Bluff Town Council weighs FY2027 budget and proposed property tax increase as tourism revenues slip

At a June 9 Bluff Town Council work session, councilors reviewed public comments on the Fiscal Year 2027 tentative budget and a proposed property tax increase and discussed options to balance the budget before a June 16 vote. Finance staff Erin Nelson reported revenues through April 2026 and estimated about $35,000 in unrealized receipts with roughly $80,000 potentially available to carry into FY26/27, but cautioned that May and June distributions remain pending and that a rollover should not be relied on annually.

Council member Jennifer Davila said tourism has softened, noting her business saw about 75% capacity in June 2025 versus roughly 40% in June 2026, and recommended the council budget more conservatively for the coming year. Mayor Josh Ewing said the council faces a $50,000 shortfall in the proposed FY26/27 budget if the property tax measure is not approved and urged either cuts or use of fund balance to close the gap.

Councilors and members of the public raised several recurring themes during discussion: consider alternatives to new tax revenue; whether the proposed emergency-manager position should be hourly or salaried; interlocal agreements with San Juan County to clarify shared services; generational differences in support for a tax increase (younger residents more supportive, some older residents on fixed incomes opposed); and confusion among residents about how any increase would affect total tax bills (the minutes note it would affect the Bluff portion only). Several council members — Gary Haws, Britt Hornsby and Jennifer Davila — said they planned to vote against the proposed property tax increase at this time while indicating they wanted to continue the discussion.

To preserve reserves, councilors proposed cutting one-time discretionary line items rather than drawing down the Carryover Fund Balance. Nelson outlined an example package that would trim one-time spending by about $30,000 (reducing Dark Sky funding from $15,000 to $5,000, cutting Community Promotion from $15,000 to $5,000 and removing a $10,000 wayfinding item) and pairing that with a $20,000 draw from fund balance to leave an estimated $65,000 rolling into FY28.

As part of the budget conversation, a presenter identified as Haviken reviewed a preliminary C Roads budget of $252,000 covering maintenance and improvements (Bluff Bench Road patching and sealing, culvert cleaning, improvements on Sagebrush, 4th W, 6th W and 5th W, and chip sealing on 5th St East) and listed equipment purchases; San Juan County indicated a matching grant of $85,000. Cemetery beautification and some other capital items were put on hold in discussions of priorities.

The council did not take a formal vote at the work session. The council is scheduled to consider final budget adoption and any property tax action at the regular meeting on June 16. Until then, members said they will continue outreach and review of public comments and options for one-time cuts or fund-balance usage.