Grand County officials are reviewing a midyear budget amendment that projects nearly $21.8 million in general fund revenue, a significant increase driven by higher tax collections that would allow the county to fully fund five outside entities. Despite the improved financial outlook, the proposed plan maintains a countywide hiring freeze and leaves cost-of-living adjustments for employees on hold through the remainder of the year.
Revenue Surges Amid Fiscal Shifts
The proposed amendment, presented by Clerk-Auditor Gabriel Woytek during an Aug. 4 meeting, seeks to capitalize on a projected $685,000 surplus in general fund revenue beyond what was originally budgeted. This increase stems primarily from higher-than-expected sales and property tax projections, as well as additional transient room tax mitigation revenue available for law enforcement, according to prior reporting by Moab Times.
Under the new proposal, the county would replace a planned $345,824 withdrawal from general fund reserves with a $20,536 contribution. The amendment also includes $223,669 to fulfill full funding requests from five outside organizations, reversing a previous decision made during the original 2026 budget adoption in December to fund several of these entities at only 75% of their requested amounts.
Tax Projections and Allocations
The surge in revenue is largely tied to significant increases in tax projections. Across multiple funds, the amendment raises the county's total 2026 sales and use tax revenue projection by approximately $3.36 million, moving from $16.8 million to $20.16 million. Much of this increase is legally restricted and cannot be used for general county operations.
Approximately $2.1 million of the increase is attributed to the rural health care sales tax, which doubled from 0.5% to 1% following voter approval of Proposition 13 in November 2025. The county expects this tax to generate roughly $5.43 million in 2026. The proposed allocation for this tax includes $2.77 million for Grand County EMS, $1.65 million for the Canyonlands Health Care Special Service District, and $1 million for the Moab Valley Fire Protection District.
Tourism and Mitigation Funding
The transient room tax (TRT) projection is also expected to rise by approximately $1.08 million, from $8.06 million to $9.14 million. State law requires the first 2 percentage points of the county's 4.5% TRT—roughly 44%—to support tourism promotion, recreation, film production, or conventions.
The amendment directs about $4.02 million to tourism promotion via the Moab Office of Tourism and Film Commission and $5.12 million to Fund 26, the county's TRT mitigation fund. Proposed spending for Fund 26 includes $4.56 million for Grand County Sheriff's Office operations and $500,000 for the Canyonlands Solid Waste Authority. The Canyonlands Solid Waste Authority would receive a total of $500,000 after receiving an additional $125,000 through the amendment.
Compensation and Hiring Freeze
Despite the budget improvements, employees will not see immediate compensation changes. Personnel Services Director Tess Barger presented several cost-of-living adjustment (COLA) scenarios, including a 2.8% adjustment—matching Social Security's 2026 rate—which was estimated to cost $226,491 through the end of the year.
However, commissioners reached an informal consensus on July 27 to exclude a COLA in this amendment. Instead, the commission agreed to revisit employee compensation on the Nov. 17 agenda once more revenue data is available. If collections exceed current projections, the commission may consider a one-time payment rather than a permanent increase to base wages. Additionally, the county will continue its hiring freeze, though the commission maintains the authority to approve specific backfill requests for vacancies.
Public Debate on Infrastructure
The budget discussions have been marked by public debate, particularly regarding the allocation of Fund 47. The amendment includes the county's previously approved $500,000 contribution to the Arches National Park shuttle pilot, consisting of $350,000 from Fund 47 and $150,000 from transient room tax mitigation revenue.
During the Aug. 4 public hearing, most speakers expressed opposition to the Fund 47 allocation. Critics argued that voters expected these funds to support local transportation infrastructure and questioned what other local investments might be sacrificed. Supporters of the pilot argued it serves as a necessary test to see if transit can reduce vehicle congestion and trips in the area.
Impact on Local Organizations
While five entities will receive full funding, some organizations will continue to face shortfalls. The Humane Society of Moab Valley is slated to receive $9,000, falling short of its $12,000 request, and the Seekhaven Family Crisis and Resource Center is set to receive $9,375 instead of its requested $12,500.
Commissioners directed the county administrator to notify these organizations that their fourth-quarter payments remain unfunded and invited them to explain the impact of these shortages. The commission may reconsider these amounts later in the year, though no specific date has been set.
Next Steps for the Commission
The Grand County Commission, which serves as the legislative body for the county, consists of seven elected members. These members serve in part-time roles, while other elected officials serve full-time. The commission holds regular meetings on the 1st and 3rd Tuesdays of each month at the Commission Chambers in Moab.
Following the public hearing, the commission is expected to consider the formal adoption of the budget amendment on Aug. 18. Written comments on the amendment are being accepted through 5 p.m. on Aug. 12.
