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Property-tax hike gets backing

County finance committee recommends mill-levy hike; commissioners weigh options

Though La Plata County commissioners remain undecided, the county’s Long-Term Finance Committee recommends a 2.5 mill increase for voters to consider in the upcoming November election.

On Wednesday, a commission-appointed financial sustainability committee offered four recommendations to boost county revenues. Those proposals include a property-tax increase between 1.5 and 2.5 mills, provided the funds are dedicated to road and bridge infrastructure. The tax would expire after 10 years.

County commissioners met Thursday for the first of three work sessions to discuss a potential ballot item. Sept. 4 is the deadline to submit language to the county clerk.

The county’s mill is currently set at 8.5. If the mill increased to 11 – the committee’s maximum proposal – a residential homeowner would pay an additional $80 annually on a $400,000 home, or a total of $350 annually.

A mill is $1 per $1,000 of assessed property value.

Though commissioners Julie Westendorff and Gwen Lachelt said nothing is confirmed, Commissioner Brad Blake said he leaned toward a 2-mill increase.

“It’s the middle of the road, not at the high end,” he said.

Committee member Rich Butler said he supports a 2.5 recommendation, but ultimately he wants to see a realistic proposal voters will pass.

“Given what’s happened to oil and gas revenue, it’s important that new revenue is raised,” Butler said. “I’m behind the 2.5 levy, but the commission will decide. The most important thing is to pick a level they think voters will pass.”

A drop in natural-gas prices has impacted multiple revenue sources for La Plata County, including severance-tax and property-tax revenues. As a result, Butler said the county’s increased reliance on federal and state funds puts La Plata in a “dangerous” position.

If a property-tax increase passes, it will be implemented in 2016. County staff members said the public would be able to monitor how tax funds are used through an advisory committee composed of county residents.

Officials also intend to place money in next year’s budget for an outside consultant-conducted impact-fee analysis. Establishment of such a fee in the county has not garnered favor thus far, but the committee advised the commission to explore the idea, as well as levying a use tax.

Long-Term Finance Committee member Gary Masner said he would support an impact fee as a small but viable revenue source, doubting a use tax would receive voters’ support.

jpace@durangoherald.com

An earlier version of this story gave an incorrect amount homeowners would be paying per year if the mill levy were increased 2.5 mills. The error was made in editing.

Jul 4, 2016
La Plata County Commissioners to vote on mill levy ballot item


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