Greeley’s current General Fund projection $200,000 below 2026 budget

Greeley’s current 2026 General Fund projection is $200,000 below budget, according to the city’s third-quarter financial review presented to the City Council.

Across all city funds, the review projects $13 million more than budgeted, including a $9.6 million gain from development impact fees, building permits and building use tax. Restricted development impact fees make up most of the variance from actual resources, a staff member said. The citywide forecast also includes shortfalls of $1.5 million each in severance taxes and sales and use taxes, excluding building use tax.

The review shows $4.8 million in reserve stabilization funds. It estimates no General Fund carryover for 2026. The stabilization funds could be allocated in 2026 or as part of the 2027 budget process, a staff member said.

A council member asked whether roughly 3% sales-tax growth reflected inflation or increased spending. The member estimated 1% inflation-related growth and 2% actual growth, which a staff member confirmed. “So people tend to buy lower-priced items because they can’t afford things,” the staff member said. If inflation eases, people in better financial condition could spend more, the staff member said.

Sales-tax collections grew 3.9% in the first eight months of 2026, below the revised budget’s 5.6% growth forecast, a staff member said. The review lists food-tax revenue down 2.1% from 2025 and identifies it, sales tax and severance taxes as negative impacts on city resources. Higher prices and changes in consumer behavior have pushed food-tax revenue below last year’s actual collections, the staff member said.

The city projects an additional $4 million in the remaining General Fund categories and expects further operational savings to turn the projected $200,000 shortfall into a gain by year-end, a staff member said. The fourth quarter carries more weight for sales and use taxes than for other revenues, which are steadier or collected once a year, the staff member said. The staff member described Greeley’s financial condition as very good. Four months of sales and use taxes and three months of other revenues and expenditures remained to be counted, the staff member said.