Montrose council narrows 2025 street program to $300,000 amid tax-capacity drop

City of Montrose officials reviewed changes to the preliminary 2025 budget and spent the longest portion of the meeting debating how much to allocate for street improvements. Staff told council the city’s tax capacity had fallen roughly $7,200, leaving an estimated final capacity near $3.8 million; that and revised benefit calculations slightly increased the projected tax rate. Mayor Kirby Moina said she was cautious about large tax increases and stated, “I really would only feel comfortable myself passing the 2025 with the $200,000 for street improvements,” citing concern about placing additional burden on residents.

Councilmembers discussed several scenarios for 2025, including $200,000, $300,000, $400,000 and $500,000 options and the prospect of pursuing additional state aid. Multiple members said a $300,000 allocation, combined with a hoped-for $100,000 state aid award, would meet near-term project needs without producing a tax increase they viewed as excessive. Staff identified projects that could be funded under those amounts, including work on Clementa (with an existing matching grant) and the city’s pavement-management plan; they noted wastewater capacity limits that constrain new commercial approvals and will also factor into longer-term capital planning. Council did not take a final adopted-budget vote at the meeting; staff will bring final figures back for the December meeting.