Over $1 million dollars that had been listed for updating the city pool in Holbrook’s proposed 2026-27 budget was moved into a general administrative contingency line after concerns were raised by council members about whether the city was moving too quickly toward a pool, civic center or multipurpose facility.
City Manager Randy Sullivan told the Holbrook City Council during a June 24, budget work session that the money was removed from the parks section of the budget and placed into contingency. He said the change keeps the money available for future needs, including possible grant matches, streets or design work, but does not commit the city to one project.
“The key thing about the pool is anything that we do for that is going to have to come to you guys anyways,” Sullivan said, addressing the council, adding that large design costs or other project expenses would still have to return to the council for approval.
Sullivan said the city is likely about a year away from making major decisions about how to finance a project, whether through bonds or another method. If the money is not spent in the coming year, he said, it would carry over into the city’s fund balance.
He also said the city has about $11 million in investments and that he generally tries not to budget the general fund balance. Savings from efficiencies, unfilled positions or other cost reductions are rolled into longer-term investments so the city has money available when large needs arise.
“Anytime that we find efficiencies throughout the year, or cost savings throughout the year, or we’re short guys in the department, those end up being cost savings that I end up rolling over into long-term savings accounts,” Sullivan said. “So that way, when we do run into an issue with the pool, we have $12 million in there that could help us.”
Councilmember Roxanne Pergesen, who participated by phone, said her concern was making sure limited city money is used in a way that produces the greatest benefit. She said money could be used for grant matches, infrastructure, tourism or other projects that help the city generate revenue.
“When you’re running on a very limited-type budget, money has to be extended to develop maximum effort,” Pergesen said. “If we can utilize whatever money we are utilizing for specific projects we have to have, then let that money make us money.”
Councilmember Robert Black said he remained uncomfortable with the change because he believed moving the money into contingency could still allow the city to continue toward the same project. He said he worried the council could approve the budget and then see the administration continue moving forward with plans for a pool or multipurpose center.
“I’m still not warm and fuzzy on this because I know what happens,” Black said. “We’ll move that over in contingency and then we’ll keep on going with the same plans.”
Sullivan said the money was not set aside for any specific project and that any purchase over $15,000 would have to come back to the council. Black was told he and other council members would have the ability to oppose any future proposal when it comes forward.
Black said his larger concern is that Holbrook should focus more on basic infrastructure before pursuing a large quality-of-life project. He said roads, sewer systems, schools and other public needs have to be ready before new residents or businesses arrive. “We have not done anything with our infrastructure.” He later clarified that he was referring to underground systems such as sewer and water lines, not bridges or other visible improvements.
Black said he liked the idea of a multipurpose center but questioned whether it was the right direction for the city. He called the project a “pipe dream” and said Holbrook should put money toward more immediate needs. “I think we’re heading the wrong direction. If you’re looking at doing something for Holbrook and trying to get on the right track for Holbrook, I think we’re on the wrong track.”
Mayor Kathleen Smith disagreed with the idea that the city was neglecting infrastructure. She pointed to the city’s recently completed general plan and said the civic center discussion did not mean other priorities had been abandoned. “For the accusation to be said that we’re neglecting the utilities and the infrastructure, that is an untrue statement,” Smith said.
“I think that we’re wanting to move forward, and also have to provide that quality of life for our residents,” Councilmember Karina Pack said. She said the city needs to take care of current residents while also preparing for the future.
Sullivan said the city’s current direction is to work with the Holbrook Unified School District, Northland Pioneer College and Navajo County but staff does not want to lose a year if those partnerships do not come together. In that case, he said, the city may need to keep moving on a pool-only option.
The meeting did not result in a vote because it was just a work session. However, beforehand the council met briefly in a special meeting to authorize the transfer of a right-of-way segment of land on the edge of the church’s parking lot at 1202 W. Hopi Drive from the city to Calvary Chapel of Holbrook Inc.
