Teller County commissioners approved $3.3 million in budget adjustments transferring personnel savings between departments at their February 26 meeting, settled a 2023 ballot printing dispute with a voting systems vendor for $4,063, and authorized a $69,359 water tap fee for the new Central Service Center in Divide. The board approved an $11,755 grant application to offset impacts from state-owned lands, finalized easement agreements for the service center, and approved a 5 percent food service price increase for the jail contractor. Ten residents addressed short-term rental regulations during public comment, with Chairman Erik Stone clarifying no draft ordinance exists.
Budget Resolutions Move Personnel Funds
The board unanimously approved two resolutions transferring approximately $3.9 million in personnel-related funds. Resolution 02-26-2026 #8 moved $3.3 million in merit pool savings from holding accounts across six funds, including $2.5 million in the general fund and $252,632 in social services. Resolution 02-26-2026 #9 transferred an additional $619,068 in regular adjustments between departments.
A finance department representative explained the county holds employment turnover savings in special accounts accessible only by board resolution. The board directed monthly adjustments to ensure proper fund allocation throughout the year.
Voting System Settlement Ends Three-Year Dispute
The board approved a $4,063 settlement with Integrated Voting Systems, resolving a dispute from November 2023 when the vendor mailed 14,812 incorrect ballots out of 19,000 total sent to voters. The error forced the county to print and mail corrected ballots within three days.
County Attorney Paul Herkom said the county terminated the contract after Stone sent a letter identifying the vendor’s “mistakes and incompetence.” When the vendor later invoiced approximately $24,000, Herkom offered 21 percent—the portion performed accurately. After a year of silence, a California law firm demanded $31,000. Herkom reiterated the 21 percent offer, which the vendor accepted.
Clerk and Recorder Stephanie Kees, who discovered the error when a voter called, said sorting returned ballots became a “nightmare.” She called the settlement “completely, not to bed, but buried deep.”
Service Center Construction Advances
The board approved a water service agreement with Divide Water Providers requiring a $69,359 tap fee due within three business days for the new Central Service Center at 90 South Hybrook Road in Divide. County Administrator Ross Herzog said favorable weather allowed site work to proceed, with water lines currently being installed.
Commissioners also approved two perpetual easement agreements with Peter and Jacqueline Kuyper for parking lot and slope easements at the service center site. Herkom said the Kuypers were “very amenable and easy to work with” during negotiations.
Grant Application, Food Contract Approved
The board authorized applying for $11,755 from Colorado Parks and Wildlife to offset impacts from 13,382 acres of state parks and wildlife areas in the county. The grant pays 87 cents per acre—significantly less than the $3.05 per acre the federal government provides through Payment in Lieu of Taxes.
Commissioner Bob Campbell called the state rate “whopping.” Stone said Senate Bill 30, which would have provided additional state funds for road maintenance leading to state parks, died in committee on first reading.
The board approved a 5 percent price increase for Summit Food Service, the jail’s food contractor, effective January 1. Campbell expressed concern about frequent off-cycle contract modifications for price increases, suggesting future contracts should anticipate inflation.
NACO Conference Addresses Federal Issues
Commissioners Stone and Dan Williams returned from the National Association of Counties legislative conference in Washington, D.C., where 45 Colorado commissioners met with both U.S. senators and all eight congressional representatives.
Williams said the conference addressed Payment in Lieu of Taxes funding, Secure Rural Schools funding (Teller County received $68,000 for 2026), and Medicaid error rates. Colorado’s Medicaid error rate stands at 9 percent while Teller County’s rate remains below 1 percent—both measured against a 6 percent federal threshold. Williams warned that federal penalties for states exceeding the threshold could shift administrative costs from 25 percent to 50 percent onto counties.
Stone said the state’s CBMS software is “clunky, cumbersome, and error ridden,” creating mistakes for both staff and residents. Stone warned that counties “run lean and mean” with limited capacity to absorb new costs.
Williams also reported his appointment by the governor to the Pine Beetle Task Force, citing 4.1 million acres in Colorado severely impacted by drought.
Assessor Reviews State Legislation
Assessor Kurt Schoenberger updated commissioners on four bills affecting property taxation. He opposes House Bill 26-119, which would split mill levies between improvements and land, saying it “doesn’t have a lot of support.” House Bill 26-1120, requiring tax notices in five common languages, is being revised after assessors protested.
Schoenberger supports House Bill 26-1233, which creates penalties for appellants who provide false information or deliberately delay assessor appeals to collect 1 percent interest.
Senate Bill 116 contains three parts: allowing statutory cities to implement lodging taxes, making permanent the portability of senior and veteran property tax exemptions, and raising the business personal property exemption from $56,000 to $60,000.
Campbell warned that while exemption portability may become permanent, funding is not permanent and requires annual legislative approval. He advised residents to “plan for it not to be funded next year in hopes that it is,” noting the legislature battles annually over the $1.5 million in tax relief the exemptions provide Teller County residents.
Public Comment Focuses on Short-Term Rentals
Ten residents spoke during public comment, most addressing short-term rental regulations. Stone clarified that documents circulating online labeled “draft ordinance” are not official drafts. “We have not put pen to paper at all on the STR issue,” Stone said, explaining the board remains in the listening phase.
Several residents argued septic system problems stem from occupancy levels rather than rental type. Matthew Nelson, representing the Teller County Short Term Rental Alliance, said his Florissant property generates 15 loads of laundry monthly compared to 30-45 loads for an average family of four, with toilet flushes totaling less than half of a family residence.
A resident proposed county-wide septic reform rather than short-term rental-specific regulations. Stone said the county already follows state Regulation 43 for on-site wastewater treatment but suggested Teller County might consider title-on-transfer septic inspections similar to El Paso County’s system.
Jonathan McIntosh requested formal economic and financial impact analysis before implementing regulations, estimating 900 short-term rental properties with an average value of $450,000 represent nearly $400 million in property value.
Stone announced a 1:00 p.m. work session with first responders and search and rescue to discuss short-term rental impacts.
Employee Recognition
The board recognized Pauline A. Knott for 10 years of service in the Department of Human Services, where she has served in multiple roles including caseworker, senior caseworker, lead intake caseworker, and interim intake supervisor. A department head called Knott a “rock star” who showed creativity during COVID-19 and consistently “goes the extra mile.”
Commissioner Campbell recognized Pat Cummins, who retired in 2025 after 41 years of county service in road and bridge, parks, fleet management, and purchasing. Campbell called Cummins “the king of being public service in Teller County.”
Other Business
The board approved disposing of 40 pieces of outdated IT equipment through E-Tech Recyclers. IT Director Kyle Crawford ensured all data was destroyed before disposal. The board postponed approval of a right-of-way vacation in Cripple Creek Mountain Estates to March 24, giving the applicant more time to collect required signatures and pay outstanding property taxes.
Kees reported the motor vehicle department stopped accepting credit cards due to ongoing problems with new software. The recording department will close for lunch from noon to 1:00 p.m. for five to six weeks due to staffing issues.
Schoenberger announced two public meetings on property taxes: March 11 at 5:30 p.m. in Cripple Creek and March 12 at 5:30 p.m. at Woodland Park Cultural Center.
Herzog reported the county is under red flag warning with wind concerns and urged residents to sign up for alerts with utility companies about Public Safety Power Shutoffs. He also said the meeting room’s audio system has reached end-of-life.
Nick Ragain, representing the Pikes Peak Outdoor Recreation Alliance, said the organization received a $2.5 million GOCO grant for seven projects over four years across El Paso, Teller, and Fremont counties. Stone raised concerns about increasing recreation impacts on county roads, law enforcement, search and rescue, and ambulance services, noting “it’s a good thing we don’t get as much government as we pay for.”
Woodland Park Mayor Kellie Case attended the meeting.
The meeting adjourned at 10:57 a.m.
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