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Loveland council directs city manager to develop plan to end city-run shelters; seeks spending data and ordinance options
Summary
Council directed staff to return by Feb. 25, 2025 with a "fiscally responsible" plan to eventually terminate city-operated shelters, inventory homelessness spending, compare municipal sheltering statewide and bring a draft ordinance to align local code with the cited Grants Pass ruling; debate included cost, timeline and risks to permitting.
Councilor Samson introduced a motion asking the city manager to develop a fiscally responsible plan for the City of Loveland to "eventually terminate city-managed sheltering services," specifically naming the South Railroad Facility (SRF) and the Loveland Resource Center. The motion asked staff to return by Feb. 25, 2025 with a comprehensive accounting of city homelessness expenditures (including support to outside agencies), data on municipally owned-and-operated shelters in Colorado, and a draft ordinance amending Municipal Code Chapter 9.47 to consider the effect of the cited "Grama Pass versus Johnson" decision on enforcement.
Supporters said the motion was meant to produce data and options, not to immediately stop shelter services. Councilor McFall said the city was spending "$71,000 a bed" at SRF and urged an exit strategy because the SRF building permit expires April 12, 2025. Acting City Manager Rod Wenzing told council staff would have to plan beyond April 2025 and noted Homeward Alliance is the lead agency already working on a regional plan.
Opponents and some residents warned that a near-term retreat from shelter operations could harm vulnerable residents and argued the city should work with lead agencies and community partners. Councilor Black flagged the need for a council policy statement on homelessness and noted Homeward Alliance's ongoing regional planning work.
Council voted to approve the motion directing the city manager and city attorney to report back; the motion passed by roll call. The staff assignment includes compiling spending details, evaluating other municipal sheltering models, producing options for an exit strategy and drafting code language consistent with relevant court precedent if council so chooses.
What happens next: Acting City Manager Rod Wenzing and the city attorney will return with a detailed plan and materials for council review by Feb. 25, 2025. Pending items include permit expirations at SRF and coordination with Homeward Alliance and the Loveland Housing Authority.
