Bayfield town trustees debated at their June 21 meeting whether the town's third attempt to get voter approval for a sales tax increase will be helped or hurt by being on the same ballot this November with La Plata County, which is expected to have its own tax increase on the ballot.
The alternative was for the town to do a separate mail ballot. Town Manager Chris La May said a polling place election isn't allowed.
Trustee Ed Morlan worried that town voters would see two tax increase requests if the town is on the same ballot with the county. "On a town ballot, it will be the only question. ... The decision is what's the best chance to win the election."
Trustee Matt Salka agreed. So did an audience member. "One (tax increase) question has a better chance," she said.
Another audience member, who lives outside town limits, disagreed. "I know I'm paying money in two places," Betsy Romere said. "I can't vote in this election, but I'm willing to pay the sales tax. I use your roads."
Trustee Rachel Davenport commented, "If we do a separate ballot, residents will have to remember to do two ballots and get them both back." She speculated that, "It could cause more potential for meanness."
Trustees rejected the separate ballot option on a 4-2 vote, then voted 4-2 to participate in the county unified election. Morlan and Salka were on the losing side both times. July 24 was the deadline to notify the county clerk of town intent to be on the county ballot.
Actual ballot wording must be submitted in early September. Bayfield officials want to raise the town sales tax from 2 percent up to 3 percent, with the additional revenue ($240,000 to $280,000) to be earmarked for street maintenance and related projects, and for storm drainage infrastructure. Town voters rejected the same request twice in 2014 - by nine votes in April 2014, and 60 votes in November.
This time a volunteer citizens committee called Support Our Streets is helping promote the sales tax increase.
Also on July 21, La May gave an updated version of his presentation about projected street maintenance costs over the next 10 or 15 years. He will do public presentations on Aug. 14 at noon and Aug. 18 at 6 p.m., both at town hall.
For the past several yearss, street projects have been paid for out of $6.8 million that Colorado Department of Transportation paid the town in 2011 to take over Bayfield Parkway from end to end. Replacement of the two green bridges on the parkway is projected to cost $5 million plus, using up most of what's left of the $6.8 million this year or next.
After that, La May showed a growing gap between street maintenance costs and available revenue. "We propose to transfer $200,000 annually from the Capital Improvement Fund" to the Transportation Fund, La May said. "It helps a little to reduce the funding gap."
One option is deferred maintenance, which means much higher costs later. A current $1 million funding gap would be $6 to $10 million by 2026, he said. Then the town would need a bond issue.
A property tax increase would fill some of the gap, but like a sales tax increase, it would need voter approval. Doubling the town's current 5.950 mill levy would bring in around $200,000 a year.
La May also listed various fee increases that might bring in around $70,000 and would not need voter approval. A storm water enterprise fee also is being considered. It would be added to monthly town utility bills and would be based on the amount of impervious surface on a property. La May estimates it would bring in around $115,000 a year. "We think this has some merit," he said. "There's still a gap."
The sales tax increase is still considered the best option since it would bring in the most money and would not fall just on town residents and businesses, La May said. It would eliminate most of the funding gap.
"We're trying to get ahead of the stream, create a financially sustainable model and not have to come up with large sums of money down the road," he said. The ballot language will be the same as last year, with possible addition of a sunset clause. It lists $285,000 as the maximum amount of revenue that would be raised. The money would be dedicated to a new Street Fund.
Ballots to town residents also will include a request to opt out of a 2005 state law, SB 152, that limits the ability of local governments to provide community broadband services above 256K. Ignacio, Durango, and the county also will have opt-out questions on the ballot.
