Sales taxes funding street repairs, other projects expiring: When they could be on the ballot

Fort Collins City Council and city staff are working on a plan to ask voters to extend two current sales taxes that are set to expire at the end of next year.

These two quarter-cent sales taxes, separately, fund road maintenance and community capital projects, which in the past have included amenities like the Poudre River Whitewater Park or the future southeast community center and pool.

Both taxes cost consumers shopping in Fort Collins 25 cents for every $100 purchase. Most grocery items are exempted.

And both taxes have been in place, under different names, for decades. Voters approved them both with more than 80% support when they last renewed them in 2015.

Here's what to know about each of the taxes and what city staff is proposing and council is considering:

One tax funds capital projects

The Community Capital Improvement Program tax funds a list of specific projects stated in the ballot language.

The tax renewed in 2015 funded the whitewater park, the yet-to-be-constructed southeast community center and pool, the Gardens on Spring Creek Visitor's Center, Linden Street renovations, bike infrastructure, an affordable housing fund and more.

Over its life so far, it's collected about $80 million ever 10 years and has also funded improvements to intersections, parks and roads.

Instead of asking voters to renew the tax this November, city staff said it might be better to wait until November 2025 to give more time for community input and decision-making about which projects to include in the ballot language. Council members supported that idea.

"We have some things in motion now that in six months could look different," said Ginny Sawyer, lead policy and project manager for the city, noting that by waiting, city staff and council wouldn't have to rush to get something ready for the ballot.

But there's already an initial list of projects identified by city staff that could be considered for the ballot language. Some of those are:

  • Mountain biking facility, site TBD

  • Mulberry Pool replacement

  • Pickleball expansion

  • Composting facility

  • Children's Garden renovation

  • Civic Center

  • Car barn (trolley)

  • Park improvements (The Farm at Lee Martinez Park)

  • Downtown parks shop

  • Transfort maintenance site

  • Lincoln Center (catering kitchen)

  • Trail strategic plan components

  • River masterplan

  • Laporte Avenue redesign

  • Arterial improvements

  • Bike infrastructure

  • Sidewalk/ADA improvements

  • Bus stop improvements and bus replacement

With a new half-cent sales tax going into effect this year to fund transit, climate initiatives, and parks and recreation infrastructure, council members had questions about how the city will determine which projects get funded by which tax.

For example, transportation or parks items could be funded by either tax.

Sawyer said staff is starting to have some conversations about that, and council could consider what to do with overlapping items at a future work session.

Mayor pro-tem Emily Francis said she thinks it will be important for the city to make it clear to voters who might be saying, "We just passed this. Why are we doing this again?" why the city is seeking to fund certain projects under the renewal when they could be funded by the new sales tax.

As another example, council member Kelly Ohlson said it seemed like a children's garden renovation at the Gardens on Spring Creek could fall under the parks infrastructure tax.

Sawyer said the initial list was formed by asking city staff: "What do you have that's on those burners that could be good at this point? The refinement now really starts," she said.

One tax funds street maintenance

The Street Maintenance Program funds streets maintenance. This includes work on curbs, gutters, sidewalks and ramps.

The tax has previously been renewed in 10-year increments, but this fall, the city might ask for a 20-year life instead.

City staff suggested putting it on the November ballot this year, and council members supported it. Sawyer said the city relies on the tax and doesn't want a gap in the funding.

If voters were to reject it in November, the city would have another year to form a different ballot referral or make another plan.

What sales taxes does Fort Collins have?

There is a base sales tax of 2.25%, which applies to food for home consumption.

There are five other sales taxes with various terms:

  • Open space tax, through 2030: 0.25% for acquiring and maintaining open space.

  • Keep Fort Collins Great, part of tax does not expire and part expires in 2030: 0.85%. The expiring 0.25% funds municipal operations and maintenance and any other public purpose. The non-expiring 0.60% funds public safety service levels, municipal operations and maintenance.

  • Community Capital Infrastructure Program, through 2025: 0.25%

  • Street Maintenance Program, through 2025: 0.25%

  • "2050" tax for transit, climate and parks/recreation infrastructure, through 2050: 0.5%

Total: 4.35%

Then there are county and state taxes, as well:

  • Larimer County tax: 0.8%

  • State of Colorado: 2.9%

Grand total: 8.05%

This article originally appeared on Fort Collins Coloradoan: Fort Collins sales taxes expiring, expected to be on future ballots