On April 15, the Pagosa Springs Town Council authorized Slate Communications, a Colorado-based public relations agency, to provide communications services related to the town’s funding needs for its sewer system and related improvements.
The town is exploring a ballot issue that would ask town voters to increase the sales tax (in town only) to create a new revenue stream to pay for critical infrastructure repairs and upgrades to the town’s aging wastewater system.
Town Manager David Harris explained that the search for a communications agency was spurred by the need to “tell the story of our sewer system,” adding that town staff chose Slate “because they know us,” referring to past work the agency has done for the town.
“Every community, every decision, every service has a story behind it. We help you tell it,” states a presentation by Slate at the meeting.
Kristen Knoll, representing Slate, explained that she has worked on similar ballot initiatives in other Colorado communities with “similar communications needs.”
Knoll mentioned a ballot measure to raise the sales tax in the town of Severance to pay for street repairs in that community.
Slate provided the services of messaging, explainer videos, social media strategy, yard signs, direct mail information, website updates and graphics, and other services, but the voters ultimately rejected the measure, she added.
“I see a very similar type of communication needed in Pagosa Springs that we implemented in the town of Severance in November of this last year,” she said.
She then explained more about that project.
“They were looking to go out and ask the community for a 1 percent sales and use tax to fund their road and infrastructure projects,” she said, adding while that measure “failed, it was a good conversation with that community to get them to understand the needs of the community.”
At previous meetings, the council members suggested that part of the messaging strategy would be to portray the sales tax increase as a means to freeze, or even lower, its rates on wastewater customers and portray the sales tax increase in a positive light.
However, Knoll mentioned that in the town of Severance, a similar strategy was tried, but that the voters preferred to have more fees on their bills, “as opposed to the sales and use tax.”
She added, “I just wanted to share that I have some similar experience throughout Colorado with these types of [ballot] initiatives.”
She continued, “I think what’s really important is getting out in front of the community on a regular basis and finding those community champions … that support your initiative to help to talk to community members and finding those opportunities to have a conversation.”
She said that a “lesson learned” from the failed ballot measure was “certainly not having that type of community group to help spread the word.”
She added that it would be important in Pagosa to have “more community members to help sort of share the word about what you’re trying to do.”
She said Slate would help the town “tell the story of your infrastructure needs, water and sewer,” and what “a potential ballot measure would mean for your typical resident.”
Harris explained at a previous meeting that discussions about “how do we pay for our sewer system repairs, let alone construction of facilities,” has been ongoing for quite some time.
The town hired Joey McLiney as its financial advisor to go after $4.8 million worth of revenue bonds to pay for the costs of repairing immediate category 4 and 5 problems with its sewer system, as well as other required costs of maintaining the system.
However, the sanitation system faces repair costs beyond the category 4 and 5 problems with the sewer pipes, with Harris saying, “This can be a tough pill to swallow, with one of the challenges” being “that our rate payers are already heavily burdened with the cost of operating.”
At a previous meeting, McLiney suggested that “continually raising rates to pay for the next $15 million [in repairs and maintenance] is not affordable for anyone.”
Under the current system, the town uses a series of lift stations to transport its wastewater about 7 miles to the Vista Wastewater Treatment Plant, owned and operated by the Pagosa Area Water and Sanitation District (PAWSD).
Per the agreement with PAWSD, the town is responsible for 25 percent of any required upgrade costs to the Vista plant, with the plant currently facing a required upgrade to meet state Regulation 85, having to do with phosphorus and nitrogen output.
It has been estimated that the town’s total proposed sewer projects in the coming years will amount to about $40 million, and McLiney has stated that if the town decides to add a new downtown sewer treatment plant this number would double.
Council member Brooks Lindner asked if the town was going to appoint a chair person to head the sale tax campaign, with Mayor Shari Pierce recommending, “I think that’s you,” receiving laughter from the council.
Lindner recommended having two council members lead the effort, saying, “We need to get that going,” with Lindner and council member Mat deGraaf taking the lead on the effort.
Lindner has expressed at previous meetings that if the council decides to go for it in November’s election, that the effort should stay focused strictly on the needed sewer repairs and not broaden the language to allow for other infrastructure projects.
Slate’s messaging plan will happen in four phases, with phase one listed as researching the problem, ending with phase four, implementing the strategy.
Slate’s implementation phase will include designing and distributing direct mail postcards, creating talking points and fact sheets for the council and staff, creating social media posts and images, producing two short informational videos, and other campaign materials.
Harris explained at a previous meeting that the revenue stream created by a town-only sales tax increase would be paid by a mixture of town and county residents, as well as visitors.
“If you think about a shopper at any one of our stores, we have in-town residents, we have outside-of-town residents, and we have tourists who are paying that tax as well,” he said.
It has not yet been decided if the council will go for a half or a 1 percent increase to the town’s sales tax.
Public Works Director Karl Johnson has suggested that a half-cent increase would “put us in a good position” to complete the sewer system projects on the horizon.
When a motion was made to finalize the scope of services with Slate Communications at a cost not to exceed $25,000, authorizing Harris to execute the agreement and begin work before the end of the month, it was passed unanimously by the council.
Part of the motion appointed Lindner and deGraaf to assist in the effort and to head the town’s upcoming campaign.
