City Council adopts 2025 budget

The Loveland City Council adopted the 2025 Loveland Budget on Tuesday, Oct. 15 with a vote of 6-3.

The 2025 budget process was complicated by the reduction in sales tax revenue to the General Fund due to the loss of a major revenue source. The estimated loss is $10.5 million in 2024 and each year going forward. This reduction, along with an already strained General Fund, led to necessary expense reductions to align with reduced revenue.

To address this, City staff prepared two budget options for 2025: one with reduced services and one maintaining current services. The reduced services budget was approved, and outlines reduced General Fund capital and program expenses to match current revenue. If the City’s financial position should improve in November, the current services budget could be implemented with City Council approval. Those discussions would need to happen in public meetings after the 2025 revenue model becomes known.

Outside of the General Fund, the 2025 City budget is “business as usual.” Our Utility (Water, Power, Pulse Internet Service), Enterprise (Stormwater, Golf, Mosquito Services) and Special Revenue (Marketing, Conservation Trust) funds are not directly impacted by the sales tax change, as their revenues come from user fees and special purpose taxes. These funds still face the challenges of rising capital costs and supply chain issues, but do not require any unscheduled fee increases.

See the reduced services and current services budgets outlined during the August 15 Budget Retreat, the 2025 rates, charges and fees. Other information on the 2025 budget can be found in the October 15 City Council packet.