As rising costs strain households and governments, the city of Cortez is proposing a $39.6 million budget for 2026 and urging residents to review the draft online as part of a transparent approval process.
Rising costs are outpacing revenue growth for municipalities, businesses and households, creating widespread financial uncertainty. The city of Cortez is no exception, said Finance Director Randy Bailey.
He added that community collaboration and government transparency are necessities in the current economic climate.
“I would consider 2026 a year that we’re actually in a bit of decline,” Bailey said. “Costs for infrastructure, construction, materials, fuel, heavy equipment are astronomically higher in cost than they were a few years ago.”
The city is experiencing economic constraints similar to those seen across Colorado and the U.S. The downturn – this year’s “relatively flat” budget outlook – is attributed to several factors.
“In 2025, we had budgeted $15.7 million in tax revenues. In 2026, we’re currently budgeting $16 million. So, we’re a $300,000 increase,” Bailey said. “It sounds like a lot, but in terms of the overall city of Cortez, it’s relatively flat,” he said.
Bailey said federal grant programs have been reduced, limiting external funding sources. The city is also seeing declines in state revenue sources, like severance and mineral taxes, which further affect the budget.
The federal shutdown has created a “rippling effect” with reduced consumer spending, meaning people travel less or spend less money generally, affecting the city’s sales tax revenue.
Although the city hasn’t cut services, Bailey said it is delaying asset replacements and deferring projects like park bathroom facilities.
“We are just trying to extract every bit of value out of every dollar that we have,” he said.
Bailey said the city aims to make any service reduction or delay thoughtfully, consistently and with clear communication.
“The public has to be with us … because those are going to be hard decisions, and not everybody’s going to be happy,” he said.
To view the budget draft and submit questions or comments, residents may visit ClearGov.com. The budget’s first reading will come during the City Council meeting Oct. 28; the second reading and public hearing, on Nov. 12.
Residents may attend meetings in person or view livestreams and recordings afterward. See the livestream at https://www.cortezco.gov/497/City-Council-Live-Stream
Cortez’s proposed budget includes about $39.6 million in expenditures and $40 million in revenue. These totals cover all city accounts, including the general fund, special revenue funds for voter-approved uses, enterprise funds and internal service funds for shared costs like insurance.
The budget is driven by City Council goals: urban renewal, housing, economic development, workforce development, infrastructure and asset replacement.
The general fund is projected to spend about $14.4 million next year and generate about $14.9 million. The largest contributors of revenue are the city’s sales and use taxes, with property tax playing a minimal role – roughly $136,000 projected for 2026.
The general fund covers day-to-day expenses such as police, parks, planning and general maintenance, Bailey said. Of the $14.4 million in expenditures, about 36% is proposed for Public Safety, 26% for general government services, 16% for Parks and Recreation, 16% for Public Works and 7% for community development.
The airport’s revenue and expenditures for 2026 initially look high – $7.8 million in revenue and $7.7 million in expenditures – but Bailey said the figures are inflated by federal grant funding tied to large capital projects.
Bailey said the core operating budget is much smaller, $500,000 to $750,000 annually. Airport projects include repaving the runway, installing perimeter fencing and security gates, upgrading navigation aids, improving TSA facilities, redoing the fuel station and adding a self-serve fuel stop.
“We do have plans, within the next year or two, where we expect (the airport) to be self-funding – that is the long-term strategic plan,” Bailey said.
