Season 4, Episode 2 - Demystifying the El Paso County Budget with Chief Financial Officer Nikki Simmons

Demystifying the El Paso County Budget with Chief Financial Officer Nikki Simmons

 

In this episode of "Beyond the Dais," host Scott Anderson sits down with El Paso County’s Chief Financial Officer, Nikki Simmons, to discuss the intricacies of the county’s annual budget process. From understanding how taxpayer dollars are allocated to unraveling the impact of Colorado’s Taxpayer Bill of Rights (TABOR), this conversation shines a light on the financial stewardship and decision-making that keep essential services running in El Paso County. For residents who’ve ever wondered how budgets work in their local government, this episode provides transparency, clarity, and an invitation to engage.

Meet Your County CFO: A Passion for Transparency and Accuracy

Nikki Simmons, a CPA with two degrees from the University of Colorado, brings more than 15 years of expertise to her role as El Paso County’s CFO. Her journey from auditing to overseeing the county’s financial strategies is fueled by curiosity and a love for digging into numbers. She leads the Financial Services Department, covering accounting, payroll, budgeting, contracts, and procurement—making her team the backbone of the county’s fiscal health.

The Annual Budget Process: Collaboration, Planning, and Strategy

Budgeting in El Paso County is far from a backroom process; it’s a months-long collaborative effort. As Nikki Simmons explains, planning begins every March, using a base budget model that assumes departments’ budgets stay steady unless adjustments are needed. Departments submit requests for critical needs, reflecting the priorities of day-to-day operations. These requests are vetted and discussed through open meetings with elected officials and department leaders throughout the summer.

Strategic alignment is key. Every budget decision is made through the lens of the county’s strategic plan, focusing on how taxpayer dollars advance essential services and community goals. By fall, the administration prepares a “preliminary balanced budget,” which is then presented to the Board of County Commissioners for approval after public hearings and review.

The approval phase is transparent: budget hearings and critical needs discussions are open to the public, and final budget decisions are reached through consensus among commissioners. The budget is officially adopted by December, ensuring that services move forward without deficit spending or fiscal uncertainty.

TABOR: Safeguarding Taxpayers While Managing Growth

One standout topic in the conversation is Colorado’s TABOR (Taxpayer Bill of Rights). Passed in 1992, TABOR restricts government growth by requiring voter approval for tax increases and limiting revenue expansion to inflation (CPI) plus a growth factor. Nikki Simmons breaks down how TABOR ensures fiscal discipline but also presents challenges, especially when state mandates bring new revenue and obligations that count against the county’s cap.

For many years, El Paso County has returned excess revenue directly to residential property owners. In 2024, $4.5 million will be refunded, amounting to about $19 per household. This commitment to following TABOR and providing refunds highlights the county’s adherence to fiscal rules and its transparency with taxpayers.

Building Reserves: Preparing for Uncertainty

A point of pride for Nikki Simmons and her team is the county’s robust reserves. While best practice suggests keeping about 16.67% of annual revenues in reserve (two months’ worth), El Paso County targets a 23% reserve. This conservative approach allows the county to withstand economic downturns and avoid painful service cuts or layoffs, a feat many other local governments envy.

Increasing Transparency: New Ways for Residents to Get Involved

Transparency isn’t just a buzzword—it’s a daily practice. This year, El Paso County rolled out a new digital budget book, powered by CLEARgov, allowing residents to explore department finances, goals, and performance metrics. All budget hearings are open and streamed live, with records available online, and citizen comments are welcome at each stage.

Engagement goes beyond meetings: the Citizens College offers residents a hands-on opportunity to learn about budgeting and the tough choices commissioners face. Nikki Simmons herself often presents, demystifying mill levies and budget strategies for anyone eager to understand the process—or simply geek out over local finance.

El Paso County’s budget process is designed with collaboration, prudent planning, and transparency at its heart. Thanks to leaders like Nikki Simmons and her team, the county remains financially healthy and accountable. Residents are encouraged to explore resources, join hearings, ask questions, and become active participants in the stewardship of their community.