Pitkin County staff preview 2026 budget: plan to draw down reserves, prioritize staff retention and capital maintenance

Pitkin County staff presented a high‑level preview of the 2026 proposed budget and five‑year outlook, advising commissioners that the county will likely spend down a portion of its unassigned general fund and capital reserves next year to cover scheduled replacements, infrastructure maintenance and timing differences tied to airport projects.

Connie Baker, budget director, and deputy county manager Kara Silver‑Naugle said staff projects the county will close 2025 with roughly $15 million in unassigned general‑fund balance and about $1.3 million in the capital fund. Staff’s preliminary plan would spend roughly $7 million across the general and capital funds in 2026, largely for scheduled equipment and facility replacements, the start of previously approved capital projects and positions associated with the airport project.

The county is budgeting for several sizable one‑time replacements in 2026: sheriff’s office radios and tasers (roughly $500,000 combined) and other equipment that has reached scheduled replacement intervals. Staff noted that fleet replacements increasingly include electric vehicles and associated EV charging‑station upgrades, which raises near‑term capital costs.

Staff also explained a timing issue with the county’s cost‑allocation plan: positions hired to support enterprise projects such as the airport are reimbursed through the cost‑allocation plan but reimbursals are recognized on a one‑year lag. The county therefore anticipates covering those 2026 position costs from fund balance in 2026 and receiving formal reimbursement in 2027.

On revenues, staff said property‑tax revenue is expected to show moderate growth in 2026 (projected ~3.5%) and sales tax growth of about 3.5% in 2026 before a projected 10% dip in 2027 driven by a planned airport closure and associated reductions in visitation and lodging activity. Staff told commissioners they plan to smooth that anticipated 2027 downturn by using fund balance; they reported having discussed the matter with the county’s financial advisory board and with municipal partners.

To handle uncertainty about federal funding reductions and other risks, staff recommended setting aside $1 million–$1.5 million in a discretionary reserve to be held until mid‑2026 (second quarter) and allocated later if needed to backfill partner agency losses or to prevent abrupt cuts to county services. Staff said the county is continuing to prioritize (1) recruitment and retention, (2) capital maintenance and (3) targeted additions to internal capacity, and that tradeoffs will be necessary if the board asks staff to fund both ongoing capacity requests and contingency backfills for federal grant reductions.

Staff emphasized that the general fund is not structurally insolvent but will face timing and one‑time pressures in the 2026–2027 window. They said they will return with more detailed revenue and expenditure estimates at the Oct. 14 budget presentation and recommended commissioners consider whether to prioritize additional one‑time spending (for electrification or other county capital) or to preserve more fund balance for Federal funding contingencies.

Commissioners asked follow‑up questions about sales‑tax drivers, the influence of hotel closures and construction, and health‑insurance strategies for county employees. Staff said they are negotiating a preferred‑provider tier to hold health‑insurance costs flat through plan design changes and noted that the county is working with partners to explore options and prepare educational materials for employees.