The Pagosa Springs Town Council approved the town’s budget for fiscal year 2025 at its meeting on Nov. 21.
The budget’s approval comes after Town Manager David Harris first presented a draft of the budget document on Oct. 1, with the budget seeing only minor changes since it was first revealed to the public.
To get to the final draft, the council conducted several budget work sessions and public hearings on the document.
Harris explained the current budget reflected the council’s top priorities, including the town’s sanitation district, staffing and workforce housing.
On the issue of the town’s sanitation district, Harris noted that, earlier in the evening, the council — acting in its role as the board of the Pagosa Springs Sanitation General Improvement District (PSSGID) — approved the first reading of an ordinance to allow the issuance of tax-exempt revenue bonds in an amount not to exceed $4.8 million.
The bonds will go toward funding repairs to the town’s sewer collection system, with an agenda document stating, “It’s anticipated that these funds will go to address the more critical sections of the collection system, which have commonly been referred to as category 4s and 5s.”
Harris said, “We’re taking the necessary steps to address this first goal.”
On the issue of staffing, Harris explained this priority is also being addressed, pointing to the 2.7 percent cost-of-living adjustment (COLA) reflected in the 2025 budget.
Harris said, “we are [also] adding an additional match of 2 percent of the Colorado Retirement Association … this will be for nonpolice officers,” and would bring other town staff up to parity with police officers.
He added that this is an example of “taking care of our staff,” while also mentioning newly created eight-month positions in the Parks and Recreation and Facilities departments.
On workforce housing, Harris mentioned the hiring of Jeff Sams as multijurisdictional housing coordinator and that the budget reflected funding for this position.
At a previous meeting, Harris explained that the hiring of Sams was a “big win” for workforce housing, adding that once Sams is “up to speed” on everything related to workforce housing in the community, he would 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 project has stalled due to the developer and the town having a difficult time making it “pencil” at the price points the town wants to see for workforce housing in the community.
The town’s major capital projects funded in the budget include: the 1st Street pedestrian bridge, river gateway project, a bike park and river access improvements at Yamaguchi Park, and the addition of sheep to the Weeminuche Meadows art installation.
Harris said, “Your total budget for the fiscal year proposed is to be $16.8 million.”
The budget shows $16,836,988 in total revues anticipated to be brought into the town’s coffers, with the total expenditures being $16,843,455.
Out of the town’s seven major funds — general fund, capital fund, lodgers’ tax fund, sanitation fund, geothermal fund, Conservation Trust Fund, and trust fund — the general and capital funds are by far the largest, with the general fund bringing in about 36 percent and the capital fund bringing in about 42 percent of total revenues, according to the budget.
The main source of revenues for these funds include sales tax, lodgers’ tax and property tax, with about 63 percent of total revenues coming from taxes and the rest coming from sources such as charges for service, leases and rents, and license and permit fees, according to the budget.
Along with the budget, the council also approved the town’s five-year capital plan and the fee schedule for 2025.
Highlights of the capital plan include parking lot replacements at Town Hall and Mary Fisher Park; HVAC and boiler replacement at the Ross Aragon Community Center; deck replacement for the 6th Street pedestrian bridge; and installing a curb, gutter and sidewalk along 2nd Street.
The 2025 fee schedule includes an increased fee for special event rentals at town parks from $100 per day to $300 per day.
Another change to the fee schedule is the amount that the town will charge The Springs Resort for usage of the town’s geothermal water.
The new rate stands at $2,084 per month, or $25,007 annually, for the fair market value for the heat/energy component of the water.
The town will also charge for the mineral content of the water, with the rate being $1,675 per month, or $20,100 annually, which was calculated by multiplying The Spring Resort’s daily nonresident price of $67 by the number of its soaking pools (25).
The budget, appropriations, capital plan and 2025 fee schedule were approved unanimously by the council and will go into effect on Jan. 1, 2025.
derek@pagosasun.com
