The Town of Silverton has taken preliminary steps to put a proposal on the Nov. 4 ballot to raise the town’s sales tax.
Town officials said the town faces mounting expenses while property tax revenues are projected to be relatively flat until at least 2010.
“We’ve got to give the town a cost-of-living raise,” said Trustee John Schertz.
Town Administrator Elyse Salazar explained that legislation passed earlier this year allows statutory towns to raise sales tax above 6.9 percent — with voter approval.
Previously, the town would have had to adopt a charter and become a Home Rule town to exceed a 6.9 percent sales tax.
“It doesn’t take a big increase to generate a lot of money,” Salazar said.
She said the town is preparing a capital-projects plan that is likely to include some long-term expenses the town must plan for.
And she cautioned that moving forward with a ballot proposal to raise the sales tax could cost thousands of dollars, with the outcome in doubt.
“The voters will want to know exactly where that money will go,” Salazar said.
Shoppers in Silverton pay a 6.9 percent sales tax. Four percent goes to the Town of Silverton and 2.9 percent goes to the state.
Mayor Terry Kerwin suggested waiting for the capital improvements plan before going to voters and asking for a sales tax increase.
“Then if we go to the voters, we can be specific about what it would go to. The chances of passing it are much better if we have a plan,” Kerwin said.
Salazar said the town could probably “get through another year” before asking for a sales tax increase, but she warned of “a lot of pressure” on the town’s budget for maintenance, staffing, fuel and services.
Trustee David Zanoni said the town simply has to keep up the costs, pointing to the rising expenses of operating snow plows.
“If (Public Works Supervisor) Gilbert (Archuleta) can’t keep up the level of service the people in this town expect, his phone is going to be ringing off the hook.”
“Can we afford to sit and wait another year?” asked Trustee Pat Swonger. “Costs are only going to go up. This is probably the fairest form of tax. People who come here pay a large part of it.”
Trustee Brison Gooch said the town “could come up with some compelling earmarks” to win voter support, such as dedicating money to snowplowing or other projects.
Salazar said that if the Town Council is serious about putting a sales tax increase on the ballot in November, it’s time to get to work.
She said a committee will need to hammer out the details and “narrow it down to a proposal that makes sense.
“Yes I think there is enough time,” Salazar said, but it will take public hearings and public involvement.
“It’s only going to happen if there are people in the community stepping up,” Salazar said.
Zanoni asked if there was money in the town budget to pay for the election, which could add up to a few thousand dollars in legal fees and other expenses.
Trustee Jim Lindaman said there may not be money in the budget for that, but he doesn’t see the need to wait a year.
“I think we need to do it. We need to start the process and do it,” Lindaman said. “Is there money in the budget to do it? No.”
He said the town would have to pass a supplemental budget to pay for the election.
The Town Council voted unanimously to authorize Salazar to notify San Juan County Clerk Dorothy Zanoni that the town is planning to participate in the Nov. 4 election.
Salazar noted that the town still has until September to decide if it wants to go through with the vote on increasing the sales tax.


