On Jan. 20, the Pagosa Springs Town Council approved the first reading of an ordinance relating to asking voters if the town can take out a $3 million loan from the Colorado Water Conservation Board (CWCB) to help pay for the town’s flood recovery efforts along the San Juan River stemming from the October 2025 floods.
If approved upon second reading, the question will appear on the town’s April 7 ballot.
The town, through the state, initially applied for $5.7 million in grant money through the Federal Emergency Management Agency (FEMA), but Colorado’s request was denied December 2025. The state has appealed the denial.
Development Director James Dickhoff explained that, in the wake of being denied the federal funding, the town sought and found other ways to pay for the recovery efforts, most of which come from state programs, but explained that the town is “about $3 million short” of its estimated cost to make the river “safe” ahead of the summer recreation season.
Dickhoff described the loan as a way to pay for what town staff identifies as “the unfunded portions of the river corridor recovery project,” adding that the intent is not to “reconstruct the river corridor to what it was before the flooding,” but to focus on “public safety” for those wanting to recreate in the river this spring and summer.
“We want to make sure it’s as safe as possible. ... We are really focusing on public safety and [riverbank] stabilization,” he said.
The total project cost of river cleanup and restoration following the October 2025 flood event is estimated to be just shy of $6 million, stated Town Manager David Harris in correspondence.
The CWCB loan would be for a 30-year period and comes with a zero percent interest rate for the first three years, with about a 3.35 percent interest rate for the remaining 27 years of the loan period, an agenda document on the matter states.
This would amount to the town paying about $170,000 a year once the interest kicks in during the 27-year period, Dickhoff explained.
Council member Madeline Bergon asked if the town could seek future grants to help pay down the debt early, with Dickhoff responding, “We’ll be really looking for other opportunities, for sure,” to help pay for the project.
Council member Brooks Lindner asked if the town would be leading a campaign to get the ballot measure passed with the voters.
“We will be looking at how to best address that so we’re not breaking any rules when getting the word out,” Dickhoff responded.
He added, “We just wanted to let voters know that this is moving forward, emphasizing the 3 years with no interest, and from the staff’s perspective we are only going to use what we need out of this loan.”
He noted that the town could use it “for other improvements” if the town doesn’t use up the entire amount on the river recovery effort.
At the previous meeting, the town’s financial advisor, Joey McCliney, who described the loan as a good deal, responded that “right now, that flood is still fresh on everybody’s mind. I think it would be easier to pass in the spring than it would a year from now.”
Mayor Shari Pierce clarified that “each individual project” that this money would fund would still need to come before the council for approval on a case-by-case basis.
Dickhoff noted that staff would “certainly be doing that.”
Bergon emphasized, “I do think it’s really important to recognize what an economic driver the river corridor is, and protecting that resource that we have … for not only recreation like floating and swimming, but for fishing and fish habitat, and making sure that we are setting a good example for those upstream and downstream of us.”
When a motion was made to approve the first reading of the ordinance, it was seconded and passed unanimously by the council.
For the ordinance to appear on the April 7 ballot, it also needs to pass a second reading by the council, scheduled for the next town council meeting, which is set for 5 p.m. on Feb. 3 at Town Hall.
derek@pagosasun.com
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