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.