Fort Collins budget proposes 4% wage-adjustment funding, fewer street-sweeping visits

Fort Collins’ recommended 2027-2028 budget would reduce residential street sweeping from four times to three times a year, lower grocery rebate funding by $200,000 and eliminate 30.75 authorized but unfilled positions.

Streets faces inflation in asphalt, concrete, aggregate and fuel as Fort Collins’ transportation footprint grows. The recommendation would reduce three vacant crew positions, trim snow and de-icing materials, and cut residential sweeping from four times to three times per year. A speaker said, “I believe, if I remember the number correctly,” 2026 grocery rebate funding was about $750,000; the recommended budget would reduce it by $200,000 to $550,000. It also projects an approximately 15.75 net reduction in full-time-equivalent positions by 2028 after new and redeployed positions.

Staff said the transportation recommendation would reduce one annual street-sweeping pass and change snow removal on lower-priority routes to single-pass plowing. Staff said parks reductions could include fewer portable restrooms, a smaller flower footprint and less frequent trash service. Staff said the West Nile Virus program recommendation would shorten trapping and testing, reduce larval control and bring the program to what it described as the minimum viable level for effectiveness.

Staff said, “Our revenues are growing, but in many areas expenses are growing much faster than our revenues, and that's what is causing the fundamental realignment in this budget.” Staff said the city initially anticipated a $15 million governmental-funds gap and asked service areas to prepare reduction proposals equal to 8% of their projected 2027 budgets. Staff said the 8% exercise was an oversolve totaling about $22 million to $23 million in governmental funds, intended to give the city manager options, and the gap later fell to about $10 million. The recommended budget adjusts close to $10 million annually across governmental funds to better align ongoing expenditures with ongoing revenues.

Staff said the recommended budget “does not rely on any layoffs or separations of filled positions,” though hourly-position impacts vary by service area. Wage-adjustment funding equals 4% of the eligible wage base in 2027 and 3% in 2028.

Staff said the grocery rebate program is not being eliminated and that its design is being reconsidered to limit costs while preserving its purpose of providing income-qualified residents a rebate on grocery taxes. Staff is considering reducing or capping rebates for larger households, including potentially lower amounts for members five through eight, but has not finalized the design. Staff said the recommended budget divides reductions between direct grocery-tax rebates and human-services funding provided to community partners. A council member said the program should be reevaluated without reducing its funding while the review occurs, preferred not to reduce human-services programs and wanted to limit impacts on the city’s most vulnerable residents: “I do not feel like this is the right time to be pulling money from this program.”

Staff said Community Services includes a significant Natural Areas land-acquisition opportunity expected early next year, with $10 million added in 2027 rather than sought through a separate supplemental appropriation. Staff said the city plans to use some Conservation Trust funding and 2050 dedicated tax funding for park and recreation maintenance while maintaining the overall investment in expanding the paved recreational trail system. The recommended Forestry changes include eliminating a vacant position and lowering tree replacement, while Arts and Culture and Recreation would limit General Fund subsidies through fee updates and other efficiencies.

Community Development, Housing & Sustainability alignment actions identify 2.0 vacant FTE reductions and reduce the budget by $0.7 million in both 2027 and 2028. Staff said changes to the Larimer Humane Society contract could produce lower responses or longer response times for barking-dog calls and cleanup of dead animals on roadways. The budget includes $1.3 million in 2027 for affordable housing through renewed quarter-cent capital-tax funding, in addition to CCIP reserves allocated for affordable housing.

The Recommended Budget includes $172.0 million in total capital investments for 2027-2028, with $94.6 million in 2027 funding and $77.4 million in 2028 funding. The recommended budget lists new investment by service area totaling $22.8 million in 2027 and $14.7 million in 2028. Staff said almost all areas of new investment are supported by dedicated-revenue funds or one-time funding.

The 2027-2028 budget process included public hearings scheduled for Oct. 6 and Oct. 20, 2026. Council’s schedule called for a Sept. 22 work session on Police Services, Information and Employee Services, Finance, Executive, Legal and Judicial Services, and Utilities Services. The city scheduled an Oct. 13 work session for general discussion and follow-up, an Oct. 27 work session for final Council direction, and budget readings on Nov. 3 and Nov. 17, 2026.