AURORA | The city is bracing for a 2027 budget that will require $10.2 million in cuts to spending, but will avoid staff layoffs.
The proposed cuts will include five furlough days for staff and reductions in recreation subsidies and training and travel budgets, as well as the end of prosecuting domestic violence cases at a municipal level. While the city is not planning any layoffs, nine vacant positions will be eliminated and eight open positions will be frozen.
Next year’s general fund budget, which is the main source of funding for city operations, including public safety, transportation, parks and libraries, is expected to be $570.5 million after the cuts, while revenue is estimated to be $567.6 million.
The general fund’s total shortfall for 2027 was $19 million, which the city’s Finance Manager Greg Hayes attributes to a combination of increasing costs and revenues not meeting projections. As of July, sales tax revenue, which accounts for 58% of the city’s income, is up .6% compared to last year.
“We were supposed to grow a little bit in 2027, based on the last Leeds projection, but then the Leeds projection dropped quite significantly, so that’s what’s causing the shortfall,” Hayes said. “Our big issue for 2027 is that we guessed too high last year.”
In addition to the $10.2 million in cuts, the city will balance its budget with $7.3 million from other funds including its recession reserves and an expected $1.8 million in new revenue from additional audits and charging for police services at outside events.
Cuts are also likely for next year, with 2028 having an estimated $13.1 million deficit.
The majority of spending in the general fund, 51%, is for public safety services, including police fire and 911. The police budget is planned to be about $181 million, down from $182 million last year, and the fire budget is $104 million, up from $103 million in 2025. One full-time position for a SWAT team medic will transition from the police budget to the fire department.
While many city departments’ budgets are going down, the city council’s budget is increasing by roughly $491,000, largely due to the city hiring five council aides. Other departments seeing an increase are general management, non-departmental spending and parks, recreation and open space.
Spending across all of the city’s funds, including water and capital projects, is expected to be $1.5 billion. Revenue from all sources is predicted to be $1.8 billion.
The largest portion of all planned spending, 46%, will be for water and wastewater operations and capital projects, including the construction of new sewer lines and improvements to water tracking technology.
One fund that is particularly struggling is the development review fund, which is funded by development-related fees and permits. Development applications have dropped 11% this year compared to last year and single family home permits and renovation permits have also declined 3% and 37%, respectively.
The review fund is facing a $5.9 million deficit, which city officials plan to address through reducing development services and reallocating staff, as well as increasing roof permit fees.
Through the capital improvement program, which funds water, wastewater and other capital projects over a five-year period, the city is planning $2.9 billion in investments through 2031. Those include $1.3 billion for construction of the Wild Horse Reservoir and more than $400 million in improvements to water treatment facilities.
“While many city departments’ budgets are going down, the city council’s budget is increasing by roughly $491,000, largely due to the city hiring five council aides.” That’s five council aide salaries that were foisted on taxpayers by the new socialist-activist majority, such as Alli Jackson, who is “overwhelmed” by the work, blamed the onboarding process, and publicly stated she “can’t do this job.”
Council will get to addressing this just as soon as they are done expressing themselves on state ballot questions, passing non-binding performative resolutions, and addressing prohibitions against vape shops. I mean, they have their priorities and solvency is well down the list.
Council’s perks arre likely to remain and the City Manager’s salary willsurvive intact or even be raised. BTW, what ever happened to the kerfuffle over the City Manager not actually living in Aurora? Seems an appropriate topic for journalists to follow up on.
Council is beginning to figure out that the city has serious financial problems– after a decade of abject denial.
The Budget Manager acknowledged Monday evening that city revenue is not keeping pace with population growth which is driving up demand for city services. Thus, the quality of city services will only get worse until revenue significantly improves.
The City Manager also committed to better, more current analysis of how Aurora “measures up” on its revenue sources. I assume this may include updating the decade-old benchmark study of retail and dining activity. In 2016, Aurora fell 14% below the per resident average of Colorado cities and lagged Denver by 59%.
I’ve been rather vocal that the Council is leaving $45 to 50 million per year in additional sales tax “on the table” when it simply ignores the lagging ratail and dining economy.
Attracting visitors in high numbers to spend in Aurora is the solution. But the city can’t just give away tax incentives to make that happen.
One politically viable solution: Invest a major portion of the ~$9 million/year in SCFD taxes collected annually in Aurora on a large Performing Arts Center and Entertainment District and partner with a major commercial player such as AEG, LiveNation or Ryman to draw 5,000 to 10,000 fans/customers to Aurora 100 to 130 nights per year to spend. All city sales tax goes to the General Fund.
Irvine, Texas figured this out after they lost the Dallas Cowboys to Arlington. See https://www.youtube.com/watch?v=Qi64Rhc7Zic
Ok! Remember this: Danielle Jurinski led the fight against the Occupational Privilege Tax by bullying the rest of the council with unprofessional vile emails. That tax raised $6.1MM per year. She fought against that tax without ever suggesting an alternative. She knows how much needs to be done, but never cared about her job, she just wanted attention. That tells me the shortage would not be so draconian otherwise. Now everyone knows she’s just local MAGA GOP. Show up and wash ’em out in November! Gotta get rid of MAGA to have hope of future sanity. We’re nuts to ever elect her to any other position – even dog catcher!
Actions have consequences. The former conservative council cut taxes for businesses and gave tax cuts to bring in the Zyn factory. It’s basic math. When you take away, you have less. Now the residents are being asked to pay up or deal with fewer services and crappy infrastructure, not to mention the cost of coddling snowflake council members. Wish we could elect leaders who care about the residents more than themselves and their benefactors.
Our continued reliance on unsustainable growth to increase revenues is becoming a fallacy. The current and predicted long term water shortage should be a hint. Like it or not, we must learn to live within the resources that are available to us.