People gather outside of Aspen City Hall in Galena Plaza on Tuesday. Aspen City Council had the first of four budget work sessions Monday night to review the proposed 2026 budget. Jason Charme/Aspen Daily News

Major capital projects ballooned the city of Aspen’s 2026 budget to $296.2 million, a nearly 70% increase from 2025’s $175 million budget.

The Lumberyard affordable housing development, Armory Hall redevelopment project and Castle Creek water treatment facility improvement project are responsible for the sharp increase. Those three projects alone make up 80% of the city’s proposed $171.1 million capital budget for 2026. Capital projects in 2025 made up $57 million.

“Capital tells the story,” said Aspen Budget Manager Matt Grau during a Aspen City Council work session on Monday.

See Full Page