Council adopts five-year Capital Improvement Plan totaling $194 million with FY26 focus

The Lake Havasu City Council voted June 10 to adopt a five-year Capital Improvement Plan (CIP) covering fiscal 2026 through 2030 with a total program cost of about $194 million and FY 2026 expenditures of just under $70 million.

The plan lists approximately $58 million in grant-funded projects across the five-year window. Finance Director Olsen told the council that “all of the projects in the five-year plan are fully funded” on paper and that the FY26 portion includes about $25 million in grants.

Council members asked staff to clarify specific project line items, including airport projects and a $975,000 general-fund placeholder for the Main Street Commons project. Staff explained the $975,000 came from council decisions in the FY25 budget and is being carried forward into FY26 as a placeholder pending donations or grant awards. The airport projects were described as largely pavement reconstruction needed to meet FAA standards; staff said much of airport capital work is grant-eligible.

The council discussed expenditure-limitation implications — the state law cap on how much a municipality may spend — and staff said that historically the city spends substantially less than budget in capital projects because many projects carry forward across years. Council Member Campbell pressed how the CIP changes affect the city’s long-term expenditure cap; staff replied that, while the plan brings the city closer to the limit if all projects were completed immediately, historical underspending provides breathing room.

Formal action: Council Member Koch moved to adopt Resolution 25-3842 adopting the five-year CIP for 07/01/2025–06/30/2030; Council Member Moses seconded. The motion passed 4–2.

Why it matters: The CIP allocates funds for roads, parks, airport improvements, public safety facilities and other capital priorities. Staff said that projects over $100,000 will return for council approval before contracts are executed. The CIP also acts as evidence of local commitment when applying for outside grants.

Ending: With adoption, staff will continue project-level scoping and return to council for individual project approvals and contract awards as required.