La Plata County commissioners on Tuesday warned the public: Prepare to see the effects of reduced county revenue in next year’s budget.
The 2017 budget was approved 2-1 with commissioners Brad Blake and Gwen Lachelt in favor. Commissioner Julie Westendorff was opposed.
Staff members anticipate about $78 million, including reserves, available for expenditures, and reflects a 26 percent decrease from 2016. The county projects $69 million in countywide revenue, reflecting a 14 percent decrease, and an ending fund balance of about $67 million.
Because of the lull in the oil and gas industry, property tax revenue is expected to fall to about 22 percent of the county’s revenue, behind sales tax revenue at 23 percent and intergovernmental revenue at 24 percent.
Commissioners have not hidden their disappointment that county voters rejected mill levy increases in November for the second consecutive year. As the county explores alternative revenue sources, including use taxes, marijuana excise taxes and impact fees, Lachelt asked the public to stay involved in “this difficult (financial) time.”
To manage the shortfall, staff said departments have tightened their spending and haven’t added employees. Commissioners and staff say the changes could translate to diminished levels of service, such as longer wait times when residents contact county officials.
Westendorff said she opposed the budget because she can’t support budgeting $750,000 to relocate the public works’ engineering department – a project planned to vacate the county-owned Old Main Post Office and prepare the building to sell to bring in additional revenue.
“We’ve had to do things to the budget this year we haven’t in the past,” she said. “We had a lengthy discussion last week about expanding the road and bridge building to accommodate our engineering department. I understand that is a necessary step toward putting the Old Main Post Office in a position to be sold, but I don’t support budgeting $750,000 for that purpose.”
jpace@durangoherald.com
