The Long Term Finance Committee, comprised of volunteers, has spent the past two years examining developments affecting county finances. The county has suffered a double whammy: the recession of 2008-09 and then a nearly 50 percent drop in gas and oil tax revenues.
In my opinion, the county has responded well, cutting and controlling expenses and dipping into reserves to cover the significant revenue shortfalls. However, these efforts are no longer sufficient to overcome the continued erosion in natural gas prices and production. We now know with near certainty that the county’s gas tax revenues will decline by another 45 percent in 2017 (2017 taxes are based on 2015 prices, which have fallen 45 percent). A sustained return to the top of the market times for gas and oil in La Plata County is remote.
The committee studied several alternatives, including sales tax, use tax, impact fees and further cuts to county capital spending plans. Sales taxes are regressive: they hit hardest on low-income citizens and the required increase would drive more of our shoppers to New Mexico. Use taxes and impact fees alone cannot fix the sizeable hole created by the drop in gas tax revenues. The county has cut capital spending plans and is responsibly reacting with the ballot question to raise the mill levy.
This would be the first increase in 25 years to our mill levy. The increase would be no more than 2.4 mills, raising the total levy to 10.9 mills. Currently the county has the 4th lowest mill levy in Colorado. The increase would keep La Plata’s levy well below the state median of 20.021 mills. All revenues raised must be dedicated to road and bridge expenditures (go to the county’s website to see the road and bridge plan), the increase expires in 10 years and a citizen’s committee will be appointed to examine expenditures and report to the voters.
Please vote “yes” for Ballot Question 1A. It is the best way to return the county to a sustainable financial footing.
Richard Butler, member
La Plata County Long Term Finance Committee
Durango
