Utah County Commission approves tentative 2026 budget after discussion of conservative revenue assumptions and fund balance use

The Utah County Commission voted to approve the county's tentative 2026 budget on Oct. 22 after a staff presentation that emphasized conservative revenue assumptions and recommended modest use of fund balance.

County staff said the tentative budget assumes 2.9% growth in sales tax revenue and 2.3% growth in property tax revenue over the 2025 budgeted amounts. The budget overall reflects a 3.6% increase in general fund expenses and a projected 2.5% rise in materials and services costs.

In presenting the document, Ron (staff member) described the revenue approach and cautioned commissioners that the county used lower-end consultant projections for revenues and higher-end assumptions for expenses to remain conservative. He said departments agreed with fee revenue estimates after staff reviewed multi-year forecasts with each department. "We just don't have enough data like on sales tax to be confident," Ron said. He noted sales-tax year-to-date growth of about 4.7% and suggested that, if year-end data held, the county could revise projections upward before the final budget.

Why it matters: Commissioners discussed the county's practice of budgeting using some fund balance to smooth operations and absorb unanticipated costs. Staff recommended putting roughly $280,000 into the capital improvement plan (CIP) from the conservative balance that remained after baseline budgeting. The presentation also highlighted likely 2026 needs including about $2 million for the Children's Justice Center and up to $8.3 million for the health department, though staff said those numbers are still under review.

Commissioners asked for more detail on the consultant's high- and mid-range projections; Ron said he would share updated projections after the consultant's October 1 update. Commissioner questions also clarified that wage-and-benefit modeling currently uses a 5.2% increase recommended by an outside consultant, though HR was re-evaluating that figure.

Discussion vs. action: Commissioners discussed whether it is appropriate to budget with fund balance one year after a tax increase; Ron replied that, given the county's historical salary savings and recent revenue experience, he had "no heartburn" with the conservative approach. "Almost almost always means always always," Ron said when asked whether the county typically ends the year with salary savings.

The commission approved the tentative budget (item 11) by motion; a recorded roll call was not read aloud in the transcript, but commissioners voted "aye" to adopt the item as presented.

Looking ahead, staff said they will provide updated sales-tax figures and the consultant's mid- and high-range projections before the final budget. The tentative budget is a statutory requirement and will be refined ahead of the commission's final adoption process.