City of Yuma and Yuma County Provide Information on State Spending Limit

The City of Yuma and Yuma County are providing information to residents about the Annual Expenditure Limitation (AEL), a state-established spending framework that affects how local governments plan for services and infrastructure.

The AEL limits how much cities, towns, and counties can spend each year. It applies to spending authority, not revenue, and can influence how communities fund day-to-day services. It is part of state law and applies to all cities, towns, and counties in Arizona. The AEL is not a tax and does not create a new tax.

Approved by Arizona voters in 1980, the AEL is based on spending levels from 1979-80 and is adjusted annually for population growth and inflation.

As communities have grown and service demands have changed, the expenditure limitation can affect how local governments plan for and fund services. While certain costs are excluded under state law, the limitation applies to many day-to-day services residents rely on, including public safety, streets and infrastructure, parks, water and wastewater services, as well as public health services and libraries.

City of Yuma Overview

For Fiscal Year 2026, the City of Yuma's budget and state spending limit compare as follows:

• Total City budget (all funds): $547 million
• State-set expenditure limitation: $175 million

The difference, approximately $372 million, reflects the gap between the City's total budget and the amount counted toward the state-established spending limit. This difference does not indicate overspending. Rather, it reflects that certain expenditures are excluded under state law and that the limitation applies to specific categories of spending.

Certain expenditures, such as debt service and some grant-funded projects, are excluded under state law. However, the limit applies to many general government services, including public safety, street maintenance, parks, and water and wastewater services.

Yuma County Overview

For Fiscal Year 2026, Yuma County's budget and state spending limit compare as follows:

• Total County budget (all funds): $552 million
• State-set expenditure limitation: $121 million

The difference of approximately $431 million reflects a similar gap between the County's total budget and the amount counted toward the state-established spending limit.

Together, these comparisons illustrate how the state-established expenditure limitation affects local governments across the Yuma region.

Cities and counties may seek voter approval to adjust their expenditure limitation through a Permanent Base Adjustment.

Next Steps

The Yuma County Board of Supervisors approved a resolution on May 18, 2026, referring a Permanent Base Adjustment measure to voters for the November 2026 General Election. The Yuma City Council is expected to consider a similar ordinance in June.

If approved for the ballot, voters would consider whether to authorize a Permanent Base Adjustment to the Annual Expenditure Limitation, which would update the expenditure base used in the state formula.

A Permanent Base Adjustment would not increase taxes, create new fees, or generate new revenue. Each jurisdiction would continue to adopt balanced budgets annually and limit spending to available revenues.

Residents who would like to learn more about the Annual Expenditure Limitation, including how it works and what it means for the City of Yuma and Yuma County, can visit: www.yumaaz.gov/AEL and add http://www.yumacountyaz.gov/ael.