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STRATEGIC OUTCOMES |
ACTION |
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Department: |
☒ Safe & Prosperous |
☐ Motion |
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City Administration |
☐ Active & Appealing |
☐ Resolution |
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☒ Respected & Responsible |
☐ Ordinance - Introduction |
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Division: |
☒ Connected & Engaged |
☒ Ordinance - Adoption |
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☐ Unique & Creative |
☐ Public Hearing |
TITLE:
title
City of Yuma Proposition 436: Permanent Base Adjustment - November 2026 General Election
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SUMMARY RECOMMENDATION:
Summary Recommendation
Adopt an ordinance authorizing the submission of Proposition 436 to the qualified electors of the City of Yuma at the November 3, 2026, General Election, asking whether to approve a $30 million Permanent Base Adjustment to the City’s expenditure limitation. (City Administration/Finance) (Jay Simonton/Douglas Allen)
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STRATEGIC OUTCOME:
Authorizing the submission of Proposition 436 to the November 2026 General Election ballot provides eligible voters the opportunity to participate in a community decision regarding the City’s expenditure limitation. This action supports the City’s Connected and Engaged, Respected and Responsible, and Safe and Prosperous strategic outcomes by promoting informed voter participation, ensuring transparency and compliance with state law, and addressing a state-established limitation that influences the City’s ability to plan for services, infrastructure, and long-term investments.
REPORT:
The Annual Expenditure Limitation (AEL) is a state-established spending framework approved by Arizona voters in 1980 that limits how much cities and towns can spend each year, based on 1979-80 expenditure levels and adjusted annually for population growth and inflation. Of Arizona’s 91 cities and towns, the City of Yuma is one of six that has not adjusted its expenditure limitation.
Article IX, Section 20(6) of the Arizona Constitution allows cities and towns to request voter approval for a Permanent Base Adjustment to update the expenditure base used in the formula.
While the City of Yuma has remained compliant with the AEL, the formula reflects conditions from more than four decades ago and does not fully account for current service demands, population growth, seasonal residents, or modern infrastructure and operational needs. As a result, the limitation may influence how the City plans and delivers services over time.
The proposed ordinance would authorize the submission of Proposition 436 to the voters of the City of Yuma at the November 2026 General Election, in accordance with state law. The measure would ask voters whether to approve a $30 million Permanent Base Adjustment to the City’s 1979-80 expenditure base.
A Permanent Base Adjustment changes how the expenditure limitation is calculated. It does not increase taxes, create new fees, or generate new revenue. The City will continue to adopt a balanced budget each year and make decisions based on available revenues.
Proposition 436 would ask voters to consider the following question:
SHALL THE EXPENDITURE BASE OF THE CITY OF YUMA BE PERMANENTLY ADJUSTED BY $30 MILLION?
A “YES” vote shall have the effect of allowing the City to adjust its base expenditure limit.
A “NO” shall have the effect of not allowing the City to adjust its base expenditure limit.
If approved, the adjustment would update the City’s expenditure base beginning in Fiscal Year 2028, allowing future annual limits to be calculated from the revised base. If not approved, the City would be required to operate within the state-established expenditure limitation.
Adoption of this ordinance would authorize the submission of Proposition 436 to the voters for consideration at the November 2026 General Election and direct the City Administrator, City Clerk, and City Attorney to coordinate with Yuma County to place the measure on the ballot and carry out all required election procedures.
FISCAL REQUIREMENTS:
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CITY FUNDS: |
$ 0.00 |
BUDGETED: |
$ 0.00 |
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STATE FUNDS: |
$ 0.00 |
AVAILABLE TO TRANSFER: |
$ 0.00 |
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FEDERAL FUNDS: |
$ 0.00 |
IN CONTINGENCY: |
$ 0.00 |
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OTHER SOURCES: |
$ 0.00 |
FUNDING ACCOUNT/FUND #/CIP: |
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TOTAL |
$ 0.00 |
. |
FISCAL IMPACT STATEMENT:
No direct fiscal impact. This action authorizes the submission of Proposition 436 to the voters at the November 3, 2026 General Election.
If approved by voters, a Permanent Base Adjustment would update the City’s expenditure limitation beginning in Fiscal Year 2028. This action does not increase taxes, create new fees, or generate new revenue. Future fiscal impacts would be addressed through the City’s annual budget process.
ADDITIONAL INFORMATION:
SUPPORTING DOCUMENTS NOT ATTACHED TO THE CITY COUNCIL ACTION FORM THAT ARE ON FILE IN THE OFFICE OF THE CITY CLERK:
None
IF CITY COUNCIL ACTION INCLUDES A CONTRACT, LEASE OR AGREEMENT, WHO WILL BE RESPONSIBLE FOR ROUTING THE DOCUMENT FOR SIGNATURE AFTER CITY COUNCIL APPROVAL?
☐ Department
☐ City Clerk’s Office
☐ Document to be recorded
☐ Document to be codified
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Acting City Administrator: |
Date: |
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John D. Simonton |
05/27/2026 |
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Reviewed by City Attorney: |
Date: |
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Richard W. Files |
05/26/2026 |