On May 7, the Gilbert Town Council voted to include a Permanent Base Adjustment on the November Ballot for voter consideration. 

This state-imposed spending cap was last adjusted in 1998 when Gilbert’s population was 87,878.

Since then, Gilbert has significantly expanded the range of municipal services offered to the community: 

• 11 new fire stations were constructed
• A new ambulance services was added
• 2 water treatment plants and a second wastewater treatment plant were built and expanded
• New public safety buildings were added (Public Safety Training Facility and Court Building, Police Property and Evidence Building, Fire Department Warehouse and Repair Center, Public Safety Training Facility, etc.)
• Significant additions and upgrades to essential infrastructure such as roads, traffic signals, water wells, sewer lift stations have taken place
• Other municipal services were expanded (Municipal Office Building II and expansion, South Area Service Center, Parks Maintenance Facility, etc.)
• An Environmental Compliance Department was created for air quality, stormwater, and other regulatory maintenance and management
• 3 pools were built (Greenfield, Perry, and Williams Field)
• 2 new parks were added and several parks were expanded (Gilbert Regional, Desert Sky, Crossroads, Freestone, McQueen, Riparian, etc.)
• Freestone Recreation Center and McQueen Park Activity Center were built
• The Town’s Household Hazardous Waste facility began operating

Approving the Permanent Base Adjustment in November will allow Gilbert to continue to meet the needs of the community now and into the future.

The proposed Permanent Base Adjustment for Gilbert would increase the Town’s expenditure limit base by $1.5M starting in Fiscal Year 2025-2026.

The additional expenditure authority will be funded with revenue obtained from federal, state and local sources, and will be used for public safety, parks and recreation, street maintenance, and water and wastewater services.

The chart below shows the most recent data for valley cities and includes what Gilbert's expenditure limit would have been in FY2024 if the proposed change had been in place at that time. 

The proposed Permanent Base Adjustment for Gilbert would increase the expenditure limit base by $1.5M and would leave Gilbert at the low end of the city comparisons.

*Expenditure Limitation based on voter approved Home Rule
**If the Proposed PBA was in place for FY2024

A second change that voters are allowed to approve for the state-imposed expenditure limit is a Capital Projects Accumulation Fund.

This option would exclude capital improvement projects from the expenditure limit.

Approving the Capital Projects Accumulation Fund exemption would allow Gilbert to cash fund capital projects without the risk of exceeding the state-imposed expenditure limit and without incurring interest and repayment costs associated with bonding.

Projects that are financed through bonds are excluded from the state-imposed expenditure limit. This means that municipalities can bond for capital projects in order to stay under the limit. 

The Capital Projects Accumulation Fund exemption is not a tax increase.

During prior fiscal years, the Town has successfully operated under the state-imposed expenditure limit. However, necessary capital improvement projects in the coming years are anticipated to exceed the expenditure limitation.

If the Town exceeds the state-imposed expenditure limit, the penalty in statute is for the state treasurer to withhold Gilbert’s state shared income tax revenues and redistribute them to the other cities and towns (not including Gilbert). The maximum penalty could be approximately $60M per year, which would reduce funding available for Town operations and infrastructure needs.

The Gilbert Town Council held public hearings on May 21 and June 4 to discuss placing the Capital Projects Accumulation Fund on the ballot in November.

Directly after the second public hearing, the Town Council voted to include the Capital Projects Accumulation Fund option on the November 5, 2024 General Election Ballot.

Voter Registration

To vote in the General Election, residents must be registered with the Maricopa County Elections Department by October 7, 2024.

To check your voter registration status or update your information please visit BeBallotReady.Vote or contact the Maricopa County Recorder’s Office at (602) 506-1511.