municipalities; budgets; amendments

SB1163 - municipalities; budgets; amendments

Budget Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Hildy Angius, Lauren Kuby, Carine Werner
Last action: 2026-01-20
Official status: Senate second read
Effective date: Not listed

Plain English Breakdown

The official bill status shows 'Passed Legislature' but no effective date is provided in the source text.

SB1163: Changes to City and Town Budget Rules

This law changes how cities and towns can update their budgets during the year by removing a specific deadline for these updates.

What This Bill Does

Requires city or town leaders to hold a special meeting after budget hearings to officially adopt spending plans.
Allows cities and towns to change their adopted budget later in the fiscal year if they find extra money that was not planned before.
Removes the rule that required these budget changes to be finished by the third Monday of July each year.
States that any new or higher taxes cannot be added when a city or town updates its budget this way.

Who It Names or Affects

Cities and towns
City and town governing bodies

Terms To Know

Governing body: The group of officials who make decisions for a city or town.
Fiscal year: A one-year period used by the government to plan and track spending.

Limits and Unknowns

The law does not say when this change will officially start because no effective date is listed in the text.
This rule only applies to cities and towns; it does not mention counties or other types of local governments for budget amendments.

Bill History

2026-01-20 Senate
Senate second read
2026-01-15 Senate
Senate Rules: None
2026-01-15 Senate
Senate Government: None
2026-01-15 Senate
Senate first read

Official Summary Text

SB1163 - municipalities; budgets; amendments

Current Bill Text

Read the full stored bill text

SB1163 - 572R - I Ver

REFERENCE TITLE:
municipalities; budgets; amendments

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1163

Introduced by

Senators
Angius: Kuby, Werner

AN
ACT

amending section 42-17105, Arizona
Revised Statutes; relating to local government budgeting process.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 42-17105, Arizona Revised
Statutes, is amended to read:

START_STATUTE
42-17105
.
Adoption of budget; amendments to city and town budgets

A. After the hearing on estimates under section 42-17104
is concluded, the governing body shall convene in a special meeting and finally
determine and adopt estimates of proposed expenditures for the purposes stated
in the published proposal.

B. The adopted estimates constitute the budget of
the county, city or town for the current fiscal year.

C. The total amounts that are proposed to be spent
in the budget shall not exceed the total of amounts that were proposed for
expenditure in the published estimates.

D. A city or town may amend the
city's or town's adopted budget during the fiscal year to spend additional
revenues that were not included in the adopted budget by following the budget
requirements prescribed in this article, subject to the following:

1. Notwithstanding section 42-17101,
budget amendments do not have to be adopted on or before the third Monday in
July each year.

2. A new or increased tax or fee
shall not be adopted in the budget amendment.

3. The amended estimates adopted by a
budget amendment constitute the amended budget of the city or town for the
current fiscal year.

4. The total amounts that are
proposed to be spent in the amended budget of the city or town shall not exceed
the total of amounts that were proposed for expenditure in the published
amended estimates.

END_STATUTE