Kingman staff presents FY26 recap, five-year forecast and budget priorities; FAA land release, PSPRS payment highlighted

Kingman — At a Jan. 27 special meeting, finance staff gave a year-to-date FY2026 recap and a five-year forecast that highlighted several near-term fiscal items: the FAA land-release transaction nearing completion, a $4,600,000 payment to PSPRS made this year, and the effect of convenience fees and shifting payment methods on city revenues.

Tina Moline, presenting the fiscal recap, said the FAA land release is "nearing completion, and we're expecting that to be completed by the end of this fiscal year," after which the general fund will begin annual payments to the airport fund. Moline also stated that the council approved a $4,600,000 PSPRS payment "to ensure that we are staying fully funded."

Staff reviewed revenue sources: retail sales tax was flat year to date, restaurant receipts were rising, hotel receipts were declining and online/remote sales continued an upward trend. Construction sales tax is currently an outlier because large traffic‑interchange and capital projects raise one‑time construction collections.

Convenience fees implemented in October contributed to a shift away from credit‑card payments and produced savings staff estimated at about $300,000 for FY26 and $420,000 for FY27; however, EFTs for utility billing continue to cost the city a small monthly amount (roughly $3,000). State‑shared revenues are affected by San Tan Valley’s recent incorporation and by the state’s partial conformity with federal tax changes (HR 1); staff estimated a $200,000 loss to the city under partial conformity.

Staff also reviewed the five‑year forecast, which includes Fire Station 25 in FY28, Flying Fortress Parkway and connector roads in FY27 (except the Airway‑to‑Industrial segment), and continued funding for the seven‑year street program through FY30. The forecast anticipates recurring rate increases for water and solid waste and step/pay plan increases for public safety.