San Juan County commissioners voted Dec. 30 to approve year-end adjustments to the 2025 budget and to adopt the county’s proposed operating and capital budgets for 2026.

County financial staff presented a fund-by-fund review, saying departments were under budget overall and that the county used a balancing entry to bring several funds to zero pending audit adjustments. Staff warned that some revenues and reimbursements (including several grant reimbursements) will post in January–March and will be applied to 2025 as appropriate after audit reconciliation. "We match the work and the revenue together," staff said in explanation of timing for recognizing revenue.

Key items discussed during the review included a previously budgeted $795,000 LATCF draw used in 2025 to balance books and which will shrink as late-year revenues are recorded; anticipated SRS (Secure Rural Schools-type) payments, which staff said the county receives alongside the school district and which could increase materially in 2026; and the temporary removal of a $266,722 software-maintenance line from the proposed budget pending further departmental buy-in.

The commission and staff also agreed to centralize facilities maintenance costs into a separate fund (fund 15) beginning in January. Under the plan staff described, maintenance salaries, utilities and custodial supplies will be allocated to departments using a square-footage-based charge so those costs are tracked in one centralized facilities-maintenance fund rather than embedded inconsistently across department budgets. Library representatives and county staff said payroll coding errors that previously hid some branch salary costs would be corrected and that transfers to fund 15 will begin in January.

On personnel costs, staff explained the proposed 3% cost-of-living adjustment (COLA) for 2026 and noted some employees already received midyear adjustments or are covered by different pay scales (for example, sheriff deputies on a separate schedule). The commission directed staff to implement agreed increases while allowing for midyear adjustments after audit confirmation.

After confirming spreadsheet entries reflected the agreed changes, a motion to approve the adjustments and adopt the proposed 2026 operating and capital budgets was moved and seconded; commissioners voted affirmatively and the motion passed. Staff said administrative updates and final audit adjustments will be circulated to department heads and the commission in the coming weeks.