2023 RBC budget snapshot

Budget season is well underway in Rio Blanco County, with commissioners, staff and department heads racking up more than 30 hours worth of budget-related meetings so far this year.

During the first budget meeting on Oct. 17, 2022, Budget & Finance director Janae Stanworth provided an overview of the proposed budget for next year, noting highlights and laying groundwork for following budget sessions, which will be covered in detail in future editions. Based on additional discussions, these numbers are subject to change. The deadline for final budget adoption is Dec. 13, 2022.

REVENUES UP

Total revenues for 2022 were approximately $29.7 million, up $1.18 million from 2021. Stanworth said the increase is tied directly to oil and gas valuations. The industry assets value in RBC increased by more than $125 million last year. Those increases offset valuation decreases in virtually every other category including residential (-$798K) agricultural (-$809K) industrial (-$26.4M) and natural resources (-$1.3M).

EXPENSES UP

County expenses for 2023 are budgeted at $35.9 million, including transfers out from pre-existing fund balances, rollover from unfinished projects or capital expenses and more. Stanworth explained that the gap between the total revenue and expense numbers don’t paint an accurate picture, noting that the county is not spending more than it takes in, but rather spending previously allocated funds that have either yet to be spent, come from grants, or are non-budgeted items like PILT/Federal Mineral Lease allocations from the federal government. As one example, “capital outlay” represents a bigger chunk of the overall budget than usual at 16.9%.

$1.9 million will go towards fleet management, of which the majority is carryover from 2022 for capital items that could not be purchased in 2022. A $600K compactor for the landfill is a newer item in the list. Other expenses in the category include $2.4 million “American Rescue Plan” funds which have yet to be allocated to specific purchases, around $319K for discretionary grants, and $1 million for a water line replacement project rolling over from 2021.

CONTINGENCY/FUND BALANCES

The county keeps money in reserve to maintain operations in the event of an emergency. Stanworth broke down specifics, noting that a little over $1 million is set aside in the general fund for contingency spending.Property tax revenues are split into five funds, all of which have contingency fund levels. The general fund maintains 12 months of operating expense reserves, the road and bridge fund (which is flat from last year) has six months of reserves, and both public health/DHS funds have four months of reserves in the budget.

OPERATING REVENUES/EXPENSES

Stanworth said that looking at operating expenses v. revenues offers a clearer picture of actual spending, describing it as representing “the core, main services we provide.” Revenues, which are primarily from property taxes, are around $28.4 million, compared to $32.3 million expenses. Stanworth said the difference does not include revenues from PILT (Payment in lieu of taxes) from the federal government, Federal Mineral Lease allocation or severance taxes. She said when you add those items in, the budget v. expense is much closer.

Overall budgeted expenses are set to increase 1.7% in 2023. Expense increases of note include: