Palmer Lake’s October forecast projected a $600,000 reserve draw in 2027
A Nov. 5 draft budget put near-term General Fund shortfalls far below the October projections, though the figures cover different financial scopes.
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Palmer Lake Town Administrator Patrick Davidson projected a $600,000 reserve draw in 2027 after a $1 million year-end deficit in 2026. He also estimated that town reserves could last about 1.3 years, telling the Parks and Trails Commission in October
Davidson said park funds earmarked in January would remain protected and would not be reassigned to cover General Fund shortfalls.
A draft budget dated Nov. 5 estimated a $179,058 General Fund shortfall at the end of 2026 and a $32,198 shortfall for 2027, both to be covered from unassigned fund balance. The draft was included in the packet for the Board of Trustees’ scheduled Nov. 12 meeting and had not been adopted as of Nov. 10. The draft’s estimates cover the General Fund; Davidson’s October remarks did not specify which funds or balances were included in his reserve forecast.
At a Nov. 5 special meeting, town staff said spending freezes, service cuts and staffing changes had addressed most of the initial deficit. Staff expected to cover the remaining amount with one-time internal transfers and projected future parking revenue would replenish them, the Board’s minutes record.
A Sept. 30 unaudited financial statement listed $3.59 million in General Fund reserve accounts and $4.70 million in total General Fund cash accounts. The financial report provides a snapshot, but the October forecast does not say whether those accounts formed its basis.