Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Finance topic
No spam. Unsubscribe anytime.
Thornton staff warn of possible $1.5M–$3.6M revenue shortfall; identify $1.7M one-time savings
Summary
City finance staff told the Thornton City Council they are tracking a potential 2025 revenue shortfall and outlined short-term and longer-term savings strategies, including about $1.7 million in one-time capital savings and a plan for further operational reviews if revenue weakness continues.
Thornton City staff told the City Council on a regular meeting that the city is facing revenue uncertainty for 2025 and presented two modeled scenarios that could produce a $1.5 million to $3.6 million shortfall.
The presentation said the shortfall stems from a mix of slowing development, reduced property tax assessments, and softer sales and use taxes. "We are proactively monitoring, and adjusting our forecast accordingly," a staff presenter said.
The city compared two scenarios based on year-to-date results through April. Staff said a modest negative trend would produce roughly a $1.5 million shortfall this year; a more conservative continuation of recent monthly weakness could widen the gap to about $3.6 million. Staff emphasized that the numbers remain preliminary and that work with the county is underway to refine property tax estimates.
To blunt the near-term gap, staff identified approximately $1.7 million in one-time savings from capital projects that have closed under budget or are near completion. "We have found, $1,700,000 of savings from closed or anticipated savings from projects," one presenter said, describing these as one-time funds that can be used to cover 2025 timing issues but not to sustain ongoing expenditures.
City staff described a three-part approach: use identified one-time capital savings for the immediate shortfall; continue searching for additional one-time savings in capital and operating accounts during the midterm; and, if revenue weakness persists, develop prioritized ongoing expenditure reductions for the 2026 budget process. Staff said they are already reviewing vacant positions and asking departments to identify work that could be deferred.
No formal council action was requested at the meeting; staff said they will continue to monitor revenues and provide an updated financial briefing in the second quarter (scheduled for Aug. 26). Council members asked when staff would bring options that could affect services or personnel; staff said they will return to council before taking actions that would change services or affect employees.
The presentation noted various risk factors including federal grant uncertainty, tariffs, and higher interest rates that can slow development and reduce taxable values on new homes. Staff also flagged recent property tax legislation and a downturn in recent tax assessments as items they are working with the county to quantify.
Staff committed to additional touchpoints with council as new information becomes available and to include potential ongoing savings options in the 2026 budget discussion if the shortfall persists.
