Yuma council weighs ballot measure to boost spending limit by $30 million

Yuma voters could be asked this fall to loosen a city spending cap that has been in place since 1980, giving City Hall $30 million more room in its base expenditure limit without creating new taxes or fees.

At its June 3 meeting at Yuma City Hall Council Chambers at One City Plaza, the Yuma City Council considered an ordinance to place Proposition 436 on the November 3, 2026 General Election ballot. The measure would ask voters to approve a permanent base adjustment to Yuma’s 1979-80 expenditure base, changing how much the city may spend under Arizona’s Annual Expenditure Limitation system.

The city says the proposal would not increase taxes, create new fees or generate new revenue. Even with a higher spending limit, Yuma would still be required to adopt balanced budgets each year and spend only the revenues it actually has. In plain terms, the question is not whether the city can collect more money, but whether it can use more of what it already brings in for services, staffing and projects.

Arizona voters approved the city-and-town expenditure limitation in the Arizona Constitution on June 3, 1980, to restrain local-revenue spending growth and tie future increases to inflation and population growth. Yuma says most Arizona cities have already adjusted their limits, while Yuma is one of only six municipalities in the state that has never requested an adjustment.

That gap matters because city finance officials have warned that post-pandemic pressures and rising construction costs have left Yuma with little room to maneuver while still maintaining service levels. A 2025 city-finance discussion tied the issue to a broader capital plan that included roads, parks, downtown improvements, water and wastewater work and public safety projects, along with a proposed $116 million bond strategy.

If Proposition 436 passes, Yuma would gain more flexibility to move faster on those priorities and to keep pace with staffing and operating needs. If it fails, the city remains under the current cap, which could mean longer waits for projects and fewer options when leaders try to stretch limited dollars across parks, streets, public safety and utilities.

State law requires ballot materials for a permanent adjustment to include the election date, polling places and hours, a summary of the adjustment amount reviewed by the Arizona Auditor General and the revenue sources that would finance the change. Yuma County is considering its own permanent base adjustment for November 2026, putting both local governments under the same spending-limit pressure at the same time.