The city of Durango is starting to think about what its contributions to the area child care sector might look like.
The La Plata Economic Development Alliance is seeking contributions from La Plata County and its three municipalities to pad a child care investment fund that would reinvigorate the area child care sector.
The goals are to increase pay for child care workers, thus improving retention of skilled workers; create bilingual child care options; and invest in child care provider infrastructure.
The alliance partnered with the Early Childhood Council of La Plata County and the Regional Housing Alliance of La Plata County to develop a five-year Early Childcare Strategic Investment Plan, which recommends sourcing funding from employers, government grants and philanthropic sources, and local governments.
The plan aims to raise $20 million in five years, half for child care operations and half for child care infrastructure.
Suggested local government funding sources included county and municipal lodgers tax revenues, special district taxes, mill levies, sales and property taxes, and tax-exempt revenue bonds or capital bonds.
The plan budgets $800,000 of funding from public sources for the first year of the child care investment plan, which calls for raising $2.2 million from all sources that year.
City Manager José Madrigal said at a Durango City Council retreat last month the city anticipates a year of slow, small growth of 1-2% in 2026.
“Next year is going to be a very tight year. There’s not much wiggle room at all for us,” Madrigal said. “… I don’t think that we’re anticipating a decrease, I just think it’s going to be a steady, 1-2%, very modest growth.”
He said he is conducting a compensation study and will need to make adjustments to its pay structure accounting for cost-of-living adjustments and pay to high-performing staff.
Councilors and staff discussed a number of approaches to contributing to the child care fund.
Councilor Kip Koso said he likes the idea of contributing funds possibly matching La Plata County contributions.
Any contributions to the child care fund this year would require taking funding away from existing programs because child care wasn’t budgeted for.
The Economic Development Alliance and the Early Childhood Council presented the plan to the city in March, well after the city’s 2025 budget had been developed and approved.
Madrigal said the county has a secure funding source for child care contributions, noting a ballot measure that passed in November and authorizes the county to direct up to 70% of its lodgers tax revenues toward child care and affordable housing.
“The county does have a stable funding stream for child care that they’ve set up through a lodgers tax allocation, which we don’t have,” he said.
Durango Prosperity Officer Mike French added that the county could choose to contribute to child care differently than how the child care investment plan suggests.
Councilor Jessika Buell said 11% of city lodgers tax funds are earmarked for spending at City Council’s discretion.
“Part of the reason we have the 11% council discretion is for opportunities or pivots we need to make in terms of things. Something like child care right now, that’s a perfect example,” she said.
She said there are a lot of creative ideas to consider. For example, the city could explore a partnership with the county in which the city manages tourism marketing for the area and the county contributes to child care.
Mayor Gilda Yazzie said she cautions against partnering with La Plata County until the two governments can resolve ongoing issues.
The city submitted a Rural Economic Development Initiative grant application for $55,000 to the Colorado Department of Local Affairs on behalf of the Economic Development Alliance last summer and agreed to provide grant reporting to DOLA. The grant funded a study that informed how the child care investment plan was developed.
Madrigal said that’s the only formal involvement the city’s had with the Economic Development Alliance in regard to child care so far, although he and French have met with other organizations such as Durango Fire Protection District to discuss barriers to child care facilities and affordable housing such as building costs.
cburney@durangoherald.com
