SB1163 • 2026

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 bill summary and text do not provide specific details about enforcement mechanisms for exceeding limits or practical impacts.

Municipal Budget Amendments

This bill allows cities and towns to make changes to their budgets during the fiscal year, provided they follow specific rules.

What This Bill Does

Allows cities and towns to amend their adopted budget during the fiscal year if additional revenues not included in the original estimates become available.
Removes the requirement for cities and towns to finalize budget amendments by a specific date in July.
Prohibits cities and towns from adopting new or increased taxes or fees when making these changes.

Who It Names or Affects

Cities and towns in Arizona
Local government officials who manage budgets

Terms To Know

Budget amendment: A change made to a city or town's budget after it has been officially adopted.
Fiscal year: The period of time used for calculating financial reports and budgets, usually from July 1st to June 30th.

Limits and Unknowns

Does not specify what happens if a city or town exceeds the limits set by this bill.
It is unclear how this change will affect local government finances in practice.
The effective date of these changes has not been determined yet.

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