Budget message from County Administrator in 2026

I am pleased to present the 2026 budget for Mesa County. The total county budget is $273.7M, an increase of only $1.1M (0.4%) from the 2025 adopted budget. The net county budget, which deducts interfund transfers and charges, totals $240.9M. The budget is balanced according to all applicable Colorado State statutes and Mesa County financial policies, and represents the County’s financial plan for January 1 through December 31, 2026.

Budgeting to our Strategic Plan

The County utilizes a strategic plan that outlines key priorities to guide our efforts during the budgeting process. This enables us to serve Mesa County residents in the years to come. The result of extensive staff input and collaboration between department heads, elected officials, and County leadership, the strategic plan identifies the goals we want to achieve in serving the community, strategies to help us reach those goals, and the measures we will use to hold ourselves accountable along the way. The plan centers on the County’s vision and mission statements, and identifies three strategic initiatives to guide our work toward accomplishing the mission and vision.

Over the past couple of years and into FY 2026, we will continue to implement the goals set forth under these three initiatives. I’m impressed by the hard work, commitment, and creativity of Team Mesa as we tackle improving constituent services, recruiting and retaining great employees, and coordinating across departments and with other local agencies to address needs identified by the community.

This year, County staff have made a concerted effort to shape the budget process around the strategic plan. Departments responded to the initiative by assessing how their plans for the upcoming year could advance our shared goals. The budget review team evaluated budget requests and identified ways to balance immediate needs with long-term fiscal discipline. As a result, the budget contains a number of recommendations to help catalyze further progress on our three initiatives. 

Build the Best Team: It’s who we are

Investing in competitive compensation, targeted staffing adjustments, and professional development — while protecting current employees by eliminating only vacant FTEs to support workforce stability.

Delivering Excellence: It’s what we do and how we deliver

Strengthening facilities, technology systems, and core infrastructure to improve safety, efficiency, and consistent service delivery for both residents and staff.

Leaning into the Future: It’s how we prepare for tomorrow

Advancing long-term capital priorities, leveraging grants and partnerships, and making disciplined decisions that position Mesa County for smart growth and evolving community needs.

Mesa County, Colorado, and the nation continue to adjust following a prolonged period of elevated inflation and restrictive monetary policy. While inflation has eased from its peak, interest rates remain above pre-pandemic norms, continuing to constrain borrowing, investment, and interest-sensitive sectors. Through 2025, the U.S. and Colorado economies experienced slower but continued expansion, supported by resilient household spending, though consumer activity has begun to normalize as higher prices, accumulated debt, and tighter credit conditions limit discretionary spending. Entering 2026, economic indicators point to modest and uneven growth. Employment and wage growth have moderated alongside easing inflation, and despite the Federal Reserve’s gradual easing cycle, monetary conditions are expected to remain restrictive by historical standards. As a result, economic activity is expected to operate at or slightly below long-term growth potential, with elevated uncertainty tied to inflation trends, energy markets, and broader national conditions that continue to influence Mesa County’s economy.

Mesa County continues to reflect these national and state trends, with local economic performance shaped by energy activity, construction, tourism, and population dynamics. While these sectors provide important sources of stability, each remains exposed to cyclical pressures. Accordingly, the County’s financial strategy for 2026 emphasizes caution, sustainability, and flexibility. The budget is designed to maintain core service levels, manage cost pressures, and preserve financial resilience in the event of slower-than-expected revenue growth.

Consistent with this cautious outlook, the 2026 budget reflects conservative assumptions for the County’s primary revenue sources. Sales and use tax projections are informed by recent collection trends and anticipated moderation in consumer spending as elevated interest rates and tighter credit conditions continue to affect household and construction-related activity. While nominal growth is expected, the pace of increase is assumed to remain modest given economic uncertainty and the potential for volatility in taxable sales. Property tax revenues are projected using certified assessed values provided by the Assessor’s Office and reflect the lagged effects of prior valuation increases. Although property taxes remain a relatively stable funding source, future growth is expected to moderate as housing market activity cools and valuation growth normalizes.

Unlike the majority of counties in Colorado, Mesa County remains subject to the annual revenue limitation imposed by Article X, Section 20 of the Colorado State Constitution, commonly known as the Taxpayer’s Bill of Rights (TABOR). As a result, revenues collected in excess of the TABOR limit must be refunded to taxpayers unless otherwise exempted or authorized by voters. In recent years, the County has issued significant refunds to residents as revenues exceeded allowable limits. Because TABOR limits are influenced by factors such as inflation, local growth, and economic conditions that are inherently uncertain, the 2026 budget does not include an estimate of potential excess revenues. Nevertheless, the County continues to develop its budget with an awareness of TABOR constraints, ensuring compliance with state statute while maintaining the capacity to meet refund obligations if required.

Mesa County’s budget encompasses 21 different funds, more than 31 distinct departments and functions, and 9 elected offices. The General Fund is the County’s largest operating fund and supports the majority of our departments and elected offices. Many of the services with which residents interact daily are supported by the General Fund. In 2026, the General Fund budget is $100.9M, an $0.9M (0.9%) increase from the 2025 adopted budget.

The second largest component of the budget is the Capital Improvement Program (CIP), supported by the Capital Fund. The CIP is a 6-year plan for undertaking major capital projects related to County facilities, technology, public transit, and transportation infrastructure. The 2026 budget includes $64.3M in CIP expenditures which will come from the County’s Capital Fund. 

The budget also includes a reduction of 34 positions. This represents a 3% decrease in County FTE from the current staffing level. Reductions were made to positions that remained vacant throughout 2025. The remaining positions will continue to prioritize the quality of County services and proactively work to meet residents’ needs related to public safety, financial oversight and transparency, and maintaining and improving County infrastructure.

The budget sets forth a plan for investing in strategic priorities while protecting Mesa County’s fiscal health in the midst of an uncertain economic future. Putting together a budget that accomplishes these important goals would not be possible without the effort of a dedicated team. I would especially like to thank our elected officials, department heads, and the entire budget team for their collaboration and stewardship. Looking ahead to 2026, I am excited by the opportunity to continue serving our residents and proud of the work Team Mesa does every day to make Mesa County the best place to live, work, and play for all generations.

Sincerely,

Todd Hollenbeck

County Administrator