Based on current budget projections, the town of Monument may need to tighten the belt to compensate for a recession.

That was the conclusion of the town’s most recent 2025 budget adjustment, which predicts flat sales tax revenue into 2026, compared to a 2% increase in 2024.

“If we had a good economy, and things were going well like they have the last couple of years, we would be right on track,” said Monument finance director Jennifer Phillips. “Unfortunately, as many municipalities around the area and the nation are, we’re beginning to brace for possible recession.”

A recession is defined by the National Bureau of Economic Research, which officially tracks economic cycles, as “a significant decline in economic activity that is spread across the economy and lasts more than a few months.” The last, and comparably very short, recession lasted two months from February to April of 2020, according to the NBER.

Some economists have been predicting a 2025 recession, including at international investment banks. JPMorgan Research, for example, predicted a 60% chance for a global recession in its April report.

On the local level, Phillips said conservative numbers for a global recession could put the town of Monument on poor financial footing within a year or two. As the budget stands now, the city will be dipping into its reserve funds to cover expenses.

“The health of the budget is good for 2025. We are spending more than we’re bringing in, but we’re spending from our reserves which is savings, which is perfectly legal,” she said.

The newest budget predicts the town will leave the fiscal year with an intact reserve of just over 20% of the general fund. For 2026 and onwards, however, Phillips predicts the budget will rapidly deplete reserve funds even under modest predictions for town expenses.

“The challenge is moving forward,” she said.

At a meeting last week and at an earlier retreat, town council members have been discussing possible budget remedies. The options on the table include selling two town properties for a one-time infusion of cash to the operating budget.

While one is a vacant lot on Gold Canyon Road estimated at about $800,000 in value, the other is the building currently occupied by the Tri-Lakes Chamber of Commerce. According to interim town manager Madeline VanDenHoek, the town has leased the former town hall to the chamber for about a decade.

The El Paso County Assessor’s Office data lists the most recent market value of the building at $440,523.

VanDenHoek said only “very early conversations” were being held about the possible sale. Tri-Lakes Chamber of Commerce Director Terri Hayes could not be reached for comment.

Monument Mayor Mitch Lakind said he was more in favor of putting the parcel up for sale.

“I think we would want to look at that one first, given that it is dirt,” he said at the meeting last week.

If the town does go ahead with property sales, it will still likely need to consider both increases to its revenue and decreases to services, said Phillips. While she said that the town council is not currently interested in raising taxes, it may need to look at reductions in service levels for the 2026 budget.

The Monument Police Department already decided not to hire three new officer positions in 2025 due to budgetary concerns, said VanDenHoek.

In coming weeks, she said residents should keep an eye out for open applications to a Citizens Service Levels Advisory Committee to prioritize the city’s budget and discuss what services might be cut in the 2026 budget. The committee would submit recommendations to the town council. 

Phillips said that financial reports for April and May, when compiled, will help her determine whether predictions are holding.

“We really can’t just keep doing business as usual,” she said.