Council approved the first reading of an amended budget for 2025 during this week’s meeting. “Per the City’s normal practice, City Council appropriates a midyear amended budget,” said Rebecca Davis, Manitou Springs finance director. “On May 3, in an all-day executive session, City Council really examined the impacts of Colorado Springs allowing retail marijuana and there was a lot of good discussion about that. Staff took that May 3 meeting and took that direction from it and the department heads re-examined their budgets. They were looking for reductions due to our new reality because they are responsible for their budgets, so they went through it with a fine tooth comb and they found budget reductions that added up to about $659,000.”
Concerns about falling recreational marijuana revenue have been a continuous topic at council meetings in recent months. Earlier this month, Council approved a reduction in the sales tax on recreational marijuna in order to allow Manitou Springs’ two recreational outlets to remain competitive with Colorado Springs dispensaries. According to the City’s memorandum regarding the budget, general sales tax revenue was decreased by $3,223,000 due to a decrease in the special retail marijuana sales tax from 10% to 5%.
Specific reductions to the budget included cutting a summer part-time position and decreased professional services/nuisance abatement in the Neighborhood Services Department, decreasing regular salaries and leaving positions vacant across departments, including Manitou Springs Police Department, and other measures to reduce expenditures.
“This current amended budget is down by close to a million, a little under that, which leaves an unassigned fund balance at the end of 2025 at an estimated $6,826,000 which is a good healthy fund balance. Of course we do have to practice fiscal responsibility in making sure that it’s used in a good manner and not used for things that aren’t totally necessary,” Davis said.
Manitou Springs is currently facing a lawsuit from the Cog Railway over the City’s failure to appropriate $685,000 in owed excess excise tax reimbursement from a 2018 Tax Incentive Program agreement.
Easement granted
Council approved an easement to provide legal access and use to that portion of the residential improvements at 122 Palisade Circle that are encroaching on City-owned property. The property owners have cited financial hardship and the need to sell the property.
“Last October, recognizing the realities of our advancing age, we made the difficult decision to downsize and sell our home in Crystal Hills,” wrote Jack and Carol Donn in a letter to Council. “The property was listed and placed under contract within a day, with every expectation of a smooth closing within weeks. However, the sale was abruptly terminated due to a newly raised lot-line issue – an issue that had never impacted any of the previous three sales over the past 60 years.”
Council approved the easement, but will consider adopting a uniform policy for these kinds of issues in the future. “One of the things that we do need to look at is an overall policy for this,” said City Administrator Denise Howell. “That will come in time – we’re hoping July, August. I know that they are trying to sell the property, so we wanted to bring this to you now, but then we’ll put together a policy that really states how we do this in the future and how we move forward.”
Stormwater ordinances
Council approved the second reading of four new ordinances impacting the city’s stormwater system. “We’re proposing amendments to the four titles – 6, 13, 14, and 18 of the municipal code – to better address illegal discharges into the city’s storm storm water system and waters of the state,” explained Manitou Springs Planning Director Fred Rollenhagen during the June 6 Council meeting.
Mayor John Graham and Councilors Julie Wolfe and Judith Chandler were excused from this week’s meeting.
