TO: Mayor Collins and Town Council Members
FROM: Kevin Burke, Town Manager
Duncan Miller, Town Clerk
DATE: December 15, 2016
DEPARTMENT: Town Manager
Staff Contact Duncan Miller, 480-348-3610
End
AGENDA TITLE:
Title
Adoption of Ordinance Number 2016-16 and Resolution Number 2016-24 Repealing and Replacing Town Code Section 2-7 Financial Disclosures for Elected Officials
Body
Council Goals or Statutory Requirements:
• A.R.S. §38-541-541 - A.R.S. §38-541-545
• Prioritize Transparency
RECOMMENDATION:
Recommendation
Adopt Ordinance 2016-16 and Resolution Number 2016-24.
Background
SUMMARY STATEMENT:
In 1974, the Arizona Legislature enacted A.R.S. §38-541-545; Standards for Financial Disclosure. Section 38-545 states:
Notwithstanding the provisions of any law, charter or ordinance to the contrary, every incorporated city or town or county shall by ordinance, rule, resolution or regulation adopt standards of financial disclosure consistent with the provisions of this chapter applicable to local public officers.
The Town of Paradise Valley adopted the disclosure requirement by Ordinance Number 89 in 1974 and amended the ordinance in 1977 and 1983.
During the 2016 legislative session, H.B. 2429 amended the financial disclosure statement requirement for all candidates and public officers. In consequence, the Town must amend Article 2-7 of the Town Code to remain in compliance with state law.
There are three noteworthy changes:
1. The law no longer requires the specific names of the public officer’s spouse or children. Rather they may be identified as “Spouse” and “Minor Child 1, Minor Child 2”. Moreover, public officers may list either a home address or work address on the report.
2. A category was added that requires reporting of certain official business-related travel expenses of $1,000 or more, which when reported, are exempt as a “gift” under the law. The law also clarifies that political campaign-related travel expenses are not considered “gifts” as they are publicly reported in candidate campaign finance reports.
3. The Secretary of State must provide the option for public officers to complete and file Financial Disclosure Statements electronically. In the short term, a pdf fillable form has been created for public officers to complete and sign electronically. Furthermore, the forms no longer have to be notarized and may be submitted by email.
As stated, the Town previously adopted the requirements by ordinance. It is recommended that the Town Council delete the specific requirements from the Town Code and instead adopt a general code provision referencing 38-542. The local public officer form requirements will be adopted and updated by resolution.
The amended state statute becomes effective on December 31, 2016. In order for the Town’s ordinance to be effective on the same date it is necessary to adopt it with an emergency clause.
The Town Council reviewed these amendments during a study session on December 1, 2016. It is recommended that the Town Council adopt Ordinance 2016-16 and Resolution 2016-24 to conform to state law.
BUDGETARY IMPACT:
None
ATTACHMENT(S):
Ordinance 2016-16
Resolution 2016-24