Councilors and staff spent a lengthy portion of the meeting debating how to present and interpret 2024 budget and revenue numbers after a sales-tax change that reduced the city's revenue by about $10.4 million.

Mayor Jackie Marsh said portions of public discussion were confusing and asked staff to clarify whether monthly reports showed gross or net figures. Councilors pressed for clearer labeling in finance materials so residents and council can compare "apples to apples." "Identifying. So in every case when you have a number, is it gross or is it net? Because it makes a difference," the mayor said.

Finance staff and the city manager responded that monthly reports can and will be labeled clearly and that the technical answer to one council member's phrasing — whether the general fund was "up" in 2024 — is nuanced. Jim Lee, described by staff as the city's numbers expert, told council: "General fund revenues were slightly higher, less than 3% higher in 2024 than they were in 2023. That's after you had a $10,400,000 loss in your sales tax area from the impacts of 300." He added that higher expenses — including compensation adjustments — mean a small revenue increase does not equal fiscal sufficiency.

Council reaction was sharp. Several council members called characterizations that "the general fund was up" misleading because the city lost a major sales-tax source. "Loveland's reduced general fund is a result of 1 major decision ... the repeal of the sales tax, period," Councilor Mallow said. Councilor Samson said the loss is "a missing leg of the stool" even if staff found other revenue increases.

Why it matters: The $10.4 million sales-tax change was a central cause of budget adjustments and service reductions in 2024. Councilors said accurate public presentation of gross vs. net revenues and tax diversions (for example, TIF or urban renewal-related flows) is essential for public understanding as the city plans future budgets.

Next steps: The council asked staff to (1) label reports clearly to show gross vs. net measures and (2) return with materials that roll up diversions and other adjustments so council and the public can see what revenues are available for general-fund services.