Council adopts updated fee schedule after split 5–2 vote; debate centers on CPI and business‑license costs

Lake Havasu City Council voted 5–2 on Dec. 9 to adopt Ordinance 25‑1372, updating the city’s schedule of fees and service charges effective Feb. 1, 2026.

City staff (Miss Olsen) told the council the update reflects prior direction to apply an annual CPI adjustment in years two and three and that staff used market references and cost‑recovery analysis to set many fees. The measure includes facility‑use fees for a new Main Street Commons building and a 4.39% CPI adjustment on many items. Olsen said fee calculations incorporate department costs, inspections and recently purchased software to manage licenses and permits.

Several council members and public commenters questioned whether raising business‑license fees would deter entrepreneurs. Public commenter Bonnie Toy presented comparative figures showing many Arizona cities charge far less for a base business license; she suggested raising renewal fees rather than initial registration. Council Member Moses urged fair, consistent treatment across all fees and voiced concern about appearing to pick winners and losers when some department fees were held steady in prior actions.

Proponents said failing to recover costs shifts the burden to the general fund and other taxpayers. Council member Coke, who moved the ordinance, said staff followed council policy and recommended adoption with a reconciliation year to follow. The motion to adopt Ordinance 25‑1372 carried 5–2.

Next steps: staff will publish the updated fee schedule and implement the Feb. 1 effective date; the council agreed to consider process improvements at an upcoming retreat and to review reconciliation actions per the council’s multi‑year policy.