Housing Restrictive Covenant/Deed Restriction Discussion

Town Council was unable to reach a quorum (four or more members present), so this discussion was tabled. As a reminder, three Councilmembers recused themselves from these housing restrictive covenant discussions, as two Councilmembers live in deed restricted housing and one Councilmember is currently pursuing deed restricted housing.

Results of Voter Survey Regarding a Sales or Lodging Tax Ballot Question

Magellan Strategies presented the results of the text survey, as well as a PowerPoint summarizing the results. This survey was administered by Magellan Strategies from May through June 2025 to a sample of Frisco voters via text messaging. Frisco Town Council requested this survey to measure voter support for a sales or lodging tax increase to potentially expedite capital projects from the 10-year plan and/or prioritize unfunded capital projects currently not on the 10-year plan but prioritized by the Council and the community through various planning processes.

Summary of the Results

• Town job approval and fiscal responsibility are both above average with 72% of respondents approving of the job that the Town of Frisco is doing to provide services and programs to residents.
• 77% of respondents believe the Town already has the financial resources necessary to provide an acceptable level of services and programs.
• Only 33% of respondents would generally support (without any specifics) a tax increase dedicated to capital projects.
• Fire mitigation was identified by respondents at the #1 priority, followed by trails and roads/sidewalks. Note: Town funding for fire mitigation is not included in the approved 10-year capital plan, as such funds have been sought at the federal level for the Frisco “Backyard”, which is on US Forest Service land and currently in the NEPA (National Environmental Policy Act) process. Such federal funding is uncertain at this time.
• 46% of respondents indicated that they would vote yes on the sales tax, and 54% of respondents indicated that they would vote yes on the lodging tax.
• Many respondents are opposed to new taxes at this time and are generally fine with things in Frisco as they are.

Town Council Direction

Town Council discussed the survey results and constituent comments, which indicated hesitancy around increased taxes. Subsequently, Town Council decided not to put a sales or lodging tax increase on the ballot and instead take a deeper look at the 10-year Capital Plan and budget, as fire mitigation on federal land has uncertain funding at the federal level at this point and has clearly been identified as a priority to the community in the survey results and by Town Council. Town Council also gave staff direction to reach out to other entities, such as Denver Water, which has a strong interest in fire mitigation in Frisco’s “Backyard”.

2026 Budget Guidance

Staff initiated this budget discussion with Town Council to provide an early and important opportunity to align Council’s policy objectives with financial realities, ensuring that the Town’s 2026 budget reflects Frisco’s strategic priorities, while maintaining long-term fiscal health and service delivery.

Financial Landscape & Revenue Outlook

The Town continues to monitor a softening economic environment and sees mixed indicators in both local and national trends. Key considerations include:

• Frisco continues to perform better year-over-year in revenues compared to many neighboring communities.
• Sales tax revenue is forecasted at -1% in 2025 over 2024 actual tax revenue, +2% in 2026, and +3% in 2027, indicating modest but stable future growth.
• General Fund revenue is projected to increase by approximately 1.6% in 2026, following a 1.9% decline in 2025, and is expected to remain relatively flat when compared to 2024 actuals.
• Inflationary pressures, changes in consumer sentiment, shifts in retail and lodging activity, and construction trends all contribute to ongoing economic uncertainty and justify a cautious and proactive budget approach.

Proposed Budget Approach

In response to current forecasts, staff recommend the following approach to 2026 budget development:

• Maintain a balanced General Fund, where operating revenues exceed operating expenditures.
• Implement an approximately 3% reduction in total General Fund expenditures versus the 2025 original budget (this is the 2025 budget that was passed in 2024 and does not include any rollovers or appropriations made in February 2025).
• Preserve investments in the adopted 10-Year Capital Improvement Program, infrastructure repairs and maintenance, core municipal services, and competitive employee compensation and benefits to attract and retain a high-performing workforce.
• Maintain flexibility, closely monitor economic indicators, and be prepared to adjust expenditure plans as conditions evolve throughout the budget cycle.

Town Council Direction

Town Council gave staff direction to continue with the outlined approach in preparation for the Town Council budget work session scheduled for September 9, 2025. This will then prepare Council to approve the 2026 budget over the course of two meetings in October 2025.

Contract to Improve the Energy Efficiency of Town Buildings

The Town of Frisco has been participating in Colorado’s Energy Performance Contracting (EPC) program to improve energy efficiency across Town of Frisco owned buildings. In June 2023, the Town enrolled and contracted with McKinstry to conduct an Investment Grade Audit (IGA), which has been completed.

EPCs allow municipalities to fund energy upgrades with minimal upfront costs, using energy savings to repay financing. Proposed upgrades include but are not limited to LED lighting, solar power, electric vehicle charging stations, and energy-efficient HVAC systems. The project, with a net cost of $295,000 to the Town, is supported by $1.5 million in grants and is expected to generate approximately $724,000 in energy savings over 20 years.

Council Decision

Council voted to approve a resolution to contract with McKinstry, which was selected as part of a request for proposal process, to facilitate financing and implementation of the Town’s energy upgrades as identified in the Investment Grade Audit.

Frisco Town Council Meetings: Ways to Participate

Frisco Town Council meetings are available to view via Zoom and YouTube, and are also held in person to make Town Council meetings easier to access for everyone.

The public can provide comment during meetings via Zoom or in person (not YouTube), and a public comment period will be available at 7:00pm; during the consideration of ordinances; and at the discretion of Town Council during work session items, which are discussions that don’t require a formal vote by Town Council and do not require public comment. Again, this hybrid approach is intended to make Town Council meetings more accessible, and meeting recordings will typically also be made available the day after a meeting in the meeting archive with agenda topics bookmarked to the discussions in the video.