Greeley City Council Budget Retreat - September 11, 2026

The Greeley City Council held a special work session and budget retreat on September 11, 2026, to conduct an in-depth review of the proposed 2027 budget. The meeting began at 9:00 AM and focused on closing an $18 million structural deficit in the general fund. Council deliberated on department budgets, staffing levels, utility rates, and financial transparency, reaching consensus on several staff action items and future work session commitments.

Budget Overview and Financial Framework

• City Manager Brian McBroom opened the retreat by highlighting the team's collaborative effort through target-based budgeting, emphasizing the importance of maintaining core services. He noted that the voluntary separation program was instrumental in reducing the size of city government.
• Budget Director Nathan presented the financial assumptions. Total all-fund revenues are projected at $481.2 million against expenditures of $503.7 million, a gap explained by capital project carryovers. The general fund is projected at $144.5 million in revenues and $137.7 million in core expenditures.
• The proposed budget results in a net reduction of 67.75 full-time equivalent (FTE) positions within the general fund, bringing the total to 1,195.25 FTEs. The five-year plan demonstrates a move from a structural deficit to a sustainable balance.

KGM and Pavement Management

• Council discussed the Keep Greeley Moving (KGM) fund at length. Public Works Director Seth presented the Pavement Quality Index (PQI) system and noted the current average city PQI of 69.09. The program receives about $12 million annually against a roughly $100 million deferred maintenance need.
• Councilman Olson requested the development of defined service level targets to better communicate gaps to the public. Councilwoman DeBoutez advocated for considering neighborhood context in project selection. Staff committed to scheduling a work session on the 2027 pavement plan and long-term asset management.

CPRD: Culture, Parks, Recreation and Community Services

• Councilman Olson pointed out the budget book showed a 31.20% reduction in funding for museums on page 142 and a 45.53% reduction for natural areas and trails. CPRD Director Diana Frick clarified that a significant portion of the administration budget sits in that line due to internal charges for IT and equipment.
• Staff added $150,000 back into the budget for museums and open space. This allows the retention of two part-time interpreter positions to support school district tours and maintain existing levels of service in natural area operations.

Homeless Solutions

• The proposed budget includes a $1.2 million total contribution to the homeless shelter in 2027 ($200,000 ongoing plus a $1 million one-time contribution). Staff are pursuing an RFP to transition case management to a community partner.
• Staff reported a 90% stable housing rate for families in the rapid rehousing program and a 97% stable housing rate for chronically homeless individuals in permanent supportive housing.

Employee Compensation

• The budget proposes one-time bonuses in lieu of permanent raises. The plan is a 2% bonus for most employees and 1% for department directors and above, totaling roughly $1.3 million. This approach avoids adding permanent costs to the budget while helping employees offset rising insurance premiums.
• Councilman Huddleston raised questions about employees receiving promotions alongside the bonus. HR Director Martha explained the pay plan, market adjustment processes, and the position control protocols that prevent unauthorized cost creep.
• Councilman Olson expressed concern about the use of the 2.7% temporary public safety tax for ongoing operational expenses, calling it a structural problem that should be addressed in future budgets.

Utility Rate Increases

• Director Sean Chambers proposed rate increases for enterprise funds: Water at 3%, Sewer at 4.5%, and Stormwater at 6%. The stormwater increase was a deviation from a planned 20% increase; staff recommended leveraging debt to alleviate pressure on ratepayers.
• Council requested improved communication to help citizens understand what drives each component of their utility bill and how the city plans for future infrastructure needs.

Key Outcomes and Next Steps

• Formal Action: No votes were taken during this work session. Staff was directed to use the recommended budget as the foundation for the final document.
• Staff Action Items:
  • Provide detailed breakdowns of 'other purchase services' and 'IT charges' over $3.5 million.
  • Produce a clear summary of dedicated tax fund revenues and allocations (Food Tax, Quality of Life Tax, KGM).
  • Prepare a report on the status and allowable uses of all special revenue funds.
  • Develop enhanced communication materials explaining operating versus capital budgets and utility rate drivers.
• Future Work Sessions Scheduled:
  • City Manager's Proposed Budget Work Session: October 13, 2026.
  • KGM Pavement Management Program.
  • Compensation Plan and Pay Plan Authority.
  • Communication and Engagement Restructuring.
  • Department Cleanup Ordinance.
• Adoption Timeline: First reading and public hearing in October, with final adoption anticipated by November 17, 2026, and a statutory deadline of December 15, 2026.