La Plata County Finance Director Adam Rogers informed Durango City Council and the Board of County Commissioners Monday that he was anticipating a countywide slowdown in sales tax revenue.
The two bodies met Monday to discuss the Joint Sales Tax Fund 2024.
“We’re expecting a recession to start to take place sometime in 2024,” Rogers said.
There is a 2% sales tax countywide, from which the county receives 63.45% of the revenue; Durango receives 18%; Bayfield receives 4% and Ignacio receives 3.55%. The remaining 11% is put into the JSTF, which the county and city use to fund projects of mutual interest.
In 2022, the JSTF’s revenues were $3.89 million. In 2023, the adopted budget projected $3.98 million in revenue, although the county’s finance staff are predicting actual revenue will fall short by about $67,000.
For next year, staff are predicting that the JSTF will see 2% less revenue, dropping to $3.74 million.
The conversation grew tense when Councilor Olivier Bosmans questioned additional funding for Senior Services, a department that is run by La Plata County. The senior center requested an additional $493,000 to remodel its bathroom and fill in for some grant funding that suddenly dried up this year.
County Manager Chuck Stevens pointed out that the dynamic has been reversed in the past, when the county questioned whether to use JSTF revenue to cover Durango Public Library – a city-run department – costs the surpassed budgeted amounts.
The conversation wandered into yet another discussion of how to address houselessness, which has long been a source of tension for the two governments. City Attorney Mark Morgan eventually directed the electeds to focus on the budget, which was the only topic of discussion noticed to the public.
The parties appeared to leave the meeting satisfied with the proposed budget breakdown, but with the intention of continuing discussion of several matters, including a managed camp for unhoused people, a trail proposal to connect Hermosa with Durango and a library district.
The city councilors will begin discussing the full 2024 budget at their retreat on Oct. 10. The county commissioners have a line-item review of their budget on Thursday, and will hear public comment on it Oct. 10.
rschafir@durangoherald.com
The headline has been updated to clarify that the article is referencing joint sales tax revenue, not “decreasing sales tax revenue.”
