OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Lake Havasu City Council Budget/CIP Work Session - April 10, 2025

City Council & Planning and Zoning — Thursday, April 10, 2025
BodyLake Havasu City, Arizona
SessionCity Council & Planning and Zoning
DateThursday, April 10, 2025
StatusFILED
Video Record
0:00 / 3:49:58

Transcript — Verbatim
0:00

Good morning and welcome.

0:02

I'll call to order our uh Lake Havasu City Budget CIP work session on Thursday, April 10th, 2025 at 9 a.m.

0:10

If you would uh please join me in the Pledge of Allegiance, I pledge allegiance to the flag of the United States.

0:25

Under God.

0:32

Thank you.

0:33

Miss Williams, if you please call the roll.

0:37

Council members Nancy Campbell.

0:39

Here Jenny Coke.

0:43

Jim Dolin.

0:44

Here.

0:44

David Diaz.

0:46

Aloha.

0:49

Kim.

0:50

Cameron Moses.

0:52

Here.

0:53

Mayor Michelle Lynn.

0:54

Here.

0:55

Mayor Kal Shee.

0:56

Here.

0:56

Thank you.

0:57

Thank you.

0:59

And Councilmember Koch will be joining us shortly.

1:02

She's just a few minutes late, so we're going to just have the record reflect that.

1:05

We'll go on to item four, which is our budget overview.

1:08

4.1 is a presentation discussion and potential direction to staff on the budget for fiscal year 24-25, your investments, and fiscal year 25-26 annual budget.

1:17

Mr.

1:17

Kenitson, do you want to start us off?

1:19

Sure.

1:20

Good morning, Mayor.

1:21

Good morning, uh Council.

1:23

It's that time of the year again.

1:24

So staff has been working very, very hard for the last several several months on identifying our resources, trying to do the best we can in terms of identifying priorities coming from the uh the public and different uh departmental needs to better equip ourselves to be in a good position to deliver good quality services to Lake Havasu City.

1:45

So uh we have a uh presentation um from uh Jill to talk about the financial overview.

1:49

This is a bit of a continuation, obviously with updated numbers from our planning session that we had um back in I believe it was end of February.

1:58

So we'll go through and identify some of that.

2:00

Um there'll be some main themes that uh Jill will uh will touch on.

2:04

Um I think one of the things in terms of uh as we see council input uh today is we are talking about the CIP portion of the budget today.

2:13

So that's our one-time projects.

2:15

There's maintenance costs associated with some of these, right?

2:18

Um, but uh um but using one-time revenues.

2:22

Well we'll come back in I think it's May 15th.

2:25

We'll come back for the budget uh work session for the uh operating budget.

2:28

So some conversations we'll have today might impact that, but we'll answer the best that we can.

2:33

Um but just be uh just know that we're gonna come back with uh with uh lots more information on on the operating uh budget side of things.

2:41

Um from as far as like the position financial position of the city, uh we're we're doing well uh in terms of the dollars we have for one-time projects.

2:52

Uh that uh large part that's uh uh thanks to uh administrative services director Jill Olson and her uh budget and finance teams uh and putting us in a position where we're we're saving dollars each and every year, taking those dollars and and setting that aside uh for some of these one-time projects.

3:07

That's why we've been able to invest in roads and infrastructure and uh fire engines and uh a lot and uh uh police uh vehicles and and things like that in the last uh couple years.

3:18

So just kind of kind of delineate a little bit as we kind of seek uh council input on these things.

3:23

Uh, you'll uh as you already know that uh uh the approach that we have uh on the staff side, obviously, as well as on the council side is that we are very, very fiscal, concern fiscally conservative.

3:33

So we're always gonna err on the side of being conservative.

3:37

We never want to put ourselves in a position where we've overextended ourselves or we've made projections with revenues that uh don't come in.

3:44

Um so I just want to make sure that we ended up uh uh identify that portion of the the work and effort that's been put in.

3:51

Um special thanks to uh uh Jill Olson to uh Angie Bachent uh to Lexi, uh the members of the budget committee that uh work tirelessly uh to all the the the uh city departments that uh we've met with uh individually and gone uh line by line throughout their budgets uh to ensure that we're looking at uh needs and not wants and identifying the things that we we believe um are gonna best uh best serve our departments uh and thus best serve our residents.

4:16

Um so with that I'm gonna turn it over to uh Jill unless there's other uh any other comments or uh or uh uh coming from the council, and we'll hear more about the um the the uh and I apologize, just one uh one really quick thing in terms of housekeeping.

4:34

Um in front of you, you are gonna see an updated uh CIP.

4:38

It'll also be on the screen in terms of the presentation.

4:40

That's gonna come up next with uh with Ron uh Fogan, our public works director.

4:44

Um so it's the same information, the same uh projects, the same dollars, um, but there's uh pictures added to uh to provide a little bit of perspective, and then you'll see he's uh marked uh some of the projects with um to indicate whether we're in design, whether we're in construction, or if that project is uh completed.

5:02

So take a look at that.

5:04

So the PowerPoint presentation will be a little bit different.

Discussion Breakdown — Share of Meeting
Parks and Recreation████████████████████████24%
Capital Improvement Planning█████████████████████21%
Public Engagement██████████10%
Engineering And Infrastructure█████████9%
Infrastructure Development████████8%
Water And Wastewater Management███████7%
Budget Equity Analysis██████6%
Procedural████4%
Procurement Process████4%
Summary of Proceedings

Lake Havasu City Council Budget/CIP Work Session - April 10, 2025

The Lake Havasu City Council held a work session on April 10, 2025, to review the Fiscal Year 2024/25 year-end estimates, the Fiscal Year 2025/26 annual budget, and the five-year Capital Improvement Plan (CIP). The session focused on financial projections, project prioritization, and funding sources, with extensive discussion on infrastructure investment, a proposed outdoor pool, and other community amenities.

Public Comments & Testimony

  • Bonny Toy requested a work session on the outdoor pool and budget amendments, and also asked for a work session on code enforcement and zoning changes.
  • Tim Murray praised road surfacing work and expressed support for lighting improvements at Rotary Park, noting the importance of investing in children's recreation.
  • Unnamed citizen (earlier statement) asked for clarification on the work session process and highlighted the need for citizen input on the pool.

Discussion Items

  • Budget Overview (Jill Olson): Presented the FY 2024/25 year-end estimates, available resources (General Fund fund balance estimated at just under $33 million), and major assumptions for FY 2025/26. The property tax rate will remain flat. Revenue projections include property tax levy and EMS revenues. Expenditures include implementation of the classification and compensation study ($1.9-$2 million), retirement rate adjustments, health insurance rate increase (average 5%), and vacancy savings. Supplemental requests total $21 million across all funds, with $10.1 million tentatively approved for General Fund one-time items. A $1 million contingency is budgeted.
  • Capital Improvement Plan Overview (Ron Fogan): Reviewed FY 2024/25 accomplishments (e.g., Main Street Commons Phase I, city fuel facility, PD jail repair Phase I). Presented the FY 2025-30 CIP, a $175.5 million plan funded primarily by General Fund, grants, construction sales tax, and 20% of Vehicle License Tax (VLT) for street projects. Key future projects: Fire Station 7 (construction end of 2026/beginning of 2027, requiring cost adjustment), Jamaica Boulevard South mill-and-fill, Acoma Boulevard streets project, airport hangar infrastructure ($999,000 seed money), Main Street Commons Phase II (restrooms, concessions, shading), Rotary Park ADA improvements (grant-funded), outdoor pool at Aquatic Center ($2.5 million), water main replacement ($5 million annually), and Second Bridge ($35.5 million).
  • VLT and Road Funding Debate: Councilmember Nancy Campbell expressed concern that only 20% of VLT is used for roads, arguing the full amount should be dedicated to road infrastructure. The Mayor and staff explained that VLT goes into General Fund, with $1 million transferred to HURF for streets; additional General Fund transfers ($17.5 million over two years) supplement road funding. Council agreed to bring a detailed analysis of VLT and HURF funding to the next budget work session.
  • Outdoor Pool Discussion: Councilmember Campbell presented a preliminary site plan showing a 50-meter pool could fit at the Aquatic Center property, contrary to earlier statements. She advocated exploring local designers and potential private donors. Councilmember Moses suggested requiring financial commitments from donors before proceeding with a design contract. Vice Mayor Lin noted lack of communication between Parks and Recreation Advisory Board and staff over the past year. The Mayor proposed keeping $2.5 million in the budget but postponing the design contract for a month to allow stakeholder engagement.
  • Mayor's Proposal for Additional Funding: Mayor Sheehy proposed using $11 million of unencumbered General Fund for: $5 million to accelerate Acoma Boulevard and other road projects, and $6 million for Fire Station 7, a second pool, ballfields (pending Parks Master Plan), lights at SARA Park, and a $100,000 contribution for the USS Arizona Relic memorial. Councilmembers expressed support for these ideas, with some concerns about prioritizing parking lots.
  • Three Items Needing Consensus: Staff sought direction on the splash pad, channel restrooms, and PD training facility. The Mayor, Councilmember Moses, and Councilmember Dolan supported keeping all three in the CIP for future discussion. Vice Mayor Lin opposed all three, citing existing splash pad amenities and proximity to other restrooms. Councilmember Diaz supported restrooms but was undecided on splash pad and training facility. Councilmember Campbell opposed the splash pad and channel restrooms but was open to the PD training facility. The final consensus was to keep all three items in the budget for continued conversation.

Key Outcomes

  • Property Tax Rate: Council affirmed keeping the rate flat.
  • CIP Direction: Staff to proceed with the five-year CIP as presented, with flexibility to adjust based on council input. The outdoor pool funding ($2.5 million) remains in the FY 2025/26 budget, but the design contract is delayed; a discussion item will be brought to a council meeting in approximately one month (May 2025) to allow time for community engagement and potential private commitments.
  • Fire Station 7: Council acknowledged cost adjustments may be needed and supported setting aside funds from the proposed $6 million allocation.
  • Roads: Additional $5 million to be programmed for road projects, with Acoma Boulevard prioritized.
  • USS Arizona Relic Memorial: Consensus to consider a $100,000 contribution; staff to bring a proposal to the May budget hearing.
  • Parks Master Plan: Council agreed to tie future CIP dollars to the outcome of the upcoming parks master plan.
  • Splash Pad, Channel Restrooms, PD Training Facility: Retained in the CIP for future discussion; no final approval at this session.
  • London Bridge Beach Parking Lot: Staff committed to completing repairs in coming months, either in current fiscal year or early next.
  • Next Meeting: Operating budget work session scheduled for May 15, 2025.

Meeting Transcript

Good morning and welcome. I'll call to order our uh Lake Havasu City Budget CIP work session on Thursday, April 10th, 2025 at 9 a.m. If you would uh please join me in the Pledge of Allegiance, I pledge allegiance to the flag of the United States. Under God. Thank you. Miss Williams, if you please call the roll. Council members Nancy Campbell. Here Jenny Coke. Jim Dolin. Here. David Diaz. Aloha. Kim. Cameron Moses. Here. Mayor Michelle Lynn. Here. Mayor Kal Shee. Here. Thank you. Thank you. And Councilmember Koch will be joining us shortly. She's just a few minutes late, so we're going to just have the record reflect that. We'll go on to item four, which is our budget overview. 4.1 is a presentation discussion and potential direction to staff on the budget for fiscal year 24-25, your investments, and fiscal year 25-26 annual budget. Mr. Kenitson, do you want to start us off? Sure. Good morning, Mayor. Good morning, uh Council. It's that time of the year again. So staff has been working very, very hard for the last several several months on identifying our resources, trying to do the best we can in terms of identifying priorities coming from the uh the public and different uh departmental needs to better equip ourselves to be in a good position to deliver good quality services to Lake Havasu City. So uh we have a uh presentation um from uh Jill to talk about the financial overview. This is a bit of a continuation, obviously with updated numbers from our planning session that we had um back in I believe it was end of February. So we'll go through and identify some of that. Um there'll be some main themes that uh Jill will uh will touch on. Um I think one of the things in terms of uh as we see council input uh today is we are talking about the CIP portion of the budget today. So that's our one-time projects. There's maintenance costs associated with some of these, right? Um, but uh um but using one-time revenues. Well we'll come back in I think it's May 15th. We'll come back for the budget uh work session for the uh operating budget. So some conversations we'll have today might impact that, but we'll answer the best that we can. Um but just be uh just know that we're gonna come back with uh with uh lots more information on on the operating uh budget side of things. Um from as far as like the position financial position of the city, uh we're we're doing well uh in terms of the dollars we have for one-time projects. Uh that uh large part that's uh uh thanks to uh administrative services director Jill Olson and her uh budget and finance teams uh and putting us in a position where we're we're saving dollars each and every year, taking those dollars and and setting that aside uh for some of these one-time projects. That's why we've been able to invest in roads and infrastructure and uh fire engines and uh a lot and uh uh police uh vehicles and and things like that in the last uh couple years. So just kind of kind of delineate a little bit as we kind of seek uh council input on these things. Uh, you'll uh as you already know that uh uh the approach that we have uh on the staff side, obviously, as well as on the council side is that we are very, very fiscal, concern fiscally conservative. So we're always gonna err on the side of being conservative.

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