Garfield County budget staff on Monday told the Board of County Commissioners that an early property-tax projection from the county assessor shows a roughly $9 million reduction in revenue for 2026, prompting commissioners to direct staff to pursue a hiring freeze, seek a 5% reduction in operating budgets, and reconvene work sessions to pare the capital plan and discretionary grants.

"This is your budget," Fred, the county budget officer, said during the work session, stressing that the board's direction at the kickoff will guide department requests and the finance team's preparations. Shari Neurath, the county budget manager, and Jamaica Watts of the finance team walked the board through the calendar, deadlines and key assumptions the county will use for the six-month budget process.

The nut of the presentation was revenue pressure. Fred said the county assessor's preliminary snapshot shows a 19% reduction in assessed property value, which “equates to about a $9,000,000 delta” in revenue the county must address in planning the 2026 operating budget. Staff told commissioners the assessor will provide a more refined certification on Aug. 25, which the finance team will use before department reviews in September.

Why this matters: property tax accounts for roughly half of Garfield County's general revenue, so a multi-million-dollar decline requires choices among operations, capital projects, discretionary grants and fund balance use. Fred and the finance team presented benchmarks from the 2025 budget year: $118 million in operating expenditures, about $11 million in capital spending and roughly $2.3 million in discretionary grants, to give commissioners context for trade-offs.

Key figures, deadlines and assumptions highlighted by staff included:
- Assessor certification scheduled for Aug. 25; department operating and capital submissions due Aug. 8.
- A projected $9,000,000 reduction in property-tax revenues tied to an assessor snapshot staff received shortly before the meeting.
- Personnel expenditures currently projected at about $44.1 million; a 3% increase in personnel costs would be roughly $1.3 million, 4% about $1.8 million.
- Health-insurance cost pressure estimated at roughly a 13% increase (staff estimated that increase would equal about $1.6 million).

Commissioners and staff discussed options rather than taking final votes. Commissioners agreed on several high-level directions for staff to implement and present back to the board for action later in the process:
- Place a hiring-freeze resolution on the next BOCC agenda for consideration (staff indicated they will draft and place the resolution for the Monday meeting).
- Ask all departments to identify and pursue roughly a 5% reduction in operating budgets (including personnel and nonpersonnel operating costs), with department heads required to explain any inability to meet that target.
- Reconvene focused decision sessions on capital projects and on discretionary grant commitments so the board can adopt narrower capital and grant plans earlier in the fall review process.

Shari Neurath walked through the timeline the finance team will use to produce a preliminary budget for September reviews and an adoption and appropriation schedule that staff noted must meet state timeline requirements; staff reiterated the county plans to adopt the 2026 budget and appropriate funds in November. Jamaica Watts and the finance team emphasized they will provide commissioners with specific dollar amounts tied to potential levers (personnel adjustments, benefit design changes, capital reductions and grant prioritization) as the August and September deadlines approach.

Commissioners framed the budget problem as significant but manageable with a mix of reserve use and cuts. One commissioner urged a “paradigm shift” in how the county budgets — suggesting sharper cuts to capital and grants now, preserving core operating services where possible. Another commissioner asked staff to aim to take roughly half the $9 million shortfall from reserves this year while identifying operational cuts and capital reductions to close the remainder. All three commissioners repeatedly expressed a desire to avoid layoffs where possible and to protect employee health insurance and merit adjustments if feasible.

Staff clarified other points raised during discussion: federal grant funding across departments appeared largely stable based on surveys staff conducted; the sheriff’s office recently received equity-adjustment compensation increases and follows a different cadence for merit/pay anniversaries; and the finance team is preparing to include any board-directed compensation or benefit decisions into department projection workbooks after HR presents benefit options.

Next steps and context: the finance team asked departments and elected officials to submit updated 2025 estimates and full 2026 requests by Aug. 8. The board instructed staff to prepare the hiring-freeze resolution for the next BOCC meeting and to schedule decision work sessions on capital and grants before the formal September reviews. Staff warned that the assessor's Aug. 25 certification could change the revenue picture, and that the budget remains a multi-step process culminating in public hearings and formal adoption in November as required by state law.

The session was framed throughout as a kickoff and planning step; staff and commissioners emphasized that the directions given are intended to guide departments and that formal actions — including any hiring-freeze resolution or specific budget cuts — will return to the board for formal enactment later in the process.