{"id":15368,"date":"2025-12-04T16:22:21","date_gmt":"2025-12-04T23:22:21","guid":{"rendered":"https:\/\/dh.durangoherald.com\/tj\/durango-faces-funding-gaps-for-housing-transit-and-infrastructure-in-2026\/"},"modified":"2026-03-31T03:46:42","modified_gmt":"2026-03-31T03:46:42","slug":"durango-faces-funding-gaps-for-housing-transit-and-infrastructure-in-2026","status":"publish","type":"post","link":"https:\/\/dh.durangoherald.com\/tj\/durango-faces-funding-gaps-for-housing-transit-and-infrastructure-in-2026\/","title":{"rendered":"Durango faces funding gaps for housing, transit and infrastructure in 2026"},"content":{"rendered":"\n

\"City
City of Durango administrators put an employee on paid administrative leave as they investigate the employee for alleged \u201cmisappropriation of public funds.\u201d Interim City Manager Amber Blake, who works at City Hall, did not immediately respond to requests for comment.<\/span>Durango Herald file<\/span><\/figcaption><\/figure>\n<\/p>

The city of Durango has experienced a trend of strong financial and economic growth, but it will need to identify sustainable funding sources for affordable housing and key services such as public transit, water and sewer infrastructure next year, said City Manager Jos\u00e9 Madrigal.<\/p>\n

The passage of a 1% sales tax in La Plata County in November, he said, will make it difficult for the city to rely on sales and property taxes to fund projects and services.<\/p>\n

The city anticipates a 2.5% increase in sales tax revenues next year, according to Madrigal\u2019s written introduction to his proposed 2026 budget, which City Council approved on Tuesday.<\/p>\n

The city\u2019s general fund revenues leaped nearly 8% from $51 million in 2024 to $55 million this year, according to the 2026 budget. A smaller 3.6% increase in revenues to total $57 million is projected for next year.<\/p>\n

Madrigal said a 2.5% increase in revenues is enough to maintain services without drastic cuts or impacts, but it won\u2019t be enough to expand existing services without new development or redevelopment.<\/p>\n

The city\u2019s biggest challenge will be to find funding to address its aging water and sewer infrastructure, which is in dire need of repair. Similarly, he said, Durango Transit\u2019s operations are not sustainable at current funding levels, and the need for more affordable housing remains at large.<\/p>\n

The 2026 budget shows a projected ending fund balance of $1 million for the city\u2019s water fund, compared with an ending fund balance of $15 million in 2024.<\/p>\n

The water fund is expected to reach a deficit of $3 million by the end of 2030<\/a> without new funding sources, said Bob Lowry, interim Public Works director.<\/p>\n

He said he anticipated the city\u2019s sewer fund to operate at a loss next year, although the 2026 budget shows projected revenues of almost $1.5 million and an ending fund balance \u2013 bolstered by a reserve fund \u2013 of $1.8 million.<\/p>\n

City Council approved 10% water and 20% sewer rate fee raises last month<\/a> to bolster fund revenues, and Public Works recommended smaller annual fee rate increases in years to come.<\/p>\n

The city\u2019s transportation department is projected to earn about $2 million less than it spends next year, although it isn\u2019t expected to slip into the red by the year\u2019s end, the budget showed.<\/p>\n

Various city services are receiving modest adjustments to their budgets next year, according to the budget:<\/p>\n

Durango Police Department is receiving a 3% increase in funding from $11.4 million to $11.8 million.Parks and Recreation will receive a 3% decrease in funding from $10.8 million to $10.5 million.Durango Public Library is slated to receive a 2% decrease in funding from $3.3 million to $3.2 million.The city anticipates spending 8.5% more on fire services from Durango Fire Protection District next year with a 2026 budget of $7.1 million compared with this year\u2019s budget of $6.5 million.<\/div>\n

Madrigal said the city\u2019s contract with DFPD expires in 2028, and that\u2019s another service the city must contemplate continuing or replacing.<\/p>\n

In addition to housing and infrastructure, another chief priority is construction of the city\u2019s new joint city hall and police station.<\/p>\n

The city will provide a 3% cost of living adjustment to employees with a possible 5% adjustment to high performers, said Gloria Platt, the city\u2019s chief financial adviser, at a November meeting.<\/p>\n

cburney@durangoherald.com<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

projects modest revenue growth, but challenges remain<\/p>\n","protected":false},"author":1,"featured_media":15369,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[1724,1020,28,1351,994],"naviga_topic":[],"class_list":["post-15368","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-budgets-and-budgeting","tag-durango-city-council","tag-headlines","tag-public-finance","tag-trueanthem"],"acf":[],"author_name":"dh_admin","_links":{"self":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/15368","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/comments?post=15368"}],"version-history":[{"count":3,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/15368\/revisions"}],"predecessor-version":[{"id":77140,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/15368\/revisions\/77140"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/media\/15369"}],"wp:attachment":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/media?parent=15368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/categories?post=15368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/tags?post=15368"},{"taxonomy":"naviga_topic","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/naviga_topic?post=15368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}