Garfield County begins 2025 budgeting process
Board of County Commissioners sets out to develop a balanced operating budget
PRESS RELEASE
July 22, 2024
Garfield County has begun its budgeting process for 2025 and is focused on a balanced operating budget with no increase in headcount while looking at efficiencies and savings to offset cost increases. The Garfield County Finance Department presented its revenue projections and strategic plan to the Board of County Commissioners, highlighting anticipated figures for 2024 and ’25.
The county is projecting a significant revenue decrease in oil and gas property taxes in 2025 when compared to 2024, and a moderate decline in residential property taxes over the same period. The county’s 2024 amended budget anticipates revenues at $131.4 million, and $139.2 million in expenditures, with a projected total fund balance of $100.7 million at year’s end.
“We continue to see a significant reduction in property tax revenues from oil and gas production,” said Garfield County Manager Fred Jarman. “There are also significant increases in costs due to an inflationary marketplace, and the high cost of goods and services. There are also increases in salaries and associated equity adjustments to retain and attract a competitive workforce.”
He added that increases in the cost of health care insurance, continual and needed capital projects, workers compensation and liability insurance, and increased requests for discretionary grant funding are all factors in the budgeting process, among others.
“The county and this board have made great strides in previous years in addressing these pressures all while approving a balanced operating budget,” Jarman added.
Garfield County Finance Director Jamaica Watts noted that the county’s revenues mainly stem from property and sales taxes (54 percent), intergovernmental funds (24 percent), charges for services rendered (11 percent), and investment earnings (1.5 percent).
Property tax revenue forecasts project $52.5 million in 2024, followed by $41.4 million in 2025. Sales taxes for 2024 are projected at $18.3 million, and severance taxes are forecast at $1 million in both 2024 and ’25.
Watts added that the county’s asset-to-liability ratio is 2.6:1, indicating the ability to pay its obligations within one year.
“Our current ratio means our assets are two and a half times greater than our current liabilities,” she explained. “This ratio is an indication of a strong and healthy position and is up from prior years.”
The 2025 budget is slated for review through October and adoption in November.
“I’m glad that we had the foresight to make sure we had savings,” said Commissioner Mike Samson. “We’re in really good shape compared to a lot of other governments. That being said, this is likely going to be the toughest budget the three of us have ever worked on. We either have to raise revenue or decrease spending, and likely a little bit of both. We need to look at everything we spend money on and see where we can cut expenses.”