County finance staff told the Summit County Council on Oct. 22 that several revenue streams used to fund operations and capital projects are expected to be flat or grow more slowly in 2026, and they asked the council to consider a newly available local sales tax for unincorporated areas called the "impacted communities" tax to help pay for transportation and transit projects.

Finance staff framed the presentation around three points: property-tax receipts will be largely revenue-neutral absent a truth-in-taxation vote or unusually large new growth; local sales and use taxes tied to visitor activity are softening; and some intergovernmental grants are declining. As a result, staff recommended budgeting conservatively for 2026 rather than assuming the 3–5% annual sales-tax growth the county has seen in prior years.

Budget staff said new growth on the property-tax roll has averaged roughly $850,000 a year and that the preliminary estimate for new growth captured for 2026 is roughly $816,000. They showed year-to-date sales-tax receipts that indicate about 1% growth in 2025-to-date — far below the historic 3–5% pace — and cited national consumer-spending indicators that signal low growth ahead. Staff also flagged that construction-material costs remain elevated and said building-permit and engineering-fee revenue remains uncertain because some expected projects have not yet been submitted.

Why it matters: staff said the county relies heavily on sales taxes for the municipal services fund and other operating accounts; a sustained slowdown in those receipts would constrain both operating budgets and the ability to pay for capital projects. Council members repeatedly stressed the need to protect core services and road maintenance while trimming less-essential items if revenues deteriorate.

Impacted communities tax: staff outlined a draft ordinance the county could adopt next week to impose the state-authorized impacted communities sales-and-use tax in the unincorporated county. Under state law, counties may impose up to 1.1% (by county ordinance) on sales in qualifying resort/impacted areas; the county would implement the tax in the unincorporated parts of Summit County, not inside municipalities. At 1.1%, staff estimated annual revenues of roughly $17 million; at 0.5% the estimate is about $7.7 million.

Legal limits and debt: staff said state code limits how the revenue may be spent — transportation infrastructure and transit improvements and projects — and that certain items (for example, unprepared food, prescription drugs and motor fuels) are exempt under state rules. Finance staff proposed a parameters resolution that would authorize bonding for up to about $99 million in projects if the council elects to implement the tax and pledge revenues. Under the county's bonding policies the county plans to cap annual debt service at 50% of pledged revenues; staff said that structure is designed to preserve margin to meet obligations if receipts fall.

Timing and next steps: If the council adopts an ordinance next week it would need 90 days for the state tax commission and vendors to prepare; collections could begin Feb. 1 and revenues would typically show up in county reports after a two-month lag. Staff emphasized that the ordinance and parameters resolution would only set the legal framework — the council would still need to decide which projects to fund and whether to bond now or stage borrowing as projects and partner funding mature. The county also plans to present a deeper proposal next week showing specific project lists, bond scenarios and potential partnership funding.

Council response: council members asked for options short of the full 1.1% (staff said roughly 0.8% would still allow bonding large project amounts), discussed the potential effect on the county's bond rating, and requested that staff provide comparisons showing how Summit County's proposed tax rate would stack up against other resort communities. Staff agreed to return next week with an ordinance and a parameters resolution and to provide additional modeling on bond ratings, different rate scenarios and likely project phasing.

What’s next: The council will see an ordinance and a parameters resolution on the agenda next week; staff said the county will also continue to review emergency-services and TRT (transient room tax) options for offsetting municipal-services shortfalls.