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City manager presents balanced 2025 budget; 2026 projected shortfall and major capital needs flagged
Summary
City Manager Jason Bachor and staff presented a mostly balanced 2025 proposal, using $5.1 million in one-time funds and preserving reserves; they warned of an $11.5 million projected gap in 2026, highlighted public-safety staffing investments, and outlined capital pressure from water projects and other deferred maintenance.
City Manager Jason Bachor and Budget Director Greg Hayes presented the city manager's proposed 2025 budget, describing 2025 as largely status quo with targeted investments in employee market adjustments, public-safety staffing and capital priorities.
Hayes said the proposed 2025 budget is balanced in the near term by using about $5.1 million of one-time funds and carrying an estimated $97 million in ending funds available at year-end, which staff said fully funds policy and TABOR reserves and leaves an operating reserve of roughly 1.9%. He noted a recession reserve of about $27.1 million set aside to smooth revenues in the event of an economic downturn.
Staff warned, however, that 2026 is projected to be out of balance by approximately $11.5 million and that the city is working to find adjustments to close that gap. Major budget pressures include personal-services increases tied to recently negotiated collective-bargaining agreements, higher insurance costs, and increased contract and technology costs.
Public-safety investments were a prominent feature: the budget adds battalion and EMS support positions in fire, new data and records FTE in police, and a proposal to relocate Aurora 911 staffing from the general fund to the e911 fund following a council-approved fee increase. Staff also outlined a multi-decade public-safety facilities master plan to address aging buildings and future growth.
On capital, staff emphasized the scale of long-range needs — particularly for water and wastewater — and said the capital program and five-year plan contain hundreds of millions in projects. Greg Hayes highlighted the Wild Horse project as a single large cost driver included in the five-year capital plan. Councilmembers asked staff to return with more detail on specific capital cost inflation, CPF (capital projects fund) assumptions and department-level amendments.
Hayes and Bachor closed by reviewing the budget calendar: a fall workshop on Oct. 5 followed by formal budget actions planned for Oct. 28 and Nov. 4. Staff committed to written answers to council's questions before the next workshop.
