The town of Dolores is finalizing its 2026 budget, with municipal expenditures projected at roughly $1.1 million.
Major issues before the town board include a proposed $4.3 million water-main replacement – described by the town manager as a once-in-a-generation infrastructure project – and whether the town will contract services with the Montezuma County Sheriff’s Office, and at what cost.
Town Manager Leigh Reeves said the coming year will be a tight one. It is about balancing day-to-day operations with the costs of general town maintenance, as well as the long-term water upgrades that could shape the town’s future resources.
Reeves said the total project cost is $4.3 million for Phase 2 of the water-main replacement and tied to it is the approval of a 6% water increase in 2026. On an average monthly bill, the increase would mean paying $2.66 more for the 5,000-gallon family rate.
Another cost consideration involves law enforcement coverage. Montezuma County’s latest contract proposal would cost $286,000, but Dolores plans to offer about $143,000 for one dedicated deputy. The town board will vote on the final number Nov. 10, after which the offer will go to the sheriff and county commissioners for approval.
Reeves said she believes the sheriff will likely sign the deal, since it represents additional funding for his department. The final decision rests with the commissioners.
If the county rejects the proposal, Reeves said Dolores would still receive basic law enforcement services, though likely at a reduced level.
Reeves said the contract is important for public safety, particularly with increased traffic and youth safety concerns for students walking from school to Dolores Public Library, the new Bike and Skate Park, and along Colorado Highway 145.
“The sheriff is key. We’re worried about our kids,” she said. “That’s why we want a sheriff to slow people down, so they know when they get to Dolores, they need to slow down.”
“It’s unfortunate that things are tightening up, but they are,” Reeves added. “Rural towns just have such a smaller base to work with, which is what creates a lot of the problem for us. I mean, we’re only a half a square mile. About 1.7 miles east to west and three miles north to south.”
Reeves said the water-main replacement, if approved, will ensure long-term reliability, reduce leaks and modernize a 75-year-old system.
Dolores, like the city of Cortez, is working to maintain services amid rising costs for infrastructure, materials and fuel – challenges reported across Colorado and the U.S. Cortez’s budget outlook was described by its financial director as “in a bit of decline,” with slower economic growth and rising costs for goods and services.
For 2026, Dolores officials project about $1.12 million in revenue and $1.1005 million in expenditures, leaving a surplus of roughly $16,495, according to Reeves. The next public hearing for budget discussion is Nov. 10, with a final approval hearing scheduled for Dec. 8. Residents can view preliminary figures during regular business hours at Dolores Town Hall, 601 Central Ave.
The general fund includes staff salaries and local fee-based revenues – liquor and business licenses, building permits and other service fees. It also covers park maintenance. Reeves said the fund is designed to cover administrative costs rather than generate profits. She said the town charges below standard International Building Code rates and waived inspection fees for school projects, since the town’s building inspector is state-appointed to oversee them.
Dolores recently switched to a new accounting system, aligning with other regional governments. Reeves said it makes it easier to track expenses across funds. The town undergoes an annual audit.
Overall, Reeves said the general fund is stable but lean, with limited flexibility to absorb rising costs.
“There’s about $16,000 left over in the general fund – so, it’s tight,” she said.
The street fund, supported in part by the half-cent sales tax measure approved by voters in April 2024, is projected to have about $15,000 left over.
Reeves said the 2026 street fund will cover routine maintenance, including patching, chip seal, gravel, weed control and magnesium chloride for dust suppression.
