Greeley City Council Work Session – August 25, 2026

The Greeley City Council held a work session on August 25, 2026, beginning at 5:00 PM and adjourning at 8:12 PM. All seven council members were present. The session covered the annual audit presentation, proposed comprehensive financial policies, the second‑quarter financial update, long‑range financial projections, and a follow‑up discussion on a potential ballot measure for a tax increase. No formal votes were taken; the session was informational and deliberative.

Executive Session

• Council approved a motion to enter executive session to receive legal advice regarding a proposed ballot measure concerning a tax increase. The transcript does not include the executive session discussion.

Audit Presentation (Plante Moran)

• Tim St. Andrew, partner at Plante Moran, presented the results of the financial statement and single audit for the year ending December 31, 2025. The city received an unmodified opinion—the highest level of assurance. Key highlights:
  • General fund balance decreased $16 million from 2024 to $52.1 million; $38.9 million of that is unrestricted.
  • Combined utility operations (water, sewer, stormwater) had a $109 million unrestricted net position at year end.
  • The city invested $203 million in infrastructure in 2025, including the issuance of $115 million in certificates of participation (COPs) for the West Greeley development project.
• Councilmember DeBoutez expressed appreciation for the audit team’s work, noting that past audits had been a “source of stress and anxiety.”

Comprehensive Financial Policies

• Finance Director Kirk Jones presented a proposed framework consolidating the city’s existing financial policies into a single document. The framework organizes 11 policy areas (e.g., reserves, debt, grants, capital assets) and introduces new policies on real property acquisitions and donation governance.
• Key provisions discussed:
  • Reserves: General fund contingency reserve equal to two months of expenditures (consistent with GFOA best practices).
  • Debt: Bond maturities capped at 30 years; refunding requires net present value savings exceeding 3% of refunded maturities; interfund loans beyond one year require council approval.
  • Grants: Grants exceeding $500,000 or requiring unbudgeted match come to council; the city may recover indirect costs up to 15%.
  • Donations: Donations over $10,000 or involving real property require council approval.
• Councilmember Olson asked about enforcement and the need for a process to evaluate new programs funded by grants that lead to ongoing personnel costs. Councilmember Olson and others emphasized that the framework consolidates existing practices and does not change current operations.

2026 Second Quarter Financial Update

• Robert Miller, budget office, presented economic conditions and revenue trends through June 30, 2026:
  • Sales tax: Grew 4.3% through five months, below the budgeted 5.6%.
  • Construction revenues: $8.2 million above budget, driven by multifamily development (primarily Union Colony).
  • Oil and gas: Expected to exceed budget.
  • Interest earnings: Projected $7 million above budget through June.
  • Overall general fund impact: Expected positive $1.8 million (including $1.2 million from prior‑year reconciliations).
• Councilmember Olson noted that while residents complain about high utility and food costs, the city’s tax revenue from utilities and food is below budget, likely due to “trading down” behaviors.

Long‑Range Financial Update

• Nathan Mosley, budget director, presented the city’s five‑year general fund projection. The city has faced a structural deficit since 2023, with expenses exceeding revenues. To address this, the 2027 budget process used target‑based budgeting with reduction targets of 4%, 17%, and 25% for departments based on council priorities.
• Key assumptions and outcomes:
  • The 2027 recommended budget closes the structural gap in the out‑years (2028–2031), but 2027 expenditures will still exceed projected revenues; one‑time carryover funds ($1.1 million from 2025 and an estimated $1.8 million from 2026) are used to balance.
  • No annual salary increases are programmed for 2027; instead, a 2% bonus for staff and 1% for executives is included.
  • Remaining gap of about $1.3 million (from departments like CPRD, OEM, municipal court, and the police precision contract) is covered by carryover funds.
• Council discussion focused on the need for guardrails on grant‑funded positions, the impact of the compensation plan adopted in 2022, and the desire for a structurally balanced budget (Councilmember Rudy). Councilmember Olson asked for a list of programs added since 2022 that contributed to the deficit. Councilmember DeBoutez requested a service‑level impact analysis if CPRD were cut 17% across the board.

Ballot Measure Follow‑Up

• Brian McBroom and Stacey Arzeda provided information for a potential November 2026 ballot question to fund the West Greeley Catalyst project and the Civic Campus. Staff recommended a 0.6% sales tax increase (0.5% for Catalyst, 0.1% for Civic Campus) for 40 years to achieve credit enhancement for revenue bonds.
• Key details:
  • A 40‑year tax would allow the Catalyst project to be paid off by 2050 (29 years early), saving approximately $200 million in debt service.
  • The city’s credit rating could improve from BBB to at least A, reducing future borrowing costs.
  • Staff now recommends funding Civic Campus COPs entirely from food tax, rather than general fund and quality‑of‑life funds.
• Councilmembers expressed diverse views:
  • Councilmember Olson advocated for solving the $377 million combined debt burden (Catalyst, Civic Campus, and Merger) and wanted a clear list of deferred CIP projects if the tax fails. He noted that the 40‑year term was a “hard pill to swallow” but saw it as necessary for credit enhancement.
  • Councilmember Huddleston favored a 20‑year term but would support putting a question to voters; he was concerned about uncertainty in construction costs and the bond market.
  • Councilmember Roth opposed the 40‑year length and said he could not support a combined “both pass or both fail” question; he was open to a ballot question only for West Greeley.
  • Mayor Pro Tem McDonald stated she was “completely out” if the measure did not address both projects, but warned that adding Civic Campus without solving West Greeley’s debt was irresponsible.
  • Councilmember DeBoutez said the 42‑day timeline before ballots mail was too short, and she would not support a tax increase this year.
  • Councilmember Rudy wanted a flat, structurally balanced budget and did not want to use one‑time money for ongoing expenses, implying opposition to a new tax.
• The Mayor asked for consensus to place a question on the November ballot. No consensus was reached; the council effectively decided not to proceed with a ballot measure resolution for the upcoming election.

Scheduling and Adjournment

• City Manager Brian McBroom reminded council of employee pictures at Island Grove Park the next day.
• The work session was adjourned at 8:12 PM.

Key Outcomes

• No consensus to place a ballot question on the November 2026 election; the council will not advance a tax increase measure at this time.
• The comprehensive financial policies will be further refined and brought back for formal adoption after additional council feedback.
• The 2027 budget process will continue, with a budget retreat scheduled for September 11, 2026, and adoption anticipated in October–November.
  • Council directed staff to provide analysis of uniform 17% cuts by department and their service impacts.
  • Council expressed desire for guardrails to prevent future structural deficits, particularly around grant‑funded positions.