County provides update on its 2027 budget process

Mesa County is moving forward with several organizational and financial changes as it develops its draft 2027 budget.

Since March, the County has used priority-based budgeting (PBB) to review programs based on legal requirements, community reach and cost and value to residents. The review identified approximately $4 million in lower-priority programs, efficiencies and other potential reductions. 

The County is working to close a projected $12.5 million gap between requested expenses and available revenue. The potential $4 million in savings is part of that effort, but not enough to close the gap. Additional changes must be made to align ongoing expenses with available revenue.

Mesa County expects to return approximately $5.4 million to taxpayers in 2026 as required by Colorado’s Taxpayer’s Bill of Rights (TABOR). Public polling conducted this year showed continued support for keeping the current TABOR obligation. The County will continue to operate within those requirements while monitoring the financial effects.

Recent sales and use tax collections have performed slightly better than budgeted. Through June, sales tax collections were approximately 0.7 percent above budget, use tax was 9 percent above budget and sales and use tax revenue was 1.4 percent above budget. While encouraging, the improvement does not resolve long-term financial challenges.

Personnel costs are the largest part of County operating expenses. Department leaders are carefully evaluating vacancies, position needs, staffing levels and organizational structures as part of this process. 

The County’s priority is to retain employees where possible and to reduce the impact on filled positions through vacancy management and organizational restructuring.

Current strategies include:

• Eliminating vacant positions that are no longer operationally necessary
• Reviewing positions that have been vacant for six months or more
• Considering the sale of Mesa County property no longer needed
• Consolidating certain financial functions
• Rebuilding the General Fund balance 
• Possibly forgoing raises in 2027

“These decisions are intended to position Mesa County for long-term stability rather than simply balance a single year’s budget. Our goal is to create an organization that can continue providing high-quality services while operating within the resources available to us,” said Mesa County Administrator Todd Hollenbeck. 

Some finance positions across the County are being consolidated into a countywide Finance team to create greater staffing depth, shared expertise, backup coverage, consistent processes, and the ability to direct resources where they are most needed.

The budget remains under development and will go through the County’s public budget process before adoption. Mesa County will provide another update when the proposed 2027 budget is presented at the public hearing on Oct. 6.