Bayfield town trustees have approved a $2 million general operations budget for 2016. That includes town administration, police, public works, and parks and recreation.
Other budget categories, such as water; sewer; capital improvements; the transportation fund - which is committed to replace the two green bridges on Bayfield Parkway; and a new street fund; bring total appropriated funds to almost $10.3 million. This includes money transferred between funds and effectively counted twice.
The board approved the budget on Dec. 1 and set the town property tax rate (mill levy) at 5.950, the same as it's been for many years.
Also that night, the board formally established the new street fund for the revenue from an additional 1¢ of town sales tax that voters approved in November, with the money committed for street or drainage-related projects. The board appropriated $398,994 to that fund.
Collection of the just-approved sales tax starts in January and will not provide enough for a major project in 2016, La May said. So the Street Fund appropriation includes a $200,000 transfer from the General Fund for a starting reserve plus revenue from some other taxes and fees, from Highway Users Tax, Severance Tax and Mineral Leasing money that the town gets.
In his budget message, Town Manager Chris La May said the general fund revenue is down about 7 percent from 2015 because of moving those taxes and fees, highway, severance, and mineral funds to the street fund.
The other two percent town sales tax, a share of county sales tax, and property tax account for 75 percent of general fund revenue, La May said.
Town sales tax is projected at $286,886 for 2016 and the share of county sales tax at $821,667, both down slightly from the expected actual tallies for this year. Another $286,886 of town sales tax goes to the Capital Improvement Fund.
Property tax revenue is projected at $206,747, up from $199,296 this year. La May said the town's assessed valuations increased with 2014 values.
Total general fund revenue is listed at $1.7 million. Loan repayments from the sewer fund bring the total to $1.75 million.
General fund spending provides for staff merit pay increases of 1 to 3 percent, a 2 to 4 percent increase in employee health insurance costs, continued funding for the School Resource Officer, and $60,674 for costs for a new position to assist with or manage land use planning responsibilities, and assist with special projects, according to La May's memo.
The budget projects a General Fund starting balance of $1.3 million drawn down to just over $1 million at the end of 2016.
La May's memo also summarized the other budget funds.
Capital Improvement spending will include the ninth of 10 payments of town hall debt, $267,862 per year.
The Sewer and Water Fund budgets don't include any customer rate increases for 2016.
Sewer expenses include a $365,681 debt payment on the sewer plant and a $36,547 repayment on a state loan to reduce sewer line infiltration.
Water system expenses include $497,296 for water line improvements on South Mesa and for isolation valves. This is offset by a $250,000 grant from the State Department of Local Affairs.
The water system budget also includes $260,000 as the town's projected share of water line construction by the La Plata/ Archuleta Water District (LAPLAWD) in the town service area to serve town customers.
The Transportation Fund (separate from the new Street Fund) was established in 2011 to hold $6.8 million paid by Colorado Department of Transportation for the town to take over Highway 160B, renamed Bayfield Parkway, from end to end. Money has been used to reduce a backlog of street maintenance work.
Spending for 2016 includes $4.7 million to replace the two green bridges on the parkway and $25,000 for some street crack sealing and for contract administration. Funding for the bridge replacement includes $1.39 million from CDOT Off-System Bridge Replacement funds and $261,000 from a Transportation Alternaive Program grant for the pedestrian and bike path component of the project.
In his memo, La May said, "The town is in relatively stable financial position, which affords the town the opportunity to continue to provide current levels of service. Although the 2016 budget calls for the spend-down of fund balance in certain funds, the town still holds reserves in all funds to offset any dramatic decline in revenues."
