City Council Tackles 2026 Budget with Focus on Infrastructure, Homelessness, and Technology

Arvada City Council Workshop | October 14, 2025

The Arvada City Council convened for a budget workshop on Monday evening to review City Manager Don Wick's proposed spending plan for 2026, unveiling a strategic approach that prioritizes critical infrastructure improvements, homelessness services, and technology security while navigating a period of slower revenue growth.

A Strategic $12 Million Withdrawal

In a notable departure from typical budget adjustments, Wick recommended deploying $15.15 million of funding, with $12 million coming from the city's reserves, to address pressing community needs. The strategic allocation includes $10 million for right-of-way infrastructure improvements—encompassing streets, curbs, gutters, and sidewalks—along with $1.755 million dedicated to homelessness initiatives and another $1 million for continued reinvestment in Olde Town.

"This is the second year of a two-year budget," Wick explained to council members. "We're making adjustments, modifications, and addressing needs and requests for 2026."

The total proposed budget across all city funds reaches $382.7 million, with the general fund accounting for $169 million of that total.

Three Strategic Priorities for 2026

City Manager Wick outlined three organizational priorities that will guide spending decisions:

Priority 1: Technology and Physical Systems

In a meeting punctuated by ongoing internet outages at City Hall—an ironic backdrop that underscored the urgency of this priority—Wick emphasized the critical importance of reliable technology infrastructure. The priority focuses on improving city and community connectivity while enhancing cybersecurity measures, with particular emphasis on ensuring the security of physical and technology systems while investigating and holding accountable those who put these systems at risk.

"Everything is tied to our network and our electronic and communications systems," Wick noted. "This has essentially become a core service that the city has to deliver on—not only for our internal city team, but also for most everyone in our community who relies on our systems."

The city's technology infrastructure underpins essential services that residents depend on daily, from water billing and payment systems to permit applications and public safety communications. As cyber threats become increasingly sophisticated and frequent, the city recognizes that robust technology and physical systems are no longer optional amenities but fundamental infrastructure as critical as roads and water lines.

The budget proposal includes investments to strengthen network reliability, enhance cybersecurity defenses, and ensure that both city operations and community services can function without disruption. This priority reflects the reality that in 2026, a city's digital infrastructure is as essential to daily life as its physical infrastructure.

Priority 2: Addressing Homelessness

The second priority centers on collaboration with nonprofits, local organizations, and regional governments to advance services for individuals experiencing or at risk of homelessness. A key emphasis is working with community partners to identify a suitable location for homeless services outside of Olde Town.

The proposed budget allocates $1.755 million from city reserves for homelessness initiatives, broken down across several programs:

Transitional Housing Program - $250,000

This funding will support the city's transitional housing program, which has been operating with $1.9 million in grant funding from the Colorado Department of Local Affairs (DOLA). Since January 2025, the program has successfully helped 71 people find housing. However, officials indicated that this grant funding is expected to be exhausted by the end of the year.

The funding reduction represents a significant challenge for the program. Next year's $250,000 allocation amounts to approximately 13% of this year's funding levels. If costs per successful outcome remain consistent, the program is projected to help around 10 people find housing in 2026—a dramatic decrease from the 71 people served this year.

When asked if the city plans to fully fund the transitional housing program if state funding is discontinued, City Manager Wick was candid about the constraints. "At this time, we are not," Wick stated. "The cost of the program is pretty expensive... for us to be able to continue to support the suburban studios would really require a remake and reallocation of dollars in order to support that."

The city has reapplied for a grant with the state to secure additional funding and expects to know the outcome of that request by the end of the year, which could significantly impact the program's capacity in 2026.

Street Outreach and Olde Town Services - $1 million

This allocation will fund street outreach efforts, supplemental Olde Town services such as ambassadors and security, and operational funds for routine maintenance including trash cleanup, biohazard waste removal, and power washing.

Camp Cleanups - $70,000

Based on historic need, the city has allocated $70,000 for unhoused camp cleanups. City data collected from 2023 through November 2024 documented 872 homeless camps or debris cleanup sites across Arvada, with concentrations visible particularly in the Olde Town area and along major corridors.

Severe Weather Sheltering - $435,000

The city plans to spend $435,000 on severe weather sheltering as part of a countywide intergovernmental agreement that was recently approved. In 2025, 50 vouchers have been approved for severe weather sheltering and are available on a first-come, first-served basis.

Mayor Simpson highlighted the value of proactive investments in homelessness services, noting that helping people meet their needs and change their lives ultimately reduces costs associated with camp cleanups, emergency services, and police responses.

Priority 3: Economy and Infrastructure

The third priority aims to bolster the local economy by delivering efficient, cost-effective services and support for Arvada businesses, with an emphasis on maintaining and enhancing public assets to attract residents, businesses, workers, and visitors.

The cornerstone of this priority is a substantial $10 million investment from reserves dedicated to right-of-way infrastructure improvements. This funding will address critical needs in streets, curbs, gutters, and sidewalks throughout the city—the fundamental physical assets that shape residents' daily experiences and businesses' operational efficiency.

"We're trying to make sure we can get done the items we identify for next year," Finance Director Brian Archer explained, noting that the city has strategically focused its Capital Improvement Program on projects that can realistically be completed rather than spreading resources too thin.

The budget also supports continued economic development efforts, including maintaining competitive business services and support. Council members expressed enthusiasm about the potential for new economic development initiatives, particularly in areas where urban renewal zones are approaching expiration.

Looking ahead, the city anticipates significant changes to its revenue landscape. Some Fields urban renewal zone expires in 2028, while Village Commons and Northwest zones will sunset in 2034. Most notably, the Ralston Commons urban renewal area, set to expire in 2028, is projected to deliver a substantial increase in tax revenue beginning in 2029—a boost that city officials have already incorporated into long-term financial planning.

Council members noted the opportunity to leverage these future revenue increases to continue strengthening Arvada's economic base and infrastructure, with one council member remarking that a new economic development position could help maximize the potential of areas like Ralston Commons.

Navigating Financial Realities

Finance Director Brian Archer presented the financial landscape facing Arvada, acknowledging that while the city continues to grow, the pace has moderated significantly. The budget assumes 2% sales tax growth for 2026, compared to the 4-5% growth rates experienced just a few years ago.

"Revenues remain flat—for Arvada, that means we are still growing, we're just not growing as fast as we've grown in the past," Archer explained.

Operating expenditures continue to rise as the cost of maintaining city services increases. The Capital Improvement Program (CIP) also faces mounting costs, though officials noted they are working to focus resources on projects that can realistically be completed in the coming year.

Looking Ahead: Challenges and Opportunities

Council members engaged in robust discussion about the budget's long-term implications. Council Member Fifer, in his departing remarks as he prepares to leave the council, urged bold thinking for the next two-year budget cycle.

"Challenge the status quo," Fifer advised his colleagues. "Remember what the purpose of the organization is: to deliver excellent services to the city in an excellent manner. Having a good organization doesn't mean having the biggest organization you can have. It's making sure the organization is right-sized to be able to deliver what the expectations of the citizens and taxpayers of Arvada are."

Other council members raised questions about how the city will navigate increasing costs, new state mandates, and growing demands for services in an environment of slower revenue growth. Several emphasized the importance of prioritizing core city services while maintaining competitive compensation packages to retain quality employees.

The council also discussed upcoming changes to the city's urban renewal zones, with some fields set to expire in 2028 and others in 2034, which will affect future revenue streams.

What's Next

The council is scheduled to vote on the proposed budget at their meeting next week. If approved, the 2026 budget will continue the city's focus on infrastructure renewal, technology security, and addressing homelessness while maintaining essential city services.

City officials emphasized that next year will bring a full two-year budget process, providing an opportunity for more comprehensive strategic planning and potential restructuring of spending priorities.

The complete budget discussion is available for public viewing on YouTube.

The Arvada City Council Workshop took place on October 14, 2025, at City Hall. Council Member Ambrose was excused due to work-related travel.