Durango City Council took a small but essential step this week in the direction of asking voters in November to extend a 2005 sales tax to fund a new city hall and police station.
City Council voted 4-1 to have staff members formally notify La Plata County Clerk Tiffany Lee of the city’s intent to place an item onto the upcoming general election ballot.
If approved by voters, the measure would extend a half-cent sales tax for 30 years, meaning it would not sunset until 2055.
City Council previously considered two tax extension alternatives: 1) to continue the tax at its current rate, which the council went with on Tuesday, or 2) to slightly increase the tax rate to cover the full cost of the initiatives.
Councilors said at previous meetings they were wary of placing any more financial burden on residents already struggling under high costs of living.
The half-cent sales tax currently contributes one quarter-cent to parks, open space and trails improvements and maintenance; and one quarter-cent to support Durango Public Library and development of Florida Road.
If approved by voters, the quarter-cent portion of 2005 sales tax funding used to pay for the public library and Florida Road would be redirected to bond payments associated with renovating the historic high school building at 201 East 12th St. and the former Big Picture High School building next door.
The historic buildings have been identified by the city as ideal locations for Durango City Hall (the administrative building) and a new Durango Police Department station (former Big Picture building).
Councilor Olivier Bosmans, who voted against putting the question to voters, said he supports extending the quarter-cent sales tax funding for Durango Parks and Recreation operations. But he cannot support the remaining quarter-cent that would fund the next city hall and police station without answers to questions he posed at previous City Council meetings.
He said renovating the historic high school buildings is estimated to cost about $72 million, not including the cost of acquiring the properties, interest and other factors. He anticipates the total cost will be “well over $100 million,” – or about $10,000 per household based on Durango’s 9,000 to 10,000 households.
“That kind of spending requires, in my opinion, a lot more scrutiny,” he said.
In an interview about the parks, open space and trails quarter-cent portion of 2005 sales tax funding, Durango Parks and Recreation Assistant Parks Director Scott McClain told The Durango Herald that one benefit of the 2005 sales tax is it is funded by both residents and visitors to the city.
It’s not just residents contributing to the city’s various sales tax funds, but also people spending money at restaurants, shops and other businesses around town, he said.
Bosmans said he wants the Durango Financial Advisory Board to be a part of the conversation.
Durango resident Jasper Welch spoke in support of the city pursuing the 2005 sales tax reauthorization.
“After about 10 years (of the sales tax’s implementation) people forgot what happened and just started making stuff up,” he said.
He said parks, open space and trails benefited from the sales tax funding; Durango Public Library “has been a great success in Durango”; and the Florida Road project, which was a solution to a county road extending all the way into the center of town, was much needed when the tax was initially approved by voters.
Welch said he personally favors a 20- to 25-year extension instead of a 30-year extension, but he understands 30 years has been allotted in proposed ballot language to account for bond issues.
“I think the sunsets of these dedicated sales taxes are important for both fiscal responsibility and feedback from the citizens as they are supporting that,” he said.
He added dedicated sales taxes require municipalities to have resident/citizen advisory boards, and the city of Durango’s FAB counts.
(Welch serves as the vice president on that board, although he said he was speaking solely as a private resident on Tuesday.)
He encouraged the city to note the advisory board requirement in the 2005 sales tax reauthorization ballot language.
Elliott Fitz, budget manager for the city, said notifying the county clerk is only the beginning of the process the city must follow to participate in the general election.
There are several procedural steps ahead of City Council. But an upcoming notable date is Sept. 4, the last day City Council has to approve the ballot language of any ballot question it wishes to place on the ballot, he said.
cburney@durangoherald.com
