Agenda Date: 10/20/2026
Subject:
Title
2027 Proposed Budget Follow-Up / Summary
Body
|
From: |
James L. Becklenberg, City Manager |
|
Prepared by: |
Kevin Orton, Budget Manager |
|
Presentations: |
Kevin Orton, Budget Manager |
PURPOSE:
Provide a summary of the 2027 Proposed Budget as reviewed by City Council during the budget meeting held on October 9, 2026, discussion on follow-up items, and overview of next steps in the 2027 budget process
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
The 2027 Proposed Budget was presented to City Council during the City Council Budget Workshop on October 9, 2026 at the South Platte Renew Administration Building. This presentation will provide a summary of topics and policy issues that City Council agreed to at that session, and present options to adjust the City Council General Fund budget as requested. This presentation will also provide an opportunity of City Council to ask follow-up questions or request additional information prior to budget adoption.
BACKGROUND:
The Charter of the City of Littleton Article X, Part I, Sec. 70-72 requires the City Manager to present a Proposed Operating and Capital Budget not later than September 15th for the subsequent fiscal year.
The 2026 Proposed Budget was presented to City Council on October 9, 2026 at the City Council Budget Workshop held at South Platte Renew. The 2027 fiscal year is from January 1, 2027 through December 31, 2027 and the total city budget, inclusive of interfund transfers, is $159.0 million and of that amount the total General Fund 2027 proposed budget is $65.1 million. The 2027 Proposed Budget includes funding for 349 full-time positions and 44 part time positions.
The budget is balanced, maintains healthy reserves, and preserves existing service levels while adding resources in alignment with City Council policy direction and the Horizon 2027 strategic plan’s strategic outcomes: Vibrant Community with Rich Culture, Sustainable Community with Natural Beauty, Robust and Resilient Economy, Safe Community, and High-Quality Governance.
The following table details the total 2027 proposed budget, inclusive of interfund transfers:
|
City Funds |
2027 Proposed Budget |
|
General Fund |
$65,094,769 |
|
Special Revenue Funds |
17,533,701 |
|
Capital Funds |
27,041,967 |
|
Sewer and Storm Utility Enterprise Funds |
31,894,897 |
|
Internal Service Funds |
17,480,728 |
|
Total 2027 Proposed Budget |
$159,046,062 |
|
Full Time Positions |
349 |
|
Part Time Positions |
44 |
General Fund
The General Fund is the primary fund used for daily operations such as police, street maintenance and other general governmental services. These revenues are mainly derived from sales and use taxes, property taxes, fees for services, and intergovernmental agreements.
General Fund Revenue
Revenues are largely comprised of local taxes including retail sales, general use, property, and motor vehicle taxes. Additional funding sources are fines and forfeitures, franchise fees, licenses and permits, miscellaneous revenues and interfund transfers. The total estimated 2027 general fund revenue is $65,344,248.
The following table summarizes 2027 General Fund revenue.
|
Revenue Category |
2027 Proposed Budget |
|
Sales and Use Taxes |
$50,508,938 |
|
Property Taxes |
2,555,220 |
|
Specific Ownership Taxes |
130,314 |
|
Cigarette Taxes |
104,740 |
|
Franchise Fees |
2,432,172 |
|
Charges for Services |
3,802,548 |
|
Licenses and Permits |
2,837,502 |
|
Fines and Forfeitures |
234,814 |
|
Intergovernmental |
611,068 |
|
Miscellaneous Revenue |
1,681,258 |
|
Investment Income |
445,674 |
|
Total 2027 Revenue |
$65,344,248 |
General Fund Expenditures
Expenditures in the General Fund include costs related to services typically associated with local governments such as police, communications, community development, economic development, library and museum, city council, city attorney, city manager, human resources, information technology, finance, procurement, public works, and city clerk.
2026 to 2027 Budget
Sales and use tax revenue has continued to lag amid broader economic uncertainty, and the city has used reserves for the past two years to bridge the gap while waiting on delayed revenue from Mineral Place development. Even with those revenues included, the five-year plan projected a structural deficit of $2.2 million in 2027 and annual reserve use of up to $3.5 million, which would deplete General Fund reserves by 2031.
To close that gap without layoffs or significant service cuts, every department identified 15 percent reductions in non-personnel spending, drawn mostly from historically unspent budget and operational efficiencies. Realigning budgets to actual activity reduced the General Fund by about $1.5 million, and shifting eligible expenses such as large software contracts and Special Enforcement Team costs to restricted funds moved another $1.6 million. These changes balance the 2027 budget, keep reserves between 18 and 25 percent through 2029, and still fund priorities like $1.9 million for employee compensation and healthcare to retain staff and sustain current service levels.
General Fund Policy Questions
During the October 9th Budget Workshop, City Council approved $212,197 of policy questions and confirmed reducing one city-produced large-scale event to focus on maintaining a strong calendar of community events while reducing the demand on city resources, strengthening Visit Littleton's marketing efforts, and shifting the City's role from producing events to strategically attracting and supporting events ($106,469). Additional details about each policy questions is included in the attached Proposed Budget Document.
|
|
Amount |
City Council Support |
|
Budget Additions |
|
Littleton Leadership Academy Funding |
$25,000 |
Yes |
|
Municipal Court Level of Service Assessment |
$75,000 |
Yes |
|
Strategic Plan Update |
$75,000 |
No |
|
Additional Planner in Community Development |
$142,197 |
Yes |
|
Budget Reductions |
|
Open Rewards One-Year Funding Reduction |
($30,000) |
Yes |
|
Community Grant Program Reduction |
($34,710) |
No |
|
Reduce One Major Event (already included in proposed budget as a General Fund efficiency) |
($106,469) |
Yes |
|
Omnibus Transportation Service Sunset |
($175,000) |
No |
2027 Revenues vs Expenditures
Overall, after looking at estimated General Fund Revenue less the 2027 General Fund budget, the total net balance of revenues vs expenditures transfers is a favorable balance of $249,479.
|
2026 Adopted Budget |
$66.1 million |
|
Historical Expense Alignment |
$(429,000) |
|
General Fund Efficiencies |
$(1.1 million) |
|
Shift Expenses to Restricted Funds |
$(1.6 million) |
|
Retain Staff and Sustain Current Service Levels |
$1.9 million |
|
Policy Questions |
$200,000 |
|
2027 Proposed Budget |
$65.1 Million |
|
2027 Projected Revenue |
$65.3 Million |
|
Net Balance (Revenues vs Expenditures) |
$250,000 |
City Council Budget
During the budget workshop, City Council reviewed the proposed 2027 City Council general fund budget that included a reduction of $16,000 for travel, business meetings, and council outreach. Of this reduction, $11,823 was for travel and business meetings.
City Council requested additional options to reduce the travel budget more than what was included in the proposed budget. During this presentation, three additional options will be presented as well as historic travel expense information.
|
Option |
2026 Budget |
Adj. |
2027 Proposed |
Per Elected Official |
|
Proposed Budget Adjustment |
$43,500 |
(11,823) |
$31,677 |
$4,525 |
|
Option A (50% reduction) |
$43,500 |
(21,750) |
$21,750 |
$3,107 |
|
Option B (Align with historical average) |
$43,500 |
(18,050) |
$25,450 |
$3,635 |
|
Option C (3 in-state conferences per year. No out of state conferences) |
$43,500 |
(26,700) |
$16,800 |
$2,400 |
Other Funds
During the 2027 City Council Budget Workshop, City Council also reviewed the city’s restricted funds. The table below details the 2027 Proposed Budget for all other funds, inclusive of interfund transfers.
|
Restricted Fund |
2027 Proposed Budget |
|
Affordable Housing Fund |
$500,000 |
|
Conservation Trust Fund |
375,352 |
|
Consolidated Special Revenue Fund |
759,368 |
|
Grants Fund |
7,536,710 |
|
Open Space Fund |
2,945,099 |
|
Impact Fees Fund |
4,543,640 |
|
Lodgers Tax Fund |
873,532 |
|
Capital Projects Fund |
10,442,495 |
|
Capital Improvement Sales Tax Fund |
16,599,472 |
|
Sewer Utility Enterprise Fund |
27,126,710 |
|
Storm Drainage Utility Enterprise Fund |
4,768,187 |
|
Employee Insurance Fund |
11,102,702 |
|
Fleet Maintenance Fund |
3,283,026 |
|
Information Technology/Equipment Fund |
1,620,000 |
|
Property & Liability Fund |
1,475,000 |
|
Total 2027 Restricted Funds |
$93,951,293 |
Capital Improvement Plan
The Capital Improvement Plan 2026-2031 (CIP) is used as a planning tool by providing a long-range look at meeting the infrastructure needs of the community and allowing flexibility to meet council priorities, while taking into consideration funding availability and partnership opportunities such as the millions of dollars leveraged through grant awards that are directly related to a project included in the CIP Plan.
The city continues to invest in a project management system to manage project planning, implementation, and alignment with available staff capacity. The CIP is also undergoing a revision to align with these improvements.
The CIP includes capital projects funded by the Capital Projects Fund, Capital Improvement Sales Tax Fund, Impact Fees, Grants, Open Space, Storm and Sewer Funds. The first year of the capital improvement plan is the 2027 budget. The total 2027 budget is $70.3 million appropriated throughout the funding sources. The 2026-2031 total funding plan is $229.28 million.
2026 Estimate
As part of the 2027 proposed budget, the 2026 estimates are provided to develop the estimated available funds for the 2027 budget. The following funds will need to revise their 2026 budgets since the estimate is higher than appropriations. All estimates were included in the 2027 proposed budget document.
|
Fund |
2026 Budget |
Adj. |
2026 Revised Budget |
|
Open Space |
$3,759,743 |
$305,000 |
$4,064,743 |
|
Capital Improvement Sales Tax |
$29,873,230 |
$31,686,894 |
$61,560,124 |
|
Geneva Village |
$61,055 |
$11,303 |
$72,358 |
|
Employee Insurance |
$10,053,589 |
$313,216 |
$10,366,805 |
Prior Actions or Discussions
• A preliminary 2027 budget planning forecast was presented at the June 16, 2026 City Council Meeting
• The 2027 Proposed Budget was discussed at the October 9, 2026 budget workshop.
FISCAL IMPACTS:
This study session will review the 2027 Proposed budget as presented to City Council on October 9th with approved policy questions included in the proposed budget. The total 2027 budget inclusive of transfers is $159 million.
STAFF RECOMMENDATION:
Staff recommends council proceed with adopting the necessary budget ordinances as presented during the October 20th briefing at the scheduled first and second readings (November 3, 2026 and November 17, 2026 respectively). The following ordinances will be presented:
• 2027 Budget Ordinances appropriating necessary funds and setting necessary budgets
o Includes adjusting 2026 budget with additional appropriations as included in the 2027 budget
• Setting the property tax levy of 2.0 mills for Littleton Municipal Government
• Setting the property tax levy of 3.0 mills for the Littleton Downtown Development Authority
ALTERNATIVES:
City Council may choose to adjust the proposed budget or reschedule 1st and 2nd reading. However, the City Charter requires the budget be adopted 30 days prior to the start of the fiscal year (November 30th). And the State of Colorado requires the budget adopted, and mill levy be certified, by December 15th. If the budget is not adopted by certification deadline, then 90 percent of the amounts appropriated in the current year for operations and maintenance expenses shall be deemed re-appropriated for the purposes specified in such last appropriation (CRS 29-1-108(2) and (3)).