Arapahoe County reviews Q1 budget outlook, commissioners agree to advance supplemental requests to June 9 hearing

Arapahoe County commissioners met for an afternoon study session to review first-quarter 2026 budget projections and a slate of supplemental appropriation requests, and they signaled support to bring the requests to a June 9 public hearing.

Michelle Halstead of the commissioner's office presented the county's economic outlook, saying national unemployment was projected at 4.3 percent for 2025 and Colorado at 4.4 percent and noting that Colorado's forecasted inflation would settle near 2.4'to 2.6 percent through the outlook period. "Property tax is our largest revenue source," she told the board, adding that the county benefited from a large assessed-value increase in 2024 but remained constrained by TABOR rules and would rely on voter-approved 1A funds in the near term.

Halstead outlined adopted and amended budget comparisons for the general fund and projected a 2026 revenue figure of $325.8 million. She said projected underspending and vacancy savings (notably in the sheriff's office) were contributing to an improved year-end fund-balance estimate of roughly $185 million. "A good portion of that [savings] will most likely be requested to be moved forward to the 2027 budget," she said when describing reappropriations.

Finance director Leanna Quint walked the commissioners through fund-level details, including social services, road and bridge, and ALEA fund projections. Quint said the social services fund faced vacancy-driven savings that reduced reimbursements and could push the fund below its policy reserve in out-years if adjustments were not made.

The staff presented a set of "discussion needed" supplemental requests affecting multiple departments. Highlights included: $140,000 for consultant support in public works; a $90,500 transfer from central services to the general fund for clerk and recorder printer carts; a request to appropriate $8,114 for facilities upgrades to support the district attorney's diversion team; transfers and appropriations for sheriff's vehicles and equipment; a request to add 1 FTE in human resources for a leaves administrator plus a $55,000 one-time transition cost; a placeholder transfer of up to $675,000 into CIP for a solar project; and a request to recognize and appropriate $750,000 in DA grant funding from the Office of Violence Against Women to support a Domestic Violence High Risk Team over three years.

On the conservation trust fund -- lottery proceeds the state distributes to local governments for parks and recreation -- staff noted an expected annual receipt near $800,000 to $1 million and that the fund currently carries the county's fairgrounds debt service of about $560,000 a year. Commissioners asked staff to return with a policy discussion on how the county should prioritize Conservation Trust Fund dollars versus open-space sales tax funding for projects.

The Executive Budget Committee recommended moving the supplemental and cleanup requests forward for board consideration. When Chair Jeff Baker asked whether the requests could be presented at the June 9 public hearing, commissioners indicated support by showing thumbs up both in the room and online; staff counted four affirmative signals including the remote commissioner.

The board will consider the supplemental appropriations and budget cleanup items at the June 9 public hearing. Staff said the EBC's recommendation and the presentation materials would accompany the public hearing packet.