Few residents turned out Wednesday evening to question the La Plata County 2016 budget proposal, which is projected at $73 million and contains significantly increased contingency and capital-improvement funds.
A $22 million capital fund for projects reflects nearly a 70 percent increase from the 2015 budget, an increase attributable to several large projects on the horizon. About $5 million is designated for roads and bridges, which includes $350,000 for an overlay and turn lane on County Road 210 to access Lake Nighthorse, and $2.1 million in improvements to County Road 517, just north of Ignacio.
A contingency fund, not intended for spending, is projected at $8.7 million. The Gold King Mine spill in August, which cost the county more than $100,000, in part prompted the staggering 346 percent increase from this year’s $1.9 million backup fund.
Staff said this “philosophical shift” in contingency budgeting will better prepare the county for the unexpected.
“We were conservatively budgeting for contingencies in the past,” County Manager Joe Kerby said. “One of our philosophical shifts is to have more available for that. We’re positioning that same philosophy in the capital-improvement fund.”
La Plata County is expecting at least a $200,000 reimbursement from the Environmental Protection Agency, which caused the Gold King spill. If and when those funds come through, the county can increase its spending authority by the amount reimbursed.
Countywide revenues, which include money from grants, are projected at $77 million, with expenditures of $99.2 million. Most expenditures are directed toward public safety and general government, which includes administration and public works.
Because of the way property values are assessed, revenues are based on property values from two years before the budget year. Therefore, the 2016 budget reflects the high natural gas revenues of 2014.
At a projected $19 million, property taxes are the largest revenue source for next year and reflect a 10.5 percent increase from $17.2 million in 2015. Unfortunately, this will be short-lived as long as natural gas is on the decline, Finance Director Diane Sorensen said.
County officials noted the budget numbers include grants from outside revenue sources.
The working draft does not factor in the anticipated $5.3 million that would come from the proposed property tax increase that will appear on the ballot in next month’s election.
About a dozen attended the hearing, including Teresa Malone, executive director at the Durango Adult Education Center. Malone applauded the county for budgeting $20,000 for a GED program at the county jail.
“We received little compensation, but we got outstanding results,” Malone said. “Incarceration is much more expensive than education.”
Malone volunteered her agency to provide those services to the correctional facility.
County resident Charles MacKown saw flaws in the Durango-La Plata County Airport budget, saying funds designated for community-outreach activities could be more practically spent on improved baggage handling, for instance.
“Is that the best way to handle our tax dollars?” he asked.
County staff members will be meeting with department heads in coming weeks to hammer out the intricacies of their respective budgets.
jpace@durangoherald.com
