Aurora council votes to continue 1% grocery tax as finance officials warn of $29.7 million 2026 shortfall

Aurora — The Aurora City Council voted 7–5 on Aug. 26 to continue a 1% municipal grocery retailer’s occupation and service occupation tax after City finance officials told the council the general fund faces a projected shortfall for fiscal 2026.

CFO Stacy Peterson told the council the city’s estimated general fund revenue for 2026 is $231,500,000 and estimated expenditures are $261,200,000, “which gives us a deficit of approximately $29,700,000,” not including department decision packages that total about $10,300,000 if approved.

That shortfall, Peterson said, does not reflect the potential loss of the grocery tax; staff estimate continued collection of the 1% grocery tax would produce about $4,500,000 annually. Shannon Cameron, the city’s chief of staff and corporation counsel, told the council the state will continue to collect the tax on the city’s behalf only if the city notifies the state by Oct. 1, 2025. If Aurora opts out after that date, staff said the city would need to adopt and administer its own tax-collection system.

Nut graf: The vote was framed by council members as a trade-off between immediate revenue stability and the burdens of an extra cost on grocery purchases for residents. Supporters argued the tax continuation is needed now to prevent deeper cuts and potential pressure on property taxes and…