La Plata County residents want to know how the local government is cutting waste, capitalizing on staff time and finding alternative revenue sources as officials plan the 2017 budget.
A Tuesday evening public meeting drew a small group of about 10 who provided input on next year’s budget. They received a breakdown of the county’s current fiscal situation, which faces an uncertain future.
Diane Sorensen, county finance director, said one of the county’s most valuable resources – infrastructure and assets, such as roads and bridges – are particularly at stake.
Oil and gas property tax revenues have taken a 45 percent hit. Next year will be the first in 16 years when residential property tax revenues exceed those collected from oil and gas companies.
And as oil and gas activity declines, so do available funds from energy-impact grants.
But the problem goes beyond the industry; La Plata County is seeing population growth, which in turn increases the need for services, which demands more staff time.
Increasing health care costs and an aging workforce are also contributing to woes.
“When you see declines in property tax, sales tax and intergovernmental funds, you have a sustainability problem,” Sorensen said.
Residents said water availability, particularly on the Dryside, is a neglected budgetary component. To address this, county staff is considering establishing a rotating loan fund, a coffer of about $2 million or $3 million, to subsidize water projects.
The public also pressed county officials for concrete answers to its advancing financial problems. Staff members referred to an option currently under review – impact fees for road use, law enforcement services and affordable housing.
County staff members added that voters’ approval of a mill levy increase this fall would relieve some road infrastructure woes.
Voters rejected the same proposal last fall.
Some residents have accused the county of coasting too long on oil and gas revenues without planning for the future, but county leaders say a growing population and need for services is also a major contributing factor.
Both sides agreed Tuesday that natural resource extraction appears to be an unstable revenue source.
“People ask if revenue will come back when prices go up again,” said Dave Peters, a retired Chevron executive who attended Tuesday’s meeting. “The answer is no. There may be some shale development down the road, but the bottom line is: It’s not coming back.”
jpace@durangoherald.com
