Lafayette City Council Reviews 2026 Budget and Strategic Revenue Sources

Lafayette City Council is taking significant steps to prepare for the 2026 budget, focusing on a balanced approach to revenues and expenditures. During the workshop held on August 26, 2025, city officials outlined their budget responsibilities and the importance of aligning financial planning with community values and strategic outcomes.

City Manager Morgan opened the meeting by emphasizing the necessity of a balanced budget, where revenues equal expenditures. This approach ensures that the city maintains adequate reserves while being cautious with one-time expenditures. The council is currently in the process of introducing the budget, with public hearings scheduled for October and final adoption by the end of the month.

A key focus of the meeting was the revenue outlook for Lafayette, particularly in light of national economic uncertainties. The city is projecting modest growth in major revenue sources, including sales and use tax, property tax, and fees for services. Sales tax is expected to see a slight increase of 0.5% in 2025, largely due to the recent relocation of King Soopers, which has impacted revenue collection. However, the overall health of sales tax outside of this factor is projected to grow by 2.5%.

The use tax, which fluctuates based on construction and vehicle registrations, is forecasted to increase by 1.4% in 2025, reflecting a cautious approach to budgeting for this volatile revenue stream. Property tax growth is anticipated to be more subdued, with preliminary assessments indicating a 4% increase, significantly lower than the 16% average growth seen in recent years.

Additionally, the council discussed the importance of fees for services, particularly in recreation and planning. The community services department is projecting an 11% increase in recreation fees, attributed to a rise in program participation. Meanwhile, planning and building fees are expected to stabilize after a period of decline, with a proposed 9% increase in 2026 to address rising costs since the last fee update in 2019.

The council is also working on improving transparency and clarity around the fee schedule, which will be presented alongside the budget for approval. This initiative aims to enhance public understanding of how fees are established and updated.

As Lafayette moves forward with its budget planning, city officials remain committed to monitoring economic conditions and adjusting projections as necessary. The upcoming months will be crucial for finalizing the budget, ensuring that it reflects the needs and priorities of the community while maintaining fiscal responsibility.