El Paso County CFO: sales tax nearly flat year to date, other revenues offset shortfall

El Paso County Chief Financial Officer Nikki Simmons told the Board of County Commissioners on Tuesday that sales and use tax collections through June 2025 were effectively flat compared with the prior year, leaving the county slightly behind the budgeted forecast but overall in a stable financial position.

Simmons said sales and use tax — which fund roughly 60% of the county’s unrestricted operating budget — were essentially unchanged year to date (about +0.02%), and that the county saw a 0.67% decline for the month of June. She noted differences between retail-collected sales tax and use taxes tied to automobile purchases and building materials: vehicle use tax was down about 2.2% year to date, while building-materials use tax saw a strong month (up about 37% in July collections), leaving combined collections up roughly 0.45% year to date when all components are included.

By Simmons’s accounting the county was about $1.9 million below budget through June and, if the current trend continued, could be roughly $6 million under budget by year end. She said the county’s budget was deliberately conservative and “recession-resistant,” and that other revenue gains — primarily higher-than-anticipated interest income and increased recording/transaction activity in the Clerk and Recorder’s office — have so far offset the sales-tax pressure. Simmons said the county currently projects being about $2 million ahead of the overall revenue forecast when all revenue categories are included.

Why it matters: Sales and use tax are the largest single source of discretionary county revenue, so persistent declines would usually require adjustments. County staff emphasized that, because the board chose conservative budget assumptions earlier in the year, no immediate cuts, hiring freezes or layoffs are recommended at this time. Commissioners asked questions about cash reserves, potential state-level shifts that could increase county costs, and the modeling used to create projections.

Key details and context: - Sales tax comprises roughly 60% of El Paso County’s unrestricted budget; property tax is about 30% and other fees about 10%. - The county’s internal recalculation of projections using the full mill levy produced different present-value estimates than outside consultants’ projections; staff recalculated to produce an estimate closer to likely actuals. - The clerk and recorder’s recording department has shown increased activity in recent months, partly from refinancing activity, which has boosted county non-sales revenue. - County reserves are at levels staff judged sufficient to weather near-term pressure; officials stressed that any state decisions that shift ongoing human-services costs to counties could create material budget risk and would require policy-level action.

Board reaction and next steps: Commissioners praised the conservative budgeting approach and asked staff to continue close monitoring of sales-tax receipts and state-level developments. Finance staff said these figures informed 2026 budget planning and that no department-level reductions were being recommended at this time.