This November, voters in Larimer County will be asked to consider a new sales tax – excluding grocery items – equal to 0.15%, which equates to 15 cents for every $100 purchase[1]. Generating an expected $22M annually, the new revenue will be dedicated to improving the county-wide transportation network. That network includes roads, bridges, pedestrian, cycling and transit infrastructure. With a sunset of 15 years, the tax would fund approximately $330M in project costs (current dollars), while serving as a local match to leverage other state and federal funding opportunities. According to the most recent study in 2017, the County has identified a total unfunded need of $645M over the 15-year horizon.
Following in-depth dialogue with County staff and careful internal consideration, the Board of Directors for both the Fort Collins and Loveland Chambers of Commerce have not only elected to endorse this tax measure, but also advocate on behalf of its passage. Here’s why.
Network Demands – Northern Colorado has long been an integrated economy, with residents across Larimer County routinely traveling outside their home community for employment, shopping, entertainment, education and recreational opportunities. Recent studies suggest 70% of residents and workers fit this description. However, the shear number of commuters has grown significantly (+60k between 2010 and 2020) with expectation of adding another 94k residents by 2040, according to the Colorado State Demographer. If correct, this means Larimer County will host a population of 454k, or nearly double the 2000 census figure.
Expanded Mobility Options – We can no longer rely upon traditional county road and bridge layouts. Passenger vehicles, delivery trucks and the occasional farm implement now share the road with an increasing number of semi-trailers, cyclists, pedestrians and whatever future transit might look like. As such, roadway design and infrastructure requirements must evolve beyond 10-foot travel lanes and minimal shoulder to assure safe and efficient conveyance for our workforce, customers and vendors..
Resiliency – Due to several factors, our transportation system is exposed to escalating threats from environmental conditions. Fire, floods and extreme weather events are becoming more prevalent with greater impact to our economy as the scale of commerce rises. To ensure the network is prepared to function properly, the cost to anticipate such challenges will increase over time.
Financial Constraints – Property taxes aren’t enough. Without diving into the weeds of how property taxes are allocated among various levels of government, mandated services, and the appearance of a tax revenue windfall this year, transportation is one of few discretionary budget categories. This leaves our road network exposed to fiscal demands within other departments. Not only does transportation compete with other County services, but property tax revenue earmarked for such purpose must be shared with other local governments. To wit, the Larimer County Treasurers Office projects that a commercial property assessed at $1M currently contributes approximately $68 annually to fund county roadways. Whereas a residential property valued at $600k contributes $9.
Your Chamber believes a well-designed, well-maintained regional transportation network is a vital component of a vibrant economy. Just as every business must consider how best to deploy limited resources to achieve optimal long-term results, residents of Larimer County will be encouraged to invest in the vitality of our region.
[1] The Larimer County sales tax is currently 0.80% – 80 cents per $100 – dedicated by voters to fund open lands, fairgrounds & event center, behavioral health and jail expansion.