Aurora City staff warn furloughs, hiring restrictions and conservative capital spending as key revenues fall

Greg, who led the budget presentation, told the Aurora City Council on Tuesday that the city will tighten hiring and continue furloughs while it balances the general fund and other accounts. "There will be continued furloughs," he said, and staff will "be a little bit harder on making sure that ... do you really need this position?".

City Manager Jason described a position-by-position approach to hiring rather than a blanket freeze. "We are not hiring," he said for the development review fund, adding that hiring for other departments will be reviewed case by case and that eliminating a vacant position would precede layoffs. "Layoffs would be the last resort," Jason said.

The financial picture staff described centers on two revenue pressures. Greg said marijuana sales were "off about 5.3% through April," which he annualized as a multi-hundred-thousand-dollar shortfall; staff estimated that annualized shortfall from the first four months would be roughly $450,000'$500,000. He also said development-review revenue is down about 30% so far this year. Together, those declines reduce funds available for debt service on two recreation centers and transfers to capital projects.

Staff also reported effects tied to recent state legislation referenced in the presentation (the transcript identifies this as "House Bill 26 14 o 9"). Greg said the city historically received roughly a 10% share back but that the state reduced that to 3.5% and that, after lobbying, the city negotiated a temporary three-year period of no share before the 3.5% would resume. "So the effect of those two things is ... lower that increase to basically nothing," he said.

Council members pressed staff about how reserves and prior borrowing would be handled. Council Member Bergen recalled the council borrowed about $7,000,000 from contingency last year and asked when the city would begin repaying such amounts; staff said the recession reserve exists for downturns like this and that borrowed amounts must be paid back "as soon as possible."

Council Member Horton asked whether furlough days would match this year's level; staff said totals are not yet decided and urged patience while multiple budget pieces are combined. Several council members and staff urged limiting furlough days where possible and prioritizing measures that protect employees.

Bergen and others questioned new council-office positions proposed in the budget. Bergen asked whether the three added administrative positions could be temporary to avoid full-time benefit obligations; staff replied that under federal law, full-time positions typically require health-insurance benefits and that temporary staffing trade-offs should be examined.

On timing for new revenue tied to a large incoming employer referenced in the meeting as Philip/Phillip Morris, staff said property tax and use-tax revenue will lag the company's capital investment and assessment process; some use-tax revenue (about $4,000,000) has already been counted toward the capital projects fund.

City Manager Jason said staff will prepare analyses requested by council members, including scenarios that would assess whether eliminating three council-aide FTEs would materially help balancing and what an employment-tax ballot measure could yield if pursued. The council closed the quarterly workshop without taking formal votes on these tradeoffs.

The workshop included repeated reminders that staff are trying to avoid layoffs where possible, favor one-time reductions and vacancy-management, and return to the council with modeled options and timelines for repayment of reserves and potential ballot measures.