Annual Investment Update
At the September 8, 2026 meeting, the Finance Department presented its annual
review of the Town’s cash and investment portfolio, which included a review of the $21,240,418 in investments as of July 31, 2026. The presentation summarized where funds are held, the portfolio’s liquidity and maturity profile, security composition, credit and call features, and performance relative to the applicable U.S. Treasury benchmark. The presentation reports a weighted average yield of 3.96% for securities and certificates of deposit and 3.85% for the total portfolio including liquid balances.
Town Council adopted the current Investment Policy in January 2026. The policy
establishes safety of principal as the foremost objective, followed by liquidity, and then return. Within those fiduciary and legal constraints, the policy encourages investment in companies with positive environmental, human-rights, fair-workplace, and equal-rights practices. It discourages investment in entities that receive a significant portion of revenue from the manufacture of tobacco products, firearms, or weapons not used in national defense. It also requires an annual Council review of the portfolio, including holdings, market value, investment performance, and progress toward the Town’s investment objectives and goals.
Council Discussion
Council had discussion about the return on investments and supported the Finance Department’s ongoing review of the Town’s diversified investments.
2027 Budget Update
Frisco Finance Director, Leslie Edwards, presented the 2027 proposed budget to Town Council during their work session on September 8, 2026.
Budget Supporting Town Strategic Plan Priorities
The budget is structured to support the Town’s strategic priorities:
- Quality Core Services – Ensuring the Town continues to deliver dependable, efficient, and high-quality services for residents, businesses, and visitors.
- Thriving Economy – Supporting tourism while diversifying and strengthening Frisco’s year-round economy.
- Community Inclusivity – Promoting a welcoming and supportive environment where all residents and visitors feel connected and valued.
- Vibrant Culture, Arts, and Recreation – Sustaining Frisco’s character as a mountain community that values recreation, creativity, and quality of life.
Over the past year, Town Council has further solidified long-term priorities by adopting a Capital Improvement Program and a 10-Year Housing Plan in addition to currently conducting a water rate study that will solidify the capital improvements in the Town’s water system for years to come.
Budget Snapshot
Council was presented with a summary of all funds. Since 2014, the Town Council has set a seven-month reserve requirement for the General Fund; the General Fund is used to fund core Town services.
- Sales tax collections through July 2026 are up 1% compared to last year, while lodging tax revenues are down 0.1%, primarily due to shifts in the short-term rental market.
- Revenues are projected to remain flat between 2024 and 2026, the Town’s carefulstewardship allows for stability and continued investment in community priorities.
- Appropriations in the proposed 2027 budget total $67,464,393 and remain structurally balanced, as required by Town Code.
- The 2027 proposed budget includes modest reductions from 2025 levels while preserving quality core services and ensuring that the community and visitors continue to experience high-quality amenities and programs.
Council was also presented with a debt overview and capital improvement programs for 2027. Some highlights for capital projects proposed for 2027 include stormwater infrastructure improvements, beginning the design of landscaping which the Town is responsible for at Exit 203, lights at the Frisco Terrain Park and beginner/ski ride hill, sidewalk and walkability improvements, Marina bathrooms, dumpster enclosures, and a multi-sport court.
Council Budget Discussion
Council had questions regarding how sales tax revenue from McDonalds was being figured into the revenue projections for 2027, and staff explained that they had projected this into the budgeted revenue. Staff also outlined that they followed Council’s direction regarding prioritizing staff retention and recruitment by keeping employee pay competitive with other governmental entities in Summit County.
Exit 2023 and Sidewalk Discussion
Council had questions about the landscaping in front of Walmart, which staff explained is being done by Walmart and not the Town. Council wondered if Safeway also had plans to do landscaping near the sidewalk in front of Safeway which the Town will be built once Exit 203 is completed by the Colorado Department of Transportation; it is not known if Safeway plans to improve their landscaping.
Trail and Sport Court Discussion
Council also wanted clarification on how the Backyard Plan trail and recreation improvements are being funded, and staff explained that this was now being budgeted in the Open Space Fund, rather than the Capital Fund. Council had questions about whether the multi-sport court could be built on the area west of Townhall where Xcel is pursuing a bore field for Xcel’s Utility Thermal Energy Network (UTEN) pilot project, and staff stated that this was still in discussion.
Vendor Fee Discussion
Currently, businesses may retain 3% of the sales tax they collect on behalf of the Town as an incentive for timely remittance. This payment is commonly referred to as a vendor fee.
Because sales tax is paid by customers and collected by businesses on behalf of the government, it is not business revenue. Eliminating the vendor fee would recognize that timely remittance is a business obligation and align the Town’s policy with the growing number of municipalities that no longer provide this payment.
Staff recommended eliminating the 3% vendor fee that businesses currently retain from the sales tax they collect on behalf of the Town. Eliminating the vendor fee would result in approximately $140,000 in additional annual sales tax revenue for the Town. This change has been included in the proposed budget.
Staff recommended directing the additional revenue to the Lodging Fund to support events, recreation, and marketing initiatives that benefit local businesses and the broader community.
Town Council expressed concern about the impact on businesses if the vendor fee were eliminated and held a lengthy discussion about how the additional $140,000 in revenue could be used to directly benefit the whole business community. Council discussed the possibility of establishing an economic development fund to capture these revenues and dedicate them specifically to economic development initiatives.
For the current budget, Council gave staff direction to eliminate the vendor fee and direct it to the Lodging Fund. Council indicated a desire to consider the establishment of a dedicated economic development fund in the future to provide a more targeted and transparent connection between these revenues and investments that support the local economy.
Credit Card Fee Discussion
Staff recommended implementing a 3% fee for customers who use a credit card to pay for Town fees and programs. This fee has been included in the proposed budget and is intended to offset the cost of credit card processing.
Councilmembers asked whether the fee could be applied only to certain Town fees or programs. Because the Town uses two primary credit card processors, and the fee would need to be applied consistently through those systems, staff determined that implementing the fee would need to be an all or nothing approach rather than applying it selectively.
Town Council agreed to include the credit card processing fee in the proposed budget emphasizing that ACH, cash, and e-check payments be made readily available to all Town government customers so they could easily avoid this fee.
2027 Marina Operations Discussion
Council had concerns about future water levels and the potential impact on Marina operations and revenue. They encouraged staff to continuously re-evaluate the Marina budget if it appears that there will continue to be low water in Dillon Reservoir in 2027. Staff said that they would bring back a revised budget for the Marina in the first quarter if the water forecast indicates low water levels for 2027.
Budget Approval in October
Council directed staff to bring the budget back for approval during the October 13 and October 27 Town Council meetings, when it will be presented for adoption with a first and second reading, along with opportunities for public comment.
Development Code Changes: Drive-Throughs
Staff presented Ordinance 26-17, an ordinance amending Chapter 180 of the Code of Ordinances concerning zoning, subdivision, and development, to limit the locations of drive-through facilities and removing the reference to “taverns” as a use category. Key reasons for limiting drive-through establishments within certain zone districts could include reducing traffic congestion, lowering air pollution from idling cars, and enhancing pedestrian safety by decreasing vehicle-pedestrian conflicts. Restricting drive-throughs can encourage more walkability and improve aesthetics by reducing pavement sprawl while fostering a stronger community character.
Background
In the spring/summer of 2025, the Town Council reviewed an ordinance related to the amount of drive through signs permitted within the Town. During these conversations, the Council stated they would like to consider prohibiting drive-through facilities on Main Street in the future.
During a work session at the February 2026 meeting, Town Council indicated support for prohibiting all types of drive-through establishments in all zoning districts, except the Commercial Oriented District (CO) located in the Summit Boulevard and 10 Mile Drive area where they would be allowed. Following feedback from Town Council, Planning Commission, and the community that there is a desire to limit the areas where drive- through establishments are allowed, the proposed changes include:
- §180-5.1. Table of uses: Adding a use for “Drive-through facility” within the accessory uses category and marking it as a permitted use in the Commercial-Oriented Zoning District.
- §180-5.3. Accessory uses and structures: Adding a new subsection 4 with design requirements for drive-through facilities.
- §180-6.13. Parking and loading regulations: Making the stacking requirement for fast food restaurants to be per order kiosk rather than window and removing the term “tavern” from Table 6-1 and Table 6-2 which regulate the minimum required parking spaces by use.
- §180-9.2. Definitions of general use categories and §180-9.3. General definitions: Amending the definitions of general use categories and specific uses to add clarity and align with the proposed language in the other sections.
Council Decision
Town Council voted to approve Ordinance 26-17 on first reading. The second reading will be on September 22, 2026.
Development Code Changes: Affordable Housing Process
Staff presented Ordinance 26-18, an ordinance amending Chapter 180 of the Code of Ordinances concerning zoning, subdivision and development, to add provisions for the expedited review of development applications. The proposed code amendment establishes clear eligibility criteria for projects seeking expedited 90-day review. The expedited review process begins only when a completed application is submitted. Extensions are available for the developer and the Town if needed.
To qualify, a development must dedicate at least 50 percent of its dwelling units as affordable housing, with rental units serving households earning no more than 100 percent of the Area Median Income (AMI) and ownership units serving households earning no more than 150% of the AMI. Additionally, housing costs must remain affordable by not exceeding 30 percent of household income, and the project may be subject to deed restrictions consistent with the Town’s affordable housing covenant.
Participation in the expedited review process is entirely voluntary, allowing eligible applicants to either utilize the accelerated review timeline or proceed through the Town’s standard development review process. This flexibility, required by state statute, acknowledges that some affordable housing projects may benefit from a traditional review schedule due to financing requirements, design coordination, or other project-specific considerations.
Background
Ordinance 26-18 is a proposed Fast Track Affordable Housing Code Amendment establishing a formal expedited review process for qualifying affordable housing developments. The proposed amendment creates a new Section 180-2.8 of the Frisco Town Code that implements a 90-day development review process for eligible affordable housing projects, consistent with Colorado Proposition 123 requirements, adopted in August 2023, and the Town’s Strategic Housing Plan.
The amendments are intended to reduce regulatory barriers, improve predictability for affordable housing developers, and maintain the Town’s eligibility for future Proposition 123 housing funding, while preserving existing development standards and public review requirements. These regulations must be in place by December 31, 2026, for the Town to remain eligible for future Proposition 123 funding opportunities and competitive housing grant programs.
Council Discussion and Decision
Council had concerns about the ability of staff to consider larger projects on such a fast timeline, and the point was made that larger projects, like 101 West Main and The Scout on Galena, would inherently require a longer process, as projects of this type typically require a significant partnership with the Town which would typically be pursued and attractive to developers. Council also wondered if this made a fast-track process possible for accessory dwelling units (ADUs), and it would be possible if ADUs were intended to be rented to households earning no more than 100 percent of the Area Median Income (AMI). Town Council voted to approve Ordinance 26-18. The second reading will be on September 22, 2026.
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 on 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.