The fiscal issues facing the city’s general fund result from the cost of operations, especially for streets, outstripping revenue growth.
After severe budget cuts during the recession, the recovering economy yielded a general fund surplus that the City Council invested to improve the streets. Since 2015, the primary general fund revenue source, sales tax, has grown less rapidly and street investments have dwindled. Also, the 2015 facilities plan identified replacement of the police station as the top priority, at a cost then estimated at $19 million.
November’s ballot issue 2A sought the funding realistically needed to address the general fund shortfall and facility needs. Following that loss, the City Council conducted extensive listening sessions. In addition to the voices that still say “No new taxes,” we heard that the 25–year funding period was too long, the purposes were too vague and the very long November ballot had too many competing tax issues. The proposed property tax component also was unpopular. Councilors further heard many voices opposing diversion of special revenue funds from the purposes accepted overwhelmingly by the voters in 2005 and 2015 as investments in Durango’s economic vitality.
April’s 1A sales tax increase addresses citizen concerns while seeking to eliminate the structural deficit in the general fund by fully funding street maintenance and improvements and re-establishing a healthy fund balance for future contingencies. Even temporary diversion of the special revenue funds would not achieve this goal. Unfortunately, capital funding for the police station and other facilities must wait still longer.
Dick White, city councilor
Durango
