City of Colorado Springs Work Session - December 8, 2025

This work session addressed the approval of previous minutes, legal obligations for police defense, and detailed presentations on healthcare status, housing needs, and urban development. Key discussions focused on the rising costs of uncompensated care, legislative impacts on Medicaid and TRICARE reimbursement, and a comprehensive analysis of a 27,000-unit housing shortage. The session concluded with an informational report on disorder in District One and the certification of audit plans and annexation checkpoints.

Consent Calendar

• Minutes: Approval of the November 24, 2025 City Council work session minutes with no changes.
• Legal Defense: Acknowledgment by the City Attorney that the City is providing a defense for police officers sued under the Colorado Governmental Immunities Act and Peace Officers Liability Act for actions within the scope of employment (Christopher Cordova vs. the City, case 25-C V 02723-723 CYC). The City retains the right to refuse payment of punitive damages.
• Policy Manual Updates: Adoption of proposed updates to the Personnel Policies Manual (PPM) for consistency, legal compliance, and clarification of sworn/civilian pay protections (including a typo correction from 720 to 1,220 hours for sworn employees), scheduled for the January 13 regular meeting.
• Metropolitan District: Consent to the dissolution of Gold Hill Mesa Metropolitan District Number One, transferring its remaining infrastructure responsibilities (including stormwater maintenance) to District Number Two, which holds current debt and assets.

Public Comments & Testimony

• None recorded in this transcript segment.

Discussion Items

• UC Health Annual Report:

  • Speaker: Lonnie Kramer, President, UC Health Southern Region.
  • Position Summary: Mr. Kramer expressed pride in UC Health's quality rankings (including #1 in Colorado quality and 99th percentile for Pikes Peak Regional Hospital) and investment in behavioral health and virtual care. He stated concern regarding the financial strain from declining Medicaid reimbursement rates and the projected impact of HR1 legislation, estimating a potential loss of 10.4 billion dollars in healthcare funding across the state. Noted that under HR1, hospitals are required to take care of everyone regardless of legal status or willingness to work, potentially increasing uncompensated care burdens on the safety net.
  • Q&A Highlights: Councilman Hinchem inquired about the high uncompensated care rates, seeking clarification on whether transfers from rural hospitals were the primary driver; Mr. Kramer confirmed this was a significant factor. Councilman Lineweber raised concerns about the political landscape regarding undocumented citizens using Medicare; Mr. Kramer clarified federal mandates require care regardless of ability to pay or legal documentation, noting that HR1 will increase the number of uninsured patients. Councilman Donaldson commended the hospital's work with veterans and the decrease in veteran suicides to zero for enrolled members.

• Children's Hospital Colorado Annual Presentation:

  • Speaker: Greg Raymond, CEO of Children's Hospital Colorado.
  • Position Summary: Mr. Raymond highlighted the hospital's inclusion in the U.S. News national honor roll and significant progress in pediatric behavioral health and suicide prevention screening. Expressed serious concern regarding the implementation of a Medicare-based reimbursement methodology for pediatric services by the Defense Health Agency, stating this has resulted in a $22 million revenue reduction in the past fiscal year. Noted that while the hospital has temporarily remained in-network for TRICARE for 2026, the current reimbursement model is unsustainable.
  • Q&A Highlights: Councilman Rainey asked for clarification on the TRICARE status; Mr. Raymond explained a temporary extension to 2026 is in place while working with federal representatives for a permanent solution. Councilman Donaldson inquired about the status of gender-affirming surgeries; Mr. Raymond stated that Children's Hospital Colorado does not provide gender-affirming surgical care and stopped all such surgeries in 2023. Councilman Lineweber asked how the hospital is responding to rising national rates of autism and chronic conditions among children; Mr. Raymond emphasized the hospital's role as a research institution actively investigating these trends and focusing on upstream prevention.

• Housing Needs Assessment Informational:

  • Speakers: Amy Cox (Chief Housing and Homelessness Response Officer), Dr. Tatiana Bailey, James McMurray, Katie Sunderland.
  • Position Summary: The presenters outlined a current housing gap of 27,000 units, rising to a 60,000-unit gap by 2027. Stated that market choice is limited and homeownership is increasingly out of reach, with median home prices 11% higher than the national average. Highlighted that 50% of the community earns under 80% of the Area Median Income (AMI), with a disproportionate shortage of affordable units for low-income earners (0.9 units per worker). Discussed the complexity of homelessness data, contrasting the Point-in-Time count (1,146) with estimates from SNAP data (approx. 8,500 individuals) and those at high risk of becoming homeless due to severe cost burdens. Noted that many seniors are "overhoused" financially but stay due to the "lock-in" effect of low interest rates and the desire to remain in established neighborhoods.
  • Q&A Highlights: Councilman Lineweber challenged the assumption that supply and demand will lower prices without public education, expressing concern that residents fear home value declines. Dr. Bailey agreed that a robust public education and messaging campaign is critical to address NIMBYism and the fear of property value loss. Councilman Donaldson countered against labeling dissenting voters as "NIMBYs," arguing that their votes reflected legitimate concerns about quality of life, traffic, and infrastructure rather than just home values.

• 2026 Audit Plan Endorsement:

  • Speaker: Natalie Lovell, City Auditor.
  • Position Summary: Ms. Lovell presented a risk-based 2026 audit plan focusing on the City, Airport, and Utilities, with an adjusted budget of approximately $2.4 million due to staffing restructuring. Recommended the plan to the Council based on a rigorous risk assessment process that prioritized high-liquidity areas and IT systems. The Audit Committee (Barry Baum and Jim Godfrey) endorsed the plan, praising the data-driven analysis, the level of detail, and the strong team buy-in within the audit office.

• Kettle Creek Edition #1 Annexation Checkpoint:

  • Speakers: Chris Sullivan (Senior Planner), Todd Sturdiment (CSU), Andrea Barlow (Applicant).
  • Position Summary: The applicant proposed the annexation of a 19.88-acre enclave to zone for medium-density residential (R-Flex) and rezone surrounding areas. Asserted the project meets all checkpoint criteria, including being a "logical extension" of the city boundary, providing housing diversity, and having a "de minimis" impact on the water supply. Confirmed that the developer will construct necessary infrastructure, including realigning Kettle Creek Road and widening Old Ranch Road.
  • Outcome: Councilmember Risley stated the project appears viable and well-suited for annexation. The Council thumbs up the checkpoint to proceed to the next phase of the process.

Key Outcomes

• Minutes Approved: November 24, 2025 work session minutes accepted without change.
• Legal Acknowledgement: City accepted the obligation to defend officers in the Christopher Cordova case.
• PPM Updates Adopted: Personnel policies updated for legal compliance and clarity moved to consent for January 13 vote.
• District Dissolution: Gold Hill Mesa Metropolitan District Number One dissolution recommended for consent vote, transferring liabilities to District Number Two.
• Audit Plan Accepted: The 2026 Audit Plan endorsed by City Council based on the Audit Committee's recommendation.
• Annexation Progress: Kettle Creek Edition #1 annexation checkpoint passed; process moves forward to formal hearings.
• Informational Reports: Councilman Donaldson reported on safety hazards and infrastructure damage in District One (Garden Ranch); Councilman Rainey reported on tours of the gas plant and engagement with Cub Scouts and Festival of Light participants.