Finance Committee Meeting: 2026 Finances Review - October 28, 2026

Note: The provided metadata lists the meeting date as October 28, 2026; however, the transcript indicates the meeting was actually held on November 2, 2026. This summary follows the metadata date for the title.

Lakewood City Council's Finance Committee met to review the city's 2026 finances through the third quarter, setting the stage for the upcoming 2027 budget hearings. Chair Kyle Baker presided; Councilperson Strebig was excused. The committee approved the prior meeting minutes and received a detailed financial analysis from Finance Director Mahoney and Assistant Director Eddie.

Consent Calendar

• Moved and seconded to excuse Councilperson Strebig's absence (she was unwell); approved by voice vote.
• Moved and seconded to approve the September 14, 2026 Finance Committee meeting minutes; approved by voice vote.

Discussion Items

• 2026 Third-Quarter Financial Review
  • General fund receipts were just over 75% of budget; expenditures were exactly 75% through September 30, 2026.
  • 2026 includes 27 biweekly pay periods (vs. 26 in a typical year); a reserve of about $1.5 million was budgeted for the extra payroll.
  • Property tax receipts were on target; an additional $500,000 came from new property improvements (building permits). The Lakewood Hospital redevelopment site is on the tax rolls but in a TIF; it was not the source of that increase.
  • Income tax receipts were about 2.4% ahead of last year; 2027 budget projects a conservative 2% increase.
  • Intergovernmental revenue (homestead/rollback) was only at 66% due to state payment delays; expected to catch up by year-end.
  • Hotel tax: the county collects 6.5% and allocates cities a share; Lakewood receives about $1,000–1,200 per month, plus a catch-up payment that brought the total to $35,000. Director Mahoney noted that if the city adopted its own bed tax, it would lose the county share; administrative costs likely outweigh the benefit.
  • Fund balance is expected to end 2026 at roughly the same level as December 2025.
• Debt and Capital Projects
  • Total city debt is $163 million; annual debt service is about $12.5 million, of which about $6.3 million is paid from non-sewer/water funds, with $8.9 million in revenue available for that portion.
  • The administration plans to refund some 2016 bonds, but interest rates are not favorable; they will wait until January and will update Moody's. Moody's rating is unchanged.
  • The 2027 debt issuance will only cover already-committed projects: Bunts Road, Beck's Pool, CSO 059, and completion of Winterhurst.
  • Clifton, West Clifton, and Detroit road projects are not in the 2027 budget; they are staged for later years.
  • The city is using cash balances and reducing debt where possible; the cannabis fund holds about $1.2 million, not yet spent, and may support ADA transition plan improvements and other allowed uses.
• Budget Process and Council Concerns
  • Councilmembers Bullock and Kepple pressed for specific capital project details (e.g., ADA, active transportation, climate) and emphasized the need for budget amendments before year-end if the pending citizen initiative on safe routes/intersections advances.
  • Chair Baker said budget hearings would follow the November 16 submission of the 2027 budget; the committee will work with the finance director on scheduling.

Key Outcomes

• Approved the September 14, 2026 committee minutes (voice vote).
• Excused Councilperson Strebig (voice vote).
• Completed the 2026 third-quarter financial review; no formal action was taken on the financial report.
• The Finance Committee will receive the full 2027 budget on November 16 and schedule hearings in the coming weeks.