COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Jill Olsen, Administrative Services Director
SUBJECT:Title
Discussion and Action: Resolution No. 26-3958 Adopting a Fiscal Sustainability Policy for Lake Havasu City (Jill Olsen)
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FUNDING SOURCE:
N/A
PURPOSE:
To consider adoption of a resolution adopting by reference a Fiscal Sustainability Policy. The City has a responsibility to its citizens to accurately account for public funds and to manage City finances properly. A Fiscal Sustainability Policy is a tool to be used to provide policy information for adequately funding core services to the community.
BACKGROUND:
The City updated its Fiscal Sustainability Policy in 2024. Staff has further updated the policy to reflect the process for reviewing the City’s fees and service charges adjustments.
At the October 13, 2026 Council meeting, Council directed staff to include the process for updating fees and service charges to the Fiscal Sustainability Policy. The process selected by Council is as follows:
i. Update actual costs in year one
ii. Apply CPI factor in years two and three
iii. Adjust to actual costs in year four (as in year one - cyclical)
The attached policy includes the process to be followed when determining any applicable changes to the fees and charges schedule. The added language is on page 6, under VI. Revenues and Collections, A.3. A redline draft is also attached.
COMMUNITY IMPACT:
A Fiscal Sustainability Policy will allow the citizens to know and understand the funding goals set by the City Council for managing the fiscal resources of the City.
FISCAL IMPACT:
There is no fiscal impact with the adoption of this policy.
ATTACHMENTS:
Resolution No. 26-3958
Exhibit “A” Fiscal Sustainability Policy
Fiscal Sustainability Policy Draft Redline
POSSIBLE MOTION:Recommended Action
I move to adopt Resolution No. 26-3958 adopting a Fiscal Sustainability Policy for Lake Havasu City.
I move to not adopt Resolution No. 26-3958.