El Paso County officials presented the recommended fiscal year 2026 budget to Commissioners Court on Aug. 11, 2025, and asked the court for immediate direction on employee pay/leave options and on a tax‑rate path to fund county obligations including voter‑approved debt.

Why it matters: Property tax revenue is the dominant funding source for the county general fund; changes in taxable values, voter‑approved debt service and state legislative actions all affect how much the county can collect without a public election. The court must set a tax rate in public hearings ahead of adopting a final budget Sept. 15, 2025.

What the court heard: County Administrator Betsy Keller and Budget staff presented the FY26 recommended budget (total budget listed in the staff presentation: $608,471,219) and a projected general‑fund reserve of roughly $78.7 million as of mid‑year. Auditor Barbara Parker reported an updated projected general‑fund reserve of roughly $78.7 million (about 3.6% of expenditures under current assumptions), down from earlier estimates. Staff said that, after routine adjustments, the county’s projected available reserve would be tight (staff cited a projected reserve around 3–4% under current assumptions) and that several previously deferred items and anticipated mandate‑driven costs remain potential demands on fund balance.

Employee pay and leave: With limited budget flexibility for raises, Keller proposed a non‑pay recognition option for county employees — additional paid holidays — in lieu of across‑the‑board salary increases. The court considered three options and approved option 3 (six additional paid leave days for eligible employees), which commissioners said would be a meaningful recognition while preserving budget flexibility. Commissioners and staff noted this is not a substitute for pay increases and asked staff to return with a costed proposal for potential stipends or pay increases depending on final tax‑rate decisions.

Tax rates and timing: Staff presented the statutory calculators used for tax work. The tax assessor’s office had calculated for the El Paso County Hospital District a 2025 no‑new‑revenue (NNR) rate of $0.210963 per $100 valuation and a voter‑approval rate of $0.255255 per $100; staff showed how the county’s M&O (maintenance & operations) portion and debt (I&S) portion interact. Staff noted the district valuations rose (certified values up about 6.8% year‑over‑year in certified values presented by the appraisal district), and clarified that even a lower tax rate can result in higher bills for homeowners when valuations rise.

Staff outlined four tax‑rate paths for consideration: the county’s current total rate; the NNR rate; a combined NNR M&O plus the newly required debt service (reflecting voter‑approved bonds); and the higher voter‑approval rate. Staff said the voter‑approval path could raise tens of millions of dollars (presentation cited roughly $56 million additional at the voter‑approval level compared with NNR) and would increase the average homeowner’s annual tax bill by an amount staff quantified in the packet; staff also promised a clearer breakdown at the court’s next meeting that separates the portion of the homeowner impact attributable to valuation growth from the portion attributable to voter‑approved debt service.

Public comment: Multiple residents urged the court to minimize tax increases. Jenny Solo and Minerva Torres Shelton spoke against higher tax burdens; Max Grossman urged the court to get “as close to no new revenue as possible,” called out discretionary spending including a $1,000,000 DEC Plaza item and recent salary increases, and warned of population pressures and taxpayer flight. Several callers opposed a county tax increase on principle or requested preserving low tax burdens for fixed‑income residents.

Other items and next steps: Staff noted several ongoing pressures — unfunded state mandates, potential changes from the state special session, and anticipated effects of proposed state measures (including pretrial detention rule changes) — and recommended the court set a tax rate at a public hearing scheduled for Aug. 18, 2025; staff will bring the final budget for adoption on Sept. 15, 2025. The court authorized staff to draft letters (per a separate motion) to federal and state representatives regarding detention center concerns and approved sending letters on SB9 and SB12 after staff review. Commissioners asked staff for more granular, line‑by‑line options to reduce non‑mandated services and to identify which services are county‑provided (and their dollar cost) so the court and public can evaluate tradeoffs. Keller and budget staff said they will provide additional breakdowns and the detailed homeowner‑impact split (valuation vs. debt) before next week’s tax‑rate actions.