At an Oct. 24 Pagosa Springs Town Council budget work session, intended to show how the proposed 2025 budget addresses the council’s top three priorities (the sanitation district, staffing and workforce housing), Town Manager David Harris first had to explain some unexpected changes that have arisen since the council last considered the budget.
On the council’s No. 1 priority, the sanitation district, Harris explained, “We’ve had a few surprises this week with our ever-evolving sanitary sewer system.”
He explained that Public Works Director Karl Johnson had briefed him before the meeting about a sewer problem that arose near the Phillips 66 gas station.
In a followup email to The SUN, Harris wrote, “this is one of many of the level five sewer line repairs the town is looking to address in the very near future.”
Johnson also replied via email, “The collection system near the Phillips 66 is one of the Category 5 areas that is currently being engineered for a complete replacement.”
He adds, “Unfortunately this area suffered a backup recently resulting in a call out by a Utility staff member in the wee hours of the morning to prevent a major spill after a citizen experienced a backup of their service line.”
And then, right before the meeting, Harris explained, “We had another surprise,” telling the council that “the engine stopped working” on a truck utilized “to water plants.”
“We would recommend that instead of replacing that engine … we do need to replace that truck with probably a 1 ton, something that can hold a large enough [water] tank,” he said.
He recommended going into reserves “for that next year, which would mean that our budget would be out of balance, but it is a onetime capital purchase and we do have an aging fleet.”
Mayor Shari Pierce asked if there is a cheaper way to water plants than purchasing a new 1 ton pickup truck.
“What else are they gonna use that truck for, other than watering plants?” Pierce asked.
Harris explained that the “primary use” of the truck would be to water the plants that the Parks and Recreation Department is responsible for maintaining.
“So, basically, we’d be getting a flatbed truck to haul around the big [water] tank,” Harris said, with Pierce responding, “That seems like a lot of money to water plants.”
She asked, “Do we not have something that could be handed down from another department?”
Harris explained that “it has to do with the weight.”
He said, “We can explore some other options, but just to let you know” the issue just “literally arrived [on his desk] right before” the meeting.
Pierce suggested that the parks department use a smaller water tank and take several trips if necessary.
“It’s not that far to come back” for water refills, she suggested.
Harris replied that “either way, we are down a truck,” mentioning that the town’s fleet of vehicles is aging quickly and will need to be replaced at some point, while also acknowledging that “money isn’t exactly growing on trees here in town.”
He also noted that he did not want to stray from making sure that the budget addresses the council’s top goals and priorities.
“We need to watch everything we’re spending,” he said.
Pierce asked, “So, this morning we had the sewer surprise and this afternoon we had the truck surprise. How often do we have surprises?”
Harris responded that such surprises tend to happen regularly, with Pierce thanking him for his honesty, stating the council needs “to be cognizant that there might be these other things coming down the line.”
After the updates, Harris launched into how the proposed budget addresses the council’s top priorities.
On the town’s top priority — its sanitation system, which is governed by the board of Pagosa Springs Sanitation General Improvement District (PSSGID) — the town is currently moving forward with $4.5 million worth of revenue bonds to finance critical repairs to the district’s most urgent problem — failing sewer lines, Harris explained.
“At some point, we will have a budget for that 4.5 million, based on projects, engineering costs, construction costs, and what have you, but we’re still formulating that,” Harris said, adding that “those are the steps we are taking to address the issues facing our sanitation district.”
Pierce asked the council if it thought it was “putting enough effort and money” into the sanitation district since it’s the council’s No. 1 priority for 2025.
The council signaled, given the bonds being sought to address the issue, that it believes the issue is being addressed satisfactorily.
“I think we’re in good shape on the sanitation [issue] with the money we have and what we’re trying to accomplish. We’re doing a good job of addressing that,” Pierce said.
On the issue of staffing, Harris mentioned that “several efforts are being made,” including a 2.7 percent cost-of-living adjustment (COLA) or a $1 per hour minimum increase of salaries “to keep them competitive with the goals that were set last year.”
A “second point” on staffing, Harris said, “we are adding an additional match of 2 percent of the Colorado Retirement Association … this will be for non-police officers.”
He further explained that this would bring other town staff up to parity with “the contributions that the town is making on the police side of things.”
He also explained that the town is “looking at” funding two new positions, as well as Town Hall security system upgrades.
On workforce housing, Harris said that the hiring of Jeff Sams as multijurisdictional housing coordinator is a “big win” for workforce housing in the community, adding that once Sams is “up to speed” on everything related to workforce housing in the community, he could dive more thoroughly into the town’s Servitas project.
Servitas is a Texas-based developer that the town contracted with to build workforce housing on town-owned property.
The housing project has stalled due to the developer and the town having a difficult time making it “pencil” at the price points the town wants for workforce housing in the community.
Development Director James Dickhoff noted that Sams is “up to his neck right now” with getting up to speed on everything, but that the Servitas project would be on his desk “very soon.”
The council will publicly consider the budget again on Nov. 5 at Town Hall.
derek@pagosasun.com
