What's Happening in Broomfield

2027 Budget Planning

How is the City and County of Broomfield changing their budget planning? City Manager Hoffman has been shifting Broomfield from a growth-oriented to a maturing community—about 85% built out.

• What is the City and County of Broomfield claiming are the key financial challenges?
• Declining property tax revenues (projected $6.5 million reduction).
• Modest growth in sales tax revenue.
• Declining revenues from oil and gas properties.
• City and County of Broomfield budget priorities focus on:
• Maintaining current service levels.
• Asset management and reinvestment rather than expansion.
• Personnel costs make up about 85% of the budget.
• Broomfield Council is claiming they have adopted a disciplined approach, avoiding new programming (except for social programs) and limiting staffing increases.
• The City and County of Broomfield reiterates that they have not increased sales tax or mill levies since its inception (but the population has grown significantly, so the revenues are up). However, they have declined to reduce either the mill levy rate or related spending as part of their budget strategy.
• Trade-off conversations are necessary to balance community amenities with fiscal sustainability.

Enterprise Funds Update - Water Utilities

The City and County of Broomfield also provided an update on enterprise funds and water utilities.

The greatest concerns intertwining drought watch and water/sewer infrastructure are:

• Sustaining water supply amid cyclical drought conditions, while managing higher-than-normal consumption early in the year.
• Financial challenges driven by reduced property tax revenue, development fee shortfalls, and rising operational costs affecting infrastructure maintenance and needed improvements.
• Need for rate increases and budget discipline to fund critical infrastructure, maintain service levels, and address deferred maintenance.
• Limited water storage and regulatory hurdles that constrain flexibility in managing water resources and infrastructure upgrades.
• Ongoing outreach and conservation programs are essential to mitigate demand but face limits without mandatory restrictions.

What are the detailed conversations?

• Water Supply Sufficiency: Despite record low snowpack and early snowmelt, Broomfield’s water supply is projected to be sufficient for 2026 due to investments in regional reservoir systems (Denver Water, Northern Water - CBT and Windy Gap).
• CIP funding is constrained, focusing primarily on preventive maintenance rather than new projects.
• Projects already in the 5-year CIP plan will continue as scheduled, but new projects require offsetting cuts elsewhere.
• Regulatory and Operational Challenges:
• Delays in regulatory approvals (e.g., CDPHE for lift station designs) risk increasing project costs and timelines.
• Emerging treatment costs are anticipated due to natural uranium in water sources, but full impacts are still being assessed.
• Reuse and Stormwater Systems:
• Reuse water supply is sufficient but dependent on treated effluent and limited by senior water rights.

Expense Report for Elected Officials - 1st Quarter 2026

First Quarter total expenses amounted to $18,864.52, which is approximately 25% of the annual budget. The councilmember’s expense report was listed as an informational agenda item, so public comment wasn’t allowed. Prior expense reports were held during regular council meetings, why the change?

We review these reports closely to ensure councilmembers stay focused on Broomfield—not leveraging the role for outside opportunities. Many questions or discussions could be resolved by phone or email. Our review of councilmember expenses uncovered James Marsh-Holschen’s P-card overspending. Councilmembers must be held accountable.

Broomfield Taxpayer Matters Perspective:

Affordability Solutions - Lessons from Argentina’s Housing Miracle – and Why Cities Like Broomfield Should Pay Attention

As local governments grapple with shrinking federal grants while ramping up social program spending, housing affordability remains one of the biggest burdens on taxpayers and families. Broomfield Taxpayer Matters comes with real-world solutions.

A powerful real-world example comes from Argentina, where President Javier Milei dramatically slashed housing costs through deregulation rather than more controls.

Argentina’s Success Story

When Milei took office in 2024, rents in Buenos Aires consumed a staggering 90% of average monthly income. Just two years later, that figure dropped below 30% — a roughly 70% reduction in housing costs.

How? By doing the opposite of many U.S. cities:

• Eliminated rent controls and mandatory long-term leases with capped rents.
• Simplified contracts and strengthened landlord protections against abuse.
• Allowed landlords to set any terms, prices, and even currencies (including dollars, gold, or Bitcoin).

Results:

• Rental supply surged 170%.
• Listings tripled.
• 200,000 previously vacant units entered the market.

This stands in stark contrast to cities like New York (with tens of thousands of withheld vacant units and ultra-low vacancy rates), San Francisco, Los Angeles, and Colorado, where heavy regulations, rent controls, and tenant mandates continue to stifle supply and drive up costs.

Relevance for Local Budgets

With grants declining and social expenditures rising, cities face tough choices. Housing policy offers a clear lever: deregulation can deliver affordability without massive new taxpayer subsidies. Expanding supply through fewer barriers (e.g., streamlined permitting, reduced mandates) eases pressure on public assistance programs and lowers long-term costs for residents — and thus for the budgets that support them.

Bad Press & a Bad Brand for Colorado

Colorado’s reputation as a business-friendly state is taking a serious hit.

In a recent Wall Street Journal article, entrepreneurs and venture capitalists describe the once-thriving “Silicon Mountain” corridor (Boulder to Colorado Springs) as turning into “California 2.0” — burdened by excessive red tape and regulations (another way to say central planning).

The numbers are sobering:

• Colorado ranks 48th in the nation for net new business establishments per capita.
• The state lost a net 3,934 businesses in 2024.
• This resulted in a net loss of 13,287 jobs — the worst per-capita business exodus in the country.

Business leaders and the Colorado Chamber of Commerce warn that heavy-handed mandates on employers are driving companies and talent out of the state.

The editorial warns this self-inflicted damage is creating a toxic “black eye” for Colorado’s brand — one that threatens long-term job growth and economic competitiveness.

It’s a clear wake-up call: over-regulation is hurting the very people and businesses that power Colorado’s economy.

Colorado’s Shrinking Workforce: Another Warning Sign

Colorado’s unemployment rate held steady at 3.9% in March — better than the national average. But the headline hides a troubling trend.

The state’s labor force participation rate fell to 66.3% — the fourth-lowest level in 50 years (outside the COVID period). Since December, roughly 26,000 Coloradans have stopped working or looking for work.

While some of this is due to demographics (aging population and retirements), economists also point to slower net migration, business uncertainty, and a pullback in hiring amid regulatory and economic pressures.

Job growth remains anemic, with preliminary gains in March likely to be revised downward — continuing a pattern of weak employment numbers.

Bottom line: Fewer people participating in the workforce + businesses struggling with red tape = a slower-growing Colorado economy. This reinforces concerns that the state is losing its competitive edge.

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