HomeMy WebLinkAboutInformation Update 093025AGENDA
INFORMATION UPDATE
September 30, 2025
5:00 PM,
I.Information Update
I.A Follow-Up Memorandum - Water Treatment Facility Improvements Project and
Water Fund Rates
I.B Aspen Electric Wholesale Purchase Power Updates
I.C Non-Profit Grants Program Update
Follow-Up Memo_Water Fund Work Session.docx
Exhibit A July 25 2023 info only memo.pdf
Electric_Industry_update_Info_Only_Memo_Final_202509.docx
Attachment A_2026 Grant Program Guidelines.pdf
93025_Grants_Program_Update.docx
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FOLLOW-UP MEMORANDUM
CITY COUNCIL WORK SESSION
WORK SESSION MEETING DATE: August 25, 2025
FOLLOW-UP MEMO DATE: September 5, 2025
AGENDA TOPIC: Water Treatment Facility Improvements Project
and Water Fund Rates
PRESENTED BY: Erin Loughlin Molliconi, Utilities Director
Ryan Loebach, Deputy Utilities Director
COUNCIL MEMBERS PRESENT: Mayor Rachael Richards
Councilman John Doyle
Councilman Bill Guth
Councilman Sam Rose
Councilwoman Christine Benedetti
______________________________________________________________________
WORK SESSION DISCUSSION SUMMARY:
City staff presented on the Water (421) Fund draft 2026 budget and long -range plan
outlook and discussed four proposed options for Water Fund rates and debt service to
support the Water Fund’s capital and operational needs, particularly the Water Treatment
Facility (WTF) Improvements project, in line with the 2025 – 2027 Council Goal of
resource and infrastructure resilience.
1. Topic: Project Drivers.
Majority of council members understood and supported the three primary drivers
for the WTF Improvements project (replacement and renewal of aging equipment
and infrastructure; improving water operator safety; proactively addressing
treatment processes ahead of anticipated regulatory changes). A minority of
council members requested that the WTF Improvements Project design include
measures to increase the WTF’s resiliency to potential wildfire impacts to the City’s
watersheds.
2. Topic: Proposed Rate Increases, Debt Service for 2026 and beyond.
Questions and discussion from council members after staff presented focused on
available Water Funds, allocation of funds to the WTF Improvements project, and
projected water rates after 2026.
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NEXT STEPS:
1. Option #2 – Proposed 15% rate adjustment in fiscal year 2026, projected
10% rate adjustments in 2027 and 2028, and $85M estimated bond measure.
All of Council supported staff with pursuing the financial option presented as Option
#2 at the Work Session. City staff stated that the plan to finance the project will be
to program existing fund balance into the project cost to reduce the debt service
and minimize recommended rate increases.
Deadline. Staff shall be prepared to present impacts of the proposed 2026 rate
increase to monthly bills for the average water customer in Aspen at 2026 budget
sessions in October of this year.
2. Option #2 – Alternatives to smoothing out projected adjustments in 2027
through 2030.
Questions and discussion from the minority of council members posed the
possibility of spreading more gradual, reduced rate adjustments over more years
after 2026. Staff will continue to prioritize setting out -year rate increase proposals
while also ensuring the 421 Fund meets the required reserve threshold and
revenue requirements. As project costs and full implementation scope becomes
more finetuned, staff will update financial modeling that seeks minimal rate
adjustment in any one year. Staff will continue to provide out-year forecasting
updates to City Council as the financial picture evolves.
Deadline. Staff shall present on final water rate recommendations for budget years
beyond 2026 once enough new information is available regarding the WTF
Improvements Project costs and budget planning.
CITY MANAGER NOTES:
______________________________________________________________________
______________________________________________________________________
__________________________________________________________
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MEMORANDUM OF INFORMATION
TO:Mayor and City Council
FROM:Justin Forman, Director of Utilities
THROUGH:Tyler Christoff, Deputy Director of Public Works
Scott Miller, Public Works Director
MEMO DATE:July 19th, 2023
MEETING DATE:July 25th, 2023
RE:Update on electricity transmission delivery costs
BACKGROUND & DISCUSSION:Each month the City of Aspen pays a transmission
delivery rate for the transfer of electrical energy from various 100% renewable generating
facilities. Currently the City of Aspen pays Holy Cross Energy (HCE), Western Area Power
Administration (WAPA), and Public Service Company (PSCo, a subsidiary of Xcel
Energy) for these services.
Costs for electric transmission in our region is generally recovered through a structure
known as the network transmission model. The City of Aspen utilizes PSCo’s network to
move a portion of Aspen’s energy. Participants pay rates based on their proportional
share of capital and operating costs associated with the network. Regardless of the
distance or physical infrastructure utilized on PSCo’s lines, the City pays a fixed amount
multiplied by the peak hour kilowatt (kW) of electrical power delivered. PSCo typically
updates their network transmission service rates annually, which has historically
averaged a single digit percent increase.
PSCo is currently working on a project, the Colorado’s Power Pathway, which is
estimated to cost $1.7 to $2 billion to enable future energy development in eastern
Colorado. The first segment is proposed to be in service by 2025 and final segment will
be finished by 2027. Due to City of Aspen participation in PSCo’s network, there will be
a direct pass-through cost to the Utility even though the City will not directly utilize this
new network infrastructure.
FINANCIAL/BUDGET IMPACTS: In addition to the projected annual increases, the
most recent staff estimates from data provided by PSCo, show the following
transmission rate percentage increases that will be passed through to the City:
December 2023 – December 2024: 15.91%
December 2024 – December 2025: 15.40%
December 2025 – December 2026: 27.79%
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December 2026 – December 2027: 18.37%
The project’s estimated increases could escalate if additional scope or unforeseen
conditions are discovered during construction.
The monthly cost varies by the amount of energy delivered, however current charges from
PSCo average around $47,558.00 per month. Anticipating these increased costs, the
Utilities Department believes the 2023-2024 increase from PSCo can be accommodated
within the existing 2024 electric operating budget (431 Fund). However, the future
network costs will require City Council supplemental approvals and associated supporting
rates in the years to follow.
Utilities staff will continue exploring options to try and mitigate the costs associated with
this project in the electric fund. Staff will also continue to provide updates to City Council
if any major changes have developed with the annual transmission percentage increases
due to this project.
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INFORMATION ONLY MEMORANDUM
TO: Aspen City Council
FROM: Cole Langford, Utilities Business Services Manager
THROUGH: Erin Loughlin Molliconi, Utilities Director
Tyler Christoff, Deputy City Manager
MEMO DATE: September 18, 2025
RE: Aspen Electric W holesale Purchase Power Updates
PURPOSE: This memorandum is intended to update Council on ongoing trends within
the electric industry and, specifically, those impacting wholesale purchase power and
transmission costs associated with providing electricity to the customers within the City
of Aspen Electric service area.
No action is requested of Council.
SUMMARY:
Industry drivers
Energy pricing within our country continues to be influenced by customer usage patterns,
weather, (including more frequent drought conditions), uncertainty around federal policy
and rulemaking, distribution capacity, transmission, pass-through charges for renewable
portfolio standards, and line losses. There have also seen increased state and federal
energy regulations.
In recent years, the electric industry has witnessed a move towards large-scale
electrification for both residential and commercial customers, increased demand from AI
data centers, as well as capital project costs designed to increase capacity and demand
requirements. Further sources of increased energy costs on the national level are being
driven by several economic factors. Fuel costs, especially natural gas, have been volatile,
pushing generation expenses higher. Supply chain shortages and inflation have
increased the price of equipment, labor, and maintenance, while higher inte rest rates
raise financing costs for utility projects. Major grid upgrades and the transition to
renewable energy add further investment needs. Regulatory requirements and growing
electricity demand—from data centers, large-scale fleet electrification, and home
electrification—are also contributing to upward pressure on rates. All of these factors,
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while national, continue to trickle down to the local level and the cost of sourcing and
selling energy to the Aspen Community.
Some local examples of influences on the electric industry which are anticipated to have
a trickle-down affect are the recently adopted State law which requires that any building
and energy code adoption in Colorado must meet or exceed the Colorado Low Energy
and Carbon Code and the Electric and Solar Ready Code (beginning July 1, 2026), as
well as the Colorado Clean Energy Plan which is expected to influence wholesale power
costs and transmission costs over the coming decade.
Transmission
Aspen Electric continues to see annual increased financial impacts on transmission
costs as a result of the Public Service Company of Colorado (PSCo) Power Pathway
Project (see Exhibit A). PSCo, a subsidiary of Xcel Energy, is currently working on
Colorado’s Power Pathway project, which is estimated to cost between $1.7 to $2 billion
upon completion to enable future energy development in eastern Colorado. Aspen
Electric’s share of PSCo’s transmission costs is determined using a network integrated
transmission service (NITS) cost model. Under this model, the electric utility’s monthly
bill is based on the Aspen’s coincident peak relative to PSCo’s transmission system
peak demand. This calculation is performed each month to det ermine our transmission
charges. This cost model distributes costs fairly for usage across the network and
results in a predictable cost share among users.
This project’s transmission system will connect eastern Colorado to the Front Range.
Due to Aspen Electric’s participation in the PSCo network, there are direct pass-through
costs to the Utility. Project costs are partially borne by Aspen electric customers despite
there being no direct benefit of this transmission project. Staff estimate that this project
will result in annual transmission costs exceeding $1 million by project completion
because of these pass-through rate increases, which represents a 200% increase from
current annual transmission costs.
Transmission cost impacts are forecasted to be around 20% per annum over the course
of this project. The cost increases borne by PSCo’s Power Pathways Project is
impacting electric utilities statewide, and Aspen Electric has already experienced a 20%
increase in 2025.
The future transmission costs that are part of this new eastern Colorado network will
result in more significant annual City Council supplemental requests, as well as
offsetting annual electric rate increase requests. Supplementals will be requested as
these cost increases are higher than operating budget authority can keep pace with
under normal base budget adjustments. The table below represents an ongoing
forecast of cost increases. However, these are subject to change due to different
budget cycles and variability in how PSCo calculates their fees based on their
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transmission system peak demand loads. Aspen Electric maintains an energy portfolio
that includes local hydroelectric generation. This local generation accounts for over 25%
of the total annual power needs and is instrumental in helping Aspen mitigate cost
increases impacting non-local power purchased from the utility’s wholesale energy
provider.
Wholesale Power Portfolio
The Municipal Energy Agency of Nebraska (MEAN) is the City of Aspen Elect ric’s
wholesale energy provider of 100% renewable energy. MEAN’s 2025 rate modification
includes a nine (9) percent increase in MEAN’s energy rates and a five (5) percent
increase in rates due to a change in MEAN’s overall Fixed Cost Recovery Charge
(FCRC) that is allocated to Aspen Electric. The MEAN Board, like local municipalities,
annually reviews electric rates and charges to ensure revenues are sufficient to cover
operating expenses and maintain financial viability to serve its wholesale power supply
participants in accordance with policies approved by the Board. MEAN ’s approved rate
adjustment is to address primary drivers putting upward pressure on MEAN’s wholesale
electric cost components.
A primary driver of increased costs is due largely to one-time expenses associated with
the Southwest Power Pool’s (SPP’s) regional wholesale power market expansion into the
Western Interconnection. These costs go toward implementing administrative a nd
general expenses. Another driver of MEAN’s rate adjustments are inflationary pressures
impacting capital, operating, and maintenance costs designed to ensure MEAN’s power
generation resources are dependable and reliable in the markets where MEAN operate s.
Capital costs relating to MEAN-owned and contracted generation resources have nearly
doubled since 2022. Other rate drivers include projected increases in wholesale market
prices, generating fuel costs, and contracted energy prices in 2025.
NEXT STEPS:
No action is requested of Council. Staff are available to discuss additional details on this
topic with Council during the City’s October 2026 Budget worksessions, if desired. Aspen
Electric’s 2026 budget and rate recommendations incorporate the cost increases
discussed in this memo.
Budget Year Forecast Actual Increase
2025 15.91%20.00%
2026 15.40%20.00%
2027 27.79%TBD
2028 18.37%TBD
Forecasted PSCo Transmission Cost Increases
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ATTACHMENTS:
Exhibit A: July 25, 2023, Memorandum of Information – Update on Electricity
Transmission Delivery Costs
CITY MANAGER NOTES:
Please contact the City Manager if there are questions or follow-up needed regarding
the information provided.
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GRANT PROGRAM
GUIDELINES
Stra tegy & Innovation Of fice
427 Rio Grande Pl Aspen, CO 81611
970.920.5264grants@aspen.gov
www.aspen.com/383/grants
CITY OF ASPEN
Updated 9/19/2025
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Table of Contents
Introduction ....................................................................................................................................... 2
Program Updates ............................................................................................................................... 3
Strategic Foundations ........................................................................................................................ 4
Grants Program Philosophy ................................................................................................................... 4
Strategic Focus Areas ............................................................................................................................ 4
Arts & Culture .................................................................................................................................... 4
Community Nonprofit ........................................................................................................................ 4
Health & Human Services .................................................................................................................. 4
Competitive Grant Guidelines ............................................................................................................. 5
Eligibility Requirements ......................................................................................................................... 5
Defining Aspen-Based ........................................................................................................................... 5
Division Tiers and Funding Request Limits .............................................................................................. 5
Funding Terms & Timeline ...................................................................................................................... 6
Required Reporting ............................................................................................................................... 7
In-Kind Grant Policies ............................................................................................................................ 7
Ineligible Requests ................................................................................................................................ 7
Required Documents ......................................................................................................................... 8
Application Documents ......................................................................................................................... 8
Organization Documents ....................................................................................................................... 8
Mini Grant Pilot .................................................................................................................................. 9
Eligibility Requirements ......................................................................................................................... 9
Financial Health Review ........................................................................................................................ 9
Funding Terms & Timeline ...................................................................................................................... 9
Required Reporting ............................................................................................................................. 10
Ineligible Requests .............................................................................................................................. 10
Application Documents ....................................................................................................................... 10
Organization Documents ..................................................................................................................... 10
Appendix ......................................................................................................................................... 11
Appendix–Aspen Urban Growth Boundary ............................................................................................ 11
Appendix B–Review Criteria Descriptions & Weights .............................................................................. 12
Appendix C–Scoring Definitions ........................................................................................................... 13
Appendix D–Qualities of High-Scoring Applications ............................................................................... 13
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Introduc*on
Since 1996—almost 30 years—the City of Aspen’s grant program has distributed more than $31
million to local nonprofit organizaAons. The program supports organizaAons in three divisions:
Arts & Culture, Community Nonprofit, and Health and Human Services. Grant proposals are
accepted on an annual basis and are reviewed and scored first by a commiLee of ciAzen
volunteers and then assessed by the Grants Steering CommiLee to determine funding amounts
to recommend for city council approval.
Applicants to the City of Aspen compeAAve grant program should read through the guidelines
and eligibility requirements carefully before beginning the applicaAon process to ensure they
meet program requirements and eligibility. Applicants are required to be tax-exempt under the
provision of SecAon 501(c)(3) of the Internal Revenue Code (or school-affiliated nonprofits).1
The City of Aspen grant program guidelines are adopted and periodically reviewed and updated
by the Grants Steering CommiLee with approval by the city manager and Aspen City Council
when appropriate.
FY 2026 Total Available Funding
Arts & Culture Division $1,114,585
Community Nonprofit Division $598,600
Health & Human Services Division $237,000–$308,000 2
In-Kind Services Division $174,684
Each division is funded by different revenue streams and increase on average, 2.5% annually.
• Arts & Culture Division: Originally funded by a mix of the general fund and the Wheeler
real estate transfer tax (RETT)—which was first established through Ordinance 20, Series
of 1979. In 2021, Ordinance 19 removed the overall funding cap on the fund itself. Now,
these grants are exclusively funded through the RETT. Refer to Aspen Municipal Code
§23.48.060, Wheeler Opera House real estate transfer tax.
• Community Nonprofit Division: Funded exclusively by the city ’s general fund.
• Health & Human Services Division: Primarily funded by the general fund, with
occasional support from tobacco tax revenues, hence the range for available funding.
• In-Kind Services Division: Is not funded by a revenue source. It represents the city ’s
contribuAon of faciliAes, services, or resources provided at no charge to the recipient.
1 Organizations who received an award during the 2025 cycle may apply for a one-time exemption from this
requirement.
2 Funding range reflects projected FY 2026 tax revenue. The lower figure represents the amount without
tobacco-tax funds, while the upper figure includes the portion expected to be allocated to grants.
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Program Updates At-a-Glance
Annual feedback surveys of applicants and reviewers–with guidance from Aspen City Council
and approval by the Grants Steering CommiGee–inform updates to the program.
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Strategic Founda*ons
While funding divisions have been a consistent element of the program’s structure since its
incepAon, the program philosophy and strategic focus areas were developed in 2019 to provide
clarity and direcAon to aid in funding recommendaAons. At the conclusion of the 2025 grant
cycle, feedback surveys were conducted for applicants and reviewers. Based on this feedback,
with guidance from Aspen City Council, the Grants Steering CommiLee have approved the
following changes to the program.
Grants Program Philosophy
The City of Aspen grant program supports nonprofit organizaAons that promote a mentally and
physically healthy community, provide protecAon for our natural environment, and create
opportuniAes for connecAons for all community members through partnerships, ease of access,
stewardship, arts and cultural enrichment and innovaAon.
Strategic Focus Areas
Arts & Culture
The City of Aspen supports arAsAcally excellent nonprofit organizaAons which contribute to the
cultural vibrancy of our community.
Community Nonprofit
The City of Aspen supports and enhances nonprofit organizaAons which create and deliver high
impact community programming.
Health & Human Services
The City of Aspen strives to be a healthy and resilient community by supporAng a
comprehensive system of accessible mental and physical health care, human services, and
community resources.
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Compe**ve Grant Guidelines
All organizaAons who are applying to the compeAAve grant program must meet the following
eligibility requirements and follow the guidelines as determined by the Grants Steering
CommiLee.
Eligibility Requirements
Applicants must meet all requirements to be considered eligible:
¨ Classified as a tax-exempt nonprofit under the provision of SecAon 501(c)(3) of the
Internal Revenue Code (or a school affiliated nonprofit).
¨ Directly provide services or programming within the Aspen to Glenwood corridor that
benefit residents and workforce in this area.
¨ If the organizaAon has received a grant from the City of Aspen previously, a completed
impact and outcome report is required.
¨ Applicants who apply to the compeAAve grant program are not eligible to apply to the
pilot mini grant
Defining Aspen-Based
Aspen-based organizaAons are nonprofits meeAng all other grant program eligibility criteria
that maintain a physical space, accessible to the public (e.g. not a home office or PO box), within
the Aspen Urban Growth Boundary or conduct most of their service delivery within this area.
Division Tiers and Funding Request Limits
Within A&C and CNP divisions, funding request limits are determined by whether an
organizaAon is Aspen-based or non-Aspen-based, and in all divisions (A&C, CNP, and HHS)
requests may not exceed 20% of an organizaNon’s annual operaNng budget.
Arts & Culture Division
Community Nonprofit Division
• Aspen-based: up to $100,000
• Non-Aspen-based: up to $75,000
• Aspen-based: up to $50,000
• Non-Aspen-based: up to $37,500
Health & Human Services Division
• There are no Aers in the HHS division
• All requests are limited to 20% of an organizaAon’s operaAng budget, not to exceed
$30,000.
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Funding Terms & Timeline
Funding terms refer to the period that the grant award covers.
One-Year Funding Term
Next ApplicaAon: 2026
Two -Year Funding Term
Next ApplicaAon: 2027
• Community Nonprofit
• Health & Human Services
• In-Kind Support
• Arts & Culture
The anNcipated Nmeline for the compeAAve grant cycle is as follows:
1. Guidelines & Materials Posted: approximately two weeks prior to the applicaAon
opening, updated eligibility, criteria, and other program changes will be posted on the
website.
a. AnNcipated Date: Monday, September 22, 2025
2. ApplicaNon Window: the applicaAon remains open for approximately two months
during which informaAonal and training sessions will be hosted both in-person and
virtually.
a. AnNcipated Opening Date: Monday, October 6, 2025 @12 NOON
b. AnNcipated Closing Date: Wednesday, December 10, 2025 @5 PM
3. Staff VerificaNon: aker the applicaAon window closes, city staff will review the
applicaAon for eligibility, completeness, and financial health and flag potenAal concerns
for review by the Grants Steering CommiLee. OrganizaAons deemed financially unsound
by the Grants Steering CommiLee will not advance to the review commiLees and are
not eligible for funding.
4. Review CommiGee Scoring: up to five volunteer community members will review and
score applicaAons using the Review & Scoring Framework (see Appendix B). Reviewer
scores are first weighted based on review criterion, then aggregated to generate a
singular score. This score is then applied to an objecAve funding formula to determine
iniAal funding recommendaAons.
5. Grants Steering CommiGee EvaluaNon: iniAal funding recommendaAons are reviewed
by the Grants Steering CommiLee who provide the final funding recommendaAon to
Aspen City Council.
6. Grantee NoNficaNon: applicants are noAfied of their recommended award amount by
email; however, all awards remain pending unAl they receive final approval from Aspen
City Council.
7. Aspen City Council Approval: applicants are invited to the regular city council meeAng
where grant awards will be considered for approval through resoluAon.
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8. ContracNng & Funds Disbursement: contracts are sent to grantees via DocuSign. Once
all parAes have completed signatures, an electronic funds payment (EFT) will be issued
with the award amount.3
Required ReporDng
All organizaAons who receive a grant from the City of Aspen are required to complete an Impact
& Outcome report detailing how grant funds were spent, and it intended outcomes were
achieved—or not. This report is due mid-November annually.
In-Kind Grant Policies
All applicants interested in applying for in-kind grants must abide by the following policies:
• Must provide esAmate of cash-value of the in-kind request (use Aspen Municipal Code
Chapter 2.12 MISCELLANEOUS FEE SCHEDULES to make your esAmates).
• Receiving an in-kind grant does not replace the event applicaAon process. All recipients
must sAll complete and obtain approval of the required event applicaAon with the
appropriate city department.
• Wheeler Opera House: please be aware that in-kind grants do not cover AckeAng or
credit card fees.
Ineligible Requests
The City of Aspen is unable to support the following types of requests:
• PoliAcal or lobbying acAviAes
• Capital campaigns and fundraisers
• Ongoing personnel requests
• Deficits, reArement of debts, or endowments
3 EFTs are the preferred method of payment by the City of Aspen. If you would prefer to receive your grant
award in the form of a check, we ask that you pick up the check directly from our finance department in City
Hall. If you have questions regarding this policy, please email us at grants@aspen.gov.
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Required Documents
ApplicaDon Documents
All organizaAons must include the following documents in their grant applicaAon:
¨ Board Approved Financial Statements
o LAST YEAR: Income Statement
o LAST YEAR: Balance Sheet
o CURRENT YEAR: OperaAng Budget
o Program/ Project Budget (only for programmaAc/ project requests)
¨ Most recently filed IRS Form 990
¨ List of Board Members including full names, Atles, emails, and dates of expiry.
OrganizaAons requesAng $50,000 – $100,000 must also include:
¨ LAST TWO YEARS: Income Statements
¨ LAST TWO YEARS: Balance Sheets
¨ Independent Financial Audit completed within the last three years
OrganizaDon Documents
OrganizaAon documents remain aLached to the organizaAon’s profile and need only be
provided should updates need to be made.
¨ IRS LeGer of DeterminaNon
¨ Web-ready Logo (.png or .jpg preferred)
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Required ReporDng
Within one year of receiving the award, the organizaAon must provide a short one-page
summary explaining how the funds were used. They should include any supporAng evidence
such as photos, news arAcles, or leLers from the community expressing appreciaAon for the
program or service.
Ineligible Requests
The City of Aspen is unable to support the following types of requests:
• PoliAcal or lobbying acAviAes
• Capital campaigns and fundraisers
• Ongoing personnel requests
• Deficits, reArement of debts, or endowments
ApplicaDon Documents
All organizaAons must include the following documents in their grant applicaAon:
¨ CURRENT YEAR: OperaAng Budget
¨ List of Board Members including full names, Atles, emails, and dates of expiry.
OrganizaDon Documents
OrganizaAon documents remain aLached to the organizaAon’s profile and need only be
provided should updates need to be made.
¨ IRS LeGer of DeterminaNon
¨ Web-ready Logo (.png or .jpg preferred)
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Mini Grant Pilot
This pilot mini grant is designed to provide a quick and simple infusion of funds to support
community organiza;ons through general opera;ng support. With a streamlined applica;on
and minimal requirements, this noncompe;;ve program is designed to reduce barriers and
expedite the disbursement of funds.
• This grant is going to be piloted in the Community Nonprofit division.
• 25 awards of up to $5,000 to be given in this pilot year.
Eligibility Requirements
Applicants must meet all the following criteria to be considered eligible:
¨ Classified as a tax-exempt nonprofit under the provision of Sec;on 501(c)(3) of the
Internal Revenue Code (or a school affiliated nonprofit).
¨ Open to Community Nonprofit division only
¨ Directly provide services or programming within the Aspen to Glenwood corridor that
benefit residents and workforce in this area.
¨ If the organiza;on has received a grant from the City of Aspen previously, a completed
impact and outcome report is required.
¨ Applicants who apply to the mini grant are not eligible to apply to the compe;;ve grant
program.
Financial Health Review
Staff will review organiza;onal financial documents to assess financial stability and flag
poten;al concerns for the Grants Steering CommiWee. Organiza;ons determined to be in poor
financial health by the grants steering commiWee will not advance to the grants review
commiWees and will not be eligible for funding.
Funding Terms & Timeline
The funding term for this pilot program is one-year with an;cipated funds disbursement in early
2026.
1. Submit applica;on
2. Eligibility & financial health check
3. Grants Steering CommiWee review & approval
4. Funds disbursed
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Appendix
Appendix–Aspen Urban Growth Boundary
Adopted by the Board of County Commissioners (BOCC) in 2000, the UGB plays a role in growth
management, the transfer of development rights, and the Aspen Area Community Plan. It is
updated periodically. The city recognizes that there are nonprofit organizaAons who operate
just outside of city limits. To beLer reflect where services are delivered and accessed, the UGB is
used as a geographic frame of reference as opposed to city limits.
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Appendix B–Review Criteria DescripDons & Weights
ApplicaAons will be reviewed by the grant review commiLees on each of the following criteria.
Scores from each criterion will be used to determine funding recommendaAons.
• To what extent will the proposal make a meaningful and durable positive impact in the
lives of those it directly serves?
• To what extent will the proposal benefit the broader community beyond those it
directly serves?
• For organizations who have previously received funding from the City of Aspen to what
extent were the intended outcomes outlined in their application achieved, as reflected
in their impact and outcome report?
• To what extent is the proposal clearly and closely aligned with the applicable strategic
focus area and overall program philosophy?
• How well does the application establish that the proposal is viable and sustainable?
• To what extent does the application demonstrate that sufficient organizational capacity
exists to ensure funds are used as proposed?
• Is the proposal an effective and efficient use of public funds?
• To what extent does the proposal creatively address persistent or systemic issues, or fill
a need in the community?
• How well does the proposal provide an effective and compelling rationale for funding?
• How clearly does the organization explain its unique value and differentiation in relation
to other organizations providing similar services in the community?
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Appendix C–Scoring DefiniDons
Appendix D–QualiDes of High-Scoring ApplicaDons
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INFORMATION ONLY REPORT
TO: Aspen City Council
FROM: John Barker, Strategy & Innovation Director
Arielle Lyons, Grants Administrator
THROUGH: Alissa Farrell, Administrative Services Director
REPORT DATE: September 23, 2025
SUBJECT: Grants Program Update
INTENDED OUTCOME & SUMMARY:
This grants program update provides council an overview of the policy changes
designed by the grants steering committee and implemented by staff based on
feedback received from council during a work session on August 11, 2025. These
changes ensure the city’s nonprofit grant program remains a leader in municipal
grantmaking as a program that is sustainable, impactful, and aligned with best practice.
No action is requested of council as the updates provided here are based on previous
council direction.
This report includes specific policy changes to provide multi-year funding, preference for
Aspen-based organizations, and focus for the community non-profit division. Updates
are given for changes that will take effect for the upcoming grant cycle opening on
October 6, 2025, as well as planned changes that will take longer to implement.
The changes implemented for the 2025 grant cycle may affect the maximum grant
award certain applicants are eligible for, but no changes affect eligibility to participate in
the grant program.
DISCUSSION:
Policy Change 1: Operational Presence
Discussion: Council asked staff and the steering committee to ensure that organizations
who apply for funding from the city’s grant program have a meaningful presence with
the eligibility corridor of Aspen to Glenwood. The grants steering committee has refined
the program’s operational presence requirement to ensure that service delivery is
provided within this corridor and is targeted to the area’s residents and workforce.
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Action Taken: All grant applicants must conform to the following requirement, starting
with the application window opening October of 2025.
“Applicants must certify that grant funds will be used for operating or programmatic
expenses that directly support service delivery within the Aspen to Glenwood corridor.
Funded services must primarily benefit residents and workforce in this area, as
determined by the grants steering committee.”
Policy Change 2: Provide Preference for Aspen-based nonprofits.
Discussion: The grants steering committee considered each grant division (Arts &
Culture, Health and Human Services, and Community Nonprofit) separately for this
policy. Since Health & Human Services organizations are both widely distributed and
operate throughout the Aspen to Glenwood corridor, no changes will be made to this
division. For community non-profit and arts & culture, the steering committee
determined that it would be appropriate to differentiate Aspen-based organizations.
Action Taken: The steering committee and staff are implementing two changes, both set
to take effect for the grant window opening in October of 2025. The first is to define
Aspen-based organizations. This definition is:
“Aspen-based organizations are nonprofits meeting all other grant program eligibility
criteria that maintain a physical space, accessible to the public (e.g. not a home office or
PO box), within the Aspen Urban Growth Boundary or conduct a majority of their service
delivery within this area.”
The second action taken by the grants steering committee is to reduce the maximum
grant award for applicant organizations not meeting the criteria above to 75% of the
maximum award amount of those that do. For the arts & culture division, Aspen based
applicants will be eligible for awards up to $100,000, and others will be eligible for up to
$75,000. For the community nonprofit division, Aspen-based applicants will be eligible
for an award up to $50,000, and others will be eligible for up to $37,500. No changes
have been made to the HHS division in recognition of the wide support these
organizations provide through the Aspen to Glenwood corridor.
Policy Change 3: Provide Focus for Community Nonprofit
Discussion: The steering committee had robust discussion about this directive from
council and recommend a two-phase approach. Staff and the steering committee are
also undergoing an analysis of the mission statements of all organizations receiving
funding in this division, along with a gap analysis of areas of greatest need in the
community, and will return to council in the spring of 2026 with more information and
suggestions to narrow the scope, and increase the depth, of this division.
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Action Taken: The first phase, to take effect in the upcoming grant cycle, will create
space in the division by piloting a new two-tier grant approach that provides stable,
reliable support for small grants while prioritizing larger grant awards for those deemed
highest performing by the grant review committee. This will work by setting aside up to
20% of the community nonprofit division budget to provide guaranteed grants of up to
$5,000 for organizations meeting performance and eligibility criteria. This provides
essential, stable support for applicants seeking small grants or those who rely on a city
award to solicit other donations. This will also open the competitive grant tier to consider
funding the highest performing applications more fully in lieu of the partial funding of
many applications.
Policy Change 4: Multi-Year Grants
Discussion: The steering committee has endorsed a phased approach to multi-year
granting, with the eventual goal of having all cash grants being recommended for two
years.
Action Taken: For the grant cycle starting in October, arts & culture awards will be
issued for two years while community nonprofit and health and human services will be
for one year. This is to allow the staff and the steering committee time to explore moving
the administration of health and human services to a regional partner and explore
providing greater focus to the community nonprofit division prior to locking in grants for
multiple years. This stagger has the added benefit of creating a steady, but reduced,
application volume each year. Once fully implemented, this will reduce the
administrative demand on the program while also reducing the number of community
volunteers needed to administer the grants to a more sustainable level.
NEXT STEPS:
For the changes to be implemented in 2025, work is underway to edu cate applicants
through in-person and virtual training. Staff and the steering committee will continue to
work on longer-term policy changes over the next several months. A report on the
outcomes of these changes, pilot programs, and recommendations on further program
updates will be delivered to council after the closure of the 2025/2026 cycle in the late
spring of 2026.
ATTACHMENTS:
Attachment A – 2026 Grant Program Guidelines
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CITY MANAGER NOTES:
Staff continue to also explore a renewed capital grant program for arts and culture and
will bring forward a draft program for Council consideration in the first quarter of 2026.
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