What is Prop 409?

The State of Arizona imposes an expenditure limitation on Arizona cities and towns, including Lake Havasu City.  However, the State allows the voters to approve a permanent base adjustment.

A formula was adopted in 1979 that determines the amount of money that can be used to fund city services each year, regardless of the money the city collects.  Lake Havasu City has changed drastically since 1979.

On Tuesday, August 28, 2018, the registered voters in Lake Havasu City decide if Lake Havasu City should operate under the 1979 base limit or if Lake Havasu City should permanently adjust its base limit by $5 million.

A “YES” vote on Prop 409 shall have the effect of allowing Lake Havasu City to permanently adjust its 1979-80 base limit to maintain local control of expenditures for existing and planned City services and programs, including fire, emergency medical, police, streets, parks and recreation, and City construction projects.  It is not a tax increase or decrease.

A “NO” vote on prop 409 shall have the effect of not allowing Lake Havasu City to permanently adjust its 1979-80 base limit and will result in cuts to existing and planned City services and programs, including fire, emergency medical, police, streets, parks and recreation, and City construction projects.  It is not a tax increase or decrease.

Prop 409 does not impact the amount of taxes or fees the City collects.  A “NO” vote does not reduce taxes or fees and a “YES” vote does not increase taxes or fees.  Prop 409 is specifically about how much the City can spend, regardless of the taxes or fees it collects.