Broomfield forecasts $6M drop in property tax revenue for 2026 budget

During the City Council Study Session on May 8, 2025, significant discussions centered around the city's financial outlook, particularly concerning property taxes and building permits, which are crucial for Broomfield residents.

City officials reported a projected reduction of approximately $6 million in property tax revenue for 2026, a shift from previous estimates. This decrease is attributed to changes in state legislation that lowered assessment values and adjustments made following a court appeal by Lumen, a local business. The new assessment rate for residential properties will drop to 6.25%, down from around 6.68%, which is expected to impact homeowners and renters alike, as property taxes are often passed through in rental agreements.

The council emphasized that while the current property tax situation appears stable, the anticipated reduction signals potential budgetary challenges ahead. City Manager Hoffman noted that the property tax bills for 2025, which reflect valuations from 2024, will be collected as usual, but the upcoming year’s budget will need to account for this significant drop in revenue.

In addition to property taxes, the council discussed the building market, forecasting a slow building season for 2025. However, there is optimism for a slight recovery in the following year, driven by expected interest rate cuts. The city anticipates that several major projects will soon move forward, which could stabilize the use tax revenue.

Overall, the discussions highlighted the delicate balance the city must maintain in managing its finances while addressing the needs of its residents. As the council prepares for the 2026 budget process, they will need to navigate these financial challenges carefully to ensure continued support for community services and infrastructure.