Dolores Town Hall, 601 Central Avenue. Town officials are preparing for another tight fiscal year 2027 amid rising costs. (Anna Watson/The Journal)
Town’s inflation-related costs rise above projections to about 14%
The town of Dolores anticipates another tight budget year as it approaches planning months and introduces final numbers, which typically takes place through October.
During the town board’s Aug. 10 meeting, Kelley Unrein, town clerk and treasurer, detailed a monthly financial snapshot.
The fiscal picture shows the town is on track to meet needed annual income through its sales tax. Year-to-date sales tax revenues are at $551,957 through July, according to town board documents, which is about 64% of the $863,000 expected budget with five months remaining for collection.
However, Unrein told the board, part of the issue is greater costs for the same number or types of goods and services.
Unrein highlighted – on top of some unplanned expenditures – figures for the year projected a roughly 3-5% inflation increase and that doesn’t appear close to the actual hike.
“We didn’t buy more stuff, but all the stuff we bought was more expensive, and the increase on that was more expensive than we anticipated,” Unrein said during the meeting.
Town manager Leigh Reeves said in a later interview the inflation increase is turning out to be about 13-14%. Reeves said this has been particularly challenging for costs like gas, where it could mean $200 to fill up large equipment.
Additionally, the town paid an unexpected balloon payment in the range of $96,000 for a motor grader. Reeves said this posed a larger financial hit for a smaller municipality like Dolores, with just a single piece of heavy equipment representing nearly 10% of the entire budget.
The fiscal year 2027 budget may require “more aggressive” planning for expenses, Unrein told the board, not unlike the “extremely tight” FY2026 where balancing the budget came within a couple thousand dollars.
“We are probably going to have to start thinking about services we are not going to be able to offer in some way that we have offered in the past,” she said.
The board’s upcoming workshop on Monday will have a budget segment and also focus on the 2027 sheriff’s contact. Last year’s public safety agreement between the town, Montezuma County and the sheriff’s office was one where the town paid $143,000 for one dedicated, full-time deputy patrolling 40 hours a week. Town officials say they will soon begin working on negotiations for 2027 services.
Town officials asked each of the departments to finalize budget requests by Oct. 1.
During public meetings this fall, the budget work lays out balancing various governmental funds awhile the board makes decisions on any available discretionary spending.
awatson@the-journal.com