Aurora leaders cite audit shortfalls and cutbacks as council weighs future support for Paramount

City finance leaders on Aug. 12 told the Aurora City Council that the city faces tighter finances after reviewing the 2024 annual audit and related reports, and council members and public commenters debated proposed cuts to funding for the Aurora Civic Center Authority, which operates the Paramount Theater.

The audit presentation by Stacy Peterson, chief financial officer and city treasurer, flagged that the city received $35,200,000 in American Rescue Plan Act (ARPA) funds in 2021''2 and that most ARPA money was spent on ongoing operations; Peterson said the funds needed to be obligated by 2024 and spent by 2025. She told the council that expenditures for governmental activities rose by $25,900,000 (about 8.9 percent) between 2023 and 2024, and that long-term debt and general obligation bonds increased, with 2024 general obligation bonds totaling $205,200,000 and total general-obligation-related debt shown at roughly $327,000,000 as of 2025.

The audit also showed declines in several revenue categories in 2024: gaming receipts fell about 12.4 percent, food and beverage taxes dipped slightly, and hotel/motel taxes decreased about half a percent. Peterson said some tax increment financing (TIF) funds had negative balances because of accounting timing and expected to return to positive once debt obligations are repaid.

Why it matters: Council members said the audit compels a re-evaluation of what the city can sustain going forward. The mayor and Peterson warned that the city must reconcile projected revenues with rising debt and operating costs before committing recurring subsidies that could become unsustainable.

Council debate and decisions Mayor John Lash and Peterson described prior ARPA allocations that supported downtown venues, including an $11,500,000 allotment to assist the Paramount after COVID and what Peterson characterized as an additional $13,800,000 for other theater-related projects and parking, plus a separate $10,000,000 ARPA grant that arrived under the Save Our Stages program. Lash told the council he and staff will continue private-sector fundraising work for the Aurora Civic Center Authority (ACCA) and planned to provide a financial picture update on Aug. 26 to give members "a clear picture of where we stand." Peterson said she will present that update as part of the continued budget process.

Council members expressed frustration about the size and pace of the proposed reductions to ACCA support for 2026 that were communicated earlier in the budgeting process. Alderman Franklin said the proposed 65 percent reduction in a projected $7 million allocation for 2026 felt "harsh" to the downtown arts community and warned of economic and emotional harm to businesses that rely on theater patrons. Alderman Smith and others echoed concerns that fewer shows would reduce downtown foot traffic and that cuts could produce lower future revenues. Alderman Bugg and others noted that the projected allocations were not yet budgeted and said the city must balance many competing demands as federal fund formulas and census-driven revenue estimates change.

Public comment: calls for accountability and support Several members of the public who identified themselves as former or current Paramount staff and long-time patrons addressed the council during public comment. Andrea Pickcher, who said she worked for the Paramount/ACCA on and off from 2012 to 2022, urged the council to continue supporting the arts but to "hold [Paramount] current leadership accountable for both financial mismanagement and for creating a toxic inhospitable work environment." Jason Pickter, who identified himself as the theater's former technical director from 2011 to 2022, described what he called a pattern of expansion without sustainable operational planning and urged the city to demand "leadership that is transparent, fiscally responsible, and willing to listen to the people who make the work possible." Other public commenters, including longtime residents and donors, urged the council to preserve the Paramount because they said it drives downtown economic activity.

Actions taken The council voted 12-0 to accept the 2024 annual financial reports for the city, TIF funds and single-audit reports; the motion to accept the reports was made by Alderman Smith and seconded by Alderman Franco. Mayor Lash and members directed staff to provide a more detailed financial update on Aug. 26 and to continue to pursue private fundraising for ACCA; the Aug. 26 update was presented as direction to staff rather than a formal policy vote.

What remains unresolved Council members and the mayor said they will seek additional data and alternatives before finalizing the 2026 budget. Specifics of any line-item subsidy to ACCA for future years remain undecided pending the Aug. 26 financial update and further fundraising results.

End note: The debate combined fiscal audit findings with community concern about cultural and economic impacts. Council members asked for more detailed departmental and personnel vacancy information to inform budget decisions and signaled that further discussion and potential adjustments would follow the Aug. 26 budget update.