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Town manager: grants in progress but state budget pressure may reduce severance tax backfill
Summary
Rangely's town manager reported progress on capital projects and DOLA grant applications but warned the state may sweep severance tax backfill used to support energy-impacted communities, a development council members characterized as a troubling budget outlook.
The town manager reported that multiple grants and capital projects are moving forward, including near-completion of a high-zone tank grant and active work on summer projects, but cautioned that state budget pressures could reduce severance-tax backfill funding for energy-impacted communities.
"They will probably sweep almost all of our severance tax," the town manager said when describing the state's plan to backfill its own budget, a comment that drew concern from council members who said the move would broadly affect communities that rely on mineral-extraction revenues. The town manager said the town received notice not to expect significant severance-tax assistance and that staff are pursuing alternative grant and project options.
Council members discussed the timing of DOLA cycles and the outlook for future grant availability, noting that the next two DOLA cycles are expected to be minimal. Staff reported the town received DOLA grant awards for small projects and is preparing bid packages for river-related work and other capital items.
