The Ridgway Town Council asked Ouray County to consider a slightly higher distribution of funds from a proposed disaster recovery sales tax fund, while requesting more clarification on a possible construction materials use tax at a regular meeting Wednesday night.

Councilors were more open to the disaster recovery sales tax, but skeptical of the construction materials taxes to fund road and bridge projects in the county.

The county has proposed a 0.5% sales tax measure and a 3% use tax on construction and building materials for the November ballot, but must first seek approval from the city of Ouray and town of Ridgway on how the tax revenues would be shared among them. The county proposed dividing both taxes with 80% for the county and 10% each for the city and town.

The Ridgway Town Council countered the county’s offer on the sales tax with a suggestion of 70% for the county and 15% each for the city and town. The council also asked the county to clarify discrepancies between the resolution and ballot language for the use tax.

The sales tax is estimated to raise about $1 million a year and would phase down to 0.3% in 2031.

County Manager Antonio Mendez told the council the county hopes to build up an emergency fund to about $3 million. Part of those funds would be used for economic recovery and supporting businesses, but Mendez said the county doesn’t have a specific percentage that would be used for that purpose. The reason for keeping 80% of the tax revenue is because the majority of disaster recovery is handled by the county, he said.

Town Manager Preston Neill said he has concerns about the proposal coming together at the last minute with irregularities in the resolution language. The measure could also undermine Ridgway’s ability to run a successful ballot initiative of its own in the future, he said.

Neill said he doesn’t have enough data to inform whether the 80% split makes sense for the town.

Councilors said they have reservations because of flooding in 2024 that destroyed the town’s water diversion system, which was a big expense.

Mayor John Clark cited it as a recent example of a disaster that impacted the town much more than the county. While the town received state and federal assistance for the project, it paid about $1.3 million — roughly one third of the costs — out of pocket.

Clark said his biggest concern is the sales tax seems rushed and last minute, and noted the recent history of ballot measures failing without adequate preparation or promotion. He said the higher 15% split makes more sense because the disaster tax is not only about the Gold Mountain Fire and associated flooding, but could involve future disasters with a greater impact on the town.

Mendez said he believes this measure is different from previous efforts because residents don’t have to be convinced of its importance.

Councilor Josey Scoville said she likes the idea of a sales tax because it would be shared with tourists who use local resources.

Ouray County Emergency Manager Glenn Boyd made an appeal about the need for the disaster fund. Without immediate federal assistance, managing a major disaster like the Gold Mountain Fire could cost the county $1 million a day, he said.

Neill said he did not have enough notice to give an analysis of the construction materials use tax. He said he only learned about it the day before at the county commissioners’ meeting.

Mendez said the county believed the use tax would operate like the county’s lodging tax, which did not need city or town approval. It turns out the law that permits the lodging tax specifically states that exception, but the use tax works like the sales tax.

“That’s why you’re hearing about it so late,” Mendez said.

Neill said the way the resolution is written indicates the tax would apply to new construction in the town, but the ballot question only mentions the unincorporated county.

The question reads: “Shall Ouray County taxes be increased by 3.00% annually (first fiscal year dollar increase in 2027), by imposing a new 3.00% use tax on the use or consumption of building and construction materials purchased at retail for use or consumption within the unincorporated county.”

Mendez said he would ask county legal counsel for clarification.

Councilors said sharing a larger portion of revenue with the county makes more sense for the disaster sales tax.

“(The split) makes sense to me on the sales tax. It doesn’t make sense to me on the new construction,” Councilor Trish Greenwood said. “It should be where you’re building, that’s where the money goes.”

Council members said they worried that proposing both measures on the same ballot would increase the chances of both failing.

Mendez is scheduled to discuss the measures with Ouray City Council Monday night (tonight). The ballot certification deadline is Sept. 4.