Lake Havasu City council adopts tentative $278.8 million budget, adds pay adjustments for public safety and staff

The Lake Havasu City Council voted unanimously June 10 to adopt a tentative fiscal year 2025–26 budget with amendments that add parity between fire and police pay and a 3.5% wage adjustment for other city employees.

The council set the tentative budget total at $278,826,640 after approving an amendment to increase projected expenditures by $1.5 million to cover the added compensation adjustments. The tentative adoption locks in the top-line spending figure the city cannot exceed when it returns for final adoption in two weeks.

Why it matters: The vote follows a months-long classification and compensation study and several public discussions about recruitment and retention in public safety. City officials told the council the added $1.5 million would be funded from forecasted fund balance and built into multi-year projections, with caveats about revenue projections and expenditure limits under state law.

Finance Director Olsen told the council the tentative budget as presented earlier totaled $277,326,640 and that the adopted amendment increases projected expenditures by $1.5 million to a new total of $278,826,640. Mayor Kalsheake described the amendment as an attempt to address “recruiting challenges” in the police department and to extend parity to the fire department while giving a 3.5% increase to employees outside public safety.

Council members debated the timing and scope of changes. Council Member Nancy Campbell repeatedly expressed concern that the compensation information was delivered late in the budget process and that moving toward the expenditure limitation could carry long-term implications. Mayor Kalsheake and other council members said adopting the tentative number now preserves options: the council can reduce the budget at final adoption but not increase it.

Union and community reactions: Speakers representing the Lake Havasu professional firefighters supported the parity adjustment, saying it would help recruitment and retention. A resident who said she had private-sector HR experience urged the council to treat employees fairly and called the proposal “reasonable.”

Formal action: Council Member Moses moved the amended tentative budget, Council Member Koch seconded, and the motion passed 6–0.

Next steps: Staff will return to council for final budget adoption on June 24 (the published meeting schedule lists final adoption two weeks after tentative adoption). The city manager and finance staff said they will continue to monitor revenues and expenditure assumptions and present options if councilors request changes at final adoption.

Ending: The tentative adoption secures a spending ceiling and advances the city’s plans for wage changes tied to the recently completed compensation study; more detailed implementation steps and any additional changes are expected at final adoption.