Northglenn reviews recommended 2026 capital improvement program; sanitation rate increase proposed

Deputy City Manager Jason Loveland presented the City of Northglenn’s recommended 2026 Capital Improvement Program to the City Council on Aug. 18, 2025, outlining projected revenues, carryovers and proposed projects across five funds and flagging a proposed sanitation service rate increase that staff plans to bring back for formal action this fall.

Loveland told the council, “So our plan tonight is to go over, the 5 remaining funds, that really kinda make up our capital improvement program,” and walked members through the conservation trust, capital projects, water, wastewater and stormwater funds. He said the presentation would also return later in the meeting to the sanitation rate discussion and invited council questions throughout the briefing.

Why it matters: the recommended CIP groups citywide capital spending and identifies both routine maintenance needs and multi‑year, high-cost projects that will affect future operating budgets and potential borrowing. The wastewater program in particular includes plans that staff say could require large revenue bond issuances, and the sanitation fund faces pressure from rising vehicle and operating costs.

Major budget totals and funding sources - Capital projects fund: staff showed estimated 2026 revenue of about $13.7 million (including grants) and noted that, excluding grant awards, the fund’s sustainable annual investment would be closer to $8.8 million. - Water fund: beginning fund balance shown at about $34.8 million and annual revenues in the $12–13 million range. Loveland said some sales/use tax transfers to the general fund reduced amounts previously available to the water fund. - Wastewater fund: staff flagged planned revenue bond issuances of $23 million in 2026 and $33 million in 2028 (a combined $56 million) to support a large multi‑year wastewater treatment plant upgrade. Loveland said the city intends to pursue bond market work in late 2026 after additional project scoping and cost updates. - Stormwater fund: staff reported a 2026 beginning balance near $1.8 million and said the current residential charge ($2 per unit) and commercial rate ($20 per acre) have not changed in many years. - Conservation trust fund: beginning fund balance cited at about $1.78 million and projected 2026 revenue of roughly $476,000 (about $402,000 in lottery proceeds), with programmed projects such as trail and playground replacements.

Selected projects and program details - Parks and open space: Amanda Peterson, Director of Parks, Recreation, Culture, said the conservation trust projects for 2026 include citywide greenway trail slab replacement (repairing raised, cracked concrete for safety) and playground equipment replacement at Village Greens 1 and Village Greens 2, with staff planning to seek Adams County Open Space grants to leverage local dollars. Peterson said the Centennial Park redesign is a 2026 design goal tied to a community anniversary and will address irrigation and a sculpture garden.

- Capital projects: Loveland highlighted revenue dedicated to roads (4 of 11.597 property tax mills directed to reconstruction) and the half‑percent sales and use tax that is restricted to capital projects. Projects listed include residential street overlay (annual program), traffic signal work (engineering RFP in 2026, construction 2027), concrete ADA review and a contract combining 2025/2026 work, Community Center Drive structural bridge repair (coordination with CDOT), M&O campus repairs (multi‑year, engineering in 2026) and Civic Campus master‑plan/site work tied to Old City Hall demolition and a Brownfields grant.

- Water system: Sarah Borgers, Director of Public Works, described a range of water capital items including the account that holds water‑supply improvements (the ASR project is budgeted in that account), ongoing waterline rehabilitation to address aging mains and repeated breaks, the city’s contribution to the Stanley Lake pipeline operated jointly with Thornton, a chemical building upgrade (safety and containment) for which contract amendment and additional funds will be sought, automated filter backwash upgrades, Section 36 pipeline work in partnership with Todd Creek, a plant power capacity analysis and cathodic protection work on ground tanks. Borgers noted the water system’s age and the difficulty of inspecting pressurized mains.

- Wastewater system and major upgrade planning: Loveland and Borgers emphasized the need for a large wastewater treatment plant modernization driven by regulatory pressure (notably nitrogen limits), operational efficiency and odor control. Borgers said engineering design is budgeted at $5.6 million in 2026 to begin that multi‑year upgrade, which could reduce reliance on lagoons and add new treatment components. Staff stressed the need for further scoping and updated cost estimates before bonds are issued.

- Stormwater: Borgers said the recently completed stormwater assessment will be used to prioritize repairs and maintenance (cleaning pipelines, channels and debris removal). Two Mile High Flood District partnership projects were characterized as expansion/improvement projects rather than repairs to existing structures. Staff said a broader financing and prioritization conversation will likely come in 2026 and could include fee changes.

Sanitation fund and proposed rate change Staff described the sanitation fund as primarily operational and noted mounting costs tied to vehicle replacement and landfill/recycling expenses. Loveland said the total estimated sanitation revenue is about $2.1 million against estimated expenditures of about $2.9 million, with an ending reserve near $700,000 under current assumptions.

Loveland and staff explained that heavy increases in truck prices have stressed the fund: a replacement packer truck that cost about $288,000 in 2017 is now estimated near $410,000. To preserve reserves and maintain a one‑truck‑per‑year replacement rhythm, staff proposed increasing the monthly sanitation charge from $16 to $20. Loveland said, “Really going to the $20 amount provides some stability,” and showed modeling where the $20 rate holds 2026–2030 reserves near $1 million versus reserves falling toward depletion if no increase is made.

Council members asked for comparisons and impact context. Council member Goff asked about recycling costs and whether recycling is a major driver; staff said recycling affects the fund via commodity prices and contamination but is not the principal driver of the shortfall. Council member Kondo pressed on asset‑management options and inspection tools for water and sewer mains; staff described limited, experimental options for pipe condition assessment and said sewer systems can be inspected with cameras while pressurized water mains cannot.

Next steps and schedule Loveland said staff will return to council with a formal resolution and additional analysis. The timetable presented in the meeting: a proposed budget presentation on Sept. 8, a public hearing on the budget Sept. 22, and final budget adoption scheduled for Oct. 13. For the sanitation rate change, staff expects to bring (1) a resolution directing a rate change and (2) a subsequent public hearing on rates as part of the fall process.

Votes at a glance - Motion to adjourn to executive session pursuant to Section 4.5(a) of the City of Northglenn home rule charter for personnel matters regarding the city manager’s performance evaluation — motion passed unanimously (7–0 for members present).