Erie proposes structurally balanced 2026 budget with $10 million transfer to capital and public hearing Nov. 18

Erie officials presented a proposed 2026 budget that they say balances the general fund through 2030 while accommodating large capital projects and debt service.

Sarah Hancock, who led the presentation, told the council the town maintained revenue assumptions signed off in July and is using a conservative 4.1% overall revenue growth estimate. "This will be a long night," Hancock said as she outlined the process: departments submitted personnel and capital requests simultaneously in May, the executive budget team (EBT) reviewed multiple iterations and departments provided three rounds of reductions.

Cassie, the town’s fiscal and budget manager, walked council through fund balances and explained an accounting decision that shows a $10,000,000 transfer to the Capital Improvement Fund (CIF). Cassie said $7,000,000 of that is plugged as proceeds from Certificates of Participation (COPs) to fund mine mitigation; the remaining $3,000,000 is slated for other CIF projects. "That one is plugged and that is why it is $10,000,000," Cassie said.

Staff highlighted $4.4 million in total operating reductions across all funds ($3.3M in the general fund and $2.6M reprioritized in CIF) and said those savings, together with O&M cuts (more than 10% in some areas), offset salary and benefits increases. Departments proposed 16 new positions; staff recommended nine, four of which would be in the general fund. Several positions are self-funded from user-rate or special funds.

On revenues, presentation slides and staff discussion flagged permitting and use-tax receipts as areas of uncertainty. Staff noted the budget assumes a modest decline in building permit revenue compared with recent actuals—budgeted permit revenue for 2025 was roughly $5.5 million versus $8.1 million actually collected in 2024.

Officials described debt planning for multiyear projects and said they are working with financial advisers to time bond and COP issuances. The draft budget includes an anticipated COPs debt payment estimate of roughly $3.3 million in 2026, plus a 5% contingency to allow for timing/interest-rate variation.

Key next steps: staff scheduled a public hearing for the proposed budget and Urban Renewal Area (URA) adoption on Nov. 18 and a final supplemental and mill levy certification on Dec. 9. "Public hearing November 18 to adopt both the URA and the town budget," Hancock said.

The town is presenting this as a cautious plan intended to preserve liquidity, maintain a 25% minimum fund-balance policy (including TABOR/stabilization), and keep the CIF viable through the near term while staff pursues alternate funding and grant opportunities.