Broomfield outlines 2026 budget plan, warns of $6–8 million property-tax shortfall and utility rate increases

City and County of Broomfield officials on a public budget update described a package of structural changes to the 2026 budget and warned that changes to property tax assessments and falling market values will reduce property-tax revenue by roughly $6 million to $8 million.

The presentation, led by City County Manager Jennifer Hoffman, economist Jeff Romine and Finance Director Graham Clark, explained why staff say the city and county must shift from a growth-era budgeting approach to one that prioritizes asset preservation, debt management and conservative revenue assumptions. Hoffman opened the presentation by calling it “our economic and fiscal update of our 2026 budget highlights.”

The short-term finance picture: why it matters

Officials said two state-level changes — a drop in assessed values in parts of Broomfield and a legislative reduction in the residential assessment rate — combine with slower sales-tax growth to create a multi-million-dollar gap. Jeff Romine summarized the broader economic backdrop, saying the U.S. and local data indicate “we're moving into and are in a period of stagflation,” meaning slower growth alongside rising inflation and upward pressure on unemployment. Romine and staff said those national and state-level shifts, together with changing consumer behavior and development timing, have direct implications for Broomfield’s projected revenues.

What staff are proposing and why

Finance Director Graham Clark said the 2026 budget development process has been reworked to emphasize data-driven decisions, historical spending analysis and a line-by-line review of contracts and nonpersonnel spending. Clark said staff’s aim was “to intentionally not affect the community's current levels of service” while absorbing forecasted revenue declines. He listed several structural actions already incorporated into the 2025 revised and 2026 budgets: pausing vehicle replacements for two years, reducing travel and training, a rigorous review of vacant positions and using technology, including AI, to improve efficiency.

Enterprise funds and proposed rate changes

Staff described utility (enterprise) finances separately from the general fund. Clark said staff previously budgeted and implemented a 15% utility-rate increase in 2025 and are proposing further changes for 2026. For water specifically, staff cited a planned second-year rate adjustment that they quantified as roughly $16.89 per month for the average single-family home (based on 9,000 gallons) and noted the multi-year rate plan remains under review. When asked whether the 2026 increase affected the fixed base fee or the usage tiers, Clark said the increase includes “both the base fee and the usage fee” and that last year’s approach increased the base fee to reduce revenue volatility.

Capital projects, bonds and reserves

Clark said the city and county plan to issue three bonds in early 2026: (1) a general-fund bond to fund police facilities and the first phase of a court remodel; (2) bonds for two new water tanks in the water fund; and (3) bonds to fund phase 1 of a wastewater treatment expansion. Staff expect the combined effect of those issuances to push the jurisdiction’s debt-service ratio from about 4.2% to just above 5%. Clark said Broomfield has one of Colorado’s stronger credit profiles and that the city has been defeasing some debt while maintaining policies intended to preserve credit quality.

Long-range financial planning and land use

Romine and staff described an updated long-range financial plan that will be refreshed more frequently than in the past. Staff said the model now incorporates redevelopment and reinvestment in older commercial areas — for example, demolition and repurposing in the Flatirons Marketplace area and conversion of a former Sandoz pharmaceutical campus — and will be updated quarterly with land-use data. Using the current model, staff estimate roughly 55% of Broomfield’s revenue is commercial and 45% residential, while about 75% of operating expenses are attributable to residential-serving services (parks, recreation, library, public safety). Staff provided an illustrative “typical home” calculation showing total annual cost per household (including CIP) of about $6,100, with attributable revenue at about $3,500 and a net gap of roughly $2,500 for that typical household.

Other policy items and programs

Staff recommended keeping the utility-rate assistance fund (URAF) but narrowing eligibility from 100% AMI to 60% AMI, saying most applicants this year fell below the 60% AMI threshold. Clark also described progress on an enterprise asset-management program with AECOM and a planned ERP (financial and HR) system implementation beginning in late 2025; staff said the ERP work is intended to reduce reliance on disparate spreadsheets and improve transparency and reporting.

Public comment and Q&A highlights

Dan McCauley, who identified himself as leader of Flatirons Habitat for Humanity, asked where the city and county planned to help local nonprofits facing higher demand for food, housing and mental-health services. Hoffman replied that trade-offs will be necessary because of a finite pool of funds and that local governments will likely need to address gaps if federal or state support declines. In a later question-and-answer session, residents and reporters asked for details about the distribution of the $16.89 monthly water-bill increase, whether future year increases were expected, and how Broomfield’s water rates compare with neighboring communities. Staff said the five-year enterprise plan anticipates smaller, ongoing increases after the near-term adjustments and that, historically, Broomfield’s rates had been lower than many neighbors but required catch-up to fund deferred maintenance.

Next steps

Clark said the proposed 2026 budget document will be released to council and the public in early September, with department presentations at study sessions on Sept. 18 and Sept. 25. The council is scheduled for first and second readings on Oct. 14 and Oct. 28. Staff said the long-range financial-plan update will be completed in the first quarter of 2026 and that a public update from Broomfield Town Square developers is expected Sept. 23.

Ending

Officials emphasized that the 2026 budget year is intended as an execution year for policies that staff and council have been preparing for several years and that 2027 will present harder trade-offs if external revenue pressures continue. As Finance Director Graham Clark said, the budget team’s goal is to preserve core services while addressing deferred infrastructure needs and maintaining a conservative revenue outlook.