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Centennial finance director outlines 2026 budget framework, reserves and major revenue lines
Summary
Finance Director Jeff Cadiz presented a 2026 budget overview, describing legal constraints (TABOR and the home rule charter), the city's fund structure, a 25% general fund reserve policy and key revenue figures including $52 million in projected sales tax and a 5.076 mill levy generating about $15.95 million.
Jeff Cadiz, Centennial's finance director, presented a one-hour overview of the city's budget framework and 2026 estimates, telling the council that "the budget really is the city's financial roadmap for the year." Cadiz said the presentation was meant to establish a shared baseline so council members can make policy decisions later in the process.
Cadiz framed the budget inside the city's legal obligations and local policy. He cited the Colorado constitution and the Taxpayer Bill of Rights (TABOR) as constraints on tax increases and debt and described the home rule charter's calendar: the city manager must present a proposed budget prior to Sept. 20, workshops are typically held in September and October, and council adopts the budget in November. Cadiz also said Centennial has a council-adopted fund-balance policy that requires a 25% operating reserve in the general fund, well above TABOR's 3% emergency reserve.
On revenue, Cadiz said Centennial relies chiefly on sales tax and property tax. "Sales tax revenues account for about 60% of the general fund revenues," he said, and reported the city's sales tax rate is 2.5% (a combined retail rate of 6.75% including state and special districts). Cadiz told the council staff projects approximately $52,000,000 in sales tax revenue in the 2026 general fund. Using a recent example tax bill, he explained where property tax dollars are distributed and reported the Centennial mill levy of 5.076 mills, which he said will generate about $15,950,000 for the city in 2026.
Cadiz reviewed funds and transfers: the municipal code requires a general fund and other specialized funds (street fund, capital improvement, Open Space and Conservation Trust), and some funds carry legally restricted revenues that cannot be moved to general operations. He said the 2026 budget shows combined revenues across five funds of roughly $125.2 million and expenditures of $156.3 million; the higher expenditures reflect the planned use of previously saved, committed fund balances. For the general fund specifically he listed a beginning balance of $40.7 million, 2026 revenues of $87.1 million, expenditures of $74.0 million, transfers out of $18.0 million and an ending balance near $35.8 million. Cadiz added the general fund will transfer $15,000,000 to the street fund and $3,000,000 to the capital improvement fund in 2026 to support projects without dedicated capital revenues.
Cadiz said council will receive a printed budget book within weeks and staff will return with a longer-term financial plan in February and routine workshops later in the year. He emphasized the presentation did not contain policy decisions: "There are no decisions that are made during a work session," he reminded the room.
The city manager and finance department told council members staff are available for follow-up and individual briefings as members review the full budget book.
