Pueblo West funnels excess revenues to pool project, plans Nov. 8 ballot question

Excess property tax revenue collected in the Pueblo West Metro District in 2021 will be used to help pay for the construction of a new aquatics center after the Pueblo West Metro Board approved the transfer of funds on Monday.

The excess $873,164 in revenues, as outlined by the Taxpayer's Bill of Rights, would have been required to be returned to residents. However, Pueblo West voters approved a 2016 ballot issue agreeing to allow the district to keep excess revenues from 2017 to the end of 2026 for the construction of a new pool.

During a public hearing on the issue Monday, residents voiced concerns about the aquatics center project. Many suggested that spending the money on road and infrastructure improvements would help the district with growing pains.

The current pool at 362 E. Hahns Peak Ave is more than 40 years old and was built when the Pueblo West population was 1,500 people. Today the pool has to turn away kids on a daily basis because it's at capacity and Pueblo West’s population is about 33,000 residents.

Eric Harriman said he has concerns about further taxpayer burden once Taxpayer's Bill of Rights' excess revenues cease to be collected at the end of the 10-year timeout. He said construction materials and costs have gone up.

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

Harriman questioned whether, if the district only collects $8 million by the end of the 10 years and $10 million is needed to complete the project, the aquatics center construction would have to be subsidized by taxpayers.

Doug Proal, board vice president, said if there are insufficient funds available at the end of the 10 years, a ballot initiative could go before the voters to determine if they want to repurpose the funds for another use or continue with the project, but he noted the board would not be able to make that decision.

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

Residents voice concern about streets and water supply issues

“The infrastructure really needs work, the roads are falling apart and it is a mess. It is a shame,” said Gene Bidon, Pueblo West resident.

“This board has no jurisdiction over repurposing this money,” Proal said.

“In 2016 the voters voted for it whether we like it or not,” said Nick Madero, board treasurer.

“The voters said, ‘We want an aquatic center.’ But the voters turned us down twice for roads,” when 1% sales tax initiatives were on the ballot for road improvements, said Kim Swearingen, board president.

Swearingen said the project has not started because the district will be paying cash and the project will not be financed.

Harriman and another Pueblo West resident, Melvin Manrose, mentioned ongoing drought concerns and urged the board to be extra cautious in light of the district’s currently limited water supply.

“We are in a water shortage and now we are talking about putting in an aquatic center,” Manrose said.

Manrose also asked how much water the pool will use.

Pueblo West Utilities Director Jim Blasing said he estimates the pool will require 300,000 gallons to fill and then will use smaller amounts of water to “refill as needed.”

However, Pueblo West Board Secretary Joe Mahaney said an online search indicated an Olympic-size swimming pool would require 666,000 gallons to fill or about 2 acre-feet of water. An acre-foot is equal to 325,851 gallons of water.

The 2 acre-feet estimate is "enough water to supply four to six homes for a year,” Mahaney said.

Swearingen said filling the pool, “is not very much of a concern” when the Pueblo West water treatment plant produces 12 to 14 million gallons of water per day in the summer. She also indicated the pool design committee is likely looking at a way to recirculate water to keep use down.

The aquatics center fund is also bolstered by 30% of marijuana excise tax funds collected since 2019, as well as conservation trust fund dollars. Swearingen said the aquatics center committee also is looking for grant funding and sponsors to help cover the cost.

Harriman and others also questioned the need for the pool in Pueblo West, pointing out that the city of Pueblo is planning a $40 million aquatics center as part of the Historic Arkansas Riverwalk of Pueblo’s expansion and that the city of Pueblo and the YMCA also have pools.

Pueblo West resident John Wodniak said although he is retired and has no children at home, he sees the benefit of having a pool. But he voiced concerns about the future of the world economy.

“Are we on the edge of the Royal Gorge and standing on a banana? When I look at reality, I am wondering if this is not the right thing to do at this point in time,” Wodniak said.

The district hopes to build the 17,514-square-foot aquatics center on district property at 756 and 770 E. Spaulding Ave., west of Purcell Boulevard. Mahaney said the soil conditions are marginal at the site and any other place in the district, so the cost of the pool likely will include digging out the dirt and replacing it with compacted select fill dirt.

Pueblo School District 70 Board Member Cathy Howland, speaking as a private citizen, said Pueblo West High School is “growing by leaps and bounds and we are eventually going to have to build a new high school to the north” of U.S. 50. She suggested the board find a site on the north side so the school district could perhaps assist in the cost.

Ballot question will ask voters to approve excess sales tax revenue

In other business, the board approved a Nov. 8 ballot question that will ask voters to allow the district to keep all the revenue generated by a 1% sales tax approved by voters in November 2019. The fire and safety sales tax was expected to generate between $1.7 and $1.8 million to help build, staff and equip a new fire station, 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 was thought to be a safe number at the time. However, the tax brought in $3,773,826 or an excess of $1.2 million.

The new ballot question does not increase or extend the tax beyond its 10-year sunset but asks voters to waive the $2.5 million cap, as district staff are now estimating the tax could bring in a little less than $5 million by 2023. Caserta said groundbreaking on the new fire station should come this fall.

The board also approved an HPD Enterprise bid of $155,971 to construct a water main between Tequila Drive and Siesta Drive, which came in about $100,000 under budget.

The board also approved an agreement with Gem Homes LLC, which requires the home builder to pay $30,000 or $5,000 per lot at the time each lot in the 400 block of LaPorte Drive is built to cover the reconstruction of the road.

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

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

This article originally appeared on The Pueblo Chieftain: Pueblo West Metro Board funnels excess tax revenues to pool project