Commerce City managers outline $2.9 million projected deficit, propose $3.4 million in decision packages

Chris Johnson, presenting the city finance update, told the Commerce City Council study session that the city’s preliminary budget shows an unassigned general fund balance of about $45.1 million and a remaining restricted 2k fund balance of about $9.1 million. “When we take out our transfers that we are obligated to do, we can show that $2.88 million deficit,” Johnson said.

Johnson said departments submitted up to five "decision package" proposals this year and staff approved packages totaling roughly $3,435,000 that would be added to the 2026 general fund expenditure total. The approved packages include a marketing specialist in the city manager’s office, an accountant in finance, additional legal counsel, phased IT infrastructure modernization, additional parks and recreation positions, and public safety technology investments.

City Manager Rogers and finance staff emphasized that the city is balancing short‑term requests with longer‑term planning. Rogers noted the upcoming expiration of ARPA dollars and the need to model long‑term debt such as contemplated certificate of participation (COP) issues, and described a long‑term financial plan effort that staff said will include an Excel model for scenario analysis.

Staff described several measures to limit the budget impact: reassigning unused vacancies rather than immediately budgeting to fill them; moving underutilized internal account balances; seeking grants for programs such as micro‑transit; and deferring some hires. Johnson also gave a short review of enterprise operations, noting that the city golf course and restaurant have run a combined operating shortfall in recent years and that staff plan to bring fee and rate adjustments to a future study session.

Councilmembers asked for more detail on specific buckets, including a $4 million administration allocation in the city manager’s office, and requested follow‑up material on revenue assumptions such as assessed valuation changes and highway user tax receipts. Staff said they will return with revised numbers at a September 8 budget workshop and a final budget workshop on September 25, followed by the public hearing period.

The city manager and finance staff framed the decision packages as a prioritized list for council direction, not final appropriations; any additional appropriations would come before council in ordinance form later in the budget process.

Ending: Staff said they will present a draft long‑term financial plan and the model to council later this year and return with revised budget numbers at the September workshops.