Home rule—Arizona Constitution, Article IX, §20(9), allows a city or town to adopt an alternative expenditure limitation (home rule) with voter approval at a regularly scheduled election for the nomination or election of its governing board members. Home rule prescribes the method the city or town will use to calculate its expenditure limitation each year. Voters must approve home rule before the first fiscal year to which it applies. Home rules apply for four succeeding fiscal years, after which the constitutional expenditure limitation becomes effective unless voters adopt a new home rule.
Permanent base adjustment—Arizona Constitution, Article IX, §20(6), allows a city or town to permanently adjust its base limit with voter approval at a regularly scheduled general election or a nonpartisan election held for the nomination or election of its governing board members. The Economic Estimates Commission will use the adjustment to calculate the constitutional expenditure limitation beginning with the fiscal year immediately following the fiscal year that voters approve the permanent base adjustment. Permanent base adjustments apply to all future years; however, voters may adopt additional adjustments.