Durango voters will decide this November whether the city’s 2005 half-cent sales tax should be extended another 30 years to pay off debt associated with reconstructing a new city hall and police department.

Durango City Council met Monday to once again weigh two options for the project, having identified the former Durango School District 9-R administration building at 201 East 12th St., and the former Big Picture High School building next door, as the ideal location for a joint city hall and police station.

The option favored by the majority of City Council is simply an extension of the current sales tax passed in 2005 and enacted in 2006, which originally dedicated one-quarter cent to parks, open space and trails operations and maintenance and another one-quarter cent to capital improvements on Florida Road and the Durango Public Library.

That option also includes annual payments from the city’s general fund of nearly $950,000 to pay back general sales tax revenue bonds within 30 years, according to staff reports to City Council.

Another option was to raise the existing 2005 sales tax by one-eighth of a cent. Councilors who supported the first option said their top priority was to fund the joint city hall and police station, and in discussions with constituents, they heard more support for extending the existing tax over increasing taxes on Durango’s workforce.

Both options were designed to raise about $62 million for building renovations and reconstruction over the next 20 to 30 years. The projected total cost of the city hall/police station is about $72 million.

City staff members said if voters approve the ballot measure, the quarter-cent for parks and recreation would be preserved as is. The other quarter-cent for capital improvements would be used to fund development of the new city hall and police station.

City Council narrowly passed a resolution Monday to direct staff members to pursue reauthorization of the existing sales tax. Mayor Jessika Buell and councilors Dave Woodruff and Melissa Youssef voted in support of the decision. Councilor Olivier Bosmans abstained from voting and Councilor Gilda Yazzie voted against the resolution.

Youssef said a new police station is “absolutely essential for our community,” but a one-eighth cent increase presents an issue of affordability to residents who are already having a difficult time keeping up with the cost of living.

She asked what impact a one-eighth cent increase would have on community members.

City Manager José Madrigal said the tax increase would tack on about 12½ cents to every $100 purchase.

Woodruff said he normally wouldn’t be concerned about an increase in taxes by such a small amount. But he, too, is worried that residents already have enough expenses to deal with high housing costs that don’t appear to be going down any time soon.

Bosmans said extending the current 2005 sales tax without increasing it makes the most sense at this time. However, he would like alternative locations for a new city hall and police station to be considered, including the possibility of rebuilding the facilities in their current buildings.

He also expressed concerns about the city’s process in pursuing the former school buildings for new facilities, costs of the project and timing of the project – again citing high costs of living in the city.

Bosmans said would have liked to have included the Durango Financial Advisory Board in considering the best approach to a new city hall and police station.

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