The city is looking to spend millions more next year on infrastructure, transportation and other city services.
On Tuesday, City Manager Ron LeBlanc presented the Durango City Council with next year’s budget needs for the first time. The budget could expand about 9.9 percent from about $64.42 million in 2015 to about $70.77 million in 2016, if the projects across all the departments are approved.
The biggest expenses are in the water and sewer budgets where the city needs to spend $14 million in 2016 for maintenance and construction projects.
But all the other departments are also facing increased costs.
Cutting bus service or raising fares is likely necessary to help balance Durango Transit’s budget, he said. The department is facing an 18 percent increase in costs up to $3.9 million in 2016 from $3.3 million in 2015.
“It is not sustainable,” LeBlanc said.
The city has been supplementing the transit budget with money from the General Fund, but that needs to end, he said.
The Sustainable Services Department, which includes both trash and single-stream recycling, also needs an 11 percent boost in funding to $2.5 million from about $2.3 million.
A rate study in 2016 is proposed to help break out how much is spent on trash and recycling.
LeBlanc would like to see trash and recycling services listed separately on utility bills for better transparency.
The Parks and Recreation Department’s operational budget will remain almost unchanged. But the department is planning big construction projects that will be funded through dedicated sales taxes. The department plans to rebuild the softball complex and the tennis courts at Fort Lewis College for about $2.4 million. FLC will contribute about $250,000 to the projects. A new $2.2 million shop is also planned at Greenmount Cemetery.
The city’s General Fund, which encompasses many city services such as city administration and the Durango Police Department, also needs a slight increase, LeBlanc said.
It needs a 2.3 percent increase to $37.32 million in 2016, up from 36.48 million in 2015.
As part of this increase, the city is looking to slightly boost support for nonprofits.
The city is adding an $11,000 Arts and Culture block grant, and plans to update the Comprehensive Plan to include arts and culture, LeBlanc said.
The city is expecting sales-tax revenue to continue to rise to help cover expenses. But it will need to dip into savings again in 2016 to pay for projects.
The city has steadily been spending its savings, or fund balance, over the last few years. If the proposed budget is approved, it will have spent $2 million from the fund balance in two years.
“We’re draining this tank,” LeBlanc said.
The current budget proposal projects at the end of 2016 the city will be left with about $5.8 million for emergencies, which is required by the Taxpayer’s Bill of Rights and City Council policy. The city would also have $745,000 for other unexpected projects.
mshinn@durangoherald.com
