Commerce council adopts FY2026 budget and raises property tax rate to $0.8306 per $100

The Commerce City Council on Sept. 16 approved a $16,224,760.56 operating budget for fiscal 2026 and adopted a property tax rate of $0.8306 per $100 of assessed valuation, a 3.7% effective increase from the prior year. The council approved the budget and tax-rate ordinance after a public hearing and roll-call votes. City Manager Lisenby presented the budget and explained how the rate was calculated under state formulas that produce a “no new revenue” rate and a voter-approval rate.

Why it matters: The tax-rate decision will raise an additional $196,545 in total property tax levy for fiscal 2026, city staff said, including $111,538 from new property added to the tax roll and roughly $85,007 from existing properties. The council’s action funds new public safety vehicles, a fire engine, radio upgrades, downtown improvements and utility system work that officials said were priorities.

City Manager Lisenby said the proposed tax rate reflected state-prescribed calculations and the city’s revenue requirements. “The proposed tax rate is 0.8306,” Lisenby told the council during the presentation, explaining that the no-new-revenue rate provided by the appraisal district rose because the city’s net taxable value was lower than last year after removing state-owned property from the roll. Lisenby also framed the budget with the council’s vision: “The City Of Commerce will be a vibrant, self sustaining community,” he said, describing the council’s long-term goal of reducing the city’s dependence on university-generated activity.

Details of the adopted budget include $8,572,000 in general-fund expenditures and $8,602,000 in budgeted revenue, with 55% of the general fund dedicated to public safety. The presentation broke down proposed recurring annual costs for items added in the FY26 budget: 10 new police patrol vehicles ($80,363 annual cost), a new fire engine ($66,353), a public-safety radio system replacement ($70,123) and expanded maintenance at local ball fields and a recreation center partnership (combined roughly $85,250). The city manager said these items drove part of the revenue need.

During the public hearing, one audience member asked how the homestead exemption affects school taxes; the city manager responded that school tax calculations are handled separately by the appraisal district and school authorities. The council then voted in roll call: Councilman Henry, Councilman Mueller, Mayor Riehl, Councilman Thompson and Councilman Ayers voted “Aye” and the motion carried.

What’s next: The council also adopted a transparency ordinance ratifying that the FY26 budget requires increased property tax revenue compared with FY25, as required by state law. City staff said the tax-rate adoption and budget will allow immediate work on capital priorities and increased operating services. The council did not set a future hearing; implementation begins with the new fiscal year October 1.