by Mark Craddock
WALSENBURG — The Walsenburg City Council held a special meeting last Thursday to approve a trio of resolutions which, in total, adopted and enacted the city’s 2024 budget.
First up was Resolution 2023 R9, adopting the Capital Purchase and Improvement Plan for the coming year.
The plan budgets more than $5.9 million in spending against about $2.55 million in resources, primarily grants and transfers from various funds, for a “fund burden” of $3,430,100.
Among the highest-ticket capital items are water/sewer pipe replacement and water meter replacement at $1 million each, as well as more than $1.2 million for improvements to the wastewater treatment plant. The plan also sets aside $730,000 toward a multi-million dollar project to replace a natural gas line, and budgets $250,000 for rehabilitation of the swimming pool.
“The capital improvement plan you have attached doesn’t mean that we have to spend all that?” Mayor Gary Vezzani asked.
“Absolutely not,” city accountant James Moore said. “In fact, we haven’t done it for years. But I wanted to make sure.”
The resolution passed 6-1, with council member Veronica Maes voting no.
Next was Resolution 2-23 R10, adopting the city’s 2024 budget and “summarizing expenditures and revenues for each fund.”
In his statement of budget philosophy in the budget’s introduction, Moore wrote:
“The role of government has never been easy. Budgets are restricted, resources are limited, and infrastructure is aging. Citizens are embracing technology at break-neck speed leading them to expect more transparency, greater effectiveness and efficiency, and more communication with their elected officials and professional administrators than ever before. The public expects government agencies and departments to mirror the convenience and customer-focused experience of their private sector counterparts. That means providing a wider range of services and more ways to conduct their business with the city.”
The city’s budget is comprised of 11 “funds,” essentially separate budgets within the overall budget framework.
In a nutshell, Walsenburg’s 2024 budget is using money held over from previous years to make ends meet in several funds which are projected to run deficits for the coming year.
Here is a breakdown of the 2024 proposed budget for each fund, as presented to the council Thursday:
General fund
In the city’s general fund, the 2024 proposed budget projects $2,751,700 in total revenue, with expenditures of $2,841,525, for a net loss of $89,825, to be made up in funds carried over from the previous year. The fund reflects a beginning-year balance of $1,942,259 and an end-of-year balance of $1,852,434.
Gas enterprise fund
The 2024 proposed budget calls for $2,367,080 in revenues in the city’s gas fund, compared to 2022 revenues of $1,227,099 and projected 2023 revenues of $1,969,100.
The budget calls for expenditures of $2,980,300, with a net loss of $613,220. The beginning fund balance is projected to be $3,550,779, with a year-end balance of $2,937,559.
Capital expenditures related to a new gas line are reflected in the capital expenditures plan.
Water enterprise fund
The city’s water fund has been, well, underwater for several years and is expected to be so again in 2024. In 2022, the city ran a deficit of $374,704 in that fund.
The projected total revenue in the 2024 water fund is $2,339,440, with expenditures running $5,313,700 for a net loss of $2,974,260.
Sewer enterprise fund
Recent sewer fund budgets have also been a perennial exercise in deficit spending and 2024 seems to be no exception.
The 2024 proposed budget lists sewer-fund revenues of $2,504940 against proposed expenditures of $3,978,600 for a net loss of $1,473,660. In 2022, the sewer fund lost $385,412 and it is projected to lose $371,695 at the end of this year.
The combined water and sewer fund beginning-year balance is budgeted to be $14,180,594, with a year-end balance of $12,707,934.
Others
• Firemen pension fund — Revenues, $1,000; expenditures $1,200; net $200 loss.
• Conservation trust fund — Revenues: $24,000; expenditures:$15,0000; net: $9,000.
• Capital improvement fund — Revenues: $699,000; expenditures: $420,000; net: $279,000
• Wild Waters fund — Revenue (as if operating) $315,000; expenditures: $402,600; net loss: $87,600.
• Street fund: revenue: $720,000; expenditures: $1,660,000; net loss: $940,000.
• Urban Renewal Authority — Revenue: $30,000; expenditures: $30,000; net: $0.
• GID Northlands fund: revenue: $163,100; expenditures: $163,100; net: $0.
The budget passed by a 6-1 vote, with Maes voting against.
The council then passed Resolution 2023 R11, which makes appropriations to the various funds in the budget. It also passed 6-1, with Maes voting no.
Maes has been a long-time vocal critic of the city’s budget process — she also voted “no” on the 2023 budget — among other things urging staff to begin the process earlier so the council play a more-informed role in weighing budget priorities. And she has said she is a strong opponent of repeatedly passing deficit budgets that only balance by dipping into reserve funds.
In the throes of the budget-preparation process, it is common for local governments to fine-tune their numbers right up to the bitter end, then convene a special meeting to approve the budget by the state-mandated deadline, as Walsenburg did Thursday night.
According to the Colorado Department of Local Affairs, Dec. 15 is the deadline for local governments to certify their mill levy (property tax) to county commissioners. Local governments levying property taxes must adopt their budgets before certifying the levy to the county, or face penalties, effectively making Dec. 15 the deadline to approve the budget.
Walsenburg beat the deadline by a day.
