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Ouray County adopts 2026 budget amid debate over lodging tax transfers and paving reserves
Summary
The Board unanimously adopted the 2026 budget and related resolutions after extended discussion about how to treat a new lodging tax (proposal to mirror marijuana excise tax transfers), use of paving-reserve funds for grant matches, and replenishing the disaster fund. Staff added a lodging-tax detail to the packet during the meeting to clarify a $10,000 search-and-rescue allocation.
The Ouray County Board of Commissioners unanimously adopted the 2026 budget, appropriate resolutions and the annual property-tax levy on Dec. 9 after a multi-hour public hearing and detailed discussion of fund transfers, earmarks and transparency.
Finance staff presented the balanced budget and highlighted key elements: a 4.06% increase in property tax revenue, a projected decline in certain externally funded contributions and a $755,000 revenue-over-expense figure largely tied to the courthouse fund. Commissioners examined several late clarifications staff added that morning, notably a detailed breakout showing $100,000 appropriated for lodging-tax expenditures and a $10,000 earmark for search-and-rescue.
Several commissioners urged treating the voter-approved lodging tax similarly to the county’s marijuana excise tax — as a revenue fund that transfers to operating funds so the public can trace how lodging-tax receipts are spent. "Our budget message does not clearly reflect that the lodging tax is like the marijuana excise tax," a commissioner said, urging a future work session to establish transfer percentages.
Finance Director Connie explained options for handling the $10,000 search-and-rescue contribution: it can be paid directly as a warrant from the lodging-tax fund or shown as a transfer into the general fund so it appears on that department’s line-item expenses. Connie said the lodging-tax transfer spreadsheet was updated that morning to make the allocation more transparent.
Board members also debated shifting $200,000 (two $100,000 items) that had been earmarked through paving reserves and an LID into either road materials or capital paving preservation (Corbett Creek). Several commissioners, along with Road & Bridge Superintendent Ty Barger, cautioned that some paving-reserve money is needed to match upcoming grants (Corbett Creek and a potential FLAP grant). "That is our bucket of money for matching the Corbett Creek grant," a commissioner said; staff recommended leaving the funds in place and addressing any reallocation during a January budget amendment or a 2026 work session.
Commissioners said they would schedule follow-up work sessions in 2026 to: set lodging-tax transfer policies, review the 2007 budget policy’s fund-balance rules, and consider replenishing the disaster fund before the next emergency season. Despite the concerns and at least one substantive amendment discussed, the board moved and passed resolutions 2025-039 through 2025-042 approving cost allocations, adopting the 2026 budget, appropriating sums to funds, and levying property taxes. The motion to adopt the budget message also passed unanimously with one commissioner noting a desire to add future language clarifying priorities like Crystal Reservoir conveyance and disaster-fund replenishment.
The budget is effective for the 2026 fiscal year; the board signaled it will revisit lodging-tax implementation and several fund-transfer clarifications in early 2026.
