The Gilbert Chamber of Commerce would like to express support for Prop 497 - the Permanent Base Adjustment to the Town’s current expenditure limit and Prop 498 - the Capital Projects Accumulation Fund exemption.
Proposition 497 - Permanent Base Adjustment: We recognize that the state-imposed expenditure limit is based on each municipality’s actual spending during the 1979-1980 fiscal year budget and that this spending cap was last adjusted in 1998 when Gilbert’s population was 87,878. The proposed increase of $1.5M in the town’s expenditure limit base allows Gilbert to adjust its budgetary capabilities to meet current and future needs. This adjustment is essential given the significant population growth since 1998 (from 87,878 to the current population). By increasing the expenditure limit, the town can utilize additional revenue from federal, state, and local sources more effectively. Even with the proposed increase, Gilbert's expenditure limit will remain comparatively low, indicating a fiscally conservative yet growth-oriented approach. This balance can make Gilbert an attractive location for new businesses and investments, offering a stable yet dynamic environment for business operations.
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Proposition 498 - Capital Projects Accumulation: This proposition permits the accumulation of funds for capital projects without breaching the state-imposed expenditure cap. It enables Gilbert to avoid the costs associated with borrowing (e.g., interest payments and issuance fees), thereby preserving financial resources for other essential services or investments. This is particularly important in maintaining fiscal health and ensuring sustainable economic growth. By allowing the town to accumulate funds for capital projects without incurring debt, Prop 498 ensures that essential infrastructure projects can be completed in a timely and cost-effective manner. These projects might include road and transportation improvements or the development or improvement of new business districts, which directly enhance the operational environment for local businesses. Funding capital projects through accumulated funds allows for better planning and execution of long-term infrastructure improvements. High-quality infrastructure attracts new businesses and facilitates the expansion of existing ones, fostering a robust business ecosystem.
Support for Propositions 497 and 498 is crucial as they provide Gilbert with the necessary fiscal flexibility to meet the growing needs of its community and business environment. By increasing the expenditure limit and allowing for the accumulation of funds for capital projects without incurring debt, these propositions ensure that Gilbert can invest in essential public services and infrastructure. This, in turn, enhances the operational efficiency, economic stability, and long-term growth prospects of the local business community.
Approved June 2024