Can a city or town subtract expenditures for new services or facilities on the Annual Expenditure Limitation Report (AELR) Reconciliation?
No. There is no provision in the Arizona Constitution or Arizona Revised Statutes allowing a city or town subject to the constitutional expenditure limitation to exempt expenditures for new or expanded programs/facilities from expenditures subject to its expenditure limitation. However, a city or town under a home rule may include exclusions that are different from those provided in the constitution in their home rule resolution. These exclusions can be taken on line B.12 of the AELR, Part II.
