What is this about?
A proposed update to how Yuma’s state-imposed spending limit is calculated. 

When will voters decide?
November 2026 General Election 

What would a “Yes” vote mean?
The City’s expenditure base would be updated, changing how the annual spending limit is calculated. 

What would a “No” vote mean?
The City would be required to bring expenditures into compliance with the state-imposed limit, which could affect how services, programs, and capital projects are delivered over time.

The chart above illustrates how the City of Yuma’s state-established Annual Expenditure Limitation (blue line) has changed over time compared to the City’s actual expenditures subject to the limitation (green line). While the expenditure limit has increased gradually based on population growth and inflation, the City’s actual service demands and operating costs have also evolved as the community has grown. The chart shows how the gap between the state formula and modern service needs has narrowed over time, helping illustrate why many Arizona communities have adopted — or continue to evaluate — Permanent Base Adjustments.

The chart also reflects the impacts of major economic and population changes over time, including expenditure reductions during the Great Recession and adjustments tied to updated Census population figures beginning in 2023.

The AEL is one of several factors that affects how the City plans for services and infrastructure.

Updating the expenditure base would change how the spending limit is calculated moving forward. The City would continue to adopt a balanced budget each year and make decisions based on available revenues and community priorities.

A Permanent Base Adjustment does:

• Update the spending limit formula to reflect current conditions
• Allow future annual limits to adjust based on population and inflation, starting from the adjusted base

A Permanent Base Adjustment does not:

• Increase property taxes
• Increase sales taxes
• Create new fees
• Generate new revenue

If voters approve the measure:
The City’s expenditure base will be updated, and the revised spending limit will take effect beginning in Fiscal Year 2028. Future limits will continue to adjust annually.

If voters do not approve the measure:
The City would be required to bring expenditures into compliance with the state-imposed limit, which could affect how services, programs, and capital projects are delivered over time

State law requires several steps before this measure can be placed on the ballot:

• City Council consideration and action to refer the measure to voters
• Preparation of financial analyses
• Review by the Arizona Auditor General
• Development and distribution of a publicity pamphlet to voters
• Election in November 2026

The ballot language will be finalized as part of the election process.

Example format:

“Shall the expenditure base of the City of Yuma be permanently adjusted by $30,000,000?”

A “Yes” vote would allow the adjustment.
A “No” vote would not allow the adjustment.

Does this affect taxes?
No. The AEL limits spending, not revenue. It does not change tax rates or create new revenue.

Is the City currently over the limit?
No. The City has historically operated within the state-imposed limit.

Why is this being considered now?
The formula is based on 1979–80 conditions and does not fully reflect current operations, services, or costs.

Have other cities done this?
Most Arizona cities and towns have adopted an alternative to the 1979-1980 state expenditure limitation