OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Town of Erie 2026 Budget Study Session - October 21, 2025

Town Council — Tuesday, October 21, 2025
BodyErie, Colorado
SessionTown Council
DateTuesday, October 21, 2025
StatusFILED
Video Record
0:00 / 2:16:04

Transcript — Verbatim
0:04

Let's uh get going.

0:06

Two votes here.

0:07

I'm gonna call to order the town council study session on October 2st, 2025.

0:15

I'll turn it over to Sarah Hancock to lead the way.

0:18

All right, we're jumping right in today, everyone.

0:21

Welcome to the 2026 budget presentation.

0:25

Um, we are going to jump in to uh look at the budget process a little bit.

0:31

We've got all the department directors here.

0:33

So after we go through some summary uh information, um, some basics about how we got through the budget, some things we want to highlight.

0:40

Um, I'm also going to be trying to weave in some of the answers to some questions I have received from council members.

0:46

Um, but of course, whenever we get to the end of the presentation, or while the department directors are out speaking about their items, feel free to ask if that question hasn't been discussed.

0:57

After that, each of the department directors will talk through their budgets and specific changes, and then after that we will uh talk through the long range forecast and what we're looking at for the future, and then we can get into some additional discussion.

1:11

So this will be a long night.

1:13

Um, so everybody just uh bear with us as we get through lots of information.

1:17

We also have lots of backup information too, um, and lots of folks at the ready.

1:21

So if questions come up, we'll try to get that information as quickly as possible because of course this is quite a dense topic.

1:28

So with that, I want to just start with talking through what our budget process was this year because there were some things that were different.

1:35

Um, our budget opened this year for departments on May 2nd, and this year we did ask for operating personnel and capital budgets all at the same time over two months.

1:44

Um, usually what we see are those in segments, so the departments kind of move through, but we've also seen challenges with that, right?

1:50

You're pooling personnel after you've done capital or capital before personnel.

1:54

So that was a very um helpful way.

1:55

It also allowed departments to really prioritize the areas that they needed to focus on to get through the budget process.

2:01

Um, we did some pretty extensive revenue assumptions, and we brought those to the council in July to talk through, and we did maintain those same revenue assumptions that the council did sign off on on that date.

2:13

Um so we are doing that somewhat constrained overall 4.1% uh revenue growth for the town.

2:19

The budget closed on the 27th, and our executive budget team, which you'll see us refer to as EBT, began reviewing our departmental budgets.

2:26

We met with every department at least twice, um, some of them three or four times, depending on the complexity of the budget.

2:33

And then departments did provide uh three rounds of reductions and reprioritizations.

2:38

So each time we kind of reviewed it, we went through another iteration of understanding what areas could be reduced, changed, right, reprioritized, um, and trying to align with the community and council priorities that we were seeing, as well as just ensuring that we were being as fiscally as responsible as we could with um items that we maybe weren't historically spending.

2:58

Personnel and compensation considerations were also weighed by EBT.

3:02

Um, this included uh what positions we wanted to present as recommendations.

3:08

This included the potential merit and uh grade changes.

3:14

And then finally, the budget was finalized last week and was sent to everybody on the 15th.

3:19

So that's what you've got in front of you.

3:22

Just to review some best practices and how we approach the process.

3:26

Um, this year we did use budget targets to establish our goals and strategy.

3:30

We do not use zero-based budgeting, um, but we also no longer just say, here, tell us what your budget is.

3:36

We this year did provide um targets that were based on the prior year budgets of the departments.

3:41

We pulled out one-time expenses, um, things that you know maybe were one-time influxes that we didn't feel like they needed to maybe bring in again, and then we also asked them to include any cost of economy um you know adjustments.

3:54

So, for example, most contracts go up three to five percent.

3:57

Um, so we expected those types of increases.

4:00

So we asked them to view their budget through that target exercise.

4:04

We also established our links between the budget and the adopted community and council priorities this year.

4:09

That was a little complex because we did have a survey going on at the same time as the budget process, so we did our best to align those with what we were hearing in council uh meetings, and then once we did have those survey results to weave those within the final uh product that you see before you.

4:25

And then achieving a structurally balanced budget through our projection of sources and uses.

4:30

Something that you will notice about this is some places don't look balanced, uh, that has a lot to do with debt issuances.

4:36

Um, so structurally, we are balanced in terms of sources and uses for the expenditures that we plan to spend.

4:41

Um, then anything that does go above and beyond that in terms of revenue uh is accommodated by uh expected either revenue bonds, COPs, any type of debt issuance, which we'll talk through as well.

4:52

And then just the budget deadlines to remind everybody next week.

4:55

We'll have our first public hearing.

5:00

We'll plan to adopt November 18th, and then December 9th, um, we'll have our supplemental for the final 25 year, and we'll certify the mill levy before the deadline of the 15th.

5:08

And one last piece I want to just uh note because one of our key work plan items as a finance team uh is our budgeting for resiliency efforts.

5:17

Um big items that came out of this budget process as a part of our budgeting for resiliency plan.

5:24

Um, it was the revenue forecasting this year.

5:26

We did significantly aggregate that and are trying to better anticipate our revenue sources and the economic factors that are changing those.

5:36

Um, so our long range forecasting does include our revenue and operating growth that is closer to historical actuals than we previously seen, um, and also tries to anticipate some of those economic factors that we know are constantly changing.

5:48

Um, we're also looking at the impacts of an impact fee study, which we'll be doing next year, and how we can incorporate that into a long-term forecast.

5:57

We're also considering future fees.

5:59

Um, they are not included in the 26 budget, um, but for the 27 budget for transportation or something specific to uh street maintenance.

6:07

And so we'll talk a little bit about that.

6:09

But again, that's not in the 26 budget.

Discussion Breakdown — Share of Meeting
Fiscal Sustainability████████████████████████████████32%
Engineering And Infrastructure██████████████14%
Parks and Recreation█████████████13%
Water And Wastewater Management█████████9%
Personnel Matters█████5%
Technology and Innovation████4%
Disability Rights████4%
Environmental Protection███3%
Public Safety███3%
Summary of Proceedings

Town of Erie 2026 Budget Study Session - October 21, 2025

The Town of Erie Town Council convened on October 21, 2025, for a comprehensive study session to review the proposed 2026 budget. The meeting featured presentations from the Finance Department, the Executive Budget Team (EBT), and all 14 department directors. The administration highlighted a structurally balanced budget characterized by significant capital investments in water infrastructure, road safety, and public facilities, funded through a combination of revenue transfers, deferred debt issuances, and strategic reprioritization. The session emphasized the implementation of new budgeting processes, including the use of performance targets rather than zero-based budgeting, and the integration of community survey results.

Consent Calendar

  • No specific consent calendar items were read aloud; routine administrative announcements included the schedule for the public hearing on November 18th, budget adoption on November 18th, supplemental budget certification, and tax levy certification on December 9th.

Public Comments & Testimony

  • No public comments or testimony were recorded in this transcript; the session was conducted as a closed study session with council members and department directors.

Discussion Items

  • Budget Process and Strategy: Sarah Hancock (Finance Director) explained the use of budget targets based on prior-year budgets minus one-time expenses, rather than zero-based budgeting. The process included extensive revenue forecasting (4.1% growth) and three rounds of departmental reductions and reprioritizations.
  • Revenue Forecasts: Cassie (Fiscal and Budget Manager) noted that while building permits and use taxes are budgeted with a negative 1% adjustment due to a slowdown in permitting, oil and gas royalties have increased by 10% due to market prices. Retail taxes remain strong, while highway use and road/bridge taxes show projected declines.
  • General Fund & Positions: The General Fund shows a net increase of 6.5 FTEs, offset in part by a reduction in part-time hours and the freezing of an Affordable Housing Manager position. The administration expressed concern over the decline in building permits compared to historical averages of 750-800, currently budgeting near 650.
  • Departmental Presentations:
    • IT: Denise Jack (IT Director) reported an 8% increase in salaries/benefits and a 59% reduction in O&M due to grant funding for cybersecurity and shifting town-wide charges to the general fund. She expressed support for retaining cybersecurity grants and requested assertive action if funding lapses in 2026.
    • Communications: Gabby Wright noted increases due to the consolidation of insurance claims management into the department budget and the launch of "Rept," an AI-based website search engine.
    • Human Resources: Alicia Melinda highlighted a decrease in staffing due to the elimination of the official DEI program and the replacement of managers with business partners. A $100,000 capital request was proposed for the initial phase of the ADA Transition Plan implementation.
    • Administrative Services: Meredith Math noted an increase tied to the inclusion of the legislative division's expenses and the full allocation of attorney costs, alongside a budgeted $40,000-$50,000 for the 2026 election.
    • Environmental Services: David Frank reported a reduced O&M budget following the wrap-up of major 2025 projects, including street light acquisition and the recycling bin program. He expressed support for the current budget level pending the resolution of landfill negotiations.
    • Finance: Jason (Finance Director) explained O&M increases due to insurance allocation shifts and the consolidation of Clear Gov software costs. He noted in-grade moves for accountants and stated no new positions are requested.
    • Economic Development: Julian Jack (Development Director) requested a $7 million capital allocation for mine mitigation (town-owned and ECC), an increase from the $100,000 to $200,000 incentive fund.
    • Police: Chad (Police Director) requested one new police officer due to rising calls for service and crime. He noted 2026 capital items (drone, canine unit) are completed and supported the reduction in dispatch fees due to 911 fee increases.
    • Planning: Sarah (Planning Director) confirmed the freezing of the Affordable Housing Manager position pending council direction on policy updates. She noted that density analysis and UDC updates are planned for in-house work to save consulting costs.
    • Parks & Recreation: Lou (Parks & Rec Director) proposed significant O&M increases for battery-powered equipment rotation and autonomy, alongside a $200,000 request for community campus consulting. Capital requests include $7 million for Compass and Morgan Hill design phases.
    • Public Works: David Passek requested two new technicians (facilities and street maintenance) to manage increased square footage and lane miles. He highlighted a reprioritization of the Capital Improvement Fund (CIF) saving $3.5 million and design work for County Line Road improvements.
    • Utilities: Todd Fesson (Utilities Director) presented a significant O&M increase driven by water rights fees and new projects. He requested four new positions (water resources manager, wastewater mechanic, and storm drainage staff) to shift maintenance strategies toward predictive models. Capital costs are driven by the North Water Treatment Facility and water storage tanks.
  • Debt and Capital Planning: The administration discussed the need to issue revenue bonds and COPs for major projects like the mine mitigation ($7M), police station expansion, and water facilities. A strategic discussion emerged regarding the need for future ballot measures to fund the Capital Improvement Fund (CIF) beyond 2028 once transfers can no longer support it.
  • ADA Transition Plan: The Council discussed the long-term (10-15 year) implementation of the federal ADA transition plan, with an initial $100,000 budget allocated for immediate low-hanging fruit and engagement with the community to identify barriers.

Key Outcomes

  • Budget Status: The administration confirmed the General Fund is balanced through 2030 (excluding the CIF), with the CIF balanced through 2028. By 2029, the council will face strategic decisions regarding funding for capital projects, potentially including a ballot measure.
  • Staffing Changes: The net increase for the town is 6.5 FTEs, comprising 9 proposed positions, 4 of which are in the General Fund (Police Officer, Assistant Coordinator for Parks, Facilities Maintenance Tech, Streets Tech). One Affordable Housing Manager position is frozen, and one part-time role was reduced.
  • Capital Priorities: Major capital allocations include $7 million for Mine Mitigation, $3.5 million for Parks (Compass/Morgan Hill design), and significant infrastructure spending for the North Water Treatment Facility and County Line Road improvements.
  • Future Directives: The Council was advised that the ADA Transition Plan will be presented for direction on January 13, 2026. The Public Hearing on the proposed budget is scheduled for November 18, 2025, with final adoption and tax levy certification following on December 9, 2025.

Meeting Transcript

Let's uh get going. Two votes here. I'm gonna call to order the town council study session on October 2st, 2025. I'll turn it over to Sarah Hancock to lead the way. All right, we're jumping right in today, everyone. Welcome to the 2026 budget presentation. Um, we are going to jump in to uh look at the budget process a little bit. We've got all the department directors here. So after we go through some summary uh information, um, some basics about how we got through the budget, some things we want to highlight. Um, I'm also going to be trying to weave in some of the answers to some questions I have received from council members. Um, but of course, whenever we get to the end of the presentation, or while the department directors are out speaking about their items, feel free to ask if that question hasn't been discussed. After that, each of the department directors will talk through their budgets and specific changes, and then after that we will uh talk through the long range forecast and what we're looking at for the future, and then we can get into some additional discussion. So this will be a long night. Um, so everybody just uh bear with us as we get through lots of information. We also have lots of backup information too, um, and lots of folks at the ready. So if questions come up, we'll try to get that information as quickly as possible because of course this is quite a dense topic. So with that, I want to just start with talking through what our budget process was this year because there were some things that were different. Um, our budget opened this year for departments on May 2nd, and this year we did ask for operating personnel and capital budgets all at the same time over two months. Um, usually what we see are those in segments, so the departments kind of move through, but we've also seen challenges with that, right? You're pooling personnel after you've done capital or capital before personnel. So that was a very um helpful way. It also allowed departments to really prioritize the areas that they needed to focus on to get through the budget process. Um, we did some pretty extensive revenue assumptions, and we brought those to the council in July to talk through, and we did maintain those same revenue assumptions that the council did sign off on on that date. Um so we are doing that somewhat constrained overall 4.1% uh revenue growth for the town. The budget closed on the 27th, and our executive budget team, which you'll see us refer to as EBT, began reviewing our departmental budgets. We met with every department at least twice, um, some of them three or four times, depending on the complexity of the budget. And then departments did provide uh three rounds of reductions and reprioritizations. So each time we kind of reviewed it, we went through another iteration of understanding what areas could be reduced, changed, right, reprioritized, um, and trying to align with the community and council priorities that we were seeing, as well as just ensuring that we were being as fiscally as responsible as we could with um items that we maybe weren't historically spending. Personnel and compensation considerations were also weighed by EBT. Um, this included uh what positions we wanted to present as recommendations. This included the potential merit and uh grade changes. And then finally, the budget was finalized last week and was sent to everybody on the 15th. So that's what you've got in front of you. Just to review some best practices and how we approach the process. Um, this year we did use budget targets to establish our goals and strategy. We do not use zero-based budgeting, um, but we also no longer just say, here, tell us what your budget is. We this year did provide um targets that were based on the prior year budgets of the departments. We pulled out one-time expenses, um, things that you know maybe were one-time influxes that we didn't feel like they needed to maybe bring in again, and then we also asked them to include any cost of economy um you know adjustments. So, for example, most contracts go up three to five percent. Um, so we expected those types of increases. So we asked them to view their budget through that target exercise. We also established our links between the budget and the adopted community and council priorities this year. That was a little complex because we did have a survey going on at the same time as the budget process, so we did our best to align those with what we were hearing in council uh meetings, and then once we did have those survey results to weave those within the final uh product that you see before you. And then achieving a structurally balanced budget through our projection of sources and uses. Something that you will notice about this is some places don't look balanced, uh, that has a lot to do with debt issuances. Um, so structurally, we are balanced in terms of sources and uses for the expenditures that we plan to spend. Um, then anything that does go above and beyond that in terms of revenue uh is accommodated by uh expected either revenue bonds, COPs, any type of debt issuance, which we'll talk through as well. And then just the budget deadlines to remind everybody next week. We'll have our first public hearing. We'll plan to adopt November 18th, and then December 9th, um, we'll have our supplemental for the final 25 year, and we'll certify the mill levy before the deadline of the 15th.

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