Council studies proposed 2026 budget: parks funding rises, $44M Happy Canyon interchange confirmed

City finance staff presented the city manager's proposed 2026 budget and nine accompanying policy questions during a study session after the regular meeting.

Finance Director Maya Barina summarized revenue and fund balances, saying taxes make up the largest share of the city’s revenue (roughly 76% of the total), with total local tax revenues of about $19.3 million. Barina said the general fund ending balance is projected near $2.0 million and that transfers to capital improvements would be used to maintain a 25% reserve while supporting a larger capital program.

Transportation and roads were a major focus. Barina and other staff described a $16.2 million transportation capital program that includes long-term work under the Road Solutions plan and the Happy Canyon I‑25 diverging diamond/interchange project. City staff said the Happy Canyon interchange package is about $44 million in total, with Douglas County contributing approximately $16.75 million and CDOT plus developer contributions covering portions of the remainder.

Parks and recreation funding was another central topic. Staff noted this is the first year the city will consolidate multiple parks funds into a single parks and recreation fund (revenues around $5.46 million, largely from a voter-approved 12-mill property tax). Detailed estimates from engineers and the parks board raised the cost estimate for Coyote Ridge Phase 1 from prior budgeted amounts to about $7.9 million, in part because a retaining wall and ball-field revisions increased scope. Councilors asked about phasing, impacts on field availability during construction, and whether county park funds or conservation trust funds might be tapped to support projects in later years.

Stormwater was discussed in the context of a partnership with the Mile High Flood Control District; staff described a $500,000 match for the Happy Canyon tributary and a proposed stream-condition assessment to better define future capital needs. Staff said they would hold off on any stormwater fee increases until the assessments are complete and council can evaluate a multi-year plan.

Policy items presented for council “thumbs up” included compensation adjustments (a proposed 4.5% comp-ratio adjustment across employees and performance-based merit funding), a comprehensive plan update (estimated at about $60,000), continuation of the pavement maintenance program with a proposed $4 million budget for 2026, and a community center renovation estimated at about $900,000 — including an expected $200,000 to address ADA restroom upgrades and $100,000 for audiovisual and furniture.

Council provided general support to advance the policy items to formal action at the Dec. 9 meeting. Staff said final contract approvals, bids and any construction work would come back to council for authorization before funds are committed.