City of Greeley Uses Voluntary Separation to Help Reduce Projected Budget Deficit

GREELEY, Colo. — The City of Greeley has elected to offer voluntary separation agreements (VSA). This is part of its strategy to address an $18 million budget deficit projected for 2027.

City leaders have discussed the structural deficit during public budget talks with the Greeley City Council. VSAs were also discussed in last night’s council session. The VSA program let eligible employees choose to leave city jobs voluntarily. Applications have now been submitted and reviewed.

The city is also leaving some vacancies open and limiting hiring new employees. This is part of its plan to manage spending and prepare for the 2027 budget.

“Greeley’s structural deficit requires thoughtful and responsible action,” Director of Human Resources Martha Lanaghen said. “The voluntary separation agreement program gave employees nearing retirement or considering a career change a respectful option while helping the city take an important step toward reducing ongoing costs.”

About the 2027 Structural Deficit

A structural deficit happens when ongoing city expenses grow faster than ongoing revenue. City officials say that challenge requires long-term solutions, not one-time fixes. The projected deficit is tied to the city’s general fund, which supports many core city services and personnel costs. Cutting capital projects would not solve the problem. Those projects are often funded through sources that are restricted for specific uses. The money cannot simply be shifted to cover expenses like wages and benefits.

One-time funds, from reserves and a transfer from the capital fund, helped cover the deficit in 2026. However, that approach cannot solve an ongoing gap. The general fund gap is being caused by slower-than-anticipated revenue growth and rapid growth in expenditures.

“This is about building a sustainable budget for the future,” Budget and Policy Director Nathan Mosley said. “We are looking carefully at how the city can continue to provide core services while adjusting to long-term financial realities.”

The city is now entering the next phase of the budget process This phase includes a wider review of department and project proposals. It will also look at how these changes might impact city operations and services.

Upcoming Sessions Enable Residents to Learn More

Residents of Greeley can learn about departmental proposals in upcoming City Council work sessions. City leaders will present their proposed budget plans for 2027.

The budget review schedule is as follows:

• May 26: Deputy City Manager- Chief Financial Officer Allena Portis to discuss Finance and Budget; City Manager Brian McBroom to discuss City Manager’s Office, Fire, Police and Office of Emergency Management
• June 9: Deputy City Manager Kelli Johnson to discuss Community Development, Economic Development and Urban Revitalization, Housing Solutions, Homeless Solutions, Culture, Parks and Recreation and Communication and Engagement
• July 14: City Attorney’s Office; Assistant City Manager Kimberly Southern to discuss Human Resources, High-Performance Government, City Clerk’s Office and Information Technology; Deputy City Manager Bret Naber to discuss Public Works and Water & Sewer

Residents can attend work sessions in person or view them via the online portal. Meetings are subject to change, and residents should check the online portal for the latest agenda.

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