Study Session

CFO Christa Morrison and budget officer Charlotte Husky presented the 2027 recommended budget. The total budget is $552.6 million, the operating budget is $417.2 million (a 2.35% increase), and the capital budget is $135.4 million. Staff identified a $6.3 million gap in the general fund and asked departments for 4% savings.

“The 2027 rep recommended budget is 552.6 million across all funds.”

Staff described the Fund Our Future community engagement process, which reached over 500 people this spring on trade-offs among 25 city services. Top community priorities were wildfire resilience, city facilities maintenance, public safety, and affordable housing. Council member Winer praised the budget document and the realignment work; council member Speer said last-minute changes should follow existing policy, not bypass it.

Council member Kaplan asked about reserve funding for facility replacement. Deputy facilities director Michelle Crane explained the city sets aside 2% of a building's replacement value each year to fund equipment replacement, not full rebuilds, and this practice started in 2021.

Mayor Pro Tem Tara Winer asked about funding sources to keep Spruce Pool open, since one-time funding only covers 2027 operations. Parks director Ally Rhodess said the cost of running pools has outpaced revenue and this is a 2027 work plan issue for the department.

Council member Adams asked why the community connector outreach component was not funded this year, given low racial and ethnic diversity on city staff. Staff said the residents portion of the program was funded but the outreach piece was not, and offered to follow up.

Council member Rob Kaplan said the city has been too reactive on Alpine Balsam and asked what changes would prevent this on future major capital projects. City Manager Nuria Rivera-Vandermark and Deputy City Manager Chris Massch said the project has stayed within every budget council approved, and pointed to a new project page and story map covering the 11-year history. Council member Marquis asked when council should hear about cost overruns; staff said this happens through the annual budget and twice-yearly supplemental appropriations.

“No one should learn something critical about any major infrastructure project from anyone other than us first.”

Council member Matt Benjamin proposed roughly doubling the wildfire budget: about $2 million more from climate initiatives funding, $4 to 5 million more for OSMP fuels work, and $2 to 3 million from new grants. Council members Kaplan and Schuchard supported looking for more wildfire money; Mayor Brockett said the cut to climate funding felt too large and wanted more time before committing.

“We're out of step. We're looking at creating a budget for next year but only after we do that are we talking about potentially a major enhancement to the very wildfire budget.”

Council member Taishya Adams said the budget lacks funding for wildfire evacuation, recovery, and possible relocation costs, citing the Marshall Fire five-year mark. She also asked how rising energy and fuel costs are factored into capital project estimates.

Council member Nicole Speer asked what happens to 15 priority buildings if the November facilities bond fails. Staff said the city would keep buildings operating but could not fully repair or modernize them, and some services or building areas could be limited or closed.

Mayor Pro Tem Winer asked why photo radar enforcement is being eliminated. Staff and Police Chief Steve Redford said the program's costs outpaced its revenue and the department will use officers on patrol instead, prioritizing complaint-driven neighborhoods.

The budget adds $552,000 ongoing for three new police lieutenant positions to supervise each watch, supporting the reimagined policing plan, plus funding to replace firefighter breathing apparatus and continue firefighter health screening.

Mayor Pro Tem Winer asked how the city could add an external performance auditor, citing community requests. Staff said the city has an internal auditor who can perform financial and performance audits, and referred to a confidential memo council already received on the topic.

Mayor Pro Tem Winer asked whether the new $36,000 in snow and ice technology funding will help seniors on troublesome streets west of Broadway. Transportation director Ble Bailey said no streets are being added to the program this year, pending more data from a mild prior winter.

Council member Speer asked if the budget includes support for the San Lazaro community, which sits outside city jurisdiction. City Manager Rivera-Vandermark said talks with San Lazaro and the county are ongoing and any funding decision would likely come later, outside this budget cycle.