AURORA, Colo. — Residents of Aurora could see increased fees next year as the City of Aurora works to balance a $20 million budget shortfall for 2026.
City leaders are expected to present the 2026 proposed budget to city council members Tuesday night during a special virtual meeting. Aurora City Manager Jason Batchelor said slowing tax revenue and increased costs are the main reasons for the deficit.
"We are generally dependent upon general economic conditions. Folks going out, spending their money on goods, dining out, things like that. That's how we get our tax revenue to provide services for our residents, for our businesses," Batchelor said.
The budget proposal said tax revenue from marijuana sales was affected in mid-2025 after the state lowered the city's share of state revenue from 10% to 3.5%, causing a $2 million annual decrease in funds for capital projects. The city manager said revenue brought in from the city's 8% lodger's tax has fallen significantly over the past year as less people stay in hotels around the city.
"We're seeing folks travel less on sort of the national front as folks, you know, kind of get their home budgets get a little tighter. Folks are traveling a little less. We're seeing a little less travel from the federal government associated with the new administration," Batchelor said.
In order to balance the budget, he said the city plans to use several strategies, including dipping out of reserve funds and raising certain fees. Batchelor said the 2026 proposed budget plans to use about $8 million out of the city's recession reserve fund, which is one of several reserve funds the city maintains.
"A few years ago, during good economic times, we had a discussion with council, and we said, we think we should... prepare for some economic bound downturns and some bad times," Batchelor said. "So we have approximately $28 million in the recession reserve specifically for economic downturn."
The city's proposed budget also outlines subsidy decreases for the Enhanced E-911 Fund and Recreation Fund. Batchelor said because of this, residents could see increased monthly fees on E-911 surcharges added to phone bills and higher fees at recreation centers and the Aurora Sports Park, meaning teams and leagues could pay more to rent fields.
"We are raising some of the fees for our recreation program at our rec center. So if that's dropping in to work out, doing other things like that, and you know, it's a sizable percentage, it might be a 10% increase. But right now, as fees are so low that, you know, it might only be, you know, pennies on the dollar type thing," Batchelor said.
There are no planned city layoffs, according to Batchelor, but the city will eliminate a few vacant positions at the municipal court. He said employees will still get planned pay and benefit increases in 2026. The city is planning four furlough days for each quarter of next year to balance costs.
The budget is expected to be finalized in early November after approval from city council.
