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Sales tax increase is necessary for city’s future

April’s election will bring change to Durango City council with two new councilors and hopefully new sales tax revenue, the benefits of which, though dedicated to street improvements, are multiple for our community.

The half-cent sales tax increase (50 cents on a $100 purchase), shared in approximate thirds by city residents, county residents and visitors, will increase sales tax to 8.4 percent, in range of other similar mountain and regional towns.

If passed, it will provide much-needed revenue to fund street, sidewalk, alley, curb, gutter and ADA improvements. Currently, 37 percent of our streets are in need of immediate repair. Every year we defer this work, repairs could cost as much as $2-$4 million more per year.

If passed, 1A will raise approximately $2.1 million in its first year and between $4-$5 million in the subsequent nine years. It will provide revenue to restore reserve funds and help shore up the general fund. It will afford City Council some breathing room in the short term to identify longer-term strategies to fund facility maintenance and construction needs outlined in the city’s five-year capital improvement project plan.

Passing 1A will preserve the 2015 half-cent sales tax dedicated to parks and recreation, Natural Lands and multi-modal project funding and avoid future attempts to divert these voter-approved funds to parks maintenance (currently funded through the general fund) rather than new projects – an act that could jeopardize millions in grant funding for current and future projects, not to mention the public trust.

Passing 1A will maintain the city’s investment in new park and recreational resources, including recreational amenities at Lake Nighthorse, sidewalks near Needham Elementary, connecting the SMART 160 Trail in Grandview to the Animas River Trail, development of Durango Mesa Park, the Camino del Rio underpass linking downtown to the trail – all projects that support healthy lifestyles, protect environmental resources and foster local economic vitality in Durango.

A sales rather than a property tax (that unfairly burdens commercial property owners), 1A is narrower in scope and duration than the November 2018 ballot measure. 1A responds to citizen concerns that the 2018 measure was too broad, complicated and inequitable. This citizen feedback received in over 50 meetings was used to develop 1A. That includes the recommendation to establish a citizen advisory board to oversee the allocation of funds.

In 2019, the budget is $92 million and supports almost two dozen departments, offering more than any other city with a comparable population, staff and budget. $40 million of that is dedicated to the general fund, which is what pays for everything that enterprise funds do not. Enterprise funds finance new construction and stabilize the operating budgets of critical services like water, sewer, solid waste (trash and recycling), transportation services and the airport.

Council can increase fees to bond projects and balance fund budgets, as was done from 2013-2016 when we instituted higher fees to pay for expansion of the sewer treatment plant on its current site, a decision favored by 70 percent of voters, and the most fiscally prudent. Yet, only a vote of the citizenry can increase general fund revenue.

With the 2009 recession, the city implemented austerity measures, cutting positions, and has only slowly added staff back as funds allowed. Of the city’s 350 total employees, 230 FTE employees are supported by the general fund. That number, 220 in 2009, only increased by 10 positions, or 5 percent, in nine years.

From 2017 to 2019, Community Support Services funding for not-for-profit organizations was cut from $1.3 million to $750,000. Funding for 21 of Durango’s nonprofits that provide critical human services to residents was cut from $220,000 to $140,000 and will surely result in a decrease in community services. $100,000 discretionary funding for economic development, accessibility for people with disabilities, the arts, sustainability and public education were also cut.

The library is not open seven days a week nor has it ever been fully staffed. The city employs two code enforcement officers to respond to all the snow-related calls this winter and bear- and trash-related calls in summer. They do their best and it’s not enough.

With a decrease in sales tax revenues from the 416 Fire, online sales, the decline of the oil and gas industry and the increased cost of labor, materials and constructions costs, revenues have not been keeping up with the increased cost of infrastructure upkeep. To maintain our infrastructure and preserve our quality of life, please join me in voting YES on 1A.

Christina Rinderle served as a Durango city councilor from 2009-2017 and as mayor of Durango in 2011/2012 and 2016/2017. She is the chair of Citizens for A#1 Durango. See a1durango.com for more information.



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