Castle Valley adopts 2026 budget, certifies 0.001339 tax rate after public hearing on roads and culvert funding

Castle Valley — The Town of Castle Valley on Aug. 20 adopted its fiscal year 2026 budget and certified a property tax rate of 0.001339 after a public hearing in which residents urged both for and against the increase.

Mayor Ron Drake opened the public hearing and invited residents to speak. Council members voted to adopt Resolution 2025‑6, the full FY2026 budget, and Resolution 2025‑5, the certified tax rate of 0.001339 for 2025; council members present approved both motions.

The move follows months of planning and a public debate centered on road maintenance, an aging culvert on Castle Valley Drive and the town’s ability to respond to increasingly severe weather events. Town staff and several residents said the proposed additional revenue — roughly $75,000 in new property tax revenue — would be split with about $50,000 going to roads and the balance to water protection, elections contingencies and other line items.

Why this matters: Council and residents said the extra revenue is intended to build capital reserves for a multi‑year culvert and road project and to give road crews more resources for both emergency response and routine maintenance. The council noted that capital surpluses in prior years have been directed principally to the capital roads account.

Public comments: Voices at the hearing were divided. Pam Hackley, a property owner, said she supported the increase “provided of course that it goes to fund the line items that are directly related to roads and water protection.” Several residents, including Harry (last name not specified in the record), opposed a permanent tax increase for reasons including fixed incomes and what they described as inconsistent past benefits from town taxes. A written statement submitted for the record on behalf of H.S. Holdings by George argued against the increase and urged consideration of decertifying the town and reverting services to Grand County.

Budget details and clarifications: During discussion councilors and residents cited these figures mentioned on the record: - Proposed additional property tax revenue: approximately $75,000; roughly $50,000 earmarked for roads, about $24,000 for other items (as presented by staff during the hearing). - Estimated culvert and immediate roadway work discussed during the meeting: roughly $520,000 (town staff presented that figure as the current project estimate and said grant reimbursements and matches are factors). - Last fiscal year surplus referenced during the meeting: about $120,000 moved into capital roads in the prior year; council members said that practice of directing surplus funds to capital roads will continue where possible.

Council discussion and outcome: Council members acknowledged state mandates and new administrative costs (elections, IT, record retention) that affect town budgets. The council said that if a planned election is not required, those funds would be reallocated as part of regular budget amendments. After debate the council approved the FY2026 budget and certified the tax rate. The council also approved a purchase order for road department tires and a separate equipment maintenance authorization at the meeting (see "Votes at a glance").

What’s next: Town staff said the UGS hydrology study related to local groundwater concerns is expected to be published in coming months (staff cited an expected publication window in October–November), and the culvert project will continue to pursue grant funding and necessary approvals. The council said it will continue to amend the budget as actual grant awards, election needs and other variables become known.