Loading...
HomeMy WebLinkAbout12aii CB60 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 Budget) DESCRIPTION: 2026 Budget Ordinances First Reading (2 of 5) RECOMMENDATION: Staff recommends City Council approve the second of five Ordinances for the City of Englewood 2026 budget. 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 614 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 615 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 # 60 - COE 2026 Budget 2026 Consolidated Budget Summary Sources and Uses by Fund Page 616 of 1257 Page 1 of 6 ORDINANCE NO. ____ COUNCIL BILL NO. 60 SERIES OF 2025 INTRODUCED BY COUNCIL MEMBER _______________ A BILL FOR AN ORDINANCE ADOPTING THE BUDGET FOR THE CITY OF ENGLEWOOD, COLORADO, FOR FISCAL YEAR 2026. WHEREAS, pursuant to the provisions of Part I, Article X, of the Charter of the City of Englewood, Colorado, a budget for fiscal year 2026 was duly submitted by the City Manager to the City Council; and WHEREAS, the City Council of the City of Englewood studied and discussed the 2026 fiscal year budget at a budget workshop held on August 11, 2025; and WHEREAS, a public hearing on said budget was held by the City Council at the meeting of the City Council on September 15, 2025, in conformance with § 87 of the Home Rule Charter of the City of Englewood; and WHEREAS, notice of the time and place of said hearing was published within seven days after submission of the budget in the manner provided in the Charter for the publication of an ordinance, in conformance with § 87 of the Home Rule Charter of the City of Englewood. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, THAT: Section 1. That the budget of the City of Englewood, Colorado, for fiscal year 2026, as submitted by the City Manager, duly considered by the City Council and with changes made by the City Manager to reflect Council discussion after public hearing, is adopted as the budget for the City of Englewood for the fiscal year 2026. Section 2. GENERAL FUND 2026 BUDGET Fund Balance, January 1, 2026 $ 14,617,851 REVENUES Sales/Use Tax $ 43,003,933 Property and Specific Ownership Tax $ 7,050,000 Franchise/Occupation/Hotel Tax $ 4,334,900 Licenses/Permits $ 2,147,601 Intergovernmental Revenue $ 1,671,983 Charges for Services $ 6,750,149 Cultural & Recreation $ 3,336,549 Fines & Forfeitures $ 621,300 Page 617 of 1257 Page 2 of 6 Interest $ 655,000 Contribution from Component Units $ 2,150,000 Other $ 1,198,275 Total Revenues $ 72,919,690 Other Financing Sources $ 239,000 Total Sources of Funds $ 73,158,690 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 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 Fund Balance, December 31, 2026 $ 13,036,629 Section 3. SPECIAL REVENUE FUNDS Conservation Trust Fund Fund Balance, January 1, 2026 $ 494,408 Revenues $ 420,000 Expenditures $ 652,603 Fund Balance, December 31, 2026 $ 261,805 Donors Fund Fund Balance, January 1, 2026 $ 1,078,172 Revenues $ 94,100 Expenditures $ 395,500 Page 618 of 1257 Page 3 of 6 Transfer Out $ 694,000 Fund Balance, December 31, 2026 $ 82,772 Parks and Recreation Trust Fund Fund Balance, January 1, 2026 $ 141,636 Revenues $ 2,500 Expenditures $ 15,000 Fund Balance, December 31, 2026 $ 129,136 Malley Center Trust Fund Fund Balance, January 1, 2026 $ 459,683 Revenues $ 3,000 Expenditures $ 35,000 Fund Balance, December 31, 2026 $ 427,683 Open Space Fund Fund Balance, January 1, 2026 $ 604,758 Revenues $ 1,600,000 Expenditures $ 1,307,325 Fund Balance, December 31, 2026 $ 897,433 Section 4. DEBT SERVICE FUNDS Police HQ General Obligation Bonds Fund Balance, January 1, 2026 $ 181,954 Revenues $ 2,238,250 Expenditures $ 2,223,300 Fund Balance, December 31, 2026 $ 196,904 Parks and Recreation General Obligation Bonds Fund Balance, January 1, 2026 $ 2,180,000 Revenues $ 2,040,000 Expenditures $ 3,150,300 Fund Balance, December 31, 2026 $ 1,069,700 Section 5. CAPITAL PROJECT FUNDS Public Improvement Fund Fund Balance, January 1, 2026 $ 3,081,050 Revenues $ 5,331,000 Page 619 of 1257 Page 4 of 6 Expenditures $ 5,991,622 Transfer In $ 600,000 Transfer Out $ 120,000 Fund Balance, December 31, 2026 $ 2,900,428 Capital Projects Fund Fund Balance, January 1, 2026 $ 2,480,976 Revenues $ 165,000 Expenditures $ 1,705,616 Transfer In $ - Fund Balance, December 31, 2026 $ 940,360 Police HQ Construction Fund Fund Balance, January 1, 2026 $ 730,911 Revenues $ 50,000 Expenditures $ 570,100 Fund Balance, December 31, 2026 $ 210,811 Parks and Recreation Construction Fund Police HQ Construction Fund $ 50,000 Revenues $ 50,000 Expenditures $ 1,000 Fund Balance, December 31, 2026 $ 99,000 Section 6. ENTERPRISE FUNDS Water Fund Fund Balance, January 1, 2026 $ 30,542,987 Revenues $ 35,938,312 Expenditures $ 53,969,012 Fund Balance, December 31, 2026 $ 12,512,287 Sewer Fund Fund Balance, January 1, 2026 $ 12,946,171 Revenues $ 37,188,127 Expenditures $ 28,123,236 Fund Balance, December 31, 2026 $ 22,011,062 Storm Drainage Fund Fund Balance, January 1, 2026 $ 9,670,317 Revenues $ 3,974,600 Page 620 of 1257 Page 5 of 6 Expenditures $ 5,083,985 Transfer Out $ 25,000 Fund Balance, December 31, 2026 $ 8,535,932 Golf Course Fund Fund Balance, January 1, 2026 $ 901,748 Revenues $ 4,102,359 Expenditures $ 3,541,005 Fund Balance, December 31, 2026 $ 1,463,102 Concrete Utility Fund Fund Balance, January 1, 2026 $ 1,866,103 Revenues $ 1,153,600 Expenditures $ 1,214,651 Fund Balance, December 31, 2026 $ 1,805,052 Housing Rehabilitation Fund Fund Balance, January 1, 2026 $ 1,320,215 Revenues $ 138,625 Expenditures $ 457,719 Fund Balance, December 31, 2026 $ 1,001,121 Section 7. INTERNAL SERVICE FUNDS Servicenter Fund Fund Balance, January 1, 2026 $ 1,316,004 Revenues $ 2,802,905 Expenditures $ 2,767,715 Fund Balance, December 31, 2026 $ 1,351,194 Capital Equipment Replacement Fund Fund Balance, January 1, 2026 $ 3,098,296 Revenues $ 832,924 Expenditures $ 2,050,000 Fund Balance, December 31, 2026 $ 1,881,220 Risk Management Fund Fund Balance, January 1, 2026 $ 388,685 Revenues $ 2,929,972 Expenditures $ 2,962,484 Fund Balance, December 31, 2026 $ 356,173 Page 621 of 1257 Page 6 of 6 Employee Benefits Fund Fund Balance, January 1, 2026 $ 677,857 Revenues $ 7,108,981 Expenditures $ 7,323,220 Fund Balance, December 31, 2026 $ 463,618 Section 8. That the said budget shall be a public record in the office of the City Clerk and shall be open to public inspection. Sufficient copies thereof shall be made available for the use of the City Council and the public, the number of copies to be determined by the City Manager. Page 622 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 2 3 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 2 4 o f 1 2 5 7