Safe and well-maintained roads and bridges are an essential component of our local infrastructure. Unfortunately, more of La Plata County’s roads and bridges are falling into the fair or poor categories due to decreased funding while our population grows. This situation will get worse, not better, without additional funding for the County Road and Bridge Department. That is why we support Ballot Issue 1A and encourage you to do so too.
County roads are funded through a portion of sales taxes, property taxes, state energy impact grants and fuel taxes. Most of these sources have decreased in recent years. County property taxes have dropped 43 percent — from $29.9 million in 2010 to $16.9 million in 2015 — largely due to a decline in natural gas production. The energy impact grants the county receives will drop by as much as 50 percent in the coming years.
Ballot Issue 1A would increase property taxes by a 2.4 mill levy. A residential property with an assessed value of $400,000 would see a $76 annual increase, while a similar commercial property would see a $278 increase. Yet even with this proposed increase, La Plata County will still have one of the lowest property tax rates in Colorado.
Also, Colorado pays below the national average in state fuel taxes, which means that the state, and thus La Plata County, receives less from fuel taxes than states that lack our high-elevation road maintenance challenges. It makes sense that we would pay a little more — like other counties are doing — to give our aging road system the attention it deserves, especially as demand continues to increase.
We expect our county commissioners and staff to satisfy the increasing demands for local infrastructure. And they have done well in recent years, including by obtaining matching grants. However, there comes a point when you just can’t do more with less, and we are at that point with our roads and bridges.
It’s important to emphasize that this modest mill levy increase was recommended by two citizen committees that were commissioned to study county finances and propose solutions.
Finally, it’s important to make sure voters know:
The mill levy will sunset in 10 years and cannot be extended without another vote;The county has developed a 10-Year Capital Improvement Plan that details how the money will be spent;The county will form a citizen oversight committee to monitor the expenditure of these funds.Ballot Issue 1A was referred to the ballot on a unanimous, bi-partisan vote of the county commissioners because they realize the importance of maintaining and improving local roads and bridges, and that this modest mill levy increase is the best way to provide the essential services that all citizens expect. We urge you to help them address this important issue by voting “yes” on 1A!
More information is available at http://yesforroadsandbridges.com.
Jim Tencza, Bayfield, and Patrick Cummins, La Plata County, are co-chairs, of Yes for Roads and Bridges in La Plata County. Reach them at patrickcummins97@gmail.com.
We should vote “no” on the county’s request to increase property taxes by approximately $45 million over the next 10 years to be spent on road and bridge projects. While Ballot Issue 1A may be paved with good intentions, there are other, more appropriate vehicles to achieve this goal.
I admittedly lack the expertise to opine on the complicated budgetary issues implicated by this ballot issue, so I am basing my argument on the Aug. 26, 2015 report issued by the La Plata County Fiscal Sustainability Steering Committee, as well as basic common sense.
The committee recommended four mechanisms to fund the county’s 10-year road and bridge capital improvement plan:
A mill levy increase;A use tax;Impact fees; andReallocating funds within the county’s budget to road and bridge needs.The county chose the first option and proposed the same mill levy increase at the 2015 election. The voters said “no.” After being rejected by the voters, the county should have implemented the three other options instead of trying again.
A use tax recovers lost sales taxes on vehicles purchased outside of the county when those vehicles are registered in the county. It would also recover lost sales taxes on construction materials when the county issues a building permit. These taxes are fair because they are directly related to road usage.
Imposing impact fees for new construction is another equitable method of revenue collection since it is tied directly to road usage. As the committee stated: “Such fees provide the development community a degree of cost-certainty and appropriately shift a portion of the cost for needed infrastructure investments from all taxpayers to the direct beneficiaries of those improvements.” The county left about $2 million on the table by not imposing impact fees on the Three Springs development that is directly affecting county road usage.
The county should also reallocate funds within the budget to road and bridge needs. The proponents point out that the county’s mill levy is relatively low in comparison to other counties. However, that does not mean that the county is operating efficiently, only that the county has had the benefit of taxes from gas and oil operations. For example, the county has gone on a spending spree for capital improvements — renovating the courthouse, purchasing and renovating the old Vectra Bank building and buying a building in the Tech Center. All told, the county is spending about $22 million in capital improvements while complaining about budget shortfalls.
Finally, the committee based its recommendations on the assumption that over the next 10 years the Road and Bridge Department will receive the same allocation from the general fund as it currently receives. This assumption exposes the fact that although revenue from the increased taxes will go to road and bridges, the county could decrease its allocation to the department and keep that money in its general fund. Thus, the money raised by this proposed tax increase could effectively fund other budget items unrelated to roads and bridges.
William Zimsky is a Durango attorney who has lived in La Plata County since 1993. Reach him at billzimsky@gmail.com.
