Craig City Council approves 2026 budget and utility rate increases, finalizes city manager transition plan

John Camponeschi/Craig Daily Press
The Craig City Council worked last Tuesday to approve the city’s 2026 budget, adopt wastewater and refuse rate increases and authorize a transition agreement for City Manager Peter Brixius, who intends to retire in June.
The meeting also included updates from staff on housing, infrastructure and public safety.
Mayor Chris Nichols was excused at the start of the meeting before the council approved the consent agenda, which included minutes from recent meetings and the payment of $951,054.96 in bills through Nov. 6.
During his report, City Manager Brixius highlighted ongoing projects including the receipt of a signed SBA Communications lease option and an initial payment for a future tower site on the Sandrocks. The company will now begin a 60-day due diligence period. The agreement, according to Brixius’ statement during his presentation, could bring the city about one-third of a million dollars if finalized.
He also spoke about ongoing work to update the Chamber of Commerce master lease agreement for the historic Yampa Building, while recognizing improvements that have been made to the building, including upgrades supported by grant funds. The Senior Social Center has also “really blossomed,” according to Brixius, as he described it as one of the key successes of the Yampa Building’s community-oriented use.
Additional updates included geothermal feasibility work and progress on Craig Housing Authority projects.
“We’re currently working on the housing authority finalizing a more significant down payment assistance plan, finishing up on staging a couple of units and we’re working to satisfy the requirements of the TAG grant,” explained Brixius.
Council members reported on recent events and meetings around the community.
Councilmember Michelle Gottschall, who was recently reelected to the council, attended the Memorial Regional Health 75th anniversary celebration. Councilmember Randy Looper reported on preparations for the Parade of Lights, which is scheduled for Nov. 29, and also thanked local police for assisting with Veterans Day flag placement earlier that day.
Councilmember Andrea Camp raised concerns about multifamily properties in disrepair and discussed the potential implications of Senate Bill 25-020, which expands enforcement options for state and local governments.
“… it gives significant new powers to state and local authorities to enforce existing laws,” she said.
Later, she noted that “I think we’re just working with those owners to encourage them and incentivize them to get those things taken care of.”
Other reports also addressed airport planning, golf course winter closures and economic development work related to settlement funds tied to the Tri-State plant closure.
After no one spoke during public comment, the council moved into three scheduled public hearings on the 2026 budget and utility fee updates.
Finance Director Mindy Elliott presented No. 1171 (2025), the city’s proposed 2026 budget. She said the budget reflects months of collaboration between department heads, the finance department and council to align spending with community needs while also being “fiscally responsible”.
The budget drew no public comment during the meeting, and the council later approved it.
Council then opened public hearings for Ordinance Nos. 1172 and 1173 (2025), which update wastewater and refuse collection fees. Elliott said a 5% wastewater rate increase is needed to sustain the enterprise fund, which covers capital and operational costs. She said the monthly base rate will increase by about $2.40 to $49.95 and noted that base rate discounts are available for qualifying residents beginning Jan. 1.
Elliott said the recommended increase for solid waste is 4% for 2026 and stems from an analysis presented during the city’s full-day budget session.
Neither ordinance drew public comment, and the council approved both on second reading.
The council approved a negotiated transition agreement with City Manager Brixius, who has shared a proposed retirement date of June 1, 2026. Under the terms, Brixius will continue serving until that date unless otherwise agreed. After the hiring of his successor, he will assist with onboarding for up to 90 days. Upon retirement, he will receive six months of salary and continued health and retirement benefits paid on the city’s regular schedule.
Public Works Director Danny Paul provided an update on October operations, noting awards related to National First Responder Day and the city’s receipt of a $150,000 CDOT grant to develop a rail station area plan, which will not require a match from the city. He also reported on golf course flood mitigation planning and utility facility upgrades. Paul said the city plans to resume work on short-term rental regulations in December.
Paul also provided the council with an update regarding the Meadows Apartment complex.
“The Meadows Apartments project did not finalize its funding, and other various issues it was working through, before winter set in, so they weren’t able to break ground yet,” said Paul. “The developer Colorado Outdoors remains committed to moving that project forward next spring.”
The winter months will be used to finalize the site plan that was approved by the council in September as well as to complete required agreements between the city and the developer.
Police Commander Doug Conrad reported increases in speeding citations, DUI arrests and calls for service. He also spoke about trends in code enforcement, which included more than 220 cases that were opened and closed in October. Conrad said the addition of weekend code enforcement coverage has increased diligence and reduced the load on patrol officers.

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