HomeMy WebLinkAboutWORK SESSION SUMMARY-10/14/2025-Work Session (3)
1
Financial Services
215 N. Mason Street
Fort Collins, CO 80524
Work Session Memorandum
Date: October 21, 2025
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
From: Caleb Weitz, Chief Financial Officer
Subject: October 14, 2025 Work Session Summary: 2026 Budget Revisions
Bottom Line
The purpose of this memo is to document the summary of discussions during the October 14,
2025 Work Session. All Councilmembers were present and attended in person.
Discussion Summary
Following a brief update from the previous work session on the 2026 Budget Revisions, the
focus of the conversation turned to alternative cost reductions to the originally proposed $22k
reduction in the legal defense funds. Of the three options provided, guidance was suggested to
utilize the Digital Equity reserves as opposed to further reductions in either the City Bridge
Program or the Parks operations.
Utilities staff then reviewed two 2026 Budget Revisions with City Council, including proposals for
the Halligan Water Supply Project Mitigation Credits ($10,357,500) and the Customer
Information System operational extension ($702,480). 2026 rate increases were also reviewed
with Council, as presented throughout the 2025-26 BFO process without changes. Staff
presented information on average residential and commercial bill impacts, and comparisons
with peer cities along the Front Range.
After updating capital improvement plans and long-term financial modeling in the first quarter of
2026, Utilities will be bringing forward a financial forecast to City Council with a rate increase
recommendation in advance of the 2027-28 budget process.
Minutes from the Water Commission (October 16th) and Energy Board (October 9th)
presentations on Utilities rates will be included in the November 3rd packet for the rate adoption
item.
Docusign Envelope ID: 6C7F67AA-05F2-4FBF-B11D-2AE34AB6AD6A
2
Next Steps
Council questions and follow-up requests listed below will be responded to in writing in a
Thursday Packet memo on Oct 30.
First Reading of the 2026 Annual Appropriation Ordinance and the 2026 Utility rates are
scheduled for November 3, which is a Monday meeting to not conflict with the municipal
elections on November 4.
Follow-up Items
The following items will be responded to via a memo in the October 30 Thursday Packet
materials for Council:
- General Fund contributions to the City’s climate initiatives related to the non-supplanting
clauses in the 2050 Tax ballot language
- Additional clarification on why the elimination of two Sustainability Services positions will
not negatively impact the current work on Council Priorities related to climate goals
Docusign Envelope ID: 6C7F67AA-05F2-4FBF-B11D-2AE34AB6AD6A