Erie council approves supplemental budget after finance director outlines $39.8 million reduction

Sarah Hancock, the town's director of finance, told the Erie Town Council on April 28 that the spring supplemental appropriations package would reduce the town's overall budget by roughly $39,763,944, a change she said was driven primarily by deappropriating funds originally set aside for the water treatment plant.

Hancock opened the public hearing on Resolution 2026-260 by describing the package's structure and the principal drivers of the change. "This is the first time I've ever brought a supplemental change request summary with a negative number," she said, and explained that most of the large reduction represented cash being returned to the water fund and some planned bond funding being removed. She also identified new operating requests, including two attorney positions to right-size in-house counsel, and pointed to several projects funded or offset by grants such as Erie B FlexRide and therapeutic recreation.

The presentation included capital items that staff said had shifted in scope or timing: Scofield Farm barn rehabilitation, acquisition of Coal Miner Park, trail connectors, and reduced funding for the Coal Creek Ridge Trail in a rebalancing that allows funding for other priorities. Hancock noted the town is in the middle of its audit, so beginning fund balances may change; she reported a beginning general fund balance of about $33,000,000 and an estimated ending fund balance near $23,500,000 with an unassigned figure shown as 6.1 (not fully specified pending audit finalization).

Councilors asked detailed questions about the Page property line item, trail funding, and a roughly $122,000 line item related to a lease for water out of Boulder Reservoir. Public Works Director David Pasek explained that the Page-property funds were originally budgeted for plan design that staff no longer expected to proceed with, and that those dollars were being transferred to other priorities such as the Erie Community Center expansion. Utilities Director Todd Fessenden explained the Boulder water lease is a 10-year agreement that activated this year to secure roughly 370 acre-feet as a backup supply.

After questions and additional clarifications from staff, a council member moved to approve the supplemental appropriation resolution and another seconded. Council voted "aye" and the resolution was adopted.

The council approved the consent agenda earlier in the meeting, which included several proclamations and professional services agreements, and members signaled they would continue to monitor and prioritize capital needs as the multi-year capital-improvement forecast evolves.

The council's next steps include staff follow-ups on the specifics of the Boulder lease and updated fund-balance numbers once the town audit is finalized.