As COVID-19 shifts from a public health crisis to an economic crisis, the city of Durango is scrambling to plot its fiscal future while keeping certain initiatives on track, government employees busy and basic services operational.
City councilors have been told to expect a 30% decrease in sales tax revenue through the year, forcing them to prioritize which projects should go forward and which need to be deferred. City officials are planning multiple budget scenarios because they don’t know when or how the city will bounce back from the coronavirus response.
Meanwhile, city business marches on, including the need to hire a new city manager, maintain roads and parks, and keep workers busy.
Here’s a look at what’s ahead for the city of Durango:
City Council will learn about revenue projections and give guidance about addressing shortfalls at an April 28 study session.
“We’ll have constant check-ins on (the budget) moving forward because we don’t know what the recovery pattern is going to look like,” said Amber Blake, interim city manager.
City staff and councilors are considering using dedicated tax revenue, like a 0.5% tax approved in 2015, to address budget shortfalls. The 2015 tax, designated for parks, open space and trails, will continue to fund maintenance and operation of parks and recreation this year.
City officials are also focused on setting goals for city funds and establishing an official decision-making process for continuing, or delaying, city improvement projects – all of which need to be resolved by the end of July or sooner to plan for the 2021 budget.
During a City Council meeting next week, councilors will discuss ways to improve their internal communication, after collectively acknowledging poor communication and tension on the council during a recent study session.
They will try to improve working relationships through a formal working agreement.
At the study session, councilors spent one hour of the two-hour session discussing the working agreement, which outlines rules and norms for communication, addressing internal conflicts and working with city staff. They could not agree on the document’s terms or even whether it should be a priority during the COVID-19 pandemic.
“If we’re having a challenge communicating with each other, then it’s harder to tackle some of these other bigger issues as we go forward,” Councilor Dean Brookie said.
Also on next week’s agenda: Brookie, currently serving as mayor pro tem, is expected to take the gavel as Durango’s next mayor.
City Council will also hear an update about the 32nd Street Crossing project, which would enable the Animas River Trail to extend north to Oxbow Park and Reserve.
But rather than discuss options or alternatives for the connection, they will discuss engineering evaluations, possible impacts to nearby residents and bid results.
The COVID-19 crisis hit the city of Durango as it was in the middle of hiring a new manager. The process has since been delayed because of the pandemic, wrote Mitchell Carter, communications director, in an email to The Durango Herald.
City Council and former City Manager Ron LeBlanc parted ways in September, shortly after LeBlanc submitted his letter of resignation. LeBlanc was criticized for his tense working relationship with council members.
Council hired Slavin Management Consultants to conduct the hiring process for a new city manager. Councilors were scheduled to begin reviewing resumés March 6, a day after Colorado’s first positive COVID-19 case.
The city declined to say how many candidates are being considered, saying it is a personnel matter.
Consultants are monitoring the situation and working with City Council to determine how and when to move forward, Carter wrote.
While the city has not conducted any furloughs or layoffs for economic reasons, some library, transit parking, and parks and rec staff have an unpaid status. For most, that means they are employed but cannot physically go to work because of virus-related orders and closures.
At the Durango Public Library, six full-time and 13 part-time staff members are not working as a result of the stay-at-home order. Staff have the option to use paid leave benefits. If employees choose not to, they might be able to receive paid leave through federal relief policies, if they are available. They can apply for unemployment after that.
“Some may be in an unpaid status,” said Crystal Twedt, human resources director. “It’s not a furlough we did in reaction to any economic reason. They’re in an unpaid status because of the stay-at-home order.”
The parking services division reduced staffing by 50%, but no one was furloughed or laid off. Instead, staff hours have been cut and employees come to work on a rotating schedule.
“The majority of the employees who are without work right now are our part-time and seasonal employees,” Twedt said. “The majority of those are in our Parks and Recreation Department.”
Parks and Recreation employs the most seasonal and part-time workers, about 500 each year. With the recreation center closed and the stay-at-home order imposed, many simply do not have a place to work. Twedt did not give the number of employees affected, saying it was difficult to determine an exact count.
Durango Transit has been losing money – as both ridership and metered parking revenue decrease – but the city is set to receive $606,000 in CARES Act relief funds.
The Colorado Department of Transportation anticipates $39 million from the CARES Act, specifically allocated to rural public transit, said Sarah Dodson, acting transportation director. The relief provides support for transit operating expenses, driver salaries, lost revenue as a result of COVID-19 and other virus-related expenses.
“We’re paying attention every day to the changes,” Dodson said. “As long as it’s safe, we’re going to be able to start allowing more people on the bus hopefully around the middle of May.”
Public transit is considered an essential service of the city. About 78% of Durango Transit riders are dependent on transit to get around, according to the city’s 2019 ridership survey.
Since February, Durango has increasingly restricted transit service in response to the public health crisis. It increased sanitation practices, closed the Transit Center lobby, reduced capacity to fewer than 10 passengers per bus and cut service hours.
Dodson expects revenue from rider fares to decrease by 30% between April and December. April ridership decreased by 65%, compared with the same time period in 2019. The Opportunity/Paratransit Bus had about 170 cancellations in March.
Revenue from parking meters, the service’s second-largest revenue source, could decrease by 55% between April and December, Dodson said.
“There’s not as many cars downtown, and they’re trying to keep parking officers safe. There’s a lot going into it,” she said.
smullane@durangoherald.com
