Budgets for 2020, 2021 in Colorado Springs, El Paso County faring better than expected in pandemic
EL PASO COUNTY, Colo. (KRDO) -- The Colorado Springs City Council and the El Paso County Board of Commissioners both gave final approval Tuesday to their budgets for next year, averting any shortfalls because of the COVID-19 pandemic.
Officials said that spending reductions and millions of dollars in federal COVID recovery funds, prevented those governments from having to spend little, if any, of their revenue for that purpose and avoid significant budget deficits.
The city and county have not had to layoff employees or reduce services in 2020, and they expect that to continue next year -- even if no additional federal aid arrives.
Still, the pandemic's impact will be felt in a variety of ways.
"There won't be any raises for city employees," said Colorado Springs Mayor John Suthers. "But passage of measure 2A last month means we'll be on much better financial footing going forward because we'll be able to use 2019 -- which was a stronger growth year for us -- as a base, instead of 2020."
Suthers said the city mandated a 2% budget cut for each department in 2020 and that reduction will continue in 2021.
El Paso County said it 's doing well enough to afford modest raises for employees, and also made it a priority to finish its $15 million commitment to the Interstate 25 "Gap" widening project.
"We can always use more money for transportation needs," said Board President Mark Waller. "But what we're spending money on doesn't affect any particular project. Any additional money we have is going back to the citizens in some fashion.
Waller said the county is refunding a 2019 budget surplus to citizens this year, and estimates a surplus of $6 million this year, despite the pandemic.
"If we want to keep the surplus, voters have to approve it," he said. "But many people don't know that if we refund it, it's in the form of a credit on your property tax bill. We don't mail checks out to everyone. So if you don't own property, you don't get anything."
In September, the city began doing something the county has already been doing -- collecting sales taxes from online purchases, which provides additional revenue.
But Councilman Don Knight said local governments shouldn't rely on that revenue.
"Next year, I don't think we're going to see all restaurants and movie theaters open to capacity," he said. "We definitely have needs, but I'm glad the city is putting money into its reserves rather than just spending it."
The city and county agree that their budgets are in better shape than they expected, and should remain that way as long as the pandemic doesn't worsen.
