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Montrose staff outlines cuts, delays projects after preliminary tax-capacity drop
Summary
City of Montrose staff told the council on Sept. 5 that preliminary tax capacity fell by roughly $352,000, prompting proposed reductions and deferred capital projects (including a $300,000 control system and a $250,000 shop expansion). Staff recommended presenting options — including a $500,000 street‑improvement package — for council action at the next meeting.
City of Montrose staff presented the proposed 2025 preliminary budget at a Sept. 5 council workshop, saying the county’s preliminary tax-capacity figure dropped by about $352,000 and recommending cuts and delayed capital purchases to limit a sharp levy increase. "With the decrease, we have to start cutting expenses," the staff member said, describing line-item reductions and alternatives for council consideration.
The staff member told the council that several expense adjustments were made from the prior draft to blunt the impact on the property tax rate. Key changes included reducing the street-maintenance line from a planned $125,000 increase to a $110,000 bump for next year, holding the fire department’s annual operating transfer at $100,000 instead of increasing it to $150,000, and trimming parks repair-and-maintenance to $10,000 (from $15,000). The staff member apologized to Councilmember Sam for removing a previously proposed $10,000 allocation for Music in the Park.
On one-time and capital items, staff removed a planned $300,000 purchase of a new control/automation system (the transcript term "scatter system" was used; staff clarified it was an automation/control system) because a new wastewater plant project is expected and staff did not want to buy interim equipment. A proposed $250,000 expansion to the lower shop and parking was deferred after staff and council members agreed the add-on would likely be a temporary fix and costs could increase if the project proceeds later.
Staff presented levy scenarios tied to different street‑improvement packages. Using the preliminary capacity figure, staff said certifying roughly $2.67M in assessed value would put the city’s levy rate at an increase near 12% under certain scenarios; staff recommended that the council initially present a $500,000 street-improvement option to give flexibility, noting that "we can always go down; we can’t go back up" once final numbers are certified. The staff member cautioned that these figures are preliminary and that final certification, usually late September, could change the outcome.
Council discussion touched on how peer cities are responding; staff said many municipalities are planning increases in the low-to-mid teens (examples cited at roughly 11–13%). Councilmembers and staff emphasized the need for multi-year CIP planning rather than repeatedly reacting to short-term needs. The staff member noted they had already identified roughly $500,000–$600,000 in cuts and asked the council for guidance on which options to present at Monday’s council meeting.
No formal motions or votes were taken at the workshop. Staff said they will prepare formal options for the upcoming council meeting (including $300,000 and $500,000 street-improvement scenarios) and present final numbers after county certification. The presiding chair closed the workshop and adjourned the meeting.
(Reporting based solely on the Sept. 5, 2024 City of Montrose council workshop transcript.)
