2025-2026 Budget Watch

The City’s budget process ensures that Loveland can provide exceptional service levels and allows for investment in infrastructure that will benefit our community for years to come. We take pride in effectively managing public funds, ensuring that every dollar is spent wisely and in the best interest of the community.

How the City Gets Its Revenue

The City receives funds from sources such as sales and use taxes, licenses and permits, charges for services, interest income and more.

The General Fund supports services provided by the police, fire rescue, public works, library, parks and recreation, cultural services and more. Sales tax is the largest source of General Fund revenue.
The City’s Enterprise Funds support services like water, wastewater, stormwater, power, solid waste and golf. Enterprise Funds are dedicated funds supported through user fees. Just like a business, user fees fund the operation, maintenance and capital projects necessary to provide the service. Only people who pay for these services receive the benefit of these services.
Special Revenue Funds are dedicated funds established by federal or state law, or by municipal ordinance or resolution. Each has its own specific revenue source, such as the countywide Open Lands Sales Tax, which can only be used to support that specific service.

Of these three major fund types, both Enterprise and Special Revenue Funds are dedicated funds, which means they cannot be legally used for anything other than their dedicated purpose.

Changes in The City's General Fund Budget

Since 2016, the increases in costs to maintain infrastructure and provide services to the community have outpaced available revenue. In 2024, the City also lost an ongoing multi-million-dollar revenue stream to fund General Fund departments, including public safety (police and fire), transportation, community spaces (parks, library, museum, Rialto Theater, the Chilson Recreation and Senior Center and Winona Pool), infrastructure projects, general government services, and support services for nonprofits, small businesses, and residents in need.

Stay in the Know

Stay tuned to this webpage to learn more about the City’s 2025-2026 budget, ask questions and find helpful resources as the City prepares its 2026 Budget.

How the City Gets Its Revenue

The City receives funds from sources such as sales and use taxes, licenses and permits, charges for services, interest income and more.

The General Fund supports services provided by the police, fire rescue, public works, library, parks and recreation, cultural services and more. Sales tax is the largest source of General Fund revenue.
The City’s Enterprise Funds support services like water, wastewater, stormwater, power, solid waste and golf. Enterprise Funds are dedicated funds supported through user fees. Just like a business, user fees fund the operation, maintenance and capital projects necessary to provide the service. Only people who pay for these services receive the benefit of these services.
Special Revenue Funds are dedicated funds established by federal or state law, or by municipal ordinance or resolution. Each has its own specific revenue source, such as the countywide Open Lands Sales Tax, which can only be used to support that specific service.

Of these three major fund types, both Enterprise and Special Revenue Funds are dedicated funds, which means they cannot be legally used for anything other than their dedicated purpose.

Changes in The City's General Fund Budget

Stay in the Know

Stay tuned to this webpage to learn more about the City’s 2025-2026 budget, ask questions and find helpful resources as the City prepares its 2026 Budget.

News feed

City of Loveland 2026 Budget Workshop Summary

The City of Loveland held its 2026 Budget Workshop last month to review the City’s financial health and plans for the future. City Manager Jim Thompson highlighted progress over the last two years while noting that more work remains.

“I’m really happy that we are stable,” Thompson said. “But stability doesn’t mean we can provide every service our community wants. We have to take care of what we have first.”

Chief Financial Officer Brian Waldes explained that service-level changes made in 2024 stabilized the City’s General Fund, which pays for core services like police, fire, parks, public works, and other government and community services. No additional cuts are proposed for 2026, but funding challenges remain, especially for roads and infrastructure.

“Stable doesn’t mean solved,” Waldes said. “We’re borrowing from our future by shortening our capital improvement program to meet today’s needs.”

Key Takeaways from the Workshop

Financial Structure & Reserves

Loveland manages nearly 70 separate funds; most of which are stable, but the General Fund has been a challenge since 2016. To maintain the City’s bond rating and be prepared for emergencies, the City keeps a 15% contingency reserve.

The table below illustrates Loveland’s General Fund net income over the past 18 years. It highlights revenue challenges since 2016, and how the impacts of COVID budget cuts and one-time grant revenues impacted 2020-2022. With those cuts restored and COVID funding gone, the fund now faces the same pressures as in 2016–2019.

The table shows 2009, 2016-2019 , 2023-2024 as years where the City's General Fund was operating at a deficit.

Revenue & Cost Pressures

Sales tax revenue, the City’s main source of funding for general services, has stayed mostly flat. CFO Waldes also announced that the City will start passing on credit card processing fees it has historically covered, aligning with common practices.

Roads & Infrastructure

The City maintains 396 miles of roads—about the distance from Loveland to Amarillo, TX. Road conditions are below the national average, and maintenance costs exceed available funds. Long-term funding solutions for roads and other infrastructure will need to remain a priority. The 2026 budget includes $4.5 million for the capital projects listed below to help address these needs.

2026 General Fund Capital Improvement Plan (CIP)
Project Title	Amount	Percent (%)
TRANS - Street Rehabilitation Program	2,604,198	57.9%
TRANS - Garfield Bike Route	447,430	9.9%
TRANS - US 287 and CO 402 Intersection	400,000	8.9%
TRANS - Annual Bridge Maintenance	300,000	6.7%
TRANS - Boyd Lake Ave/LCR 20E Roundabout	247,000	5.5%
TRANS - Annual ITS & Communications	199,962	4.4%
TRANS - US 34 Transit Sidewalk Connectivity	100,000	2.2%
TRANS - Annual Transportation Planning	100,000	2.2%
TRANS - HSIP Ped Crossing Improvements	51,410	1.1%
TRANS - Annual Extended Projects	50,000	1.1%
Total 2026 Capital Projects	4,500,000	100%

Proposed 2026 General Fund Budget Highlights

The proposed 2026 budget includes targeted adjustments to maintain essential services and invest in high-need areas:

$4.5 million in the General Fund dedicated to 2026 transportation projects.
Four new Police Department positions (detective, lieutenant, patrol, and compliance) with modest operating increases.
Parks & Recreation increases to support park operations, restroom hours, security, and July 4th programming.
Support for the Foote Lagoon concert series and Loveland Museum exhibit marketing.
Technology upgrades: a better functioning, accessible City website with a 311 citizen-reporting tool and public meetings software, revenue generating sales tax software and new time-tracking system.
Expanded financial professional services.
Employee recognition programs and compensation.
Savings from General Fund due to reduced encampment costs following the closure of the South Railroad Facility.
Smaller targeted increases across departments while keeping overall General Fund spending growth to 0.5%.

To see a summary of proposed 2026 General Fund Expenses by Department, check out slide 23 of the Budget Workshop presentation.

Utilities: Reliable Today, Resilient Tomorrow

Loveland Utilities operate 24/7 to provide power, water and wastewater services to about 40,000 homes and businesses. Utility funds are separate by law and cannot subsidize other City services. Proposed 2026 rates include a 4% increase for water and wastewater and a preliminary 5.8% electric increase (final pending a cost-of-service study). About $83 million in utility capital projects are planned to replace aging infrastructure and maintain reliable service.

Pulse, the City’s broadband utility, is continuing to expand reliable, high-speed internet service while focusing on long-term financial sustainability. The 2026 budget includes funding to bring some contracted work in-house and invest in operations and customer support, helping Pulse maintain quality service and control costs.

What's Next

City Council will review and vote on the proposed budget in October:

First reading: October 7
Second reading: October 21

Interested in learning more about the City’s budget? Attend the next Funds in Focus event, Thursday, Sept. 25, 5:30 to 6:30 p.m., at the Rialto Theater’s Devereaux Room, 228 E. 4th St. The session will revisit key information shared during the first Funds in Focus event held in July, although staff will introduce new content, including a summary of the Aug. 15 Budget Workshop. Attendees will also have the opportunity to ask questions and engage directly with the City’s Finance Department.

First look at proposed 2026 budget

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On August 14, The City’s finance team will hold its annual Budget Workshop with City Council, which also marks the first public discussion of the proposed 2026 City budget.
The public is welcome to attend this meeting, scheduled for 9 a.m., Thursday, Aug. 14, at the City’s Police and Courts Building, 810 E. 10th St.
In 2024, the City’s focus was on stabilizing the 2025 budget to align service levels with available revenue. While we’ve made progress and will not face reductions this year, our budget still falls short of fully meeting the needs of our organization and community. For 2026, we are emphasizing strategic financial planning as we work toward long-term sustainability.
Here are some key highlights ahead of the workshop:
Strategic Budgeting: The 2026 process involved a detailed, department-by-department review to ensure funding is aligned with operational needs, programs, and services.
Doing More with Less: We’ve made difficult reductions in several areas. The most notable was the encampment program, which had relied on temporary funds. With those funds exhausted, the decision was made to shift resources—freeing up ongoing general fund dollars for other priorities.
General Fund Increase: The proposed budget reflects a modest 0.5% increase in general fund spending from 2025 to 2026. While small, it allows for limited investments in growth-related needs, public safety, access to City services, and employee compensation, engagement and recognition.
Capital Improvement Projects (CIP): Maintaining City buildings and infrastructure is critical. The 2026 proposal includes $4.5 million for CIP, a number that remains well below our total identified needs. Still, we remain far from where we need to be.
Revenue Generation: The 2025 budget introduced several new or enhanced revenue sources to help offset service and operational costs. This best practice will continue moving forward.
Monitoring and Adjusting: We are closely tracking market and economic trends and will adjust our budget forecasts as needed before the end of the year.
Loveland remains a vibrant and valued community. Year after year, our community survey confirms how much residents appreciate City-provided services.

City leadership is committed to maintaining Loveland as a great place to work and live—and to securing a financially strong future for all.

Visit the Budget Workshop with City Council agenda and packet for more details.
Funds in Focus: City of Loveland thanks residents for attending, publishes questions and answers online

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The City of Loveland welcomed community members to its Funds in Focus budget information community event, on July 10, drawing strong participation both online and in person. A total of 167 people registered to attend virtually, with 79 joining live on Zoom. Another 29 attendees participated in person at Council Chambers.
The session gave residents an opportunity to learn about the City's budgeting process, priorities for 2026, and the factors that influence funding decisions. A highlight of the evening was a robust question-and-answer session where residents submitted questions about how city funds are allocated and managed.
City staff addressed many of these questions during the event and have since compiled all questions and responses into an online resource. Residents can view the results at https://www.letstalkloveland.org/29578/widgets/102467/documents/70696.
For those who missed the event, a recording and additional budget-related materials are also available at the same link.
“This event shows that our residents are highly engaged in our local government, and they want to know how services are funded and the considerations that go into building the annual budget,” said Chief Financial Officer Brian Waldes. “Thanks to everyone who gave us their evening to take an interest and ask questions.”
City of Loveland to host July 10 budget event

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The City of Loveland invites residents to participate in its upcoming Budget Funds in Focus event on Thursday, July 10, 2025, from 5:30 to 6:30 p.m. This hybrid event will offer both in-person and online attendance options, providing residents with an opportunity to learn more about the City’s budgeting process and the development of the 2026 budget. Attendees will also have an opportunity to ask questions and engage directly with City leaders and budget experts.
The Budget Funds in Focus event will be held in person at the Civic Center Municipal Building Council Chambers, 500 E. 3rd Street, and it will also be available online via Zoom. Online attendees can register for the live Zoom before noon, July 10, by visiting https://go.lovgov.org/2025FundsinFocus. Registrants for the online event will receive a confirmation email with information about joining the Zoom webinar.
“Last year’s Budget Information Session received overwhelmingly positive feedback from the community,” said Communication & Engagement Director Nicole Yost. “We hope that this event provides an extra level of transparency and the chance for our residents to understand how public funds are allocated and some of the nuances of various funds. We’re excited to offer this opportunity again and continue fostering meaningful civic opportunities to ask questions.”
Stay informed
To learn more about the City of Loveland’s budget, where City tax dollars are invested in the community, and more, visit our budget webpage.