At their March 25th Voting Meeting, Prescott City Council adopted Resolution No. 2025-1915, placing Proposition 482 “Home Rule” alternative expenditure limitation, and Resolution No. 2025-1914 placing Proposition 484 “Open Space Charter Amendment” on the August 5th Primary Election ballot.

The State expenditure limitation locks spending at 1980 economic level with some inflation. Prescott Voters have consistently approved Home rule which is an Alternative expenditure limit (AEL) since 1989. The Home Rule Option allows municipalities to set their own expenditure limits based on actual budgeted revenues, reflecting local fiscal needs and priorities.

To implement Home Rule, a city or town must hold a public election and obtain voter approval. Once approved, Home Rule remains in effect for 4 fiscal years. After this period, it must be renewed through another voter referendum.

The ballot language for Prop 482 is as follows:

PURSUANT TO THE ARIZONA STATE CONSTITUTION, THIS PROPOSAL ESTABLISHES AN ALTERNATIVE EXPENDITURE LIMITATION – HOME RULE OPTION FOR THE CITY OF PRESCOTT FOR THE NEXT FOUR YEARS. ANNUALLY, THE CITY COUNCIL WILL DETERMINE THE AMOUNT OF THE ALTERNATIVE EXPENDITURE LIMITATION FOR THE COMING FISCAL YEAR AFTER AT LEAST ONE PUBLIC HEARING. THIS ALTERNATIVE EXPENDITURE LIMITATION – HOME RULE OPTION REPLACES THE STATE-IMPOSED EXPENDITURE LIMITATION.

A “YES” vote shall have the effect of establishing an alternative expenditure limitation for the City of Prescott.

A “NO” vote shall have the effect of not allowing the City of Prescott to establish an alternative expenditure limitation – home rule option and require expenditures of the City to be limited by the state-imposed expenditure limit, which is determined using a state-established formula based on the City of Prescott’s budget from 1980.