Q4 2025: San Juan County reports revenues above budget, interest income lifts reserves

Budget analyst Dr. Molly Foote presented San Juan County’s fourth-quarter financial review for 2025 and told the council the county as a whole received nearly 100% of budgeted revenues while spending remained below projections.

Foote explained the county uses cash-basis accounting and fund-level reporting. For all county funds combined she said taxes were the single largest revenue source, making up approximately 43% of total revenue; taxes increased about 8.1% in 2025 compared with the prior year. For the current expense (general) fund specifically, she reported taxes accounted for about $19.1 million and about 65.3% of that fund’s revenues.

On expenditures, Foote said salaries and wages were the largest expense type across county funds (about $26.1 million, roughly 95% of the budgeted amount) and that total county spending came in at about 79.3% of projected uses for 2025. At the fund level the current expense fund was reported at roughly 105% of revenue received compared with 91% of budgeted spending, which Foote said increases cash reserves.

Foote highlighted several revenue sources and trends: intergovernmental revenue and grants were notable contributors; real estate excise tax (REET) receipts were variable (REET rate 1 was budgeted at $1,000,000 and realized roughly $951,000); lodging tax trended slightly downward over recent years; and interest income was unusually high—Foote stated the county budgeted $1.8 million for interest but earned about $4.5 million in 2025, a volatile source she described as a "wild card."

A council member asked about the insurance cumulative reserve. Foote explained the fund’s structure and how ending cash and budgeted expenditures are reported. A county staff member added that the reserve money is held to pay potential liabilities, citing lawsuits as an example.

Foote closed by noting some year-end transactions had yet to post and that final numbers would be available at the next meeting; she scheduled the 2026 first-quarter financial review and the first 2026 budget amendment discussion for the April 28 meeting.

The presentation provided the council with a snapshot to inform upcoming budget discussions, showing higher-than-expected interest revenues that boost reserves but that may not recur in 2026.