08/18/2006: "Town & County Agree On Capron Funds Split"

Both the Town & County Councils have signed an "Interlocal Agreement" that provides for a return to the previous percentage split system used to split the Capron funds between the Town and the County. Under the agreement, the Town will once again receive a fixed percentage of 10% to the Town, and 90% retained by the County.

As most citizens in San Juan County know, the so-called Capron funds are fuel tax generated funds that are collected by the State, and then returned to San Juan County to be used to offset the expense of county roads. The County and the Town receive these funds, because the money that the State Collects is ostensibly to be used for state highways, and since we have none in San Juan County, the money is returned to the County, "and any incorporated city or town within the county based on the percentage of assessed valuation.."

A problem arose in the distribution system due to the four year valuation cycle, which at the end of the cycle sometimes resulted in the Town receiving too much money. The new system will allow a "greater predictability in the budgeting process" since it will not be "subject to the distribution anomalies established in the four year valuation cycle".

There is a clause in the agreement that the "Capron Funds shall be strictly used and accounted for in the development and maintenance of public roads."