Timnath advances proposed $108.8 million 2027 budget, sets Dec. 8 hearing

The Timnath Town Council approved on first reading an ordinance adopting a 2027 budget, with proposed appropriations of $108,785,835 and a public hearing and second reading set for 6 p.m. Dec. 8 at the Administration Building, 4750 Signal Tree Drive.

The hearing will let residents submit written feedback or speak at the meeting, Mayor Robert Axmacher said. The town's Home Rule Charter requires the 2027 budget to be adopted and funds appropriated by Dec. 15. The ordinance would take effect upon adoption.

Council members split over how much to list in the five-year Capital Improvement Plan for the proposed Poudre River Natural Park and Crossing before the Old Town Master Plan is done. One council member favored a $5.5 million placeholder, arguing that "by placing it in the CIP, the 5-year plan, we're not committing to spend that money."

The member also said the project's funding source would effectively disappear by the end of 2029 and could be shifted elsewhere without council consideration if the project were not identified as a possibility.

Council Member Jeramie Holt said he supported exploring the project but was not ready to commit $5.5 million before the master plan was completed.

Council Member Bill Jenkins supported leaving it out of the current plan until the master plan was done, with the project to be considered for 2028 at the level that study recommended. Mayor Pro-Tem Luke Wagner said he was willing to list $300,000 as a placeholder but was not comfortable allocating $5 million.

Axmacher proposed making no budget amendment that night and preparing an item for final passage to allocate $300,000 to the Capital Improvement Plan project.

Axmacher said the town had said it wanted to spend up to $300,000 of the firehouse sale proceeds in Old Town, specifically for the Old Town Master Plan.

The council discussed proceeding with the plan even if that sale did not close. Jenkins said the town should find the money regardless: "If we don't close on the firehouse, we should figure out where to get it and get it done, get the master plan done." He also said the plan should be accelerated so the town could identify the appropriate 2028 funding level while the funding opportunity remained available.

The proposed Timnath Recreation Center project has a total listed cost of $98,980,000, with $93,130,000 budgeted from the Community Center Capital Improvement Fund for 2027-2029. The budget document says the 1.25% sales and use tax, approved by voters in November 2025, will go toward building the center. The center is planned for Timnath Parkway and 4th St.

Staff outlined the changes to capital projects that followed council feedback:

• Transportation Improvements funding falls from $400,000 to $250,000 a year
• Wild Wing Park moves from 2028/2029 to 2030/2031, with its operating costs
• Timnath Ranch Park moves to 2029/2030, with costs cut by approximately $1.3 million
• The Poudre River Trail Connections project is removed, saving approximately $550,000 in the General Fund
• Community Park Improvements shrink in scope, with $1 million in 2028 for surface improvements and shade structures

The budget includes a 2% cost-of-living adjustment, a 3% merit pool for employees not on step plans, $132,000 for market adjustments and $25,000 for potential promotions. It assumes a 1.04% increase in Colorado PERA retirement contributions, from 15.80% to 16.84%, and a projected 10% increase in medical insurance premiums through Cigna. The proposed budget includes 11 position requests totaling 10.55 full-time equivalents, with five funded through the recreation center and 5.55 through Parks and Recreation or the General Fund.

The proposed budget would maintain the 2026 number of community events and change the Fourth of July event to a tailgate-style format with reduced operating hours, saving approximately $50,000 while keeping the fireworks display. The budget also shifts the Events Department from the General Fund to the Parks and Recreation Fund, with transfers increased accordingly.

The budget establishes an open-space acquisition fund with $100,000 annually from county open-space revenues received by the town and 40% of proceeds from a future town property sale. Staff clarified that the 40% allocation referred specifically to KM Farms.

The proposed budget is presented as structurally balanced, with recurring revenues exceeding recurring expenditures. The staff report says the town's five-year projections meet or exceed its 25% working-capital policy for 2027-2031. The town received 36 responses to its budget survey, and the staff report says the responses largely focused on finding solutions to Timnath Elementary's proposed closing by Poudre School District.