Lake Havasu City Council Final Budget Adoption Meeting - June 23, 2026
Lake Havasu City Council Regular Meeting (Final Budget Adoption) - June 23, 2026
The Lake Havasu City Council met on Tuesday, June 23, 2026, at 5:30 PM for a regular meeting that included the final adoption of the Fiscal Year 2026-27 budget. The meeting was called to order by Mayor Cal Sheehy and adjourned at 8:55 PM. Councilmember Jim Dolan was absent. The council considered 14 items on the public hearing agenda, including the final budget adoption, property tax levy, appointments to boards and commissions, a development rezone, and several intergovernmental agreements. The budget was adopted by a 4-2 vote, with Councilmembers Nancy Campbell and Michele Lin dissenting.
Consent Calendar
- Approved 6-0 (Dolan absent): Minutes of June 9, 2026; Resolution No. 26-3919 appointing the Chief Fiscal Officer; Resolution No. 26-3922 approving an IGA with Mohave County for housing rehabilitation inspection services; Resolution No. 26-3926 approving IGA for public safety answering point backup; Resolution No. 26-3929 approving an FAA airport infrastructure grant for terminal apron design; Resolution No. 26-3930 approving ADOT lease addendum; Call for executive session on July 14, 2026.
Public Comments & Testimony
- Budget Hearing (Item 7.9): Six citizens spoke: Yvonne Toddy, Dave Johnson, Kelly Lutz, Todd Toddy, Pam Swenson, and an additional speaker. Multiple speakers expressed concern about the city's water infrastructure, the adequacy of the budget for water main replacement (3 miles per year vs. 300 miles of old pipe), and the need for a realistic plan. Pam Swenson noted that the city spends less than 1% of its budget on roads and water mains. Todd Toddy argued the budget is not truly balanced because critical infrastructure repairs are deferred. Yvonne Toddy suggested raising taxes to fund improvements.
- Parks & Recreation Board Appointments (Item 7.2): Joan Dzuro supported the current application review process, arguing it reduces public embarrassment. Dave Johnson spoke in favor of Alex Coletta. Yvonne Toddy supported candidates speaking publicly about their interest.
- Drowning Prevention Grant (Item 7.6): Yvonne Toddy asked why the program targeted third graders. Maddie O'Dell spoke in support of the program and advocated for an additional community pool.
- Rezone – Paradyme Flatts (Item 7.13): Several citizens spoke against the traffic signal requirement, citing outdated traffic studies and safety concerns. Kelly Lutz questioned the need for a Planned Development rezone, arguing the project could be built as zoned (apartments/condos). Pam Swenson criticized the 24-hour traffic study and the lack of guest parking. Neil Tinsley suggested an adaptive traffic signal. James Gray (Partnership for Economic Development) spoke in favor of the project for its housing affordability and water-conservative design.
- Call to the Public (Item 8): Brigid Stevens (Dean Barlow's widow) and Scott Taylor requested the city name a facility in honor of former Councilmember Dean Barlow, citing his volunteerism and personal generosity of over $1 million.
Discussion Items
- Appointments to Boards & Commissions (Items 7.1–7.3): The council appointed Derek Ross to the Board of Adjustment (6-0). For the Parks & Recreation Advisory Board, the council debated the appointment process. Councilmember Campbell criticized the application review panel for having more staff than councilmembers and wanted to hear from all applicants. After hearing from candidates Alex Coletta, Mercedes Kaiser, and Rick Wheeler, the council voted 5-1 to appoint Kaiser and Coletta, with Councilmember Lin dissenting (she preferred Wheeler and Coletta). For the Planning & Zoning Commission, the council appointed Lonnie Stevenson (regular) and Mary Costa and Kay Patel (alternates) 6-0, despite Campbell's concerns about the process.
- H.A.V.E.N. Family Resource Center Agreement (Item 7.4): Approved 6-0 to renew the domestic violence/victim assistance agreement for one year through June 30, 2027, at $1,000 appropriation.
- Owner-Occupied Housing Rehabilitation Guidelines (Item 7.5): Approved 6-0 to align procurement thresholds with city policy (increase from $50,000 to $100,000). The program has assisted 16 households in recent grant cycles.
- Drowning Prevention Grant – Mission 3: Water Ready (Item 7.6): Approved 6-0 to accept a $23,063.30 grant from the CDC Foundation to provide swim instruction to approximately 350 third graders across six elementary schools. The program will run September 2026 through August 2027.
- Truth in Taxation Hearing & Property Tax Levy (Item 7.7): Approved 6-0. The FY 2026-27 property tax levy rate remains $0.6718 per $100 assessed value, but the levy amount rises to $7,633,823 due to increased assessed valuation ($1,136,323,901). The impact is approximately $2.84 annual increase per $100,000 assessed value.
- Final Budget Adoption (Item 7.9): After a public hearing and extensive discussion, the council adopted the FY 2026-27 final budget of $303,688,635 by a vote of 4-2 (Sheehy, Coke, Moses, Diaz in favor; Campbell, Lin against). Campbell and Lin expressed concerns about the underfunding of water infrastructure (only 3 miles of water main replacement per year), the depletion of the Budget Stabilization Reserve, and the lack of a long-term plan. Vice Mayor Diaz noted the city's budget is half of Mohave County's budget for a population of 68,000. Councilmember Coke emphasized the need for future utility rate increases. Mayor Sheehy noted $4.5 million is budgeted for water main replacement outside grants, and a future presentation on water/wastewater infrastructure is planned.
- School District IGA Amendment (Item 7.11): Approved 6-0 to extend the joint-use agreement with Lake Havasu Unified School District through January 2027 while negotiating a new agreement covering School Resource Officers and potential facility use (Buena Vista site, gymnasium).
- Annexation – 3500 Highway 95 N (Item 7.12): Approved 6-0 to introduce Ordinance No. 26-1381 annexing a 1.13-acre Mohave County-owned parcel (former sheriff's office) into city limits. The final vote will occur in July 2026.
- Rezone – Paradyme Flatts (Item 7.13): Approved 5-1 (Lin dissenting) to rezone 4.49 acres at 1926 Swanson Ave. and 1851 Magnolia Dr. from R-CHD to R-CHD/PD to allow 68 attached single-family homes on individual lots, with elimination of side/rear setbacks and reduction of landscaping from 20% to 15%. The developer will install a traffic signal at Swanson and Smoketree, which city staff stated is warranted by traffic studies. Parking includes 12 guest spaces. Councilmember Lin opposed citing the traffic signal and density concerns.
- Enterprise Asset Management System (Item 7.14): Approved 6-0 to execute a five-year, $1,115,690 agreement with OpenGov, Inc. for software and support services to manage work orders and assets across multiple departments.
Key Outcomes
- Budget Adoption: FY 2026-27 budget of $303,688,635 adopted 4-2. Tax levy will be set at the July 14, 2026 meeting.
- Appointments: Derek Ross (Board of Adjustment), Mercedes Kaiser and Alex Coletta (Parks & Recreation Advisory Board), Lonnie Stevenson, Mary Costa, and Kay Patel (Planning & Zoning Commission).
- Rezone Approved: Paradyme Flatts development (68 attached single-family homes) approved 5-1, with conditions including a traffic signal and reduced landscaping.
- Annexation Introduced: Ordinance to annex 3500 Highway 95 N introduced; final vote expected July 2026.
- Grants & Agreements: Approved H.A.V.E.N. renewal, CDC Foundation drowning prevention grant, housing rehabilitation guideline update, school district IGA extension, and OpenGov asset management system.
- Future Actions: Council will meet July 14, 2026 for property tax levy adoption and July 28, 2026 for regular meeting. A presentation on water/wastewater infrastructure status will be scheduled.
Meeting Transcript
6 at 5 30 p.m. We'll have an invocation from Pastor Dale Ray with Lake View Community Church, followed by the Pledge of Allegiance led by Stacey Lee from the Echo Group Band of Brothers, Veteran Suicide Prevention. Pastor. Good evening. Please stand with me. Paul wrote to young Timothy, this great council. He said, I exhort therefore that first of all, supplications, prayers, intercessions, and giving of thanks be made for kings for all that are in authority, that we may lead a quiet and peaceable life. So Father, I give you thanks for these leaders tonight. I thank you for our mayor, our council members. I thank you for all those who serve Lake Havasu City. I pray, Lord, that as citizens may we be found in our roles, supporting our leaders. Let their choices promote our peace, our justice, that the city of Lake Avasu will flourish. Make them instruments of your goodness so that we may live quietly and with dignity and with hope in Lake Avasu City. In Jesus' name. Amen. If you are a veteran or active duty military, I invite you to render the salute with the Banner Brothers. Banner Brothers tit. Present who I pledge allegiance to the flag of the United States of America and to the Republic for which it stands. One nation, under God, indivisible, with liberty and justice for all. Thank you. And uh welcome, Stacey. If you'd like to uh share a little bit about your organization with us and introduce your group. Do I need this? Oh goodness you do for those that hold me loud. I'm already pretty loud. Um, so to our mayor and of course our esteemed city council, thank you very much to have the opportunity to address all of you this evening. Um I would like to introduce or to begin by introducing some of my brothers and sisters seated here tonight. I have a few of them. Echo Group Banner Brothers is not a typical veterans organization. In fact, when I first approached our mayor four and a half years ago about bringing our chapter to Lake Havasu, I told him exactly that. We are different. Our mission is simple yet profound. Veteran suicide prevention. Many people in our community are aware of that mission, but what they may not fully understand is how we have been able to make a meaningful impact. We do not simply talk about preventing veteran suicide. We actively work to prevent it. We are boots on the ground. We support one another through life's challenges, and we involve our families in everything we do. We are an organization built on action. The citizens of Lake Havasoo may see us playing softball at Rotary Park, bowling, shooting pool, participating in community events, or selling our merchandise to raise funds that support our veterans and their families. They may see us cleaning the lake shorelines, helping elderly residents relocate to sever safer living environments, or volunteering throughout our community. What they do not see are the daily struggles many of our members have endured as a result of their military service and in some cases combat-related PTSD. They do not see the battles with addiction, alcohol abuse, broken relationships, isolation, anger, and hopelessness. Every individual seated here tonight has a story, many of them remarkably similar to those challenges, including my own. One couple sitting in this room today struggled with substance abuse, including methamphetamines, cocaine, and alcohol. When Echo Group Banda Brothers found them, we did not offer judgment, nor did we offer excuses. Another veteran was discovered living in his vehicle in the desert last summer. He had lost hope in humanity after experiencing significant trauma and hardship. He was angry, isolated, and unwilling to trust anyone. Working alongside members of this community, we helped secure him housing, furnishings, food, and essential resources within a matter of days.
openpublica.com