Erie presents proposed 2026 budget with $4.2M in reductions; council to review second reading Nov. 18

The Erie Town Council opened the first public hearing on the town's proposed 2026 budget on Oct. 28. Finance Director Sarah Hancock and fiscal and budget manager Cassie Bethune presented the package, described the budget process and listed reductions and reprioritizations that staff say balance the general fund through 2030.

"We did do 3 rounds of reductions through this whole process of totaling about $4,200,000 across all funds," Bethune told the council during her presentation. Staff said revenue projections remain consistent with the study session done the prior week but noted one slide in the presentation contained an incorrect ending fund balance that will be corrected and reissued.

Staff outlined priority areas guiding the budget: managing growth, promoting a prosperous local economy, providing amenities, and ensuring a safe, reliable water supply. Major project highlights included continuing design for a second water treatment plant and water storage tanks, expanding the Erie Community Center (design funded but some phases deferred), Coal Creek trail Reach 2 funding support (seeking Colorado Parks & Wildlife grant matching funds), and public safety building expansion funded in part with certificates of participation (COPs).

On staffing, Bethune listed four proposed general‑fund positions (net two added after removing an affordable housing manager that was not funded for 2026). Hancock said the affordable housing FTE was "frozen" rather than eliminated and could be reactivated via a supplemental appropriation should council direct future funding.

Budget reductions staff presented included operating cuts across many departments (examples cited: planning and development incentives reduced by roughly $2,000,000; economic development incentives cut by $400,000; consulting services reductions in multiple departments). Staff also flagged several capital projects that were delayed or unfunded for 2026 including certain energy performance projects, phase 2 of Morgan Hill/Compass Park, ECC equipment and some facility projects; staff reported the capital improvements fund still includes significant utility spending, primarily for water treatment.

Hancock said the draft budget anticipates a $10,000,000 general fund transfer, with approximately $7,000,000 tied to mine mitigation proceeds associated with planned COP financing. She said the COPs are being forecasted conservatively in the budget and that staff hope interest rates will decline but included a small inflator to cover potential changes.

There was no public testimony on the budget at the hearing and council asked staff several technical questions, including the mechanics of reactivating the frozen affordable housing manager position (staff said it requires a supplemental appropriation), the drivers of high capital numbers in the utilities fund (staff said water and water treatment projects), and clarification on the mill levy certification and timeline (staff said final county values arrive in November and deadline for certification is mid‑December). Staff scheduled a second public hearing on the budget and URA for Nov. 18 and said they will bring corrected slides and any needed adjustments at second reading.

What's next: The council will hold the second public hearing Nov. 18; the budget will return for a supplemental action in December for mill levy certification and other required steps.