IGNACIO – Ignacio town trustees are receptive to Town Manager Leo San Miguel’s proposal to ask voters for a 1 percent sales tax increase.

Town sales tax is now 2 percent.

“We are looking to begin discussion” of this, he said during the trustees’ Tuesday night meeting. “As we go through the budget process, it’s becoming more difficult to meet our needs.”

He said Bayfield town trustees earlier this month decided to seek a 1 percent sales tax increase, also from 2 percent up to 3 percent.

“Every municipality struggles with this,” he said.

Sales tax is the primary revenue source for many towns, including Ignacio and Bayfield.

San Miguel estimated that the 1 percent increase could bring in around $125,000 of new revenue.

He proposed putting the issue on the November ballot.

The new money could go for general operations, or the ballot question could designate it for certain uses, such as maintenance on water, sewer and gas lines, or on streets.

“We’ll put together a plan of what we would like to do with the money,” San Miguel said. “We are trying to put together capital plans, how we start replacing the most in-need pipelines,” including some very old clay pipes.

The ballot question also will include a Taxpayer’s Bill of Rights exemption to allow the town to keep and spend the additional revenue, he said.

“We are looking at sales tax (versus property tax) to spread the burden and cut back the need to increase utility rates that would be needed without this increase,” San Miguel said.

Town Finance Director Lisa Rea agreed.

San Miguel said there might be resistance from some business people.

But, “they are all talking about utility rates,” he said. “Deferred maintenance is what gets us in trouble. We are now facing the piper. We all know these expenses are going to go up. We’re trying to get ahead of the ball game.”

San Miguel said he will provide more information before trustees have to decide. The town would have to have an intergovernmental agreement with the La Plata County Clerk’s Office in July to be on the November ballot.

“This would be easier on the community than raising utilities or property tax,” said trustee Tom Atencio. “We need to know how the money would be used.”

Trustee Cecilia Robbins said she wants assurances this will save the town money in the long run.

“Spending it on cars or cool toys will get a ‘no’ vote from me,” she said.

Audience member Bernadette Lopez said: “It will need to be earmarked for specific necessities. You have to have your ducks in a row and be specific.”

Rea cited a recommendation to form a citizen task force to promote the tax increase.

“We need to know there are citizens on board to even go forward,” she said. “It’s a big task but a vital task.”

Trustees voted to proceed on the ballot question for April, with a requirement that the full text of ordinances be posted for 30 days.

Town attorney Dirk Nelson said he’ll bring back an ordinance for a formal vote.