Pima County Arizona Adopted Budget Fiscal Year 2016/2017 PIMA COUNTY, ARIZONA ADOPTED BUDGET FISCAL YEAR 2016/2017 SHARON BRONSON, CHAIR District 3 ALLY MILLER, MEMBER RAMÓN VALADEZ, MEMBER District 1 District 2 RAYMOND CARROLL, MEMBER RICHARD ELÍAS, VICE CHAIR District 4 District 5 Submitted by: C. H. HUCKELBERRY COUNTY ADMINISTRATOR Prepared by the Finance and Risk Management Department Keith Dommer, Director Robert W. Johnson, Budget Division Manager Craig Horn, Budget Supervisor Lisa Merin Edwards, Budget Supervisor Victor Rodriguez, Budget Supervisor BUDGET STAFF Andrew Min Annie Li Brian Johnson Bruce Basemann Coleen Morando Darol Cridlebaugh Eric Howard John Bruno Katherine Simmons Kevin Frakes Melanie Parker Michael Garland Patti Davidson Robert Szilagyi Stephanie Storch PREFACE The Fiscal Year 2016/2017 Adopted Budget publication was developed to serve the needs of an audience that ranges from the Board of Supervisors and County Administration to the County departments and the general public. Since the need for financial information and detail varies with each group, the budget is presented in different formats, with differing levels of detail. The Budget Issues section starts with a three-page brief that discusses the primary issues that the Board of Supervisors and County Administrator had to confront in developing the final budget. Since there are many who require more information on these considerations, the County Administrator’s Recommended Budget, Tentative Budget, and Final Budget memoranda are also included in this section. These memoranda not only serve the purpose of providing background information on the fiscal year 2016/2017 budget process, they also provide permanent documentation of the issues, considerations, and financial planning that went into the budget development. Those individuals who are only interested in a broad-brush view of the budget may find all the information they require, by reviewing the Summary Schedule of Estimated Revenues and Expenditures/Expenses (Schedule A) in the State Reports section of this publication. This schedule provides the total available resources and the total expenditures by fund. Since others require a more comprehensive review of the budget, the Budget Overview section includes a discussion of Pima County’s Financial Structure, as well as presentations of the expenditures, revenues, full time equivalents (positions with funded hours), and capital projects for fiscal year 2016/2017. The Budget Planning Practices section details the financial policies and provides an overview of the goals that guide Pima County’s budget development process. The financial segment discusses the balanced budget requirement, taxes, the General Fund ending fund balance, accountability, and many other items that impact the budget development. The nonfinancial segment provides a general view of the nonfinancial and strategic planning goals and mission considerations that guide the departments. Finally, detailed information on the program budgets are presented in the Functional Areas section. The introductory information in each functional area provides the program and department totals for expenditures, revenues, and full time equivalents; while the function statements, goals and objectives, performance measures, and financial summaries are presented in the department budget segments. G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I AT I O N Distinguished Budget Presentation Award PRESENTED TO Pima County Arizona F o r t h e F i s c a l Ye a r B e g i n n i n g July 1, 2015 Executive Director TABLE OF CONTENTS PIMA COUNTY CHARACTERISTICS Arizona & Pima County Maps .............................................................................................. 1-1 Background Information....................................................................................................... 1-2 Demographic Data ...............................................................................................................1-4 INTRODUCTION Organization ........................................................................................................................2-1 Services Provided ................................................................................................................2-2 The Budgetary Process ....................................................................................................... 2-3 Fund Composition ..........................................................................................................2-3 Basis of Presentation ..................................................................................................... 2-3 Basis of Budgeting .........................................................................................................2-3 Budgetary Control .......................................................................................................... 2-3 Budget Amendments ..................................................................................................... 2-4 Budget Preparation and Approval .................................................................................. 2-4 LEGAL REQUIREMENTS County Spending Limitation ................................................................................................. 3-1 Tentative Budget Preparation and Publication ..................................................................... 3-1 Final Budget Adoption ......................................................................................................... 3-2 Budget Revisions .................................................................................................................3-2 Truth in Taxation..................................................................................................................3-2 Adoption of Tax Levy ...........................................................................................................3-3 Property Tax Levy Limitation ............................................................................................... 3-3 Secondary Property Tax Levy.............................................................................................. 3-3 Pima County Budget Resolution .......................................................................................... 3-7 County Free Library District Budget Resolution ................................................................... 3-8 Flood Control District Budget Resolution ............................................................................. 3-9 Stadium District Budget Resolution...................................................................................... 3-10 Levy of Taxes Resolution .................................................................................................... 3-11 BUDGET ISSUES Issues Synopsis...................................................................................................................4-1 Recommended Budget Memorandum ................................................................................. 4-4 Tentative Partial Budget Memorandum ................................................................................ 4-36 Tentative Overall Budget Memorandum............................................................................... 4-50 Adopted Partial Budget Memorandum ................................................................................. 4-57 Adopted Overall Budget Memorandum ................................................................................ 4-60 BUDGET OVERVIEW Summary of Overview .........................................................................................................5-1 Financial Structure ...............................................................................................................5-2 Consolidated Overview of County Budget by Fund .............................................................. 5-6 Total County Budget by Source and Use ............................................................................. 5-7 Revenues & Expenditures for Fiscal Years 2014/2015 Through 2016/2017 ........................ 5-8 Budget in Brief 2016/2017 ................................................................................................... 5-10 Full Time Equivalent Positions ............................................................................................. 5-15 Capital Improvement Program Overview ............................................................................. 5-20 i BUDGET PLANNING PRACTICES Financial Policies .................................................................................................................6-1 Non-Financial and Strategic Planning .................................................................................. 6-16 STATE REPORTS Summary of State Reports................................................................................................... 7-1 Summary Schedule of Estimated Revenues and Expenditures/Expenses ........................... 7-2 Summary of Tax Levy and Tax Rate Information ................................................................. 7-3 Summary by Fund Type of Revenues .................................................................................. 7-5 Summary by Fund Type of Other Financing Sources and Interfund Transfers ..................... 7-9 Summary of Expenditures by Fund and Department............................................................ 7-14 Summary by Functional Area and Department of Expenditures/Expenses .......................... 7-17 Summary of Full Time Employees ....................................................................................... 7-20 SUMMARY SCHEDULES Summary of Schedules........................................................................................................ 8-1 Fiscal Years 2014/2015-2016/2017 Summary of Changes in Fund Balances ........................................................................ 8-2 Summary of Expenditures by Fund and Department ...................................................... 8-5 Summary of Revenues by Fund and Category............................................................... 8-8 Summary of Expenditures by Functional Area and Department ..................................... 8-12 Summary of Revenue by Functional Area and Department............................................ 8-14 Summary of Expenditures by Fund and Object: Bureau ................................................. 8-16 Summary of Adopted Full Time Equivalent Positions ..................................................... 8-20 REVENUE SOURCES Purpose, Source List, and Dollar Summary ......................................................................... 9-1 General Fund ......................................................................................................................9-2 Attractions and Tourism ....................................................................................................... 9-4 Capital Projects ...................................................................................................................9-5 County Free Library .............................................................................................................9-6 Debt Service ........................................................................................................................9-7 Development Services .........................................................................................................9-8 Employment and Training .................................................................................................... 9-9 Environmental Quality..........................................................................................................9-10 Fleet Services ......................................................................................................................9-11 Health ..................................................................................................................................9-12 Health Benefits Trust Fund .................................................................................................. 9-13 IT Computer Hardware Software ......................................................................................... 9-14 Other Special Revenue Funds ............................................................................................. 9-15 Parking Garages..................................................................................................................9-17 Regional Flood Control District ............................................................................................ 9-18 Regional Wastewater Reclamation ...................................................................................... 9-19 Risk Management................................................................................................................9-20 Stadium District ...................................................................................................................9-21 Telecommunications ............................................................................................................9-22 Transportation .....................................................................................................................9-23 Wireless Integrated Network ................................................................................................ 9-24 Summary of Revenue Changes by Fund, Department, and Category.................................. 9-25 ii FUNCTIONAL AREAS BY PROGRAM General Government Services Organization Chart .............................................................................................................. Summary of Expenditures by Fund: Program ...................................................................... 10-1 Summary of Revenues by Fund: Program ........................................................................... 10-4 Summary of Full Time Equivalents: Program ....................................................................... 10-6 Assessor..............................................................................................................................10-9 Board of Supervisors ...........................................................................................................10-15 Clerk of the Board................................................................................................................10-19 Communications Office........................................................................................................ 10-25 County Administrator ...........................................................................................................10-31 Elections ..............................................................................................................................10-35 Facilities Management ......................................................................................................... 10-39 Finance & Risk Management ............................................................................................... 10-51 Fleet Services ......................................................................................................................10-75 General Government Services Administration ..................................................................... 10-85 Human Resources ...............................................................................................................10-89 Information Technology ....................................................................................................... 10-99 Non Departmental ...............................................................................................................10-109 Procurement ........................................................................................................................10-119 Recorder..............................................................................................................................10-129 Treasurer .............................................................................................................................10-139 Community Resources Organization Chart .............................................................................................................. Summary of Expenditures by Fund: Program ...................................................................... 11-1 Summary of Revenues by Fund: Program ........................................................................... 11-3 Summary of Full Time Equivalents: Program ....................................................................... 11-4 Attractions & Tourism .......................................................................................................... 11-5 Community & Economic Development Administration ......................................................... 11-9 Community Development & Neighborhood Conservation .................................................... 11-13 Community Development & Neighborhood Conservation Outside Agencies........................ 11-27 Community Services, Employment & Training ..................................................................... 11-29 County Free Library ............................................................................................................. 11-37 Kino Sports Complex ...........................................................................................................11-45 Natural Resources, Parks & Recreation............................................................................... 11-49 School Superintendent ........................................................................................................ 11-65 Stadium District ...................................................................................................................11-73 Health Services Organization Chart .............................................................................................................. Summary of Expenditures by Fund: Program ...................................................................... 12-1 Summary of Revenues by Fund: Program ........................................................................... 12-2 Summary of Full Time Equivalents: Program ....................................................................... 12-3 Behavioral Health ................................................................................................................12-5 Environmental Quality.......................................................................................................... 12-11 Solid Waste Management .............................................................................................. 12-17 Tire Recycling Program ................................................................................................. 12-19 Water and Waste ........................................................................................................... 12-20 Health ..................................................................................................................................12-23 Pima Animal Control ...................................................................................................... 12-33 iii Office of Emergency Management and Homeland Security ................................................. 12-37 Wireless Integrated Network ................................................................................................ 12-43 Justice & Law Organization Chart .............................................................................................................. Summary of Expenditures by Fund: Program ...................................................................... 13-1 Summary of Revenues by Fund: Program ........................................................................... 13-3 Summary of Full Time Equivalents: Program ....................................................................... 13-5 Clerk of the Superior Court .................................................................................................. 13-7 Constables ..........................................................................................................................13-21 County Attorney ...................................................................................................................13-25 Forensic Science Center ..................................................................................................... 13-37 Justice Court Ajo .................................................................................................................13-41 Justice Court Green Valley .................................................................................................. 13-47 Justice Courts Tucson ......................................................................................................... 13-53 Juvenile Court......................................................................................................................13-61 Public Defense Services ...................................................................................................... 13-75 Sheriff ..................................................................................................................................13-95 Superior Court .....................................................................................................................13-109 Public Works Organization Chart .............................................................................................................. Summary of Expenditures by Fund: Program ...................................................................... 14-1 Summary of Revenues by Fund: Program ........................................................................... 14-2 Summary of Full Time Equivalents: Program ....................................................................... 14-3 Capital Projects ...................................................................................................................14-5 Capital Projects List ....................................................................................................... 14-9 Development Services ......................................................................................................... 14-13 Office of Sustainability and Conservation............................................................................. 14-21 Project Management Office ................................................................................................. 14-29 Public Works Administration ................................................................................................ 14-33 Real Property.......................................................................................................................14-37 Regional Flood Control District ............................................................................................ 14-41 Regional Wastewater Reclamation ...................................................................................... 14-57 Transportation .....................................................................................................................14-67 CAPITAL IMPROVEMENT PROGRAM Capital Improvement Program Summary ............................................................................. 15-1 Impact of Capital Improvement Projects on O & M and Revenue ........................................ 15-5 Summary of Active Capital Improvement Projects ............................................................... 15-9 Major Capital Improvement Program Projects...................................................................... 15-14 SUPPLEMENTAL INFORMATION Supplemental Information Summary .................................................................................... 16-1 Glossary of Terms and Acronyms ........................................................................................ 16-2 Department Listing ..............................................................................................................16-24 Pima County Budget Policies............................................................................................... 16-30 Pima County Debt Policies and Practices ............................................................................ 16-39 Bonding Disclosure, Accountability and Implementation ...................................................... 16-43 Long Term Debt Service Schedules .................................................................................... 16-51 Valuation of Property For Taxing Purposes In Arizona......................................................... 16-58 Components of Arizona’s Property Tax System ................................................................... 16-59 Full Cash Values By Class: 2012 - 2016 .............................................................................. 16-60 Limited Values By Class: 2012 - 2016 ................................................................................. 16-61 iv Assessment Ratios By Class: 2012 - 2016 .......................................................................... 16-62 Full Cash Net Assessed Values By Class: 2012 - 2016 ....................................................... 16-63 Limited Net Assessed Value: 2012 - 2016 ........................................................................... 16-64 Property Tax Levies and Collections - Ten Year History ...................................................... 16-65 Property Tax Rates-Direct and Overlapping Governments-Ten Year History ....................... 16-66 Pima County Population, Cities & Towns, and Unincorporated Areas: 2000 - 2015 ............. 16-67 Pima County Population Estimates & Projections Compared with Arizona, Maricopa County and Other Counties: 2005 - 2015, 2020, 2030, 2040, 2050 ........................................... 16-68 Population & Employment - Ten Year History ...................................................................... 16-69 Addresses & Telephone Numbers ....................................................................................... 16-70 v Map provided by: Pima Association of Governments 1-1 Pima County FY 2016/2017 Adopted Budget PIMA COUNTY CHARACTERISTICS Pima County, the second largest of the four original counties, was created in 1864 and included nearly all of the southern Arizona area acquired from Mexico by the Gadsden Purchase. Settlement of the region by Europeans goes back to the 1690s with the arrival of Spanish settlers who encountered Native Americans already living in the area. During the first half of the 18th century, silver and gold were discovered and prospectors from Mexico swarmed into the region. The latter part of the 18th century saw expansion of mining and ranching in Pima County and an increase in population, despite ongoing threats from raiding Apaches. The Royal Presidio of San Augustin del Tucson was completed by 1781, and it remained the northernmost outpost of Mexico until the arrival of American soldiers in 1856. From a population of 395 in 1820, Tucson has grown to be the second largest city in Arizona. It has always served as the Pima County seat and was the Arizona territorial capital from 1867 to 1877. Tucson is home to the University of Arizona and many historical and cultural attractions. Just south of Tucson is the Mission San Xavier del Bac, founded in 1697 by Father Kino. The mission is still in use today. Within Pima County are two cactus forests, Saguaro National Park in the eastern portion and Organ Pipe Cactus National Monument in the western portion. Although greatly reduced from its original size, Pima County still covers 9,189 square miles. It ranges in elevation from 1,200 feet to the 9,185-foot peak of Mount Lemmon. Together, the San Xavier, Pascua Yaqui and Tohono O’odham reservations cover 42.1 percent of Pima County’s 5.88 million acres. Lands held in trust for the state’s schools comprise another 15.3 percent of the County’s land ownership, and 28.4 percent is held by Federal agencies as wildlife refuges, national forests, national parks and monuments. Military reserves and bases occupy 1.1 percent, and local government holdings, including Pima County property, account for 2.9 percent. Privately owned lands comprise 10.2 percent of the County’s total acreage. Foreign trade zones encompass 364 acres on three sites in the metropolitan Tucson area. South Tucson and portions of the City of Tucson are located in an Empowerment Zone. Employment tax credits, property tax reductions and other incentives to reduce operating costs are available for businesses locating within these zones. CLIMATE CHARACTERISTICS Daily Max Temperature1 Daily Min Temperature1 Average Precipitation1 Possible Sunshine2 Relative Afternoon Humidity2 Average Wind Speed2 Month with Highest Average June (100.3º) July (74.4º) August (2.39") June (93%) December (34%) Month with Lowest Average December (64.8º) December (39.1º) June (0.20") July (78%) June (13%) Annual Average 83.1º 55.8º Total Rainfall 11.59" 85% 25% April (7.9 mph) December (6.3 mph) 7.1 mph 1 Source: National Climatic Data Center 1981-2010 Monthly Normals 2 Source: Western Regional Climate Center. Average wind speed is based on years 2001 through 2011. 1-2 Pima County FY 2016/2017 Adopted Budget TRANSPORTATION FACILITIES Access to Pima County is provided by interstate and state highways, airlines, and railroads. City and County maintained roadways provide the intracounty transportation network for motor vehicles, along with bus services by the City of Tucson in the metropolitan Tucson area and Regional Transportation Authority funded transit services in many rural areas of the County. Interstate 10 passes through eastern Pima County, connecting Tucson and the surrounding area with Phoenix and cities farther west such as Los Angeles. Interstate 10 connects with Interstate 8 in central Pinal County, providing Pima County with good highway access to Yuma and San Diego. To the east, Interstate 10 connects the area with New Mexico and other points in the southern and southeastern United States. Interstate 19 comes from Nogales and the border with Mexico and ends where it connects with Interstate 10 in Tucson. There are many state routes passing through the County. State Route 77 in eastern Pima County leads north from Tucson and connects this part of the County with Globe, Miami, and the White Mountains of east-central Arizona. State Route 86 connects the more populated eastern part of the County with Tohono O’odham Nation lands in the center of the County and with Ajo in the western portion of the County. State Route 86 ends in the community of Why, where it meets State Route 85. State Route 85 goes south from this point to the Mexican border at Lukeville and connects with Mexico Highway 8, leading to the town of Rocky Point on the Gulf of California. State Route 85 goes north from Why to Ajo and on to Interstate 8 near the Maricopa County community of Gila Bend. Less traveled state routes also lead to other towns in southern Pima County. City and County roadways provide the remainder of the road network in the County. Pima County provides the road network for all of the unincorporated areas of the County, and the cities generally provide the road network within their boundaries. Eastern Pima County is served by Amtrak for passenger service and the Union Pacific Railroad for freight service. The main rail line runs through Tucson and connects the area with Los Angeles to the west and points to the east such as Houston and New Orleans. There also is a spur line which connects the main rail line with Nogales and the Mexican border to the south. Pima County has several small airports, an international airport and an Air Force base. The international airport, located on the south side of Tucson, serves as the major air terminal for southeastern Arizona. Five airlines provide air service to Arizona cities and other states for 3.18 million annual passenger departures/arrivals. Four smaller facilities in the County provide a variety of general aviation services. Davis-Monthan Air Force Base accommodates military aircraft and is not open to public use without permission from the Department of Defense. Source: Pima County Budget Division. TAX CHARACTERISTICS CORPORATE INCOME TAX The corporate income tax in Arizona for 2016 is 5.5 percent of taxable income, with a $50 minimum tax. The tax rate will decrease to 4.9 percent in 2017 and remain the same thereafter. SALES TAX Arizona has a general sales tax rate of 5.6 percent. South Tucson has a general sales tax of 4.5 percent, Marana and Oro Valley each have a general sales tax rate of 2.5 percent, and both Sahuarita and Tucson have 2 percent general sales tax rates. The Regional Transportation Authority has a 0.5 percent sales tax for transportation and mass transit improvements in the metropolitan area of eastern Pima County. 1-3 Pima County FY 2016/2017 Adopted Budget PAYROLL TAX Payroll taxes for employers and employees in Arizona are paid when federal filings are made. Employees select a state income tax withholding rate between 0.8 and 5.1 percent of their taxable wages, net of pre-tax deductions such as health insurance premiums. Employers must pay an unemployment insurance premium that ranges from .03 percent to 8.91 percent on the first $7,000 of wages for each employee during the calendar year based on the employer’s rating. PROPERTY TAX For details regarding property taxes, please see the various tax schedules in the Supplemental Information section. POPULATION CHARACTERISTICS Population increased 84 percent between 1980 and 2010. Shown below are historical census population statistics for the County, unincorporated areas of the County, and the state of Arizona. POPULATION Pima County - Total Unincorporated Pima County Arizona 1980 531,443 191,189 2,716,546 1990 666,880 245,219 3,665,228 2000 843,746 305,059 5,130,632 2010 980,263 353,264 6,392,017 Source: U.S. Bureau of the Census. (Census population count on April 1 of each year.) POPULATION GROWTH RATES Average Annual Compounded Rate of Change 1980 - 1990 2.3% 2.5% 3.0% Pima County - Total Unincorporated Pima County Arizona 1990 - 2000 2.4% 2.2% 3.4% Source: Pima County Budget Division. AGE DISTRIBUTION 2010 Census 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 0 - 14 United States 15 - 24 25 - 44 Arizona Source: Bureau of the Census, 2010 Census. 1-4 45 - 64 65 & over Pima County 2000 - 2010 1.5% 1.5% 2.2% Pima County FY 2016/2017 Adopted Budget POPULATION DIVERSITY Racial Mix (PERCENT OF TOTAL POPULATION, 2010) Native Hawaiian 0.2% Asian 2.6% African American 3.6% White & Hispanic/Latino (PERCENT OF TOTAL W HITE POPULATION, 2010) Not Identified 10.1% 2 or more Races 3.7% American Indian 3.3% White alone 55.3% Other Races 12.3% Hispanic or Latino 34.6% White 74.3% Source: Bureau of the Census, 2010 Census. Source: Bureau of the Census, 2010 Census. EMPLOYMENT CHARACTERISTICS UNEMPLOYMENT RATES Pima County Arizona United States 2010 2011 2012 2013 2014 2015 9.3% 10.4% 9.6% 8.5% 9.5% 8.9% 7.4% 8.3% 8.1% 6.8% 7.7% 7.4% 6.0% 6.8% 6.2% 5.6% 6.1% 5.3% Source: U.S. Department of Labor, Bureau of Labor Statistics. EMPLOYMENT BY INDUSTRY Percent of Non-Farm Employment, 2015 Mining & Logging 0.6% Government 20.7% Construction 4.0% Manufacturing 6.1% Other Services 3.5% Trade, Transportation, & Utilities 16.5% Information 1.2% Leisure & Hospitality 11.7% Financial Activities 4.8% Education & Health Services 17.1% Professional & Business Services 13.8% Source: U.S. Department of Labor, Bureau of Labor Statistics. 1-5 Pima County FY 2016/2017 Adopted Budget MAJOR EMPLOYERS (Employers with 1,900 or more employees) Employees Company University of Arizona Raytheon Missile Systems State of Arizona Davis-Monthan Air Force Base Pima County * Tucson Unified School District Banner – University Medical Center U.S. Customs and Border Protection ** Freeport-McMoran Copper & Gold Inc. Wal-Mart Stores Inc.*** City of Tucson * Tohono O’odham Nation Carondelet Health Network TMC HealthCare Southern Arizona VA Health Care System Fry’s Food Stores *** Pima Community College Asarco Sunnyside Unified School District Afni, Inc. Employment Sector Government (College Education) Manufacturing Government Government (Military) Government Government (K -12 Education) Services (Health) Government Mining Trade (Retail) Government Government Services (Health) Services (Health) Government (Health) Trade (Grocery) Government (College Education) Mining Government (K-12 Education) Call Center, Business Services 2014 11,235 9,600 8,524 8,335 7,255 7,134 6,542 6,470 5,800 5,400 4,782 4,350 3,943 2,976 2,255 2,136 2,207 2,427 2,200 2,220 2015 11,251 9,600 8,580 8,406 7,061 6,770 6,272 5,739 5,530 5,500 4,782 4,350 3,860 3,162 2,464 2,346 2,235 2,200 2,100 1,900 * Budgeted full-time equivalents reported by Pima County and City of Tucson for fiscal years 2014/15 and 2015/16. ** U.S. Customs and Border Protection says its FTE count is flat year-over-year and the 2014 count was flawed. *** Employee counts for 2015/16 are based on Star estimates. Source: Star 200 Directory, published by The Arizona Daily Star (April 24, 2016) and Pima County Budget Division. MAJOR MANUFACTURERS (Manufacturers with 300 or more employees) Company Raytheon Missile Systems Ventana Medical Systems Bombardier Aerospace IBM * Honeywell Aerospace * Hexcel Texas Instruments, Inc. * CAID Industries Inc. Frito-Lay Sargent Aerospace & Defense * Type of Business Military and Defense Manufacturing and Research Aerospace and Aircraft Manufacturing and Research Aerospace and Aircraft Manufacturing and Research Manufacturing and Research Manufacturing and Research Manufacturing and Research Aerospace and Aircraft Employee counts for 2015/16 are based on Star estimates. Source: Star 200 Directory, published by The Arizona Daily Star (April 24, 2016). 1-6 Employees 2014 2015 9,600 9,600 1,200 1,286 865 984 915 900 800 715 500 500 370 370 251 352 325 325 315 310 Pima County FY 2016/2017 Adopted Budget EMPLOYMENT BY INDUSTRY based on North American Industry Classification System (NAICS) Industry Trade, Transportation & Utilities Educational & Health Services Professional & Business Services Leisure & Hospitality Manufacturing Construction Financial Activities Information Mining & Logging Other Services Government Total Non-Farm Employment 2010 57,200 58,400 46,200 38,200 23,800 15,100 17,200 4,500 1,800 12,700 78,200 353,300 2011 58,000 59,900 47,100 39,100 23,300 14,500 16,900 4,400 1,900 12,500 76,800 354,400 2012 58,000 61,000 48,900 40,300 23,200 14,400 16,900 4,500 2,100 12,800 77,700 359,800 2013 59,200 61,600 49,900 40,100 23,000 15,400 17,300 4,500 2,300 12,600 77,200 363,200 2014 60,600 61,500 50,000 41,600 22,500 14,800 17,500 4,400 2,300 13,100 77,000 365,200 2015 60,600 63,000 50,800 43,000 22,600 14,600 17,600 4,500 2,300 12,700 76,300 368,100 Source: U.S. Department of Labor, Bureau of Labor Statistics. Sum by industry may not add to total because industry employment is rounded to nearest 100 employees. EMPLOYMENT BY OCCUPATION, 2015 Occupations Office and Administrative Support Sales and Related Food Preparation and Serving Related Healthcare Practitioners and Technical Education, Training, and Library Management Personal Care and Service Transportation and Material Moving Business and Financial Operations Installation, Maintenance and Repair Construction and Extraction Building and Grounds Cleaning and Maintenance Protective Service Production Computer and Mathematical Healthcare Support Community and Social Service Architecture and Engineering Arts, Design, Entertainment, Sports, and Media Life, Physical, and Social Science Legal Farming, Fishing, and Forestry Percent of Total 17.5% 10.1% 10.1% 6.5% 6.3% 4.9% 4.7% 4.6% 4.3% 4.2% 3.7% 3.3% 3.3% 3.2% 3.0% 2.8% 2.2% 1.9% 1.4% 1.2% 0.7% 0.1% Source: U.S. Department of Labor, Bureau of Labor Statistics, May 2016. NEW COMPANIES IN PIMA COUNTY (New company announcements from July 2014 to June 2016) Projected Company Name Product or Service # of Jobs Comcast Cable Business Services – Call Center 1,125 HomeGoods Distribution Center for Retailer 910 Caterpillar Construction and Mining Equipment 600 ADP Professional and Business Services 450 Tucson Premium Outlets Retail trade – Outlet Mall 450 World View Enterprises Manufacturing – Balloons for Space Exploration 400 Sources: Univ. of Arizona Economic & Business Research Center & Tucson Regional Economic Opportunities, Inc. 1-7 Pima County FY 2016/2017 Adopted Budget CONSTRUCTION ACTIVITY PIMA COUNTY VALUE OF NEW PRIVATELY OWNED HOUSING UNITS AUTHORIZED Value of New Privately Owned Housing Units in $ Millions $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: U.S. Department of Commerce, United States Census Bureau RETAIL SALES PIMA COUNTY RETAIL SALES (not including food sales) Retail Sales in $ Millions $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Arizona Department of Revenue & Pima County Budget Division. 1-8 2015 INTRODUCTION ORGANIZATION The governmental and administrative affairs of Pima County are directed by a five-member Board of Supervisors with each member elected from a designated district to serve a four-year term. The chairperson is selected by the Board from among its members. Other elected officials, often referred to as constitutional officers, are the Assessor, Clerk of the Superior Court, the Constables, County Attorney, Recorder, School Superintendent, Sheriff, and Treasurer. Presiding judges are appointed from elected members of the judicial bench. REPORTING RELATIONSHIPS Because of Arizona’s constitutional provisions and the requirements promulgated by Arizona Revised Statutes, the government of Pima County is organized to have a direct and indirect relationship with the Board of Supervisors. The Board of Supervisors has direct control over the County’s general government functions; community services; public defense; medical, health, and welfare services; and public works functions. These broad functions include the County’s internal governmental administrative/management activities; maintenance and construction of the County’s sewerage and sanitation infrastructures; County streets, roads, and bridges which comprise the County’s transportation infrastructure; natural resources, parks, community centers, recreational facilities, and libraries; and numerous clinics. Indirect relationships are maintained with the elected officials. BOARD OF SUPERVISORS The Pima County Board of Supervisors is responsible for establishing the policies of the County that provide direction for the various departments and for appointing a County Administrator. The Board has the legal authority and responsibility to establish spending limits and approve the budgets of all County departments, including those of the elected officials. The Board also sets the amount of taxes to be levied in the County. The members of the Board of Supervisors also sit as the Board of Directors for the Air Quality Control District, the Board of Deposit, the Regional Flood Control District, various improvement districts, the Library District, the Stadium District, and as the Zoning Enforcement Board of Appeals. They are members of several statutory boards, commissions, and/or committees and various regional organizations such as the Pima Association of Governments, Visit Tucson, and the Sun Corridor (formerly known as the Tucson Regional Economic Opportunities Board). The Board of Supervisors is the statutory commission for the Tucson Airport Area Enterprise Zone and is the incorporator of the Pima County, Arizona Municipal Property Corporation. COUNTY ADMINISTRATOR Pima County’s chief appointed official is the County Administrator who serves at the pleasure of the Board of Supervisors. The County Administrator reports directly to the Board. With the exception of certain duties of elected officials’ departments, the County Administrator has direct responsibility for the oversight and operation of all County government functions in the areas of General Government Services, Community Resources, Health Services, Justice & Law, and Public Works. The County Administrator implements Board policy and has the responsibility for developing the annual County budget and submitting a recommended budget to the Board of Supervisors for their consideration. Subsequent to public hearings and Board approval, the County Administrator also compiles and publishes the Adopted Budget. 2-1 SERVICES PROVIDED Pima County offers a wide variety of governmental services that are organized into the following five functional areas: GENERAL GOVERNMENT SERVICES General Government Services primarily provides internal administrative and support services to County departments directly serving the public. The departments comprising this function include the Assessor; Board of Supervisors; Clerk of the Board; Communications Office; County Administrator; Elections; Facilities Management; General Government Services Administration; Finance & Risk Management; Fleet Services; Human Resources; Information Technology; Non Departmental; Procurement; Recorder; and the Treasurer. COMMUNITY RESOURCES Community Resources provides educational, cultural, social, economic development and recreational programs to the public. The departments in this functional area are Attractions & Tourism; Community Development & Neighborhood Conservation; Community & Economic Development Administration; Community Services; Employment & Training; County Free Library; Kino Sports Complex; Natural Resources, Parks & Recreation; School Superintendent; and the Stadium District. HEALTH SERVICES Health Services provides various public health and animal control services, as well as medical assistance to indigents. The component departments are Behavioral Health; Environmental Quality; Health; Office of Emergency Management and Homeland Security, and Wireless Integrated Network. JUSTICE & LAW Justice & Law provides public safety, felony and misdemeanor investigation, and prosecution services for victims, witnesses, and those needing fiduciary assistance. Services are also provided in the areas of indigent defense, civil representation, correctional housing, and juvenile detention. Judicial services include jury selection, adjudication of trials, sentencing, and probation supervision. The child support services include Title IV-D and non-Title IV-D administrative functions such as maintaining child support, spousal maintenance, and special paternity case information; processing court orders; preparing and serving wage assignments; and receiving and processing court ordered payments. The departments within this area are the Clerk of the Superior Court; Constables; County Attorney; Forensic Science Center; Justice Court Ajo; Justice Court Green Valley; Justice Courts Tucson; Juvenile Court; Public Defense Services; Sheriff; and Superior Court. PUBLIC WORKS Public Works provides construction, operations, and maintenance services related to the County infrastructure and related planning and environmental issues. The departments within this area are Capital Projects; Development Services; Office of Sustainability & Conservation; Project Management Office; Public Works Administration; Real Property; Regional Flood Control District; Regional Wastewater Reclamation; and Transportation. 2-2 THE BUDGETARY PROCESS FUND COMPOSITION The County adopts budgets for all governmental and enterprise funds. The internal service funds, Fleet Services, Health Benefits Trust, IT Leased Hardware, Enterprise Software, and Server Storage; Risk Management, and Telecommunications, are described in the budget document but are not included in the total amount budgeted. To do so would duplicate the revenues and expenditures of the internal service funds in the budget as a whole. BASIS OF PRESENTATION As in prior years, departments are budgeted on a cost unit/object line item basis. Fiscal year 1998/1999 was the first year the budget presentation included and emphasized the programmatic components of County services. Accordingly, the fiscal year 2016/2017 budget shows the costs and funding associated with programs, regardless of the funding source. BASIS OF BUDGETING The budgets of the governmental funds are presented on a modified accrual basis. The basis of the modified accrual methodology refers to how expenditures and revenues are projected and recognized. Under this methodology, revenues are recognized when they are measurable and available to finance current expenditures. Expenditures, on the other hand, are generally recognized when incurred. Exceptions to this policy are principal and interest expenditures on general long term debt which are budgeted either when due, or in period 12 (June) if the due date falls early in the next fiscal year. The budgets of the proprietary funds are presented using the accrual basis. Under this methodology, revenues are recognized when they are earned, and expenses are recognized when they are incurred. Under the basis of budgeting for capital leases, the acquisition costs and corresponding proceeds of the capital lease agreement are recorded. Only the principal and interest payments applicable to the budget period are reflected in the budget document. Note that under the requirements of the Government Accounting Standards Board Statement No. 34 (GASB 34), Countywide audited financial statements are now produced on a full accrual basis. However, GASB 34 also requires that supplemental financial statements be produced that will serve as a crosswalk between the accounting basis of the audited financial statements and the budget. BUDGETARY CONTROL The County’s adopted budget serves as a legal operating plan for the fiscal year. While its primary function is to provide a planning and allocation tool, it also serves management by providing the basis for measuring performance during the year. The adopted budget has two levels of budgetary constraints: 1) within the General Fund, expenditures may not legally exceed appropriations at the department level and 2) within each Special Revenue Fund department, Capital Projects, Debt Service, and the Enterprise Fund; expenditures may not legally exceed the level of the total funding source. It should be noted that while budget limitations are based upon expenditures, emphasis is given in the budget documents to Net Fund Impact (NFI) for governmental funds and Net Assets Impact (NAI) for proprietary funds. NFI and NAI show the difference between total revenues and total expenditures for the fiscal year, plus or minus net operating transfers and other financing sources, when appropriate. These concepts provide a clearer picture of how dollars are allocated rather than emphasizing expenditures alone. For example, it is possible that a department could remain within its expenditure budget while, at the same time, fail to generate its corresponding budgeted revenues. In such an instance, more dollars would be required to meet the departmental and/or programmatic objectives 2-3 than noted solely by the spending ceilings granted by the Board of Supervisors. To monitor compliance with these budgetary constraints, departments prepare both revenue and expenditure projections on a monthly basis and the projections are compiled by the Budget Division. Variances between these projections and the full year appropriations are reported to the County Administrator and the Board of Supervisors. These analyses provide not only a mechanism for monitoring performance, but also for adjusting (when necessary) departmental operating plans and resource utilization. BUDGET AMENDMENTS While state statutes prohibit the County from exceeding the final adopted budget amount, the budget is still just a planning document and as such remains sufficiently flexible to accommodate changes that may occur during the fiscal year. There are two categories of change that may be required to the adopted budget: 1) those affecting line items within a single department and 2) those requiring a transfer between departments or funds. In the first instance, departments retain the authority to modify line item amounts within their own budgets provided the total program budgeted amount remains unchanged. In the second instance, the County Administrator has the authority to evaluate departmental requests for changes between departments and make recommendations for approval to the Board of Supervisors. Should the County Administrator recommend the change to the Board of Supervisors, the recommendation will be considered at a regularly scheduled, open meeting of the Board. BUDGET PREPARATION AND APPROVAL The budget of Pima County is comprised of two components: 1) departmental operating budgets, and 2) the Capital Improvement Budget. Departmental Operating Budgets All departments within each functional area are required to prepare their next year’s budget requests using a target-based budgeting approach. Under this approach, base budgets are developed wherein revenues are assumed to be identical with those of the prior year unless new revenues are clearly identified. Additionally, expenditures are assumed identical to those of the prior year after adjusting for such items as: 1) Board of Supervisors’ approved programs, 2) changes in employee benefits, 3) Internal Service Fund charges, 4) one-time expenses, 5) annualized cost of prior year new positions, 6) annualized costs associated with ongoing programs, and 7) annualized cost of prior year employee compensation. In keeping with the target-based model, departments may also submit requests for supplemental funding if they believe their base budget requests are too low to fund all programmatic needs. These supplemental requests must detail all needed support including personnel services, operating expenses, and capital. Supplemental requests must also identify the requested funding source. Additionally, supplemental requests must be prioritized for the department as a whole and include an impact statement (should supplemental funding be denied) detailing the opportunity lost, mandate not met, measurement of services not provided, or outcome not achieved. After these departmental budget requests are prepared, they are verified, corrected as necessary, and consolidated by the Budget Division for presentation to the County Administrator. The County Administrator then reviews and recommends base and supplemental requests to the Board of Supervisors (usually in the month of April or May). Following receipt and public discussion of this Recommended Budget, the Board of Supervisors, on or before the third Monday in July, adopts a Tentative Budget which sets a ceiling on expenditures that may be incurred for the County as a whole. The final step in the process is a public hearing and special Board meeting, where the Final Budget is adopted as required by Arizona Revised Statutes. Unless the budget process is accelerated, this special meeting is customarily held on the first Monday in August, for the adoption of the budget covering the fiscal year that began July 1. 2-4 Capital Improvement Budget On an annual basis, the County Administrator’s office prepares a five-year Capital Improvement Plan (CIP) and a one-year Capital Improvement Budget (CIB). A summary of capital improvement projects for fiscal year 2016/17-2020/21 and beyond is provided in the Capital Improvement Program section, and a capital improvement program overview is provided in the Budget Overview section. Preparation and Approval Timetable A timetable for the budget preparation and approval processes for fiscal year 2016/17 is provided below. October 30, 2015 Planning and Budgeting System (the budget system) released for budgeting October 30, 2015 Base target budgets for General Fund departments, assumptions, location of SharePoint site and other information are distributed to departments October/ November 2015 Budget training for department representatives January 8, 2016 Operational, Grant and CIP Budgets due to the Budget Division, Grants Management and Finance CIP from departments March 4, 2016 County Administrator department meetings regarding CIP budgets March 18, 2016 County Administrator meets with County Budget Division staff March 18, 2016 – April 8, 2016 County Administrator gives direction to the Budget Division April 19 and 26, 2016 Fiscal year 2016/17 Requested Budget Hearings April 29, 2016 County Administrator submits Recommended Budget to the Board May 3, 10 and 17, 2016 Fiscal year 2016/17 Requested Budget Hearings May 24, 2016 Board of Supervisors Tentative Budget adoption June 7, 2016 Board of Supervisors Overall Tentative Budget adoption July 5, 2016 Board of Supervisors Final Budget adoption August 15, 2016 Board of Supervisors adoption of the Levy of Taxes 2-5 PIMA COUNTY ORGANIZATIONAL CHART RESIDENTS OF PIMA COUNTY Elected Officials Elected Officials BOARD OF SUPERVISORS ASSESSOR RECORDER CLERK OF THE SUPERIOR COURT CLERK OF THE BOARD SCHOOL SUPERINTENDENT CONSTABLES COUNTY ADMINISTRATOR SHERIFF COUNTY ATTORNEY SUPERIOR/ JUVENILE COURT DEPUTY COUNTY ADMINSTRATORS JUSTICE COURTS TREASURER GENERAL GOVERNMENT SERVICES COMMUNITY RESOURCES HEALTH SERVICES 2-6 JUSTICE & LAW ENFORCEMENT PUBLIC WORKS Pima County FY 2016/2017 Adopted Budget LEGAL REQUIREMENTS COUNTY SPENDING LIMITATION Pima County, like all counties and cities in Arizona, is subject to numerous budgetary and related legal requirements. Article 9, Section 20 of the Arizona Constitution sets limits on the County's legal budget capacity. In general, the Board of Supervisors, as the governing body of the County, cannot authorize expenditures from local revenues in excess of the expenditure limitation determined annually for Pima County by the Arizona Economic Estimates Commission. The expenditure limitation is determined each year by adjusting the amount of actual payments of local revenues received by the County during fiscal year 1979/80 to reflect inflation and subsequent population growth for the County. Not subject to this limitation are items such as bond proceeds, related debt service, interest earnings, special voter approved districts, certain highway user revenue funds, federal grant and aid funds, monies received pursuant to intergovernmental agreements, and state grants which are to be used for specific purposes. Arizona Revised Statutes (ARS) § 42-17151, in effect, also mandates the adoption of a balanced budget for the County, as it requires the governing body of each county shall fix, levy and assess the amount to be raised from primary property taxation and secondary property taxation. This amount, plus all other sources of revenue, as estimated, and restricted and unrestricted unencumbered balances from the preceding fiscal year, shall equal the total of amounts proposed to be spent in the budget for the current fiscal year. TENTATIVE BUDGET PREPARATION AND PUBLICATION State law (ARS § 42-17101) requires that on or before the third Monday in July of each fiscal year, the Board of Supervisors must prepare an estimate of the County’s expenditures and revenues. Pima County refers to these estimates as the Tentative Budget. According to ARS § 42-17101, this Tentative Budget must be included in the governing body’s minutes and must be fully itemized in accordance with forms supplied by the state Auditor General. (See the State Reports section.) ARS § 42-17102 defines those expenditures and revenues comprising the Tentative Budget. The Tentative Budget and state reports include all monies used for County purposes, interest and principal payments on bonds, the amount for each special levy provided by law, and the amount for unanticipated contingencies or emergencies. ARS § 42-17103 requires publication of the Tentative Budget once a week for at least two consecutive weeks. The published Tentative Budget must be accompanied by a notice of the scheduled date and time for a public hearing and special meeting regarding the proposed budget and taxes levied on property. ARS § 42-17104 specifies that the Board of Supervisors shall hold a public hearing and special meeting at which any taxpayer may appear and speak for or against the Tentative Budget and tax levy. This public hearing and special meeting must be held on or before the fourteenth day before the day the Board levies taxes. ARS § 42-17105 prescribes that once the Tentative Budget has been published, expenditures may not be increased above the published amounts; however, they may be decreased. In 3-1 Pima County FY 2016/2017 Adopted Budget effect, with the publication of the Tentative Budget, the Board has set its maximum limits for expenditures, but these limits may be reduced upon adoption of the final budget. FINAL BUDGET ADOPTION State law (ARS § 42-17105) specifies that after the hearing required by ARS § 42-17104, the Board of Supervisors must adopt the estimates of proposed expenditures for the fiscal year at a special meeting called for that purpose. The proposed expenditures become the final adopted budget for the current fiscal year when approved by a majority of the supervisors, provided that the total amounts proposed to be spent in the budget do not exceed the total amounts that were proposed for expenditures in the published estimates, i.e., the Tentative Budget. Copies of the Board of Supervisors’ resolutions adopting the fiscal year 2016/17 budgets for Pima County, the County Free Library District, the Flood Control District, and the Stadium District are provided on pages 3-7 through 3-10. BUDGET REVISIONS ARS § 42-17106 requires that no money shall be expended for a purpose not included in the adopted budget and no expenditures shall be made in excess of the amounts specified for each purpose in the budget, except as provided by law. This restriction applies whether or not the County has at any time received, or has on hand, funds or revenues in excess of those required to meet expenditures incurred under the adopted budget. Pima County defines purpose as a program, i.e., an activity or group of activities that accomplishes a single function or provides a category of service. ARS § 42-17106 permits the Board of Supervisors, upon approval by a majority of the supervisors at a duly noticed public meeting, to authorize the transfer of funds between programs when the funds are available and the transfer is in the public interest and based on a demonstrated need, as long as the transfer does not result in violation of the limitations prescribed by Article 9, Sections 19 and 20 of the Arizona Constitution, i.e., the limitation on annual increases in local ad valorem property tax levies and the limitation on county expenditures, respectively. TRUTH IN TAXATION State law (ARS § 42-17052) requires that on or before February 10th of each year, the County Assessor shall transmit to the Board of Supervisors an estimate of the total net assessed valuation of the County, including an estimate of new property that has been added to the tax roll since the previous levy of property taxes in the County. If the proposed primary property tax levy, excluding amounts that are attributable to new construction, is greater than the amount levied by the County in the preceding year, the Board of Supervisors is required by ARS § 4217107 to publish a notice of tax increase, inviting citizens to appear and speak for or against the proposed increase at a public truth in taxation hearing. The notice of tax increase must be published twice, with the first publication of the notice being at least fourteen but not more than twenty days before the date of the truth in taxation hearing and the second publication being at least seven days but not more than ten days prior to the hearing. Starting in 2016, truth in taxation requirements also apply to the County Free Library District and the Flood Control District. ARS § 42-17107 requires a public truth in taxation hearing be held prior to the Board’s approval of the adopted budget. Furthermore, ARS § 42-17104 requires such a public hearing be held on or before the fourteenth day before the day taxes are levied. Whenever a truth in taxation 3-2 Pima County FY 2016/2017 Adopted Budget hearing has been required, Pima County has customarily held such a hearing on the same day and immediately preceding the Board’s approval of the adopted budget. ADOPTION OF TAX LEVY ARS § 42-17151 specifies that on or before the third Monday in August the Board of Supervisors must fix, levy, and assess the amounts to be raised from primary property taxation and secondary property taxation. The Board must also designate the amounts to be levied for each purpose appearing in the adopted budget and determine and fix a primary property tax rate and the secondary property tax rates. ARS § 42-17151 requires the primary property tax levy and rate and the secondary property tax levy and rate adopted by the Board of Supervisors shall be fixed using the net assessed values of real and personal property from the assessment roll of the County as transmitted pursuant to ARS § 42-17052 by the Assessor on or before February 10th of each year, unless subsequent changes in such values are approved by the Property Tax Oversight Commission. Pima County also uses the net assessed values from this assessment roll in fixing the secondary property tax levies and rates in the adopted budgets of the County Free Library District and the Flood Control District. A copy of the Board of Supervisors’ resolution for the levy of taxes for fiscal year 2016/17 is provided on pages 3-11 through 3-26. PROPERTY TAX LEVY LIMITATION The Arizona Constitution and state statutes specify two distinct types of ad valorem property taxes: a limited property tax levy known as the primary property tax levy and a number of unlimited levies referred to as secondary property tax levies. The primary levy may be imposed for any purpose, while the secondary levies may be used only for specific purposes. Primary Property Tax Levy: There is a strict limitation on how much the County can levy as an ad valorem primary property tax. Article 9, Section 19 of the Arizona Constitution and ARS § 42-17051 constrain the County’s maximum allowable primary property tax levy limit each year to an amount that is two percent greater than the previous year's maximum allowable primary property tax levy limit, plus a dollar amount that reflects the net gain in property not taxed the previous year. Even if the County does not tax at the maximum allowable primary property tax levy limit from year to year, the allowed two percent increase is based on the prior year's maximum allowable levy limit. The amount of net gain in property is included in the calculation to take into account all new construction and any additional property added to the assessment roll from the previous year. Secondary Property Tax Levy: Secondary property tax levies allow the County to levy ad valorem property taxes for various specific purposes. For many years, Pima County has levied four secondary property taxes. ARS § 11-275 authorizes a tax levy on the taxable net assessed value of all real and personal property in the County for the purpose of retiring principal and paying interest on general obligation bonds. ARS § 48-807 mandates the Board of Supervisors levy a countywide Fire District Assistance Tax on the taxable net assessed value of all real and personal property to assist the fire districts in Pima County, and ARS § 48-3903 authorizes a similar secondary tax levy on all property to pay the expenses of the County Free Library District. ARS § 48-3620 authorizes a tax levy only on the taxable net assessed value of real property in the County to pay the expenses of the Regional Flood Control District. 3-3 Pima County FY 2016/2017 Adopted Budget Secondary tax levies are commonly referred to as unlimited levies because such property taxes may be levied in amounts necessary to meet expenses and are not statutorily limited in how they may change from year to year. The Fire District Assistance Tax is an exception, however, as ARS §48-807 limits the Fire District Assistance Tax to a rate not to exceed ten cents per $100 of taxable net assessed valuation. 3-4 Pima County FY 2016/2017 Adopted Budget Note: Copies of the resolutions for the Adoption of the County Budget, the Adoption of the County Free Library District Budget, the Adoption of the Flood Control District Budget, and Adoption of the Stadium District Budget are provided on the following four pages. Although each of the resolutions makes reference to the “accompanying schedules” which show the estimates of revenues and expenditures/expenses, the schedules have been withdrawn, since these schedules replicate the information provided in the section labeled State Reports. Please refer to the tab labeled State Reports for the estimates of revenues and expenditures/expenses. 3-5 RESOLUTION NO. 2016 - _j1_ PIMA COUNTY RESOLUTION FOR THE ADOPTION OF THE BUDGET FISCAL YEAR 2016/2017 The Board of Supervisors of Pima County, Arizona finds: 1. On June 7, 2016, in accordance with A.R.S. §42-17101 et seq., the Board of Supervisors made an estimate of the different amounts required to meet the public expenditures of the County for the ensuing year, an estimate of revenue from sources other than direct taxation, and the amount to be raised by taxation upon real and personal property of Pima County. 2. The estimates were published as required by law, together with a notice that the Board would hold a public hearing and special board meeting on this date for the purpose of hearing taxpayers. 3. The public hearing was duly held today, at the time and place designated in the published notice, at which any taxpayer was privileged to appear and be heard in favor of or against any of the proposed expenditures or tax levies. NOW, THEREFORE, BE IT RESOLVED, that the estimates of revenues and expenditures shown on the accompanying schedules are adopted as the budget of Pima County for the Fiscal Year 2016/2017. Passed and adopted this 5th day of July, 2016. ~c,~