2025 will be a year of inward focus and innovation for the city of Durango, José Madrigal, city manager, said on Friday.
He said affordability continues to be the No. 1 priority the city hears from residents, which the city kept in mind as it developed its 2025 budget. Durango City Council approved the city’s 2025 budget earlier this month.
Stronger, more efficient and more innovative customer service and a focus on existing city services and projects are the plan, he said.
“This is a budget where we did not plan for a lot of increases like we've had in years before. So what we're looking at is really beginning to focus on enhancing our services that we provide,” he said.
After purchasing the 1.6-acre Rivergate property near Animas Surgical Hospital for $1.25 million earlier this month, the city will turn to Fort Lewis College and Durango School District 9-R in the new year to consider partnerships to develop the property into affordable housing for educators, he said.
Durango School District spokeswoman Karla Sluis said Superintendent Karen Cheser is grateful for community collaboration on affordable housing, but the district has not yet made any decisions about partnerships or specific locations for housing. The district is currently in preliminary discussions with multiple community partners and land donors.
Madrigal said Durango-La Plata County Airport will continue its multi-year $26 million terminal expansion project without spending any city tax revenues, instead relying on the airport’s own revenue sources.
The completion of construction on East Animas Road (County Road 250), County Road 251 and north College Drive is also planned for 2025, he said.
Durango Mesa Park is another big item on the city’s slate for the coming year, with major design and construction on road and water infrastructure and the much hyped bike park planned.
The city budgeted $8.9 million for Durango Mesa Park infrastructure construction, including a $5.2 million contribution from the Durango Mesa Park Foundation in addition to $2 million from the 2015 sales tax fund and $1.7 million from the 2005 sales tax fund, according to the proposed budget.
According to a presentation by city Budget Manager Elliott Fitz earlier this month, the city projects a 2025 beginning total operating fund balance of $87 million. It plans to finish 2025 with an ending operating fund balance of $68.7 million.
Over next year, the city expects to receive $119.5 million in revenues to its operating fund and it expects to spend $137.7 million.
The city’s 2025 capital budget will start with a balance of $115.3 million, according to the presentation. The city plans to receive $179.9 million in revenues and projects $223.5 million in capital expenses, ending the year with a balance of $71.7 million.
According to a budget presentation earlier this month, the city plans to spend $137.7 million on operating expenses, $56.2 million from its general fund and $223.5 million on capital expenditures by the end of 2025.
In a preamble to the 2025 budget, Madrigal said the city expects a 4.5% increase to its general fund revenues, a higher projected increase than the 1% projection for 2024, and will implement a 3% cost-of-living adjustment and an optional 2% raise for high performing staff.
He attributed the increased revenue forecast to a strong economy, good tourism and a thriving business community, also crediting Durango entrepreneurs with attracting visitors to the city.
“We're just seeing that (the) Durango economy is still doing really well, and we're very excited that's happening and that the city is flourishing, and not in a position where we have some other communities … where they're not flourishing,” he said.
According to a Dec. 3 City Council presentation by Devon Schmidt, city chief financial officer, just some of the city’s priorities for 2025 include:
- Reauthorization of the 2005 sales tax, which is planned to appear on the city’s April election ballot.
- More public-private partnerships and projects to increase the amount of affordable housing in Durango, continued support for rental and ownership assistance programs, and the ongoing search for long-term housing funding options.
- Increased public safety through the reduction of crashes, theft, and nuisance and violent crimes.
- Phase 1B of Durango’s terminal expansion project.
- A plan for replacing and upgrading the city’s $800 million worth of aging public works infrastructure.
- Streamlined workflows at Durango City Hall and in Durango Municipal Court via reduced paperwork and more use of technology; and additional training for new deputy clerks.
cburney@durangoherald.com
An earlier version of this story implied Durango School District 9-R and the city of Durango reached an agreement to partner on building affordable housing on the Rivergate property south of downtown Durango. No final agreement has been reached, and the school district is keeping its options open.
