user revenues and local transportation assistance fund monies. The distribution of state shared revenues is calculated based on the relation of the municipalities population to the total incorporated population of the state. If two or more communities merge, the unified city will be able to share of local government services and pool local resources, such as state shared revenues.
There is no discernible fiscal impact to the state general fund associated with this legislation.
1. Requires the county board of supervisors to call an election, within 60 days of the resolution, on the question of unification and the name of the new proposed city.
2. Requires the councils of a city and a town who are within five miles of each other to pass a resolution to unify the two municipalities and receive a petition with signatures of at least ten percent of the qualified electors of an unincorporated areas separating the city and town boundaries as a condition to be met prior to a call of an election by the county board of supervisors.
3. Requires the election to be held within 180 days after the county resolution is filed on a statutorily approved election date.
4. Specifies the requirements of the resolution and election including publication and notice.
5. 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.
6. Requires the board of supervisors to appoint the first common council of seven members for the unified city. Of the seven members, two must be from each of the three areas unified.
7. Requires the council to appoint one of its members to serve as mayor.
8. Requires the council to divide the unified city into six districts and requires an election to be called to fill the council districts and elect a mayor at large at the earliest date after the formation of the unified city.
9. Requires the mayor and council members to serve four-year staggered terms and specifies the staggered terms.
10. Specifies that the incorporated limits of the unified city consist of the corporate limits plus the unincorporated areas that appear on the resolution and petition.
11. Prohibits land or improvements utilized for mining, metallurgical or related environmental remediation purposes from being included in the unification petition without written consent of the landowner.
12. Continues 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.
13. Designates the ordinances or resolutions of the former city with the largest population, in the case of conflict with the exception of zoning ordinances which remain in effect until adoption of new zoning for the property in question.
14. Transfers the debts and liabilities of the former city and town to the unified city as well as all property and rights of action belonging to the former city and town.
15. Entitles the unified city to all powers, duties, rights and privileges granted to incorporated cities and towns under the laws and constitution of this state.
16. 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.
17. Requires the use of the Department of Economic Security’s annual population estimate of the unified city for distribution of local transportation assistance fund monies.
18. Establishes the unified city’s property tax levy limit calculated as the combined maximum allowable levy limit of the town and city unless another levy limit is approved by the voters of the new city.
19. Designates the expenditure limit of the unified city as the alternative expenditure limitation of the largest city until the fiscal year following the first general election.
20. Authorizes the council to propose an alternative expenditure limitation or permanent base adjustment at the first general election. Requires the expenditure limitation to be calculated using the formula provided for a newly incorporated city, if the voters reject the alternative expenditure limitation.
21. Provides for a general effective date.
Amendments Adopted by the House of Representatives
· Prohibits mining lands or improvements from being included in the unified city.
Senate Action House Action
GOV 2/11/02 DP 4-0-2-0 CM 4/2/02 DPA 10-0-0-0
3rd Read 3/12/02 27-0-3-0 3rd Read 4/15/02 55-1-4-0
Final Read 4/22/02 26-0-4-0
Signed by Governor 4/22/02
Chapter 69
Prepared by Senate Staff
May 8, 2002