NAVAJO COUNTY — The Navajo County Board of Supervisors voted unanimously to adopt the county’s proposed tentative budget for fiscal year 2026 during its public meeting, approving a plan that holds the county property-tax rate flat and allocates funds for employee pay increases and several capital projects.
Jason Vowell, a county staff member who presented the budget, told the board, “It’s my pleasure to to stand before you today and to present the preliminary budget for fiscal 26.”
The tentative budget keeps the county property-tax rate at 0.8114 and would result in an estimated property-tax levy of about $8.8 million, according to the presentation. Staff warned that rising assessed values could increase bills even with the rate held steady. Sales-tax projections were positioned conservatively in light of slower expected growth and the potential property-tax impact from the planned closure of the Cholla power plant.
Why this matters: the tentative budget sets policy direction and funding priorities ahead of final hearings and truth-in-taxation notices. It preserves current county services while phasing changes to employee compensation and preparing for anticipated revenue pressure.
Key decisions and proposals adopted or presented to the board:
- Compensation: The budget includes a 2.5% across-the-board cost-of-living adjustment for all employees. Staff recommended discontinuing the biannual “anniversary step” payments starting this fiscal year and transitioning over time to a merit-based pay approach coupled with the continued “good job pay” program. The board approved the tentative budget as presented.
- Sabbatical leave: A new sabbatical program would grant additional paid leave at multi-year tenure milestones: 2 days at 5 years, 1 week at 10 years, and 2 weeks at 15 years and every 5 years thereafter. At 15 years employees may elect to sell back one week of that entitlement for pay. The plan frames sabbaticals as a retention and morale tool.
- Health incentives: Staff proposed replacing one-time payments with incentives tied to employees completing annual physicals.
- Capital and replacements: The plan budgets recurring capital replacements including about 10 patrol vehicles annually (estimated $70,000–$80,000 each) funded by the inmate-housing fund, roughly 10 non-patrol vehicles (~$32,000 each) from the general fund, IT equipment refreshes on a 4–5 year schedule, and larger facility projects. Notable planned investments called out in the presentation include door and security-camera system replacement (estimated about $1,500,000), roof and HVAC replacements (each roughly $1,500,000 projected in coming years), a $112,000 Silver Creek facility remodel, and $50,000 in bathroom remodels at the county complex.
- Reserves: The presentation noted an existing set-aside for future financial stability of just over $11,000,000, roughly 25% of estimated fiscal 25 expenditures.
Board action: After the presentation and a period for questions and follow-up workshops, a motion to approve the tentative budget as presented carried unanimously. The board then entered the board-of-directors sessions for component districts (public health, library, flood control, jail district and several special districts) to adopt the component budgets rolled into the county’s overall budget document.
What remains: The tentative budget now moves toward the final adoption process, which will include public notices and the county’s truth-in-taxation hearing to address property-tax impacts tied to changing property valuations.