2026 Proposed Budget Discussion
Frisco Finance Director, Leslie Edwards, presented the 2026 proposed budget to Town Council during their work session on September 9, 2025.
Financial Landscape and Revenue Outlook
The Town continues to monitor a softening economic environment and is seeing mixed indicators in both local and national trends. Key considerations include:
- Frisco continues to perform better year-over-year compared to many neighboring communities.
- Sales tax revenue is forecasted at -1% in 2025, +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 guide 2026 budget development:
- Maintain a structurally balanced General Fund, where operating revenues exceed operating expenditures.
- Implement a reduction of approximately 3% in total General Fund expenditures versus the 2025 original budget.
- 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.
Budget Snapshot
Council was presented with a summary of all funds; the Town has 12 funds total. Since 2014, the Town Council has set a seven-month reserve requirement for the General Fund; the General Fund is used to fund traditional Town services. Amounts more than this reserve are transferred to the Capital Improvement Fund for capital projects. Also, it is important to note that the Town only receives about $300,000 per year in property tax and that most of the Town’s revenue in the General and Lodging Funds comes from sales and lodging tax. A quick overview of the General Fund Budget:
- Budgeted Revenue: 2025- $21,488,812 and 2026- $22,157,245
- Budgeted Expenditures: 2025- $22,016,101 and 2026- $21,860,327
- Staff reduced the 2026 budgeted expenditures in the General Fund by $1,038,188 over 2025 in anticipation of the 2026 economic conditions.
- Almost $350,000 in childcare tuition assistance will now come out the Summit County “Strong Futures” funding, rather than Frisco’s nicotine tax revenue, which has been steadily decreasing.
Council was also presented with a debt overview for 2026. During the September 23, 2025 work session, Council will be discussing the capital plan and 2026 grant recommendations.
Budget Approval in October
The recommended 2026 budget will be presented for adoption with a first and second reading, with public comment opportunities during the October 14 and October 28 Town Council meetings.
Regional Transportation Authority Formation Committee
Local jurisdictions across Summit County and neighboring regions have identified the need for a coordinated, long-term solution to address growing regional transportation challenges, including:
- Increasing traffic congestion along I-70 and regional corridors.
- More access to regional solutions for workforce who are commuting from beyond Summit County.
- The need to expand transit trips and access in order keep work commutes affordable.
- Limited public transit options for residents, workers, and visitors.
- Environmental impacts of single-occupancy vehicle travel.
- The need for sustainable funding mechanisms for transportation infrastructure and services
In response, regional participants have proposed the formation of a Regional Transportation Authority (RTA) that would enable participating jurisdictions to collaboratively plan, fund, implement, and operate a regional public transportation system that better meets the needs of residents, visitors, and businesses in Summit County. The participating jurisdictions would include Breckenridge, Keystone, Frisco, Silverthorne, Dillon, Montezuma, Blue River, and Summit County.
Council Decision
Town Council approved the memorandum of understanding agreeing to the Town of Frisco’s participation in a formation committee to draft an intergovernmental agreement to form the governance of the RTA.
Frisco Town Council Meetings: Ways to Participate
Frisco Town Council meetings are available to view via Civic Plus Resident Portal, 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.