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 receipts collected: reported as about $6,400,000. Staff said the original projection at this point in the year was roughly $6,800,000, producing the reported $406,000 (‑6.1%) shortfall. (Steven, July 1, 2025.) - Tentative amendment draw from general‑fund balance: $1,970,000 (amount included in the budget documents posted with the tentative amendment). (County staff, July 1, 2025.) - Budgeted pull from general fund in the original 2025 budget: $1,100,000 (staff said that amount assumed a historical underspend that typically materializes by year end). (County staff, July 1, 2025.) - Year‑to‑date projected underspend in salary and benefits (general fund): about $958,871, a line staff said will partially offset the shortfall if those vacancies or underspends persist. (County HR detail cited by staff, July 1, 2025.)

Transient room tax (TRT) mitigation and special funds Staff also walked commissioners through how the TRT mitigation line and related allocations would be affected by the updated revenues and a state tax change (House Bill 456). The county’s updated projection for TRT mitigation receipts was reported at about $4,000,005.76, down from an original estimate near $5,000,008.04. Staff said that change represented a shortfall of about $508,099.85 versus the original allocation plan; that shortfall flows through the county’s calculations of transfers and contributions to the funds that receive TRT mitigation money.

Departments and outside agencies at the meeting County staff said some revenue lines were being amended up because receipts already exceed budget (examples cited included state search and rescue reimbursements to the sheriff’s office, homeland security overtime reimbursements and some grant lines). Departments presenting to the commission during the workshop — the Moab Museum, Grand County Active Transportation and Trails (GCAT), and Solid Waste Special Service District — summarized operations and described contingencies if allocations were reduced. - Moab Museum: staff said county appropriation pays a material share of operations; museum leaders asked commissioners to maintain their appropriation and noted admissions and membership figures were up year‑over‑year. (Museum directors, July 1, 2025.) - GCAT: the trails and responsible‑recreation program presented three budget contingency options (a modest‑cut option, a program‑reduction option and a more severe option that would eliminate several subprograms and post reductions in staff coverage). Staff said the responsible‑recreation program draws substantial grant funding but historically relied on TRT; GCAT leaders asked the commission to consider phased cuts if needed. (Grand County Active Transportation & Trails, July 1, 2025.) - Solid Waste Special Service District: district leadership said operational improvements and cash‑flow measures have stabilized the facility but urged that reductions in the district’s county allocation would create costs and service impacts. (Solid Waste District manager, July 1, 2025.)

How commissioners characterized the choice Commissioners debated principles and timing. Several commissioners — including Commissioner Trisha Hadeen and Commissioner Mary O’Brien — urged using fund balance this year and delaying structural cuts until the 2026 budgeting cycle so staff and partners have predictable funding while they plan. Other commissioners, including Commissioner Brian Martinez and Commissioner Mike McCurdy, said the county should begin immediate, targeted reductions and not rely primarily on the reserves to fund a structural shortfall.

Next steps Staff said the posted tentative amendment assumes the worst‑case (‑6.1%) scenario and asked how the commission wished staff to proceed. Commissioners asked staff to compile a list of decision points and potential cuts for formal action at an upcoming public meeting; staff also noted they would provide additional analysis of restricted fund balances (notably the TRT fund and fund 47) to clarify what could be available as transfers.

The commission left the public portion of the midyear budget amendment open for further comment and scheduled additional public‑hearing opportunities as specified in the meeting packet. Staff said they will return with a more detailed list of options (departmental cuts, transfers, and vacancy holds) for the commission to deliberate and vote on in coming meetings, and noted that some shortfalls (TRT mitigation and TRCCA transfers) will require separate, explicit commission decisions.

Ending Commissioners agreed to continue discussion and asked staff for an itemized set of decision points (what to cut or preserve, and the legal/contractual constraints on each transfer or allocation) so the commission can take formal votes at upcoming meetings. The tentative amendment will remain posted while that work proceeds and the public comment period remains open.