Jul 27, 2026 SPECIAL BOARD OF SUPERVISORS

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GOOD MORNING EVERYONE. WHAT, THIS IS MONDAY, JULY 27TH.

[ CALL TO ORDER]

DEAR LORD, WE THANK YOU FOR THE OPPORTUNITY TO BE ABLE TO GATHER FREELY AND TO SERVE THE PEOPLE OF YAVAPAI COUNTY.

GUIDE US THROUGH THE PROCESS OF ALL THE DECISIONS THAT ARE NEEDED TO BE MADE, TO DO THE BEST WE CAN FOR THE FUTURE AND THE GROWTH THAT WE ARE DEALING WITH IN YAVAPAI COUNTY.

FOREVER GRATEFUL FOR ALL THAT YOU GIVE US EVERY DAY OF OUR LIVES.

IN JESUS NAME, AMEN. AMEN. PLEASE JOIN ME IN THE PLEDGE OF ALLEGIANCE.

I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS.

ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

THANK YOU. CLERK. CAN YOU DO THE ROLL CALL, PLEASE? CHAIR COMPTON. HERE. VICE CHAIR CHECK. HERE. SUPERVISOR JENKINS.

HERE. SUPERVISOR KUKNYO. HERE. SUPERVISOR MALLORY.

YES. YOU HAVE A QUORUM. THANK YOU. IT ARE YOU NOTICING THAT HERSHEY'S JUST HEARD DOWN THERE? JUST SO YOU KNOW. YEAH. IT'S HARD TO HEAR YOU.

I'M JUST SO HE KNOWS DURING THE MEETING. OKAY.

MOVING ON TO HEARINGS. ITEM NUMBER. KEVIN. GOOD MORNING.

[1. Board of Supervisors - Truth in Taxation hearing for the Fiscal Year (FY) 2026-2027 budget.]

GOOD MORNING, CHAIR, VICE CHAIR, BOARD OF SUPERVISORS.

KEVIN FORBES, BUDGET MANAGER FOR YAVAPAI COUNTY.

JUST HAVE A POWERPOINT TO RECAP WHAT HAS CHANGED OR REALLY WHAT HASN'T CHANGED IN THE LAST MONTH.

AND TO GIVE A STATE ON WHERE THE BUDGET IS SHOULD JUST TAKE ABOUT A FEW MINUTES AND THEN WE'LL JUMP RIGHT INTO PUBLIC HEARINGS.

ALL RIGHT. SO THIS IS BUDGETED EXPENDITURES BY FUND TYPES.

GENERAL FUND BEING THE PRIMARY ONE THAT IS CONNECTED TO THE TAX LEVY.

THAT IS ADMINISTERED BY THE COUNTY. THERE HAS BEEN NO CHANGE IN EXPENDITURES SINCE TENTATIVE AT THIS POINT.

WE COULD NOT INCREASE EXPENDITURES. WE CAN ONLY DO LATERAL ADJUSTMENTS OR DOWNWARD ADJUSTMENTS.

BUT SINCE THAT JULY 1ST DATE, THERE HAVE BEEN NO CHANGES.

DEBT SERVICE REMAINS INCREDIBLY LOW AT UNDER 1%.

AND THE BOARD HAS REMAINED COMMITTED TO HEAVY, HEAVY CAPITAL PROJECT INVESTMENTS.

AND THIS YEAR WE JUST BUDGETED OVER $50 MILLION.

BUDGET EXPENDITURES BY SERVICES. THIS IS AGAIN, ALL FUNDS.

AGAIN, NO CHANGE SINCE TENTATIVE. WE DIDN'T MOVE ANYTHING FROM COURTS TO INTERNAL SERVICES.

SO IT'S ALL STAYED WHERE IT WAS PLACED ON JULY 1ST.

AND I SHOULD JUST MAKE NOTE. TOTAL BUDGET EXPENDITURES FOR THIS FISCAL YEAR IS $491,304,499.

THAT DOES NOT INCLUDE TRANSFERS, WHICH ARE JUST BASICALLY MOVEMENT BETWEEN DIFFERENT FUNDS.

GENERAL FUND EXPENDITURES BY SERVICE. THIS IS AN AREA WHERE THE BOARD HAS A BIT MORE DISCRETION VERSUS SPECIAL REVENUE FUNDS, WHICH TYPICALLY COME IN A BIT MORE TOWARDS THE TARGETED AREA, EITHER BY THE STATE OR FEDS, FOR EXAMPLE. BUT GENERAL FUND EXPENDITURES, OVER 51% OF OUR PLANNED BUDGET IN THE GENERAL FUND BUDGET IS TIED TO COURTS AND LAW ENFORCEMENT, FOLLOWED BY INTERNAL SERVICES GENERAL SERVICES, WHICH ALSO INCLUDES CONTINGENCY ITEMS AND ALL OTHER DEPARTMENTS.

TOTAL GENERAL FUND EXPENDITURES FOR THIS YEAR IS AT $185 MILLION.

AND THEN ON THE REVENUE SIDE, LIKE I MENTIONED BEFORE, REAL AND PERSONAL PROPERTY TAXES IS THE MAIN COMPONENT OF WHERE OUR REVENUE COMES IN, BUT IT'S ALSO FOLLOWED BY TRANSACTION TAXES SUCH AS STATE SHARED SALES TAX, HALF CENT SALES TAX, AND THE VLT VEHICLE LICENSE TAX. OKAY, THIS IS A SUMMARY TABLE OF WHERE THE LEVY AMOUNTS STAND FROM 26 TO 27. THAT BETWEEN ALL THREE OF YAVAPAI PRIMARY FLOOD CONTROL AND LIBRARY DISTRICT, THERE IS AN INCREASE OF 3.7 MILLION IN REVENUE.

THE TAX RATES FOR YAVAPAI PRIMARY AND LIBRARY DISTRICT WILL REMAIN FLAT.

AGAIN, THOSE TAX RATES ARE FLAT. AND THOSE WILL BE WHAT WE HAVE T&T HEARINGS ON.

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SMALL DECREASE. SO OVERALL WHEN YOU FACTOR THAT IN WITH THE OTHER TWO THERE IS A COLLECTIVE DECREASE.

THIS IS JUST ILLUSTRATIVE OF RECENT HISTORY GOING BACK TO FISCAL YEAR 2019.

THE YELLOW IS THE CUMULATIVE AMOUNT FOR YAVAPAI PRIMARY FLOOD CONTROL AND LIBRARY.

YAVAPAI FLOOD AND LIBRARY ARE THE TWO LINES TOWARDS THE BOTTOM.

THAT BLUE LINE IS THE PRIMARY TAX RATE, AND AGAIN, YELLOW IS THE COLLECTIVE ONE THERE.

SINCE THE HIGH IN 2020, THE TAX RATE HAS DECREASED ABOUT $0.45 IN COMPARISON.

ALL RIGHT. TODAY'S STEP IN THE BUDGET PROCESS.

WE WILL HOLD HEARINGS ON TAX LEVIES AND BUDGET FOR COUNTY AND SPECIAL IMPROVEMENT DISTRICTS, WHICH AGAIN FLOOD CONTROL AND WOULD BE ONE. BUT WE'VE DECREASED THAT TAX RATE.

BUT HEARING FOR THE LIBRARY DISTRICT AS WELL.

AND THEN ACTION FROM THE BOARD OF SUPERVISORS, WHICH MUST BE TAKEN BY A ROLL CALL VOTE.

AND THEN AFTER TODAY, THE FINAL STEP REALLY TIED TO THE BUDGET PROCESS WOULD BE A HEARING ON PROPERTY TAX LEVIES TAX AND TAX RATE ADOPTION AT A SPECIAL MEETING ON AUGUST 17TH.

AND LUCY AND THE CLERK AND EVERYONE BEHIND THE SCENES HAS BEEN WORKING HARD ON GETTING ALL THAT INFORMATION TOGETHER.

SO WITH THAT, ANY QUESTIONS AND COMMENTS FROM THE BOARD, AND THEN FROM THERE WE CAN JUMP INTO PUBLIC HEARINGS AND ACTION.

THANK YOU VERY MUCH, KEVIN. APPRECIATE ANY COMMENTS FROM THE BOARD AT ALL? SUPERVISOR KUKNYO. SO WE'RE SPENDING 491. WE'RE BRINGING IN 176.

OTHER REVENUE IS BRINGING US TO WHAT? ARE WE SPENDING MORE THAN WE'RE BRINGING IN? YOU WANT TO KNOW? I THINK YOUR QUESTION IS WERE WE HAVE TO HAVE A BALANCED BUDGET WITH OUR EXPENDITURES.

SO WE HAVE BALANCED THE ESTIMATED EXPENDITURES IN THIS BUDGET WITH THE ESTIMATED REVENUES.

SO I'M JUST TALKING ABOUT ARE WE DIGGING INTO OUR RESERVES IN ORDER TO MAKE ENDS MEET? WE ARE FROM A CAPITAL STANDPOINT. YES, SIR. YEAH.

OKAY. YEAH. YOU'LL YOU'LL SEE WHERE WE'RE DIGGING INTO OUR RESERVES ARE FOR ONE TIME EXPENDITURES, SUCH AS CAPITAL VERSUS USING THAT TO KIND OF BRIDGE A STRUCTURAL ISSUE.

BUT OPERATIONS IS STILL SOLID. OPERATIONS IS STILL SOLID.

THANK YOU. YEP. SUPERVISOR MALLORY. YEAH. AND WHEN WE TALK ABOUT CAPITAL NOW, THAT ALSO INCLUDES WE'RE LOOKING AT DOING A LOT OF THINGS IN THE RURAL AREAS, RIGHT. SO THOSE ARE THE ONE TIME AND EXPENDITURES THAT WE'RE ACTUALLY HAVE GOING ON, RIGHT? YES. AND WE HAVE THOSE OUTLINED IN THE BEHIND THE SCENES PORTION.

I THINK MAJOR, SELIGMAN ASH FORK, WHO WAS THE YARNELL ONE? MAJOR. SORRY, MAJOR, VILLAGE OF OAK CREEK PEOPLE'S VALLEY, WHICH IS WEAVER MOUNTAIN FACILITY. AND THEN THERE'S AN ASH FORK SELIGMAN PROJECT.

THOSE ARE THE FOUR CAPITAL PROJECTS THAT ARE IDENTIFIED IN THE RURAL AREA.

AND THEN THE HIGHEST PRIORITY OF THE MAJOR PROJECTS WAS THE GURLEY STREET REMODEL.

AND THE BOARD DID GO UNDER CONTRACT FOR ANOTHER BUILDING RECENTLY.

VICE CHAIR CHECK. THANK YOU. I JUST WANT TO MAKE A COUPLE OF COMMENTS BECAUSE I REALLY ENJOYED THIS BUDGET PROCESS, AND I WANT TO HIGHLIGHT THAT YAVAPAI COUNTY ALSO PASSES THROUGH A LOT OF STATE AND FEDERAL TAX DOLLARS IN ORDER TO PROVIDE THE SERVICES THAT WE DO.

SO UNDER A CONSTRAINED ENVIRONMENT, YOU KNOW, BOTH FROM THE FEDERAL AND STATE LEVEL, I THINK WE'VE DONE AN EXCELLENT JOB OF BEING HIGHLY JUDICIOUS, JUDICIOUS, ALSO REALLY IDENTIFYING PRIORITIES AND, YOU KNOW, HAVING THE LEADERSHIP TO MOVE FORWARD IN THOSE AREAS LIKE OUR RURAL SERVICES AND AND REALLY, YOU KNOW, MAKING SURE THAT WE'RE NOT UNNECESSARILY PASSING ON ANY BURDEN TO OUR CITIZENS AND OUR TAXPAYERS.

SO I'M REALLY PROUD OF THE WORK THAT WE'VE DONE AND, AND HAPPY TO HAVE THE TEAM THAT WE HAVE.

SO THANK YOU TO COUNTY MANAGEMENT AND TO YOUR OFFICE, KEVIN.

THANK YOU. OKAY. SUPERVISOR JENKINS. JUST ONE COMMENT FROM ME.

AND THAT IS THE GRAPH SHOWING THE PROPERTY TAX RATES THAT YOU SHOWED BETWEEN THE, THE TWO DISTRICTS.

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AND THAT BEING THE LOWEST RATE THAT WE'VE SEEN IN MANY, MANY YEARS AND WE'VE BEEN ABLE TO HOLD THAT.

YES, IT'S LOWER. IT'S GOING BACK TO 2019. IT'S LOWER THAN THAT AMOUNT AND PROBABLY ON PAR WITH 2018, BUT I'D HAVE TO GO BACK AND CHECK. SUPERVISOR MALLORY.

THANK YOU. SO I WOULD JUST LIKE TO SAY THAT THE LAST TIME THE COUNTY RAISED THE PROPERTY TAX WAS IN 2019, AND I ACTUALLY WAS ON THE BOARD AT THAT TIME.

AND WE RAISED THAT PROPERTY TAX TO BUILD THE CRIMINAL JUSTICE CENTER OVER THERE IN PRESCOTT.

OKAY. NO OTHER FURTHER COMMENTS. THIS IS, CLERK, IS THERE ANYTHING ONLINE COMMENTS ONLINE? NO COMMENTS WERE RECEIVED. OKAY. VICE CHAIR CHECK.

YOU HAVE A GREEN SHEET. I'LL HAND IT OVER. I DO, I HAVE A GREEN SHEET FROM PATRICK PIERSON AND HE SAYS HE DOES NOT WISH TO SPEAK.

BUT I SHOULD NOTE THAT I DON'T READ COMMENTS INTO THE RECORD, SO I'LL GIVE YOU THE OPPORTUNITY.

PATRICK, IF YOU WANT TO APPROACH THE DAIS AND AND SAY YOUR PIECE, YOU'RE WELCOME TO.

OKAY. THANK YOU. THAT'S THE ONLY GREEN SHEET THAT I HAVE.

OKAY. THIS IS A HEARING ITEM. SO DOES ANYBODY WISH TO SPEAK AT ALL IN THE AUDIENCE? OKAY. NOBODY WISHES TO SPEAK ON THIS PARTICULAR MATTER.

SO THIS IS A NOTICE OF A SPECIAL PUBLIC MEETING AND AGENDA.

THE BOARD OF SUPERVISORS WILL CONVENE IN A SPECIAL MEETING FOR THE PURPOSE OF ADOPTING THE FISCAL YEAR 2026 2027 BUDGET AND FOLLOWING THE THE ACTION, THE ACTION ITEMS. WE'LL RECONVENE INTO THE REGULAR MEETING OF THE BOARD OF SUPERVISORS.

[1. Board of Supervisors - Final approval of the County budget for Fiscal Year (FY) 2026-2027 and Resolution No. 2181 adopting the budget, including resolving into the Board of Directors of the following special and improvement districts to approve budgets for the 2026-2027 Fiscal Year: Yavapai County Flood Control District, Yavapai County Free Library District, Yavapai County Jail District, Ash Fork Street Lighting Improvement District, Seligman Street Lighting Improvement District, Yarnell Street Lighting Improvement District, Seligman Sanitary District, and Poquito Valley Road Improvement District.]

AND ANY QUESTIONS OR COMMENTS FROM THE BBOARD ABOUT THE ACTION ITEM.

ENTERTAIN A MOTION. MOVE TO APPROVE. GO AHEAD.

I'M SORRY. GO AHEAD VICE CHAIR. I MOVE TO APPROVE ACTION ITEM NUMBER ONE.

I SECOND. ANY DISCUSSION? CLERK CALL FOR THE VOTE.

VICE CHAIR CHECK. YES. SUPERVISOR JENKINS. AYE.

SUPERVISOR KUKNYO. YES. SUPERVISOR MALLORY. YES.

CHAIR COMPTON. YES. ACTION ITEM NUMBER ONE IS APPROVED UNANIMOUSLY.

THANK YOU VERY MUCH, EVERYONE. THIS MEETING IS ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.