BY DAVID GRANT LONG

The town of Rico is exploring the process of seceding from sparsely populated Dolores County to become part of affluent San Miguel County, a move that would significantly reduce property taxes which have more than doubled over the past six years.

"The whole idea raises so many different issues about services and costs and benefits that we’re still researching all those," Eric Heil, the Rico town manager and attorney, said Monday. "It does seem like there’s a majority of the people interested in moving forward, but we want to have answers to a lot of those questions before we actually start circulating a petition."

If secession garners enough local support, a petition would place the proposal on the November ballot, Heil explained, and would then need to be approved by voters in both counties.

According to Rico Mayor Joseph Croke, the move would save residents more than $136,000 annually in county and school district taxes and provide a possible means of paying for repairs and improvements to the town’s infrastructure and even a town marshal. Currently the town’s staff consists of Heil, whose part-time position is supported by a federal grant, a full-time clerk and a maintenance person.

In a letter to the Dolores County Commission earlier this month, Croke pointed out that the assessed valuation of property in Rico has jumped from about $2 million in 1994 to more than $5.6 million last year, with only a minuscule reduction in the mill levy.

At the same time, he said, Rico is facing serious problems with its water system that caused a recent hike in water rates and tap fees, and needs to expand its antiquated sewer system, which would cost as much as $1.7 million to serve the rest of the town. Funding Heil’s position as well as that of a much-needed town marshal will cost at least another $65,000 annually, he said

"You may say that Rico should pay for the services our community needs, but in an atmosphere where our [property] taxes have more than doubled and may rise another 20 percent if the Dove Creek high school bond issue passes, I’m confident you can understand the difficulty in asking Rico taxpayers to pay even more," Croke wrote.

"This all places Rico in the unusual position of considering the benefits of secession from Dolores County and joining San Miguel County" to reduce the county tax burden and possibly permit additional local taxes to fund such projects.

But even getting the proposal on the ballot is an expensive proposition, Heil said, because it would require posting a bond with the state for a survey of the affected properties if it is approved, and this could cost anywhere from $10,000 to $50,000.

"If we were to do this, all the private property in the valley (within two miles of Rico) should probably go together, but it’s a hodge-podge of mining claims and parcels," he said. "So to come up with a cost-efficient survey that encompasses all that [property] is one of the tricky things we’re trying to figure out."

The reduction in county property taxes that would result from such a realignment, coupled with a modest local property tax increase, would be a tremendous help in addressing some pressing problems with the town’s decrepit infrastructure, he said.

Annexation to San Miguel County would also shorten police response time in the event of a serious crime, Heil said.

With a population of 175, Rico is located on Highway 145 about 35 miles south of Telluride, the San Miguel county seat. Dove Creek, where Dolores County Sheriff’s officers are dispatched, is more than twice that distance away.

"None of this is really over complaints about bad service," he said. "I’ve always enjoyed working with Jerry Martin —I think he’s a real great sheriff and it’s too bad that they’re 80 miles away. I’ve always enjoyed working with the (Dolores County) administration."

Despite his good relationship with Dolores County, Heil said many Rico residents work in the Telluride area.

"Certainly we have more of a community of interest with San Miguel County with the number of people we have working over there and have moved here because of housing prices," he said. "We have a much greater connection and (Telluride) is the closest town to us."

Obviously, Heil said, persuading the residents in other parts of Dolores County to give up about 20 percent of their tax base is a formidable task.

"I imagine that’s one of the considerations that will be given," he said. "But the right to self-determination, I feel, is a pretty American-type of principle that goes all the way back to when we started this county.

"All this community is looking for is that we’ve got a lot of financial needs and we’d like to spend some of our tax dollars locally on them —it’s not asking for something from somebody else, it’s asking to spend our own money on ourselves."

Another town meeting is set for March 30 to answer many of the questions raised by secession.