NEWS

Pueblo West's planned aquatics center may get boost from extra tax revenue

Tracy Harmon
The Pueblo Chieftain

The Pueblo West Metro Board was confronted with an unfamiliar challenge Monday: how to handle excess revenues the district collected in property and sales taxes last year.

The board is expected to approve the transfer of $873,164 in excess 2021 property tax from the general fund into the district's capital projects fund to help pay for the construction of a new aquatics center. That transfer requires a budget amendment, according to finance director Karen Cordova, who plans to bring the amendment for board approval at its Aug. 22 meeting.  

The excess revenues, as defined by Colorado's Taxpayer Bill of Rights, are required by state law to be returned to residents. However, Pueblo West voters approved a 2016 ballot issue agreeing to allow the district to keep excess property tax revenue from 2017 to the end of 2026 for construction of a new pool. 

The aquatics center fund also is bolstered by 30% of marijuana excise tax funds collected since 2019 and conservation trust fund dollars. The district hopes to build a 17,514-square-foot aquatics center on district property at 756 and 770 E. Spaulding Ave., west of Purcell Boulevard.  

The cost of the aquatics center was estimated in January to be between $8 million and $10 million. 

Pueblo West resident Melvin Manrose said he has concerns about how much water the pool will require. He said the district's residents already are facing water use restrictions and he would like to know how much of the district's limited water supply will go to keep the pool running.

More pool news:Pueblo West Metro Board dives into pool plans

Pueblo West sales tax revenue exceeds expectations

On the sales tax front, the board is expected to vote at its next meeting to approve a ballot initiative that will ask voters to allow the district to keep all the revenue generated by a 1% sales tax approved by voters in November 2020. 

The fire and safety sales tax was expected to generate between $1.7 million and $1.8 million in 2021, according to Brian Caserta, district manager and fire chief. The original ballot language was required to include a cap for the first year of collections. 

The district asked to retain $2.5 million annually, which at the time was thought to be a safe buffer zone. 

“They did not anticipate it being over $2.5 million. I can tell you it was $3,773,826, or an excess of $1.2 million, so we need to ask voters if we can retain that,” Caserta said. 

The funds are earmarked for construction of a new Pueblo West Fire Station 2, 12 new firefighters to staff it and associated fire equipment. The ballot question that would come before voters in November would ask if the district can retain the excess $1.2 million for the same use, along with whatever sales tax the initiative generates until it sunsets on Dec. 31, 2030. 

“We’ve had a huge ripple effect of costs going up,” for construction of the new fire station, Caserta said. 

“The use of funds does not change,” said Doug Proal, board vice president, and would continue to go to fire department capital projects, equipment and staffing. 

Board President Kim Swearingen said by the same token, if sales tax revenue drops, the district will have to make up the difference from the general fund as it continues to meet the fire department’s needs. 

Board to ask Pueblo County for rescue plan funding

In other business, the board discussed a suggested list of projects it would like to see funded through the American Rescue Plan Act dollars being distributed through Pueblo County. The board expects to ask Pueblo County for about $20 million. 

The list includes $5.4 million for sewer main construction on Spaulding Avenue, $6 million for two other sewer main construction projects, $6 million for water storage expansion and $2.6 million for COVID staffing costs. 

More fire station news:Local firm wins Pueblo West fire station bid after preferred contractor a no-show

Chieftain reporter Tracy Harmon covers business news. She can be reached by email at tharmon@chieftain.com or via Twitter at twitter.com/tracywumps.