Lake Havasu City Council Regular Meeting and Property Tax Levy Adoption, July 14, 2026

At its regular meeting on July 14, 2026, the Lake Havasu City Council adopted the Fiscal Year 2026-27 property tax levy, passed several ordinances and resolutions, and received updates on capital projects and the water system. Mayor Cal Sheehy presided; Councilmember Michele Lin was absent. All votes were 6-0 unless otherwise noted.

Consent Calendar

• Approved June 23, 2026 meeting minutes.
• Authorized a landscaping agreement and ground lease with Bradley Chevrolet, Inc. for vehicle display.
• Scheduled an executive session for July 28, 2026 at 4:30 p.m.

Public Comments & Testimony

• Bob Barrett (citizen) noted that while the property tax rate remained flat at $0.6718 per $100 assessed value, the levy on existing taxpayers increased by $318,012 due to rising assessed valuations. He stated that if the council wished to keep the levy flat, the rate would need to be $0.6329.
• Bonny Toy (citizen) questioned the timing of the tax levy adoption relative to the budget approval and asked about the process for creating special taxing districts. Later, she thanked the city for free splash pad access and suggested implementing dollar swim days at the Aquatic Center next summer.
• Jackson Rod (jet ski racing community) expressed support for shoreline preservation and asked about the future of Body Beach access. Mayor Sheehy assured ongoing discussions with the Arizona State Land Department (ASLD).
• Lance Cramer (citizen) urged the city to secure island and lakeshore land as open space instead of development, and expressed concern about a pending lease on Body Beach.
• Pam Swenson (citizen) asked about bridge ownership and whether plans required Arizona Department of Transportation (ADOT) approval; staff clarified ADOT standards apply but not ADOT stamping.
• Mark McGyver (citizen) raised safety concerns about e‑bike registration during the Police Department rehab hearing; the mayor redirected him to the Call to the Public.
• Bob Barrett (during second bridge hearing) asked about the October 2026 construction start and expected activities; staff described mobilization and excavation.

Discussion Items

• Series #12 and #13 Liquor Licenses (7.1 & 7.2) — Staff reported all requirements met; no objections. Council recommended approval for Waters Edge Winery (restaurant and farm winery licenses) to the Arizona Department of Liquor Licenses & Control.
• Property Tax Levy Adoption (7.3) — Administrative Services Director Jill Olsen presented Resolution 26-3931, which levies $0.6718 per $100 assessed value, generating $442,342 in additional revenue ($124,000 from new construction). The rate has not changed, but the levy increases by $318,012 for existing property owners. Councilmember Campbell clarified that the rate could be adjusted in earlier budget discussions. The resolution passed.
• Improvement District No. 2 – London Bridge Plaza (7.4) — Resolution 26-3932 adopted a $0.7370 per $100 tax levy, unchanged, with a $15,000 fund balance. Councilmember Campbell noted the parking lot needs preservation.
• Annexation of 3500 Highway 95 N (7.5) — City Planner Chris Gilbert presented Ordinance 26-1381 to annex a 1.13‑acre former Mohave County Sheriff’s parcel for future economic development. The county retains ownership, but the city will gain jurisdiction and tax revenue. Vice Mayor Diaz confirmed the city does not take ownership of the building.
• Shoreline Public Access (7.6) — Ordinance 26-1383 amends code to require a 75‑foot shoreline access area (up from 15 feet) and a 25‑foot building setback in the Mixed Use‑Channel Riverwalk and Island‑Body Beach Districts. The amendment results from General Plan Steering Committee efforts and negotiations with ASLD. Vice Mayor Diaz noted the initial request was 200 feet, settling at 75 feet. Councilmember Moses clarified the measurement starts at the 450‑foot elevation shoreline.
• Second Bridge Right‑of‑Way Amendment (7.7) — Resolution 26-3933 adjusts the alignment on ASLD land, saving approximately $3 million. Capital Program Manager Jason Hart reviewed the 95% design plans, Coast Guard permit (expected August 2026), and an October 2026 groundbreaking with 18‑24 months construction. Councilmember Moses asked about event impacts; staff said construction calendars account for special events. Councilmember Dolan voted no; motion carried 5‑1.
• Kiowa Drain #6 Wash Stabilization (7.8) — Council approved a $121,570 professional services agreement with Kimley‑Horn for design, including bank stabilization, grade control, and pedestrian crossing evaluations. Bonny Toy asked about e‑bike safety; staff noted the project focuses on stabilization, and other wash corridors are better suited for bike routes.
• Vehicle Purchase (7.9) — Approved cooperative purchase of 23 vehicles from multiple suppliers for $1,858,500 under the city’s 32‑point replacement program.
• Police Department Facility and Jail Rehab Phase 2 (7.10) — Awarded a $3,753,886.32 construction contract to Precise Builders, Inc. (lowest of seven bids). The project includes HVAC, roof replacement, fire alarm system, flooring, locker room ADA upgrades, and drywall repairs. Additive Alternate 5 (rooftop units on auxiliary building) was removed after determining existing mini‑splits sufficed.
• Water System and Watermain Replacement Program (7.11) — Public Works Deputy Director Tim Kellett presented an update. Key data: water loss at 8.9% (industry target <10%); mainline breaks declined from 79 (2024, 15.8/100 miles) to 62 (2025, 12.4/100 miles); 75th percentile industry benchmark is 21.2. The water division operates as an enterprise fund with a $42 million annual budget; 52% of the budget ($19 million) goes to capital improvements, with 24% of that directed to water main replacement. Staff uses AI‑based modeling (Voda) to prioritize replacements based on likelihood and consequence of failure. Councilmember Campbell noted thin‑walled four‑inch PVC pipes and improper bedding may contribute to failures. No action taken; presentation was informational.

Key Outcomes

• Adopted Resolution 26-3931: Property tax levy for FY 2026-27 at $0.6718 per $100 assessed value (6‑0).
• Adopted Resolution 26-3932: Improvement District No. 2 levy at $0.7370 per $100 (6‑0).
• Adopted Ordinance 26-1381: Annexation of 3500 Highway 95 N (6‑0).
• Adopted Ordinance 26-1383: Shoreline public access preservation (6‑0).
• Adopted Resolution 26-3933: Amendment to second bridge right‑of‑way agreement with ASLD (5‑1; Councilmember Dolan dissenting).
• Approved Professional Services Agreement with Kimley‑Horn for Kiowa Drain #6 design, $121,570 (6‑0).
• Approved cooperative purchase of 23 vehicles for $1,858,500 (6‑0).
• Awarded Police Department Phase 2 construction contract to Precise Builders, Inc. for $3,753,886.32 (6‑0).
• Directed Go Lake Havasu to continue candidate screening for a new executive director.
• Councilmember Campbell reported on RTAC federal funding advocacy; staff will prepare a resolution for council consideration.