2.5 yr old has balanitis and urologist suggestion is that circumcision is only long term option. can that be true? really want a second opinion.

Yes will need but: also possible most of the time to manage non operatively , most likely has phimosis also ( tight fore skin ) by pulling the skin back (not possible if he has phimosis ) cleaning the glans and foreskin regularly that clears infection , on a 2.5 yr is not easy , who is going to do this mom or dad ? So easy option is circumcision.