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HomeMy WebLinkAbout12aiii CB59 COUNCIL COMMUNICATION TO: Mayor and Council FROM: Kevin Engels DEPARTMENT: Finance DATE: October 6, 2025 SUBJECT: 2026 Budget Ordinances First Reading (City of Englewood 2026 Appropriation) DESCRIPTION: 2026 Budget Ordinances First Reading (3 of 5) RECOMMENDATION: Staff recommends City Council approve the third of five Ordinances for the City of Englewood 2026 Budget Appropriation PREVIOUS COUNCIL ACTION:  January 25, 2025 - City Council Vision and Goal Setting Workshop  April 7, 2025 - Preliminary Budget Assumptions discussed for the 2026-2030 (5-Year) Period  April 14, 2025 - Review Preliminary 2026-2030 Capital Projects List in a Joint Meeting with City Council, Planning and Zoning Commission and Budget Advisory Committee  June 23, 2025 - Staff discussed with Council the preliminary 2026 operational and capital budget priorities and initiatives.  July 28, 2025 - Staff Mid-Year Review of the 2025 Capital Items of the Capital Improvement Plan (CIP).  August 11, 2025 - Staff discussed with Council the draft proposed 2026 operational and capital budget.  September 15, 2025 - 2026 Budget Public Hearing - Staff presented changes to the proposed 2026 operational and capital budget since the August 11, 2025 Study Session with City Council. City Council supported the $200K funding request increase to the Public Improvement Fund Neighborhood Traffic Calming and Pedestrian Safety Program changing the funding estimate from $250K to $450K.  September 22, 2025 - Staff brought forward the list of capital items City Council had mentioned during the Budget Public Hearing that could be funded with the $400K made available with the Donors Fund contribution of $600K for the Little Dry Creek Plaza Improvement Project. o City Council supported the following additional projects for inclusion in the 2026 capital budget: Sidewalk Gap Construction Program ($200K), Walk and Wheel Implementation Program ($140K), Neighborhood Traffic Calming and Pedestrian Safety Improvements Program ($50K) and Emerald Ash Borer Grant Program ($10K). o Additionally, the replacement of the Englewood and Malley Senior Recreation Doors will also be included and funded at $60K each in the Capital Projects Fund Page 625 of 1257 and the Conservation Trust Fund, respectively. In the meantime, City Council has directed staff to request that the Malley Senior Recreation Door Replacement be funded through the Malley Senior Recreation Trust Fund with a 2026 budget supplemental. SUMMARY: The Charter of the City of Englewood requires the City Council to adopt the next year's Budget and Appropriation Ordinances no later than thirty days prior to the first day of the next fiscal year to ensure there is legal authority to expend funds. (Article X, Part I, Section 90) The City of Englewood 2026 Budget was developed over the past several months with significant collaboration between the City Council and City staff. This year's budget process leveraged our collective capacity to deliver quality city services, enhanced public safety, and reinvigorated our existing city infrastructure. Despite the fiscal challenges, the budget maintains our commitments through 2026. Continued long-term planning and prioritization with the City Council and the community is necessary to ensure sustainability into the future. ANALYSIS: The City of Englewood Budget is balanced, as required by City Charter (Article X. Part 1. Budget) and Financial Policies Resolution No. 27 Series 2022. This means that across all funds for 2026, the city's estimated Revenues in addition to the beginning Fund Balance or Funds Available meet or exceed the city's estimated Expenditures. Governmental Fund Types: Fund Balance* + Revenues >= Expenditures Proprietary Fund Types: Funds Available** + Revenues >= Expenditures The estimated ending Governmental Funds Balance for 2026 is $20.3 million. The estimated ending Proprietary Funds Available Balances for 2026 totals $51.4 million. The City's Funds are detailed in the attached 2026 Consolidated Budget Summary Sources and Uses by Fund. * Fund Balance = Assets less Liabilities ** Funds Available = Current Assets less Current Liabilities plus Principal portion of Debt Service COUNCIL ACTION REQUESTED: Staff supports the 2026 Budget and is looking forward to Council's direction in developing future budgets. FINANCIAL IMPLICATIONS: Please review the attached 2026 Consolidated Budget Summary Sources and Uses by Fund in addition to the budget documents using the following link: https://www.englewoodco.gov/government/city-departments/finance/budget-and-financial- reports/budget-reports. CONNECTION TO STRATEGIC PLAN: First reading of the 2026 budget ordinances supports the Strategic Plan Governance result/outcome  Governance - A city government that serves the community by being efficient, effective, accountable, and adaptable Page 626 of 1257 OUTREACH/COMMUNICATIONS: The 2026 Budget Process included citizen input during the capital projects budget preparation through the input of the following boards, commissions and committees: Planning and Zoning Commission, Englewood Transportation Advisory Committee, Parks and Recreation Commission, Library Board and Budget Advisory Committee. Additionally the annual 2026 Budget Public Hearing held on September 15, 2025 provided an opportunity for public comment regarding the operational and capital budgets. ATTACHMENTS: CB # 59 - COE 2026 Budget 2026 Consolidated Budget Summary Sources and Uses by Fund Page 627 of 1257 Page 1 of 4 ORDINANCE NO. ____ COUNCIL BILL NO. 59 SERIES OF 2025 INTRODUCED BY COUNCIL MEMBER _______________ A BILL FOR AN ORDINANCE APPROPRIATING MONIES FOR ALL MUNICIPAL PURPOSES IN THE CITY OF ENGLEWOOD, COLORADO, FOR FISCAL YEAR BEGINNING JANUARY 1, 2026, AND ENDING DECEMBER 31, 2026, CONSTITUTING WHAT IS TERMED THE ANNUAL APPROPRIATION BILL FOR FISCAL YEAR 2026. WHEREAS, a public hearing on the Proposed 2026 Budget was held September 15, 2025; and WHEREAS, the proposed operating budgets and Multiple Year Capital Plan for all City departments and funds were reviewed at a budget workshop held on August 11, 2025; and WHEREAS, the Charter of the City of Englewood requires the City Council to adopt bills for ordinances adopting the Budget and Appropriation Ordinance no later than thirty days prior to the first day of the next fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, THAT: Section 1. That there be and there hereby is appropriated from the revenue derived from taxation in the City of Englewood, Colorado, from collection of license fees and from all other sources of revenue including available fund balances during the year beginning January 1, 2026, and ending December 31, 2026, the amounts hereinafter set forth for the object and purpose specified and set opposite thereto, specifically as follows: GENERAL FUND EXPENDITURES Legislation $ 232,480 City Manager's Office $ 1,107,819 City Clerk's Office $ 899,992 City Attorney's Office $ 1,070,868 Municipal Court $ 1,550,025 Human Resources $ 951,658 Finance $ 2,477,826 Information Technology $ 5,662,379 Community Development $ 3,875,691 Public Works $ 14,691,316 Police $ 29,158,131 Parks, Recreation, Library and Golf $ 10,911,377 Communications $ 1,097,993 Page 628 of 1257 Page 2 of 4 Interdepartmental Programs $ 532,357 Debt Service $ 120,000 Component Units $ - Total Expenditures $ 74,339,912 Other Financing Uses $ 400,000 Total Uses of Funds $ 74,739,912 PARKS AND RECREATION IMPROVEMENT PROJECTS CONSTRUCTION FUND Total Parks and Recreation Improvement Projects Construction Fund $ 1,000 GENERAL OBLIGATION BOND FUND-PARKS AND RECREATION IMPROVEMENT PROJECTS Total General Obligation Bond Fund $ 3,150,300 GENERAL OBLIGATION BOND FUND-POLICE HEADQUARTERS Total General Obligation Bond Fund $ 2,223,300 PUBLIC IMPROVEMENT FUND Total Public Improvement Fund $ 6,111,622 CAPITAL PROJECTS FUND Total Capital Projects Fund $ 1,705,616 POLICE HQ CONSTRUCTION FUND Total Police HQ Construction Fund $ 570,100 WATER FUND Total Water Fund $ 53,969,012 SEWER FUND Total Sewer Fund $ 28,123,236 STORM DRAINAGE FUND Total Storm Drainage Fund $ 5,108,985 Page 629 of 1257 Page 3 of 4 GOLF COURSE FUND Total Golf Course Fund $ 3,541,005 CONCRETE UTILITY FUND Total concrete Utility Fund $ 1,214,651 HOUSING REHABILITATION FUND Total Housing Rehabilitation Fund $ 457,719 SERVICENTER FUND Total Servicenter Fund $ 2,767,715 CAPITAL EQUIPMENT REPLACEMENT FUND Total Capital Equipment Replacement Fund $ 2,050,000 RISK MANAGEMENT FUND Total Risk Management Fund $ 2,962,484 EMPLOYEE BENEFITS FUND Total Employee Benefits Fund $ 7,323,220 CONSERVATION TRUST FUND Total Conservation Trust Fund $ 652,603 DONORS FUND Total Donors Fund $ 1,089,500 PARKS AND RECREATION TRUST FUND Total Parks and Recreation Trust Fund $ 15,000 MALLEY CENTER TRUST FUND Total Malley Center Trust Fund $ 35,000 Page 630 of 1257 Page 4 of 4 OPEN SPACE FUND Total Open Space Fund $ 1,307,325 Section 2. The foregoing appropriations shall be considered to be appropriations to groups within a program or department within the fund indicated but shall not be construed to be appropriated to line items within any groups, even though such line items may be set forth as the adopted budget for the fiscal year 2026. Section 3. All monies in the hands of the Director of Finance, or to come into the Director's hands for the fiscal year 2025, may be applied on the outstanding claims now due or to become due in the said fiscal year of 2026. Section 4. All unappropriated monies that may come into the hands of the Director of Finance during the year 2026, may be so distributed among the respective funds herein as the City Council may deem best under such control as is provided by law. Section 5. During or at the close of the fiscal year of 2025, any surplus money in any of the respective funds, after all claims for 2025 against the same have been paid, may be distributed to any other fund or funds at the discretion of the City Council. Page 631 of 1257 2026 Consolidated Budget Summary Sources and Uses By Fund Governmental Fund Types General Fund 14,617,851 73,158,690 74,739,912 13,036,629 13,036,629 — Special Revenue Funds Conservation Trust Fund 494,408 420,000 652,603 261,805 — 261,805 Donors Fund 1,078,172 94,100 1,089,500 82,772 — 82,772 Malley Center Trust Fund 459,683 3,000 35,000 427,683 — 427,683 Parks & Recreation Trust Fund 141,636 2,500 15,000 129,136 — 129,136 Open Space Fund 604,758 1,600,000 1,307,325 897,433 — 897,433 Total Special Revenue Funds 2,778,657 2,119,600 3,099,428 1,798,829 — 1,798,829 Debt Service Fund General Obligation Bond Fund 2,180,000 2,040,000 3,150,300 1,069,700 — 1,069,700 Police HQ GO Bond 181,954 2,238,250 2,223,300 196,904 — 196,904 Total Debt Service Fund 2,361,954 4,278,250 5,373,600 1,266,604 — 1,266,604 Capital Projects Funds Public Improvement Fund 3,081,050 5,931,000 6,111,622 2,900,428 — 2,900,428 Capital Projects Fund 2,480,976 165,000 1,705,616 940,360 — 940,360 Police HQ Construction Fund 730,911 50,000 570,100 210,811 — 210,811 Total Capital Projects Funds 6,342,937 6,196,000 8,388,338 4,150,599 — 4,150,599 Total Governmental Funds 26,101,399 85,752,540 91,601,278 20,252,661 13,036,629 7,216,032 Estimated Beginning Balance Sources of Funds Uses of Funds Estimated Ending Balance Reserves Estimated Unappropriated Balance Continues on Next Page City of Englewood, Colorado 1 BUDGET 2026 Pa g e 6 3 2 o f 1 2 5 7 2025 Consolidated Budget Summary Sources and Uses By Fund Continued from Previous Page Estimated Beginning Balance Sources of Funds Uses of Funds Estimated Ending Balance Reserves Estimated Unappropriated Balance Proprietary Fund Types Enterprise Funds Water Fund 30,542,987 35,938,312 53,969,012 12,512,287 — 12,512,287 Sewer Fund 12,946,172 37,188,127 28,123,237 22,011,062 — 22,011,062 Stormwater Drainage Fund 9,670,317 3,974,600 5,108,985 8,535,932 — 8,535,932 Golf Course Fund 901,747 4,102,359 3,541,004 1,463,102 — 1,463,102 Concrete Utility Fund 1,866,102 1,153,600 1,214,650 1,805,052 — 1,805,052 Housing Rehabilitation Fund 1,320,215 138,625 457,719 1,001,121 — 1,001,121 Total Enterprise Funds 57,247,540 82,495,623 92,414,607 47,328,556 — 47,328,556 Internal Service Funds ServiCenter Fund 1,316,004 2,802,905 2,767,715 1,351,194 — 1,351,194 Capital Equipment Replacement Fund 3,098,296 832,924 2,050,000 1,881,220 — 1,881,220 Risk Management Fund 388,685 2,929,972 2,962,484 356,173 — 356,173 Employee Benefits Fund 677,857 7,108,981 7,323,220 463,618 — 463,618 Total Internal Service Funds 5,480,842 13,674,782 15,103,419 4,052,205 — 4,052,205 Total Proprietary Funds 62,728,382 96,170,405 107,518,026 51,380,761 — 51,380,761 Total All Funds 88,829,781 181,922,945 199,119,304 71,633,422 13,036,629 58,596,793 City of Englewood, Colorado 2 BUDGET 2026 Pa g e 6 3 3 o f 1 2 5 7