Denver Mayor Mike Johnston will unveil his proposed 2027 budget Thursday after weeks of warning that the city is entering a tighter financial era despite stronger-than-expected revenue collections this year.

The city’s general operating fund is $1.66 billion.

In a briefing last month, city officials told City Council that an estimated $32 million in Xcel Energy franchise fees are not included in the budget. Voters won’t decide whether to approve a new franchise agreement until Nov. 3.

The franchise fee is a 3% charge on customers’ electric and natural gas service that is passed through to the city’s general fund. The proposed agreement would keep the fee at 3%, and Xcel says a rejection by voters would not automatically eliminate the charge or payments to Denver when the current agreement expires Dec. 31.

The Johnston administration has said it was planning for revenue to remain flat heading into next year.

The city has projected that it will end the year with $196.4 million in the general fund balance, or roughly 12% of estimated expenditures.

Editor’s note: This is a developing story and will be updated.