Broomfield City Council unanimously approved next year’s city and county budget on Tuesday evening.
With a beginning balance of $212,082,401, the budget anticipates $430,138,697 in total revenues, equaling $642,221,098 in net total sources of funds. There is $457,493,6000 in budgeted expenditures, including $4,337,955 set aside for reserves.
The budget is based on conservative financial assumptions, the council memo reads.
Chief Financial Officer Brenda Richey told the Council on Tuesday evening the budget is a fluid process, and like a household budget, is adjusted when funding or expenses change. Councilmember Deven Shaff asked how many times a budget is typically revised, and Richey said it’s around four or five times, though city staff are looking to streamline the revision process.
The proposed budget “includes expenditures of $457.5 million based on total sources of funds of $642.2 million, including $430.1 million in annual revenue, all excluding inter fund transfers,” the memo states, later adding, “The 2022 Proposed Budget is balanced, meets all statutory requirements, recognizes the evolving economic climate, and helps ensure that the City and County of Broomfield continues to be a great place to live, work and play.”
Richey told the Council at the Oct. 12 council meeting that several key factors are influencing next year’s budget aside from the pandemic. She listed increases related to the city and county’s insurance premiums, inflated costs on goods and services and the continued pressure on supply and demand.
“Another area that we see a growth in our expenditures is really directly related to our greatest asset, which is our staff,” she said, adding costs are rising to continue to provide the level of service the Broomfield community has grown to expect.
In a graph titled “Major Operating Expenses by Department” the public works department shows the largest expenses budgeted, with $47,095,425. The police department is second, with $34,221,461 budgeted, data shows.
There are four sources of revenue that make up a little more than 85% of Broomfield’s revenue in next year’s budget. Fiduciary contributions makes up 38.3% of revenues, charges for service make up 21.9%, sales tax makes up 14.6% and property tax makes up 10.4%, documents show
The fiduciary contribution consists of the Tax Passthrough funds “that the city and county collects on behalf of other government and taxing authorities,” the memo states. “This revenue is distributed to those local governments and therefore has offsetting associated expenses.”
Revenue from charges of services consists largely of water and wastewater fees. The revenue is expected to increase by 17% over the 2021 revised estimates, partially due to the increase in recreation revenues from the reopening of the Broomfield Community Center and the recovery from the pandemic, the memo notes. The sales tax revenues, the third largest revenue source, is projected at $62.8 million for next year, a 2.17% increase from the 2021 revised budget. The projection anticipates a slight increase in revenues as economic recovery continues, the memo states.
The Council’s unanimous approval of the budget also approved the 2022 budgets for the Broomfield Housing Authority, the Broomfield Urban Renewal Authority and the Arista Local Improvement District.
Anticipated total revenues next year for the Housing Authority are $42,142,198, and proposed expenditures are $35,504,907. The Broomfield Urban Renewal Authority’s proposed total revenues for 2022 are $42,142,198 and proposed total expenditures are $35,504,907, the memo reads. The Arista Local Improvement District’s anticipated revenues for 2022 are $23,681 and anticipated expenditures are $23,681.
“All totaled the 2022 proposed budget of $457.5 million ensures the continued delivery of the high quality city and county services to which the Broomfield community has come to expect,” the memo reads. “The proposed budget does so in a fiscally responsible manner that balances Broomfield’s changing economic and revenue environment against spending needs so that long-term sustainability is maintained and the Broomfield of tomorrow can build on the fiscal strength of today.”