Estes Park town officials have commenced their annual budget planning for 2027, with preliminary discussions outlining a proposed $92 million in expenses. The first of two study sessions, involving the mayor, trustees, and department heads, took place Friday, setting the stage for public hearings scheduled for November 10 and November 24 before the budget's planned adoption.
Town Administrator Travis Machalek initiated the overview of the 2027 budget, detailing $92 million in expenses against $90.3 million in projected revenue. An additional $1.8 million from the fund balance is allocated towards capital projects. Machalek characterized the proposed budget as “structurally balanced,” indicating that ongoing operational costs are covered by ongoing revenue streams, rather than depleting financial reserves. The town is conservatively estimating a 5% increase in sales tax revenue compared to 2025 actual collections, noting that 2026 collections are already trending approximately 5.5% higher than 2025. Any revenue surpassing these forecasts would be designated for one-time expenditures rather than to support recurring costs.
A significant portion of the proposed expenses is dedicated to town personnel and benefits, totaling $47.1 million, which accounts for 51.2% of the budget. Personnel costs alone are projected at $27.8 million, or 30.2% of the budget. Other major proposed allocations include approximately $9 million for police services, $6.34 million for workforce housing and childcare initiatives, $3.6 million for the events department, and $2.16 million for town administration. The budget also earmarks $2.7 million for capital projects directly within the operating budget.
Assistant Finance Director Laura Garcia presented the town's proposed Capital Improvement Plan (CIP) for 2027, which totals $37 million. Garcia underscored that the CIP serves as a long-range planning document rather than immediate spending authorization, with projects prioritized based on need and financial feasibility. A notable item in the plan is a proposed $34 million public safety facility, which is currently listed in the CIP but not yet included in the 2027 budget. Moving forward with this project would require further action by the town board, including a budget amendment.
Additional proposed capital improvement expenses in the plan include $1 million for street overlay and patching, $800,000 for stormwater neighborhood drainage, $534,800 for police roof replacement, $370,000 for the Wonderview Trail extension, $448,300 for Visitor Center log restoration and parking-garage maintenance, $175,000 for Children’s Park remodel, and $130,000 for Event Center safety lighting.
Town Finance Director Tammy Zimmerman discussed plans to convert funds from a former workforce housing reserve into a revenue stabilization reserve, which would increase its total to $417,000. This action is intended to provide a safeguard for the general fund against unforeseen events and to enhance the town's financial standing for potential future debt issuances. Zimmerman also highlighted ongoing challenges with the town's general fund replacement program for its 76 vehicles, noting that rising vehicle costs have made it difficult to adequately fund replacements each year. Trustees previously approved a resolution in July to inject an additional $3.7 million in one-time and grant-funded appropriations into the budget to address vehicle replacement, facility repairs, utility-billing, and electric reliability work.
Regarding human resources, Director Emily Lizotte outlined proposed market-range compensation increases for employees, including 3% for line workers and 2% for other pay groups, alongside a fund available for 2% merit raises. The town plans to absorb a 15% increase in medical insurance costs, a reduction from an initial 20% estimate following negotiations and plan adjustments. Employees contribute 10% of premiums for employee-only and employee-plus-children coverage, and 20% for employee-plus-spouse and family plans.
Management Analyst Susanna Simpson presented a proposed $1,000,755 budget for outside entity funding. This budget aims to provide town assistance to various community organizations, fund community initiatives, and cover town contributions to the fire district general fund, the food tax refund, and sister cities dues. Staff recommendations include $333,000 in Policy 671 base funding, which governs town funding of non-profit and community organizations, and $30,000 for community initiative grants. Staff did not recommend event sponsorship funding in this proposal.
