Grand Junction City Council Workshop – August 31, 2026

The Grand Junction City Council held a workshop on Monday, August 31, 2026, from 5:30 p.m. to 7:50 p.m. at the Fire Department Training Room, 625 Ute Avenue, with virtual participation via GoToWebinar. Mayor Laurel Lutz was absent; Mayor Pro Tem Ben Van Dyke presided. Councilmembers Robert Ballard (virtual), Scott Beilfuss, Cody Kennedy, Jason Nguyen, Anna Stout, and Van Dyke were present. Staff included City Manager Mike Bennett, Interim City Attorney Jeremiah Boies, Deputy City Manager Kimberly Bullen, CFO Jay Valentine, Housing Specialist Paul Stahlke, Deputy City Clerk Misty Williams, and City Clerk Selestina Sandoval. The meeting covered the revised Housing Action Plan, the 2027 budget process and structural deficit, new financial reporting and policies, council communications, upcoming workshop topics, proclamation requests, and a Housing Authority appointment recommendation.

Housing Action Plan Revised Draft

• Root Policy consultant Molly Fitzpatrick (listed as Mollie Fitzgerald in the minutes) reviewed revisions to the Housing Action Plan, reflecting prior council discussion and stakeholder feedback.
• The proposed formal Housing Advisory Board was removed in favor of targeted stakeholder engagement.
• The strategy to explore additional housing revenue and financing options was moved from years one–two to years four–six of the six-year plan. Staff clarified that “explore” does not commit council to a tax, fee, or dedicated funding source; any future proposal would require separate council direction.
• Feedback from the Grand Junction Housing Authority was incorporated, emphasizing stakeholder partnerships and engagement in implementation.
• A new annual prioritization framework was added to help council evaluate housing initiatives based on funding availability, grants, staff capacity, and current priorities. It is intended as guidance and does not obligate future councils.
• The previous Housing Needs Assessment summary was moved to the appendices as requested.
• Councilmember Kennedy sought clarification that the plan would not bind future councils or mandate funding, and suggested strengthening language around evaluating regulatory costs. Councilmember Beilfuss raised the need for emergency and transitional housing; the consultant explained that the plan defers to the regional unhoused strategy under Strategy 5.
• Council expressed general support for moving the revised plan forward. Next steps include DOLA preliminary review, continued public comment, and a return to council for a public hearing and formal adoption consideration.

Budget Process & Focus Overview

• Staff presented the 2027 budget process and the City’s developing structural financial challenges. Departments have completed operational presentations, budget submissions, and line-item reviews.
• The current 2027 General Fund structural gap is $6 million before considering approximately $7 million in one-time requests and $7.9 million in requested new personnel costs, including about $5.5 million for public safety.
• The deficit is structural, not cyclical: recurring expenditures are increasingly outpacing recurring revenues. The recurring operating margin has declined each year since 2021.
• Major budget pressures include rising compensation and benefits, public safety staffing and service demands, growth and annexation, aging fleet (average age 14.2 years vs. 7.5–8 year target) and infrastructure, rising technology costs, unfunded state mandates, Dos Rios debt obligations, and rural fire/EMS service costs.
• The First Responder Fund will require General Fund support beginning in 2027 because dedicated revenues no longer cover expanded public-safety costs.
• Employee health insurance: the City’s transition to a self-funded model saved an estimated $5.8 million versus remaining fully insured, but the fund was initially seeded below recommended levels and claims have exceeded projections. Staff discussed using a portion of General Fund reserves for a one-time correction, not as recurring funding.
• Staff stated they plan to give the Rural Fire District the required two-year notice to renegotiate the agreement, which does not mean discontinuing service but seeking a more financially sustainable arrangement.
• Councilmember Stout urged pursuing a study of forming a fire district and also examining a potential public safety tax increase, noting the 2019 ballot measure asked for less than needed. Councilmember Nguyen requested a breakdown of the $6 million gap and a five-year projection. Councilmember Beilfuss asked for more workforce retirement data; staff noted some departments face significant retirements. Councilmember Kennedy cautioned against over-requesting operational detail, and staff acknowledged all options remain under review.
• Staff will return in October with specific recommendations for balancing the 2027 budget and addressing longer-term structural issues.

Financial Policies & Reporting Overview

• Staff presented a new quarterly financial reporting dashboard, designed as a more accessible, high-level view of the City’s financial position. It was scheduled to go live the next day and will be updated quarterly, similar to other City dashboards.
• Financial policies have been consolidated into a single document reviewed during the annual audit. A new debt policy was added in response to previous council discussions.
• The debt policy establishes a framework rather than rigid limits: debt is generally for long-term capital projects, not for ongoing structural deficits. Staff would evaluate alternatives, financial impacts, debt type, existing obligations, repayment schedules, and budget capacity.
• Current debt burden is approximately 7.96% of revenues, or 8.59% when including the Dos Rios obligation the City is paying. Guidance cited during the presentation: below 10% is conservative; 10–15% warrants closer scrutiny; higher levels reduce flexibility.
• Council emphasized preserving financing flexibility, including Certificates of Participation. Staff confirmed the policy is deliberately high-level, but future debt recommendations will show the total debt impact.
• Councilmember Kennedy praised the transparency and suggested adding projected-vs-actual trend lines to the dashboard; staff said they could incorporate that feedback.

Council Communication

• Councilmember Stout announced she would be out for the September 16, 2026 regular meeting due to work obligations.
• Councilmember Kennedy reported his appointment by Mesa County Commissioners as the Colorado Basin Roundtable Municipal Representative, and shared highlights from a riverfront ride-along with police.
• Councilmember Beilfuss requested more information on Flock Cameras.
• Councilmember Van Dyke updated council on the Downtown Development Authority Terminal Project: vibration concerns from vibratory rollers led to a switch to helical piers, adding approximately $500,000 to the project, likely requiring a supplemental appropriation. He also noted the Business Incubator may receive land from the RTC for leverage after the Department of Energy moves out.

Next Workshop Topics

• September 14: Water Supply Element of the Comprehensive Plan, Local Preference for Procurements, and Data Centers discussion.
• Council agreed to move the October 19 workshop to October 26 to allow more time for budget balancing and presentations. October 5 and October 26 workshops will start at 4:00 p.m.

Other Business

• Approved issuance of a social proclamation for International Overdose Awareness Day.
• Approved issuance of a social proclamation for White Cane Day.
• The interview team for the Grand Junction Housing Authority recommended appointing Randall, citing his social work background and the current board’s composition; the recommendation will proceed.

Key Outcomes

• Housing Action Plan moves forward pending DOLA review, continued public comment, and a future public hearing and formal adoption.
• City staff will return in October with 2027 budget balancing recommendations and longer-term structural solutions.
• Quarterly financial reporting dashboard was released on September 1, 2026, with planned enhancements based on feedback.
• Council approved the October 19 workshop move to October 26 and the earlier start times for October 5 and 26.
• Social proclamations approved for International Overdose Awareness Day and White Cane Day.
• Grand Junction Housing Authority interview team recommended Randall for appointment.

Note: The minutes spell the consultant’s name as “Mollie Fitzgerald,” while the transcript uses “Molly Fitzpatrick.”