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San Juan County faces $2.1M gap for 2027; council weighs tax and cuts
Summary
Staff told council an expected $2,118,000 2027 shortfall under a status-quo budget and recommended options including targeted hiring freezes, spending cuts, and two new revenue measures: a local law-enforcement sales tax (~$800,000) and a public-health clinic property tax (~$741,000).
San Juan County staff warned the council that, without changes, the county faces a projected 2027 shortfall of about $2,118,000 and could exhaust cash reserves set aside for contingencies.
Deputy County Manager Tillery Williams presented updated projections and said the shortfall does not yet include potential costs from upcoming labor negotiations and that insurance and interest costs remain uncertain. “As of the end of April… our current anticipation is… you will be short $2,118,000,” Tillery said.
To close the gap, staff listed several expenditure-side options: a targeted hiring freeze with carve-outs for public safety and public health; temporary travel and discretionary-budget reductions; and a limited early-retirement incentive — though staff cautioned early retirement payouts (for accrued vacation and allowable sick leave) could total roughly $750,000 and often do not yield net near-term savings.
On the revenue side, staff discussed two bills enacted in the recent legislative session that create local revenue options. First, a local law-enforcement sales-and-use tax (one-tenth of 1%) could generate about $800,000 annually if adopted and would fund criminal-justice purposes such as diversion, victim services and staffing; staff noted the county has applied for a related grant (about $550,000–$600,000 to fund two deputies and vehicles) that would be a separate, three-year allocation. Second, a county public-health clinic property tax (5¢ per $1,000 assessed value) could produce about $741,000 and may be used for primary care, dental care and behavioral-health services; staff said the bill language does not require a specific voter deadline and that the council could act councilmanically or send the measure to voters.
Council members emphasized that any revenue proposals must be weighed against public appetite after a recent failed levy-lid lift and that communications will need to explain precisely how new revenues would be used. Several members urged that staff present two parallel 2027 budgets — one reflecting no levy/lid lift and one showing revenues if a levy were to pass — so voters and councilors can see the tradeoffs.
What’s next: Staff will return with more detailed revenue and expenditure scenarios, legal analyses on timing and requirements for councilmanic versus voter-approved measures, and an audit of decision packages and fee adjustments the county could pursue.
