El Paso County expects to boost employee salaries and allocate more money to fix local roads in 2023, according to a proposed spending plan finance officials presented Tuesday.

More than $16 million is allocated in the $472.5 million recommended budget for pay increases for county employees, including a 5% cost of living increase and a 2% increase to county department and office personnel budgets, El Paso County Chief Financial Officer Nikki Simmons said.

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It’s a large portion of about $257 million in discretionary money county commissioners can distribute to core services and departments. The rest of the budget is tied up by state and federal regulation.

The county’s Consumer Price Index (CPI) – the average change over time in the prices residents pay for goods and services – is about 8.2% for 2022, Simmons said. County officials have also conducted a comprehensive salary study, which they are using to make pay adjustments for employees, she said.

“There’s still a little bit of work to do to get our employees closer to market (rate pay),” Simmons said.

The county lost 27 full-time employees in 2022 and hopes to add 11 more, for a total of 3,005 full-time employees next year.

The preliminary spending plan also includes $11.9 million for local roads. This includes a one-time allocation of $10 million to fund road projects and $1.9 million for gravel road maintenance, an example of the county’s commitment to addressing aging and deteriorating roadways, Simmons said. For example, El Paso County allocated just $2.3 million for roads in 2017, budget documents show.

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“This will allow Public Works to strategically address the highest priority road projects for 2023,” Simmons said Tuesday.

Public Works representatives will present commissioners their department’s critical needs later this month, as budget discussions continue.

In November, El Paso County voters will also decide whether to extend a 1-cent sales tax that funds regional and multimodal road projects for another 10 years.

The spending plan also includes a temporary property tax mill levy reduction estimated to save about $13 on a $500,000 home and a proposed tax credit refunding residents approximately $30.7 million in excess 2021 government revenues. The owner of a $500,000 home would receive $113 back, Simmons said.

Sales and use tax revenues are higher than budgeted projections this year – an estimated 6% over 2021. Retail, food service, hospitality and wholesale trade industries are all seeing boosts. The proposed budget includes a staff-recommended increase of 4% over 2022 estimates, Simmons said. 

El Paso County plans to hold 18.5% of its general fund in reserve to face possible economic downturns since the country could likely see a recession next year. The proposed budget adds $3 million more to the reserve fund.

“We want to ensure that our county is financially stable not only through an emergency but also through an economic downturn,” Simmons told commissioners.

Her office projected an economic downturn comparable to the Great Recession, which between late 2007 and mid-2009 caused an 8% reduction in sales tax revenues that finance the general fund. County officials found next year’s proposed budget could sustain that type of economic headwind, she said.

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“Hopefully that doesn’t happen – and we’re all set up – but we are being fiscally conservative with this budget,” Simmons said.

Other highlights include:

? $89 million, or 44%, of the unrestricted general fund is designated for public safety, including $58.7 million to the Sheriff’s Office. An additional $38 million in public safety expenses will come from El Paso County’s 0.23% restricted public safety tax, a county news release states.

? $1 million to improve county facilities

? $160,000 for county parks maintenance

? $150,000 to move out homeless camps 

? $84,000 to hire a veteran’s appeals specialist to assist veterans navigating the U.S. Department of Veterans Affairs process

The budget process continues Oct. 18 and Oct. 20, when each department will present its “critical needs” to the board. Residents can attend the hearings and offer feedback on budget allocations before commissioners adopt the final 2023 budget Dec. 6.

El Paso County 2023 Budget Hearings Schedule

Oct. 18 and Oct. 20: County departments will present their “critical needs” for 2023.

Nov. 15: Commissioners will discuss allocations and direct staff to prepare a final draft of the budget.

Dec. 6: Commissioners will vote to adopt a 2023 budget, certify the county mill levy, authorize the county treasurer to transfer between funds and adopt five public improvement district 2023 budgets.

The hearings will take place during commissioners’ regular meetings, which start at 9 a.m. at Centennial Hall, 200 S. Cascade Ave. Residents may also participate remotely through Facebook Live on the El Paso County Facebook page.

Residents can find the 2023 preliminary balanced budget on the county finance website, admin.elpasoco.com/financial-services. Click on the “County Budget & Presentations” button.