Loading...
HomeMy WebLinkAbout12ai CB58 COUNCIL COMMUNICATION TO: Mayor and Council FROM: Kevin Engels DEPARTMENT: Finance DATE: October 6, 2025 SUBJECT: CB 58 - 2026 Budget Ordinances First Reading (City of Englewood 2025 Mill Levies Collected in 2026) DESCRIPTION: 2026 Budget Ordinances First Reading (1 of 5) RECOMMENDATION: Staff recommends City Council approve the first of five Ordinances for the City of Englewood 2025 Property Tax Mill Levies Collected in 2026 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 606 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 PROPERTY TAX MILL LEVIES Following are the 2025 Property Tax Mill Levies to be collected in 2026: Estimate Amount Mill Levy and Description $ 6,500,000 5.880 Mill Levy - General Fund Operations $ 2,000,000 1.817 Mill Levy - Debt Service Parks and Recreation Improvement Projects General Obligation Bonds $ 2,235,000 2.039 Mill Levy - Debt Service Police Headquarter Building General Obligation Bonds $10,735,000 9.736 Mill Levy - Total 2025 Property Tax Mill Levies Collected in 2026 Page 607 of 1257 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 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 #58 - COE 2026 Budget 2026 Consolidated Budget Summary Sources and Uses by Fund City of Englewood, Colorado Property Tax Calculation for $100K and $500K Property Valuations Page 608 of 1257 1 ORDINANCE NO. ____ COUNCIL BILL NO. 58 SERIES OF 2025 INTRODUCED BY COUNCIL MEMBER _______________ A BILL FOR AN ORDINANCE FIXING THE TAX LEVY IN MILLS UPON EACH DOLLAR OF THE ASSESSED VALUATION OF ALL TAXABLE PROPERTY WITHIN THE CITY OF ENGLEWOOD, COLORADO. WHEREAS, it is the duty of the City Council of the City of Englewood, Colorado, under the Englewood Home Rule Charter and Colorado Revised Statutes, to make the annual property levy for City purposes; and WHEREAS, the City Council has duly considered the estimated valuation of all the taxable property within the City and the needs of the City and of each of said levies and has determined that the levies as hereinafter set forth, are proper and wise; and WHEREAS, the following levies are permitted under Article X, Section 20 of the Colorado Constitution without a vote by the citizens. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, THAT: Section 1. That there be and hereby is levied for the year of 2025, due and payable as required by statute in the year 2026, a tax of 5.880 mills on the dollar for the General Fund of the City of Englewood, Colorado; 2.039 mills on the dollar for the Englewood Police Headquarters General Obligation Bond Debt Service Fund of the City of Englewood, Colorado; and 1.817 mills on the dollar for the Englewood Parks and Recreation Improvement Projects General Obligation Bond Debt Service Fund of the City of Englewood, Colorado. That the levy hereinabove set forth shall be levied upon each dollar of the assessed valuation of all taxable property within the corporate limits of the City of Englewood, Colorado, and the said levy shall be certified by law. Section 2. General Provisions Applicable to this Ordinance The following general provisions and findings are applicable to the interpretation and application of this Ordinance: A. Severability. If any clause, sentence, paragraph, or part of this Ordinance or the application thereof to any person or circumstances shall for any reason be adjudged by a court of competent jurisdiction invalid, such judgment shall not affect, impair or invalidate the remainder of this Ordinance or its application to other persons or circumstances. B. Safety Clauses. The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Englewood, that it Page 609 of 1257 2 is promulgated for the health, safety, and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. This Safety Clause is not intended to affect a Citizen right to challenge this Ordinance through referendum pursuant to City of Englewood Charter 47. C. Publication. Publication of this Ordinance may be in the City’s official newspaper, the City’s official website, or both. Publication shall be effective upon the first publication by either authorized method. D. Actions Authorized to Effectuate this Ordinance. The Mayor is hereby authorized and directed to execute all documents necessary to effectuate the approval authorized by this Ordinance, and the City Clerk is hereby authorized and directed to attest to such execution by the Mayor where necessary. In the absence of the Mayor, the Mayor Pro Tem is hereby authorized to execute the above-referenced documents. The execution of any documents by said officials shall be conclusive evidence of the approval by the City of such documents in accordance with the terms thereof and this Ordinance. City staff is further authorized to take additional actions as may be necessary to implement the provisions of this Ordinance. Page 610 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 1 1 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 1 2 o f 1 2 5 7 City of Englewood, Colorado - Property Tax Calculation Example RESIDENTIAL NON-RESIDENTIAL 2025 Mill Levy 2025 Mill Levy 2025 Mill Levy 2025 Mill Levy Payable in 2026 Payable in 2026 Payable in 2026 Payable in 2026 Real Property Market Value A 500,000$ 100,000$ 500,000$ 100,000$ Assessment Ratio B 6.250%6.250%27.000%27.000% Assessed Value C = A * B 31,250$ 6,250$ 135,000$ 27,000$ General Operations Mill Levy D 5.880 5.880 5.880 5.880 Mill Levy Per Dollar E 0.001$ 0.001$ 0.001$ 0.001$ Taxes Paid for General Fund Operations F = C * D * E 183.75$ 36.75$ 793.80$ 158.76$ Real Property Market Value G 500,000$ 100,000$ 500,000$ 100,000$ Assessment Ratio H 6.250%6.250%27.000%27.000% Assessed Value I = G * H 31,250$ 6,250$ 135,000$ 27,000$ Debt Service Mill Levy General Obligation Bonds-Police Headquarters (2.039 mills)J1 2.039 2.039 2.039 2.039 General Obligation Bonds-Parks & Rec Improvement Projects (1.817 mills)J2 1.817 1.817 1.817 1.817 J 3.856 3.856 #3.856 3.856 Mill Levy Per Dollar K 0.001$ 0.001$ 0.001$ 0.001$ Taxes Paid for General Obligation Bonds Debt Service L = I * J * K 120.50$ 24.10$ 520.56$ 104.11$ Real Property Market Value M 500,000$ 100,000$ 500,000$ 100,000$ Assessment Ratio N 6.250%6.250%27.000%27.000% Assessed Value O = M * N 31,250$ 6,250$ 135,000$ 27,000$ Combined General Operations and Debt Service Mill Levies P 9.736 9.736 9.736 9.736 Mill Levy Per Dollar Q 0.001$ 0.001$ 0.001$ 0.001$ Total Property Taxes Paid to City of Englewood R = O * P * Q 304.25$ 60.85$ 1,314.36$ 262.87$ Pa g e 6 1 3 o f 1 2 5 7