Dozens of constituents gathered in the Pagosa Springs High School auditorium on Wednesday, May 13, for a community conversation centered on potential ballot questions that Archuleta County voters may be asked this coming November.
The meeting was moderated by Main Street Advisory Board chair Rick Holter and featured representatives of three different local entities including the Pagosa Springs Medical Center (PSMC), Archuleta County and Archuleta School District (ASD) engaging in a panel discussion, providing information on their respective entities’ potential ballot questions.
Holter indicated that this was the first of four community conversations scheduled, clarifying that these are not debates or a “sales pitch,” and that the goal is to have fact-based conversation about three decisions that voters will be making that will “shape this town and this county for years to come.”
PSMC CEO and Chief Medical Officer Rhonda Webb, Archuleta County Manager Longinos Gonzalez and ASD Superintendent Rick Holt were on hand to answer questions and provide information about each entities’ potential ballot question.
Webb first explained that the Upper San Juan Health Service District (USJHSD) board, which oversees PSMC, has not yet decided if it will put forth a ballot question, but that decision will likely be made in June.
She went on to mention that PSMC is one of six hospitals in the state that own and operate an ambulance service, doing so at a $2.25 million loss every year.
Webb explained that the USJHSD began in 1981 and that a mill levy was first passed in 2001 that made it possible to pay emergency medical service (EMS) responders.
She noted that PSMC is asking for a mill levy increase, and if the board does decide to go to the ballot, it will be asking voters to continue to allow for “de-Brucing.”
De-Brucing, named for Douglas Bruce, who wrote and advocated for Colorado’s Taxpayer’s Bill of Rights (TABOR), refers to a voter-approved measure that allows local tax entities to keep and spend tax revenue that exceeds spending limits dictated by the TABOR.
Holter explained that there is currently a waiver for TABOR rules for the medical center, asking if the goal is to make that waiver permanent.
Webb stressed that PSMC operates on a tight margin, explaining that if it is not able to continue de-Brucing that may affect how much money it can obtain from grants, “which help us with capital projects.”
Holter also noted that the PSMC is the largest employer in the county.
The second biggest employer in the county is ASD, Holter noted before asking Holt to provide information on what the school district might be asking of voters this fall.
Holt explained that ASD started the process of evaluating its facilities and thinking about solutions in October 2024, noting that every seven years school districts are required by the state to develop a master plan.
Holt mentioned that a Master Planning Advisory Committee was formed and held multiple meetings, with anywhere from 30-50 community members attending each meeting, and helped take a close look at the district’s facilities to make a suggestion to the school board on what to do.
Holt also mentioned that it was “very much a school board decision.”
He explained that school districts in the state do not receive any sort of regular funding for capital improvement projects, and the only way to do that is to ask the community.
“We have to bond for those dollars,” he said, noting that the district could go for a certificate of participation (COP), but that the “best” way is to go for a bond.
Holt also explained that he recently presented ASD’s Building Excellent Schools Today (BEST) grant application to the state, noting that the BEST program provides roughly $200 million in grants and that ASD is applying for $50 million for its project.
The total cost of ASD’s project is about $125 million, which would replace the existing middle and elementary schools with a new campus for pre-kindergarten through eighth-grade (PK-8) to be built on a 35 acre parcel off of Vista Boulevard.
Holt noted that the PK-8 building would be about 10,000 square feet smaller than what the current elementary and middle schools have combined, but would be “far more efficient.”
Holt indicated that the district should know by May 21 if it will be awarded the grant.
Holter commented that whether or not ASD is awarded the grant is the “crucial thing at this point” that would give ASD a green light to move forward with the project and go for a bond of roughly $75 million.
Holt described it as being fiscally responsible in the sense “that seems like the right time to go about that” if the project is essentially 40 percent off with the grant.
He also explained that ASD went to voters in 2011 on a ballot measure that was defeated 3-to-1.
Holt also provided “rounded numbers” for what the financial impact would be for residents if the district goes for a $75 million bond.
For a $500,000 home, the total taxes that property owners would see comes in at just under $300 a year, or about $25 a month, he noted.
Holt commented that when looking at the per-month impact, it feels “more obtainable,” while also noting that it is “time for the community to step up” as it has not had to contribute anything to a new middle or elementary school facility since the 1950s.
Holter then mentioned that not all of these potential ballot questions deal with raising property taxes, as the county is looking to increase its lodging tax rate.
Gonzalez commented that the county is trying to meet the needs of the community “in a way that’s efficient and effective,” though it’s becoming more difficult to do so with the rising costs of everything.
He noted that areas such as roads, bridges and other infrastructure improvements are some of what “residents care about the most,” and the Archuleta County Board of County Commissioners (BoCC) is looking at other methods to provide funding for those needs.
Gonzalez explained that an increase to the lodging tax would least affect local residents, “because these are paid for almost entirely by visitors.”
He also explained that the county currently has a 2 percent lodging tax, but that all of those funds have to be put back into marketing and advertising for tourism purposes.
“All those dollars have to go marketing and advertising,” he said.
New legislation allows for different lodging tax funds to be spent in other areas such as roads, public safety, child care, housing and parks and can be raised up to 6 percent, Gonzalez explained.
Holter commented that the ballot question would ask voters to approve raising the lodging tax up to maybe 5 or 6 percent, and also ask voters to approve specifically what those additional funds will be spent on.
Gonzalez commented that, based on feedback the county has received so far, an example of what voters might be asked is to approve 80 percent of additional lodging tax funds to be spent on roads and the remaining 20 percent to go to another area, or be split evenly between multiple other areas.
He indicated that the ballot language needs to be extremely clear and transparent, “so the public can trust us” to spend tax dollars.
Holter clarified that the school district’s ballot measure will involve property taxes for homeowners.
Holt confirmed that it would be paid by homeowners or property owners, noting that about 50 to 60 percent of homes in the county are “second homes.”
Jumping back to the lodging tax discussion, Holter asked what kind of feedback the county has received from its local lodgers about the potential ballot measure.
Gonzalez commented that it’s been generally positive, though some lodgers have suggested not raising it all the way to 6 percent, but that there is an understanding that the additional funds would also benefit lodgers by allowing the county to keep up with infrastructure projects and improvements.
Holter also commented that the county has spent “a lot of money” on roads over the past few years, to which Gonzalez explained it has been able to do so by spending money out of the Road and Bridge Department’s reserve funds.
“We need to address roads and infrastructure,” Gonzalez said, noting the reserve fund has gone from having a few million dollars in it to less than $500,000 and stating that practice is “not sustainable.”
Gonzalez commented that having 80 percent of additional lodging tax funds dedicated to roads “would greatly benefit the community.”
Turning the attention back to the PSMC, Holter asked how decisions in our nation’s capital and in Denver are affecting the hospital.
Webb explained that primary payers in most rural hospitals are Medicaid and Medicare patients, as PSMC sees less from commercial insurance.
She explained that Medicare pays 101 percent of costs, “not charges,” and then takes back 2 percent for administration fees.
“So, they pay us less than what it costs,” she said.
Webb also explained that medicaid pays 60 percent of what it costs to do business, noting that PSMC budgeted $1.4 million less from Medicaid this year due to cuts coming from the federal government.
Webb commented that the health care payment system is “kinda broken.”
She also noted that 65 percent of PSMC patients are either Medicare/Medicaid or self-pay.
Holter then asked about potential confusion to voters with all three of these ballot measures addressing very different things.
Gonzalez noted that is always a concern, but emphasized that the county’s ballot question will not impact locals as much, as it would only be paid by visitors who stay in hotels or other short-term rentals.
Holter also asked about what kind of pulse each entity has gotten from the community about where it stands on these potential ballot questions.
Webb explained that PSMC conducted a survey but did not reach its target of 300 responses.
She commented that the feedback is “interesting,” as many residents are confused about the USJHSD, thinking it is associated with the former public health co-op, San Juan Basin Public Health, that formerly served Archuleta County.
Webb clarified that the hospital is part of USJHSD doing business as the PSMC and is not in public health as that is an “entirely different field.”
She also noted PSMC was built in 2008 and has struggled financially since.
Holt noted that ASD conducted a poll and found that 54 percent of respondents were in favor of a new school and supportive of some sort of bond.
Gonzalez explained that the county has not conducted an official survey, but that multiple community forums have been hosted where constituents were asked to provide feedback on what they’d like to see additional lodging tax funds be spent on.
Gonzalez noted that the next community forum is scheduled for May 27 at 5:30 p.m. in Arboles at the TARA Community Center at 333 Milton Lane.
Holter then asked a series of “lightning questions” to each of the panelists touching upon what a “plan B” look like, and what the impact on the community would be in the next two years if the potential ballot question does go through and is approved.
Webb noted that PSMC would become more financially stable and would be able to continue providing EMS services.
She also explained that the backup plan would be to continue to operate mostly the same, apply for grants and probably ask again the following year.
Gonzalez explained that the current 2 percent lodging tax generates roughly $500,000 and that if the county raises it to 6 percent, that could provide a 42 percent increase to the current $2.4 million Road and Bridge Department budget.
“A 42 percent increase means we can do a lot more for the residents,” he said.
Gonzalez also mentioned that if it does not go through, the county will continue to try and be as efficient and effective as possible, though the focus on roads would likely be grading projects instead of new paving projects.
Holt explained that if ASD receives the grant and voters approve the bond, in about three years the community will have a new PK-8 campus.
He then explained that if the bond is not approved, ASD will likely continue investing its general fund dollars in repairing the current buildings, but he noted that the district is moving past “simple repairs” at this point.
Holt noted the elementary school needs a new fire system that will cost about $250,000, while also describing the sewer infrastructure at the middle school a “complete disaster.”
The meeting ended with a public question-and-answer segment with questions about if a traffic light needed for the new school will be included in the bond, how the county prioritizes road projects, community surveys, potential community partnerships for workforce housing projects and other services the hospital could offer, such as a dialysis program.
Holt noted that right now a traffic light along with acceleration and deceleration lanes will be included in the bond.
He commented that the lack of affordable housing has affected the school district’s ability to retain employees.
Gonzalez noted that he would look into the possibility of conducting an official survey for feedback on the lodging tax ballot question, but that there might be a cost associated with that.
Webb noted that there are likely not enough patients locally for the PSMC to run its own dialysis program.
Other questions were asked about the school district’s plans for its old facilities if a new school is built, with Holt noting that the district had to include that in its BEST grant application.
He mentioned that he’d “love” to see those buildings be repurposed for the community and could be turned into anything from a recreation center to office space for nonprofits.
Holter indicated that the next community conversation meeting is scheduled for today, Thursday, May 21, at the Pagosa Lakes Property Owners Association (PLPOA) Clubhouse at 5:30 p.m. and will focus on the school district.
Following meetings are also scheduled for June 1, at 5:30 p.m. at the PLPOA clubhouse focusing on PSMC and on June 10, at 5:30 p.m. in the high school auditorium with a focus on the county’s lodging tax.
clayton@pagosasun.com
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