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Montrose workshop reviews 2025 preliminary budget as tax-capacity drop forces cuts
Summary
City staff told the council at a Sept. 5 workshop that a county preliminary tax-capacity calculation reduced Montrose’s capacity by about $352,000, prompting proposed cuts and options to limit a projected double-digit tax-rate increase for 2025.
City finance staff presented options for the 2025 preliminary budget at a Sept. 5 City Council workshop, saying a county preliminary tax-capacity report reduced the city’s capacity by roughly $352,000 and that change will force expense cuts if the city wants to avoid a steep rate jump.
"Our previous tax capacity for this year is at about 4.175... we got the prelim tax capacity back from the county, and it is dropping 352,000," the staff member said, explaining the drop is driven by a state change expanding homestead-credit eligibility to homes valued up to $500,000.
Staff walked council members through expense reductions and levy scenarios, including a scenario to certify a levy that would yield a rate of 56.69. "We would be looking to certify roughly 2.167, which we'll put our rate at 56.69. So roughly 12 and 0.5 percent increase," staff said, while noting preliminary capacity can still change before final certification.
The workshop focused on balancing cuts and flexibility. Staff recommended a higher provisional street-improvement allocation to provide a cushion while the city waits for final figures. Councilors repeatedly urged clearer long-range planning to avoid repeated "band-aid" spending and asked staff to return with options for Monday's council meeting.
