Grand County officials weigh $1.97 million midyear budget draw as sales-tax revenue lags

Commission finance staff told the Grand County Commission on July 1 that sales and use tax receipts are running below the estimates used to build the 2025 budget, and those shortfalls are driving a proposed midyear, tentative budget amendment now posted online.

Finance director Steven (identified in the meeting as the county finance officer) described three forecasting methods commissioners could use for the amendment and the revenue implications of each. Using a year‑to‑date “budget vs. actual” comparison shows the county currently 6.1% below the original 2025 budget target — the number already reflected in the tentative amendment — but a one‑year year‑over‑year approach would show a smaller decline (roughly 3.1%) and a three‑year 12‑month moving average would show an even smaller decrease (around 1.1%). Steven told commissioners the three‑year moving totals smooth peaks and valleys and formed the baseline used to prepare the posted 2025 budget.

Using the posted amendment assumption (minus 6.1% on the sales/use tax lines), staff compiled changes across revenue and expense lines that would be required to preserve the allocations the commission approved earlier in the year. That calculation increases the planned draw from the general‑fund reserve to about $1,970,000 to balance the tentative amended budget. Staff emphasized the number rises largely because allocations planned at the start of the budget year — including transfers to other funds and mitigation payments from transient room tax receipts — would remain whole under the posted amendment.

Key numbers and drivers - Year‑to‑date sales and use tax…