Wellington advisory board reviews draft FY2026 budget; staff flag home rule, Main Street grant and water risks

The Wellington Town Finance Advisory Board spent its Oct. 27 meeting reviewing the draft fiscal year 2026 budget, with staff walking the advisory members through assumptions, major capital projects and adjustments that reduced the originally requested spending by roughly $700,000.

Nick Nudell, who led the presentation for the finance staff, said the draft is framed around the trustees' 2025–2029 strategic plan and the board—s budget priorities: economic development, emergency preparedness, home rule, affordable housing and alternative water solutions. "The big discussion tonight is gonna be the draft fiscal year 2026 budget for the town of Wellington," Nudell said.

Why it matters: the draft sets the town—s spending and reserve targets ahead of the Nov. 18 Board of Trustees adoption consideration. Staff said audited 2023 numbers were used to calculate beginning fund balances and that the town is projecting an improved starting position for 2026 compared with earlier expectations.

Main Street grant and capital work: staff told the advisory board the state awarded a $4,400,000 revitalizing Main Street grant to offset nearly $8,000,000 in Cleveland Corridor storm drainage and related improvements. The project is in design and staff said construction is expected to begin early next year.

Personnel and benefits: the draft includes a 3% cost-of-living adjustment and a merit pool for employees and reflects a 13% increase in benefits costs. Departments requested some personnel additions (parks and recreation had an approved position at an earlier work session), but staff explained a hiring freeze will hold funding for two vacant public-works administrative positions and delay certain studies (a community survey and a compensation study) to reduce 2026 outlays.

Home rule funding and timeline: staff said the draft includes $125,000 for home-rule related work and estimated an election could cost about $45,000 if conducted outside a coordinated county election. Trustee Ed Cannon, the trustees' liaison to the advisory board, outlined the two-stage home-rule process — electing a charter commission and then a voter ratification of the charter — and said home rule "can greatly enhance your ability to perform economic development." The advisory board discussed the need for voter education and potential polling or legal expenses to support the transition.

Public safety contract increases: advisory members discussed an increase in the Larimer County Sheriff—s Office (LCSO) contract. Nudell said the draft includes Wellington—s share of license-plate (Flock) camera costs and a small contribution (staff cited roughly $10,000–$15,000) to help offset a county mental-health response unit. With cost-of-living adjustments and those services, staff said the contract increase is about $132,000 year over year. The draft does not add a full-time additional deputy; the board discussed the possibility of a split-funded school resource officer (SRO) with the Poudre School District but noted PSD operates on a different fiscal calendar.

Water fund uncertainty and contract mechanics: advisory members pressed staff about the water fund presentation, which shows a higher fund balance driven in part by restricted impact and raw-water funds. Nudell explained roughly $13 million of the water fund balance is restricted for capital (impact fees and raw-water fees) and proposed separating restricted and operating balances for clarity. He described the town—s North Putter contract (referred to in discussion with various spellings in the transcript) and said the formula that sets annual water costs includes an interest-rate component that contributed to past spikes. Staff noted Wellington owns 75 shares that reduce the billed amount and said the town is negotiating contract terms; they also said lower interest assumptions are reducing budgeted water expense in the draft.

Revenue assumptions and development: staff said sales tax revenue was projected to rise about 5% over the current budget, driven in part by taxable deliveries and local distribution centers, and cited a 2018 market-leakage study estimating roughly $114 million of resident spending outside Wellington. Building permit revenue was scaled back: the draft assumes 38 residential permits in 2026 after 2025 is expected to end near 28 (the 2025 budget had forecast 108), reflecting available lots and development timelines.

Fund balance and reserves: using audited starting balances, staff said the town—s ending fund-balance projections meet reserve-policy requirements across funds and that, after the reductions and adjustments, the beginning 2026 fund position is stronger than previously estimated.

Next steps: the advisory board recorded a motion to accept the July 28 minutes by voice vote, discussed several clarifications for staff (including separating restricted water funds from operating funds in one-page summaries and grouping repeated account titles such as professional development), and indicated feedback would be forwarded to the Board of Trustees at its next meeting. Formal adoption of the FY2026 budget is scheduled for the trustees' Nov. 18 meeting.

Quotes from the meeting: "The big discussion tonight is gonna be the draft fiscal year 2026 budget for the town of Wellington," Nudell said in opening the agenda item. Trustee Ed Cannon said of home rule: "Home Rule can greatly enhance your ability to perform economic development." Nudell also summarized the fund-balance position: "We actually have started off 2026... about $11,000,000 higher than we originally last year at this time thought we'd be ending the year."

What the advisory board asked staff to clarify or change: members asked staff to (1) separate restricted water funds (impact fees/raw-water fees) from operating balances on summary pages, (2) consolidate repeated account lines (for example, professional development) to show totals, and (3) confirm line-item estimates tied to North Putter contract assumptions and any projected one-time or ongoing costs for public-safety additions. Staff said they would carry that feedback to the trustees at the next board meeting.

No formal budget adoption took place at this meeting; staff will present the revised draft to the Board of Trustees for adoption consideration Nov. 18.