Arapahoe County presents $672.8 million recommended 2026 budget with historic capital commitments

Jessica Salgo, the county's budget manager, presented the Arapahoe County Executive Budget Committee's recommended 2026 budget in a study session, saying the proposal "is obviously the the culmination of a lot of work that started back when 1A was put onto the ballot." The all-funds recommendation totals $672.8 million in revenue and $670.1 million in expenditures for 2026, with the general fund accounting for about $320 million in revenue and $315.9 million in expenditures.

The packet proposes adding 63 full-time equivalent positions systemwide (55.75 in the general fund), raising recommended staffing to about 2,918.57 FTE. Salgo told commissioners the budget would leave an estimated 2026 ending fund balance of about $134.9 million, roughly a $4.1 million increase over prior estimates.

Why it matters: The recommended plan uses revenue from Ballot Measure 1A passed last year and a reappraisal-driven property tax increase to make substantial one-time and ongoing investments. The EBC recommended a mix of one-time transfers and ongoing changes intended to address deferred capital maintenance, public safety, and housing programs while keeping the county structurally balanced.

Major allocations and policy changes - Policy reserve: The EBC recommends increasing the general fund policy reserve from 11% to 15% to provide a larger buffer against projected revenue volatility. Finance staff explained the reserve includes the TABOR-mandated 3% portion and additional discretionary reserves for emergencies and revenue shortfalls. - Capital and transfers: The recommended capital expenditure fund will be fixed at 0.6 mills and is expected to bring that fund's property tax revenue above $10 million. The plan also includes one-time transfers of $15 million per year through 2030 (noted in the presentation as $125 million over five years) to address deferred maintenance and capital projects. - Road and bridge: The EBC recommends shifting $6.75 million in specific ownership tax previously budgeted in the general fund to the Road and Bridge Fund to align revenues with maintenance spending. - Social services: The EBC recommended fixing the social services fund mill levy at 1.45 mills, estimated to raise about $2.1 million to help cover the county match for social services. - Technology: The budget earmarks $1.5 million for technology modernization in 2026, with an additional $1 million each year up to a $3 million cap.

Department highlights - Community resources and housing: The recommended budget transfers several grant-funded positions into the general fund, adds 10.25 FTE for community resources, and invests $4 million in affordable housing (about $3 million one-time, $1 million ongoing). - Public safety and criminal justice: The recommended budget includes significant increases for the sheriff's office (vehicle replacements, equipment replacement, overtime increases and dozens of new FTE) and adds 12 FTE to the district attorney's office, including victim-witness specialists. Salgo said the sheriff's office overtime budget increases by roughly $2.6 million (about $1.5 million ongoing). - Public health and coroner: Public health will receive funding to replace grant-supported roles and one-time investments for clinic supplies and immunization vaccines. The coroner's office gets additional toxicology funding and new equipment for in-house forensic dental imaging. - IT and finance: The IT budget includes subscription maintenance increases and security investments (a $272,190 security operations platform and $128,000 for Copilot licenses covering 412 users). Finance will add staff to retain an existing grant accountant and a budget analyst.

Unfunded requests and board concerns Commissioners pressed staff on what was not funded. Jessica Salgo and EBC members said total request packages for the general fund were about $65.2 million; the EBC recommended $53.5 million. Items not recommended are listed in the appendix and department pages of the budget book. Commissioner Fields and others asked specifically about gaps in community resources, public health and the district attorney's office, noting potential public-safety impacts.

DA priorities and conviction integrity unit The district attorney's office reported receiving 12 FTE after appeals and some one-time victim assistance funds, covering high-priority needs including the Aurora domestic-violence transition. DA representatives also proposed a conviction integrity unit to review claims of innocence and disparate sentencing; the DA described an ideal team of four staffers but said the office could start with two. The DA asked for a separate follow-up meeting to discuss federal funding and implementation details.

Fiscal outlook and next steps Finance said the recommended plan leaves an operating surplus (highlighted as about $33.6 million in the materials) that is being intentionally set aside to smooth projected revenue declines in 2027. Final certified assessed values and property tax calculations will be updated after the assessor publishes final values in late November. The board will revisit the budget at additional public meetings: a second review on Oct. 28, a study session Nov. 18, and a public hearing on Dec. 9 for adoption and mill levy certification.

Quotes from the session - "This is obviously the the culmination of a lot of work that started back when 1A was put onto the ballot," said Jessica Salgo introducing the package. - On reserves, a finance presenter said moving from 11% to 15% "gets us kind of closer to what the other funds are at 1 sixth" and described TABOR's 3% constraint. - DA office representative described the proposed integrity unit: "This unit would look at not just claims of actual innocence ... but also looking at cases of disparate sentencing and the impact that that has had."

What to watch Key developments to monitor are the final certified assessed values (late November), any board amendments at the November study session, the DA's follow-up on the conviction integrity unit, and how the county intends to prioritize the not-recommended staffing requests documented in the budget appendix.

The county will hold a public hearing to adopt the 2026 budget and certify mill levies on Dec. 9.