La Plata County is grappling with reduced revenue stemming largely from declining natural-gas prices and production.
The county expects to receive $15.6 million in property taxes in 2014, down $3.3 million from 2013. That’s off by almost half since 2010.
County commissioners on Wednesday hosted a public forum for the 2014 budget attended by about 50 residents who filled the County Courthouse meeting room.
Overall revenue is budgeted to remain flat at $60.4 million, propped up by federal and state grants. Intergovernmental grants are expected to make up the largest chunk of the county’s 2014 budget – 29 percent – with property taxes close behind at 26 percent, and sales tax at 24 percent.
Finance Director Diane Sorensen said it’s very unusual in county government for property taxes to slip behind other funding sources.
The county expects property taxes to continue to decline in 2015 before recovering in 2016, when a new property valuation takes effect.
At the same time, the county is paying more for health insurance for county employees. The county expects to pay nearly $4.7 million for health insurance in 2013, up 9.5 percent from 2013.
Overall, the county is budgeted to spend $71.4 million in 2014, while taking in only $60.4 million. The difference will be made up by a large reserve the county has accumulated.
“We do have a significant fund balance that helps us weather the storm when revenues are declining,” County Manager Joe Kerby said.
The county plans to redirect $800,000 from its sales tax fund to the Road and Bridge Department.
“That’s because, frankly, we don’t have enough in the road and bridge fund to fund that operation,” Kerby said.
The county has seen increased sales-tax revenue that has partly compensated for declining property-tax receipts.
The county is not considering layoffs in 2014, but a hiring freeze is being discussed, Kerby said.
The county has four major capital projects slated for 2014:
A planned overhaul of the intersection of Colorado Highway 172 and county roads 311 and 513 in Oxford. The county will contribute $649,000 from road maintenance fees for the project. Grants will cover the rest of the project, almost $2.9 million.
A $2 million remodel of the County Courthouse meant to accommodate more federal court functions.
A $3.5 million remodel of the former Vectra Bank building at 1101 East Second Ave. County officials envision moving administrative offices across the street from the courthouse as the federal courts take up more space.
A $697,000 improvement to Wilson Gulch Road in Grandview. The road is viewed as important to luring future retailers to the area. “That is a key road to our future development from a retail perspective,” said Kerby.
The county also will contribute $225,000 to improve the gun range at Bodo Industrial Park used jointly by the Sheriff’s Office and Durango Police Department. The city of Durango is contributing an equal amount.
The budget would cut funding for community groups to $250,000, a $42,500 reduction from the current budget. Community groups pleaded with county commissioners Wednesday to maintain or increase their funding.
Cattle ranchers said they need the county to continue funding a service that controls livestock predators, and community groups from the Regional Housing Alliance to Road Runner Transit asked for help with their services.
cslothower@durangoherald.com
