Gunnison council pares back early 78% tax notice and holds continued Truth in Taxation hearings

Gunnison city leaders held a Truth in Taxation public hearing and presented a draft 2025–26 budget that originally advertised a large possible increase in the city’s share of property taxes but has since been reduced for further deliberation.

Mayor (name not specified) told residents the early notice “was never planning on a 78% increase,” and said the council has been “whittling” items from the draft in response to revenue shortfalls and public comment. City Administrator Dennis explained the legal and procedural steps: the city notified the county by the June 1 deadline and must hold a special hearing before levying a rate higher than its certified tax rate.

The draft budget the council discussed includes requests for new spending and capital reserves: funding to cover public safety cost increases (the police department has agreed to use $35,000 from reserves to soften the impact), $100,000 for sewer-treatment repairs, $11 million anticipated for the Tark Canyon Rail project in the next three years, $3 million for irrigation capacity expansion over five years, and set-asides for a pool roof replacement (estimated at $800,000) and meter-replacement reserves for state-required irrigation meters. City staff said projected additional city tax revenue sought from the county is about $307,752, and that the advertised 78% figure reflected an early maximum estimate rather than a final rate the council intends to adopt.

City Administrator Dennis outlined how property taxes are apportioned: local school districts and county assessments take the largest shares of a homeowner’s bill; Gunnison’s portion was shown as about 13% of the total tax bill in the presentation. Dennis also said a no‑new‑tax scenario would have produced a small decline in the overall tax rate due to growth in valuations, and that the council is now considering lower increases — he cited a working proposal “down to” about 29% for the city portion, but said the council would continue to sharpen numbers before final adoption.

Council members and members of the public pressed for clearer communication. One resident, Justin (last name not given), urged different advertising and said the early 78% figure was “misleading.” Multiple residents asked the council to post the revised proposed budget online and to provide clearer comparisons showing how a change in the city’s rate affects a homeowner’s total tax bill.

Nut Graf: The hearing is part of the statutory Truth in Taxation process and does not finalize the budget. Council members said they will continue to review and reduce draft increases and keep the public hearing open through the council’s next meeting (the council announced the public hearing will continue on the 20th), giving the council more time to cut items and to publicize revised figures before any final vote.

The council did not adopt the final budget at the meeting. Instead it voted to open the Truth in Taxation hearing and to continue reviewing the draft; the mayor and multiple council members said they intend to reduce the proposed rate further before final adoption. The council emphasized capital and safety needs — sewer lagoon repairs, backup generators for emergency operations, and long-term water-right planning — as central drivers of any revenue request.

Ending: The public hearing will remain open; the council asked staff to post updated budget documents and to return with revised numbers that reflect reductions discussed at the meeting. A final adoption must occur before state deadlines later in the summer, after additional public notice and hearings.