Lake Havasu City reviews FY 2019-20 budget; police pay, reserves and capital needs highlighted

Lake Havasu City held a budget work session on May 16, 2019, where staff presented the proposed fiscal year 2019–20 operating budget, recommended contingency and reserve levels and outlined next steps for formal adoption. City staff recommended keeping the property tax rate flat, setting multi‑month budget stabilization reserves and approving capital and one‑time items while council and public commenters flagged concerns about police pay, vacant patrol positions and equipment needs.

City staff presented the overall framework and timeline. “This is the presentation for the draft budget that's coming up,” said Mr. Kitson, opening the staff presentation. Finance staff said the council is scheduled to adopt a tentative budget on June 11 and the final budget on June 25, with a Truth in Taxation hearing and property tax levy adoption to follow.

Why it matters: the budget sets staffing, service levels and one‑time investments for the coming year and establishes contingency reserves if revenues fall short. Staff emphasized that voter approval of Proposition 409 removed an expenditure cap (it did not increase revenues) and therefore reduced the need to cut services or issue additional debt, but available resources remain limited.

Key figures and proposals - Personnel: staff proposed a 3.4% increase in personnel costs to cover merit/step increases. - Health care: projected health‑insurance costs rise about 7.6%, roughly $600,000 citywide, reflecting the city’s self‑insured trust and actuarial projections. - New positions/reclassifications: the proposed budget converts a…