Arapahoe County reviews third‑quarter fiscal outlook, updates 2026 recommended budget

Arapahoe County finance staff on Nov. 18 presented a third‑quarter budget review showing stronger-than-anticipated 2025 revenue and proposed updates to the county's recommended 2026 budget, and commissioners gave informal approval to advance supplemental appropriations and the updated recommended budget to a Dec. 9 public hearing.

Director Weaver opened the study session by framing two objectives: review the fiscal status of the county's major funds and identify which supplemental appropriation requests to include at the Dec. 9 public hearing, and provide an update on the status of the 2026 recommended budget. Finance staff then walked commissioners through economic assumptions that underlie the projections.

Finance projected amended‑budget general fund revenues of $320 million and expenditures of $287 million, but said revenues are now expected to total about $341.6 million — roughly $21.6 million over budget. Staff attributed about $7 million of that increase to a property‑tax correction after the assessor's certification, about $2.5 million to specific ownership tax receipts, and roughly $10 million to higher investment interest. On the expenditure side, projected 2025 spending was estimated at about $278.2 million, roughly $8.8 million below the amended budget.

"We continue to plan for intervening years when reassessments are not driving revenue growth," finance staff said, noting that reassessments create a "stair‑step" pattern of revenue that requires setting funds aside to smooth services in non‑reassessment years. Staff also said they are building an annual $15 million transfer to the capital expenditure fund through 2030 into baseline forecasts.

Staff outlined changes to compensation assumptions for 2026: a 4.5% salary placeholder for non‑bargaining employees, a retirement assumption increased to 10% (with staff discussing phased increases toward 11% by 2030), and a negotiated limit on health‑insurance increases of 8.5% for 2026. The recommended 2026 budget also adds 63 full‑time equivalent positions across all funds, about 55.75 FTE of which are in the general fund.

Commissioners heard brief fund‑by‑fund updates. The capital expenditure fund includes substantial reappropriations for incomplete projects (about $14 million expected to carry into 2026 for projects such as the detention medical center and a courtroom); the social services fund's revenue includes Medicaid incentive payments and remains sensitive to federal grant timing and county match requirements; and the road and bridge fund will receive a $10 million shift in specific ownership tax revenue to catch up on maintenance projects.

On supplemental appropriation requests, staff summarized dozens of departmental requests, including a sheriff's request for $33,000 from fund balance for detention body‑worn‑camera batteries, a $101,000 transfer to retain training/spare vehicles, a clerk and recorder vehicle replacement request, IT network switches tied to a fiber project, and various facilities and open‑space equipment appropriations. The Evaluation/Budget Committee recommended withholding a $4,000 NeoGov software increase and deferring a Polaris Ranger purchase to the 2027 budget process.

After questions from commissioners about prior sheriff commitments and other items, the board recorded an informal "thumbs up" majority to proceed with the EBC recommendations and to bring the supplemental items and the updated 2026 recommended budget to the Dec. 9 public hearing.

Next steps: staff said they will update property‑tax calculations after the assessor's certification (expected around Thanksgiving) and will bring formal resolutions for third‑quarter supplemental appropriations and 2026 adoption to the Dec. 9 meeting.