There is good news and bad news about La Plata County finances in the annual State of the County report, read Tuesday by Commission Chairwoman Julie Westendorff.
Overall county revenue has declined for four years in a row, the report says. The big one is property-tax revenue.
It has fallen from $29.7 million in 2010 to an anticipated $15.5 million for 2014, a reduction of 47.82 percent.
Combined property- and sales-tax revenues are at 2005 levels, the report says. “This amount of revenue reduction is unprecedented,” it says.
“Property-tax revenue is expected to stay down in 2015 with potential increases beginning in 2016,” the report says. “At the same time, demands for service in some departments are increasing as are costs to provide those services.”
The good news is that county sales-tax revenue increased by 7 percent in 2013 compared with 2012, and the county continues to be successful at getting grants for program funding and important capital projects, the report says.
The county’s 2014 budget is based on drawing down $10.2 million of unreserved fund balance, mainly for major road and capital projects. That will leave an expected $47.6 million of unreserved fund balance for future years.
The 2014 budget has about $71 million of spending and $60.8 million in revenue.
The report recommends against long-term reliance on fund balance to cover operational costs. “Consequently, we are actively developing and implementing strategies to address the revenue shortfalls to enable La Plata County to ‘live within its means,’” it says.
Aside from long-term financial stability, the report addresses land-use planning, steps to address county space needs, organizational efficiency and effectiveness, and development of a public and environmental health strategy.
The county is preparing for 23 major land-use code amendments this year, including medical and recreational marijuana and wildfire mitigation.
A new intergovernmental planning agreement with the city of Durango also is expected to get formal consideration this year.
County space needs deal with renovation and expansion of the former Vectra Bank building, now owned by the county, to house county administrative offices, the county commissioners, assessor’s office and finance department.
That project cost is estimated at $3.5 million. The county has applied for $825,000 from the state Department of Local Affairs to help pay for it.
Space vacated in the courthouse will be renovated for expanded state court offices and to accommodate federal court offices.
But those won’t address all the county’s current and future space needs, the report says. That effort will need to continue.
Organizational efficiency includes coming up with new ways to generate revenue.
The public and environmental health section notes the pending impacts of recreational marijuana and development of licensing and land-use regulations for recreational marijuana businesses.
State of the County 2014 (PDF)
