Office of the City Manager
Reference: Second Amendment to the 2025 Budget
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Kathryn Mortensen, Budget and Performance Manager
Date Prepared: June 5, 2025
PURPOSE
To amend the 2025 Budget to support awarded grants, additional small business grants, and water payments.
BACKGROUND
The City Council adopted the 2025 Budget on October 15, 2024, at $255,284,504. In March, per the 2025 Budget Resolution, capital carryover was administratively adjusted to reflect final year end amounts, adding an additional $54,144,083 and bringing the City’s total budget to $309,428,587.
The first amendment to the 2025 Budget addressed additional lodging tax allocations, transfers to cover storm drainage improvements as part of Parks and Recreation projects, and to transfer interest earnings to cover cemetery maintenance, appropriating an additional $1,437,608 and bringing overall appropriations to $310,866,195.
This proposed second amendment to the 2025 Budget provides an additional $1,306,603 to cover additional grant allocations, an increase to small business grant funds, and an increase in water costs.
The additional grants requiring appropriation in this amendment include a grant from the Department of Local Affairs to assist with updates to our housing needs assessment, our 2025 allocation from the Science and Cultural Funds District for special events and operating costs, which we receive annually, and a grant from the Colorado Department of Public Health and Environment to support our efforts to mitigate PFAS contamination.
The additional allocation for small business grants comes from fund balance in the lodging tax fund and allows for awards to be provided to small businesses on the waitlist from this year’s applications.
The appropriation related to water costs provides for the additional budget needed to cover the cost of rate increases for water the City purchases from the City of Thornton. Each year we estimate increases for the next year’s budget, and receive final rate increases in the last quarter of the year. We were alerted to the rate increase after the 2025 Budget was adopted, and we require additional appropriation to cover payments for this year.
CRITERIA BY WHICH COUNCIL MUST CONSIDER THE ITEM
All changes to fund-level appropriations of the adopted Budget must be made by a Supplemental Budget Appropriation.
STAFF RECOMMENDATION
Staff is recommending approval of the attached Second Amendment to the 2025 Budget Resolution.
OPTIONS FOR COUNCIL CONSIDERATION
Approve, amend, or deny the proposed resolution.
ATTACHMENTS
Proposed Resolution
Presentation