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Lake Havasu City holds tax rate flat, adopts final FY 2025–26 budget as assessed values increase
Summary
The Lake Havasu City Council adopted the final fiscal year 2025–26 budget and held the city property tax rate steady; higher assessed valuations mean the city will collect roughly $430,000 more next year, officials said.
The Lake Havasu City Council on June 24 adopted the city’s final fiscal year 2025–26 budget and reaffirmed a property-tax levy that keeps the tax rate unchanged while collecting more revenue because assessed values rose.
City finance staff said the levy rate will remain the same but the county’s increased assessed values will produce about $430,000 in additional revenue next year, of which $116,000 is attributable to new construction. “This item is required by state law to hold this truth in taxation hearing anytime that we anticipate collecting more property taxes than we did in the prior year,” Miss Olsen said during the public hearing.
Council members voted 7–0 to adopt resolution 25-3847 adopting the final budget and to proceed with the process to set the exact property-tax rate at the July 8 council meeting. Miss Olsen told the council that the final budget was identical to the tentative budget adopted June 10 and that state and county deadlines restrict increases to the final amount. She also explained the local distribution of property taxes, saying only a portion of a property owner’s tax bill is received by the city.
During the truth-in-taxation public hearing, Miss Olsen explained what the increase in collected revenue would mean for homeowners: “For every $100,000 in assessed value of your home, your bill would be then increased by $2.98,” she said. A member of the public asked for clarification about why taxes rise even when the rate is unchanged; Olsen reiterated that higher assessed values and new construction drive the added revenue.
Mayor Kalsheeg and the council thanked staff for the budget work and noted priorities contained in the adopted plan, including infrastructure and personnel investments. The council voted 7–0 to adopt the final budget (resolution 25-3847) and to advance the formal property-tax rate adoption at the July 8 meeting.
The budget adoption concludes the city’s multi-month budget process; staff said no changes were made since the tentative budget. The council will return July 8 to adopt the formal tax-rate resolution and any associated improvement-district levies.
