The town of Monument is finalizing its budget for 2026 after working through what town officials previously described as a financial crisis.

The budget offsets stalled sales tax revenue and deficit spending in the town north of Colorado Springs. The latest figures see the town ending 2025 with a 32.73% general fund reserve of about $5.6 million, well above the suggested amount.

“A budget is just a plan,” cautioned Monument Financial Director Jennifer Phillips at a Monday meeting. “It gets adopted tonight, and it changes tomorrow.”

To balance the budget, Monument laid off six employees in 2025. It also made cuts to departments and projects, paring down capital improvements. The town’s long-range financial forecasting has improved, with the reserve balance for 2026 increasing over this year.

The forecast still shows the percentage of reserve funds, which can be used for emergencies and budget deficits, decreasing over time. By 2029, the forecast predicts a 7.33% reserve fund balance.

Councilman Steve King said the town will still need to reckon with its revenue projections, which remain conservative. The town assumed no increase in sales tax revenue for next year, but a 2% percent increase thereafter each year until 2030.

“Unfortunately, it’s mostly a revenue issue, and something we’ll have to overcome,” he said at the meeting.

Monument will likely see some retail development next year, including a project that may include the town’s first Target location.

The budget includes a slight increase to Monument residents’ property taxes. On Monday, the town council voted to raise the mill levy to the full authorized amount, 5.57 mills, after previously discounting the rate. A mill corresponds to $1 of every $1,000 in valuation.

King said he felt that among other nearby municipalities, Monument was the most efficient user of funds.

“It’s definitely looking better,” said Phillips.