The city of Durango is preparing to introduce a new format for government financial information designed for the layman reader called a Popular Annual Financial Report.
The 2024 PAFR – the city’s first such report – will be available to residents online later this summer. It was designed to be read by people without a background in accounting for finance, said Heidi Wise, city accounting manager, at last week’s Durango City Council meeting.
The document includes an introductory letter from the city manager, expense and revenue reports, and summaries of the city’s strategic plan goals and how spending correlates with them.
It also highlights accounting and finance awards and accomplishments made by the city, such as the city’s 2024 Distinguished Budget Presentation Award and its 2023 Certificate of Achievement for Excellence in Financial Reporting.
“The uniqueness of this report is we are definitely doing it in the lens of the Durango community, trying to summarize the financial information in regard to our strategic plan initiatives and our key accomplishments in those goal areas,” Wise said.
Specific goal areas in the city’s strategic plan include:
- Organizational stewardship.
- Innovative housing and economic development.
- Safety and quality of life.
- Reliable infrastructure and community connectivity.
- Engaged and informed community.
- Strategic workforce development.
Wise said the PAFR’s revenue breakdown will show how the city’s combined 3.5% sales tax rate breaks down and where tax revenues are allocated.
Two percent of sales tax revenues enter the city’s general fund; 0.05% are allocated to multimodal and recreation projects; another 0.05% pay for street improvements; 0.25% fund capital projects; and a final 0.25% contributes to parks, open space and trails projects, she said.
Those tax funds include the 2005 sales tax (which contributes 0.25% each to parks and capital projects), the 2015 sales tax and the 2019 sales tax.
She said the report also breaks down federal and state grant revenues as well as the 5.25% lodgers tax, which is largely paid by visitors to Durango.
Fifty-five percent of lodgers tax revenues are allocated to tourism marketing, while 20% contribute to transportation, 14% fund arts and culture projects, and 11% are earmarked for use at Durango City Council’s discretion.
City Budget Analyst Mary Catherine Lord said the PAFR expense report outlines capital expenses, highlighting top projects such as the Durango-La Plata County Airport’s terminal expansion project. The report will include a QR code readers can use to obtain more information on the city’s website.
“We wanted this to be very consumable information,” Wise said.
She said the expense report excludes non-cash items such as depreciation because the report is intended to be consumable.
An Annual Comprehensive Financial Report performed by EideBailey and presented to City Council last week showed the city is in a “great financial position,” according to Paul Kane, audit partner with EideBailey.
He said the city’s assets exceeded liabilities in 2024 by nearly $422 million. The city’s net income was $12.4 million compared to $21 million in 2023. And the city’s general fund balance was $112 million, or 20% of total general fund expenditures.
cburney@durangoherald.com
