Thursday, October 17, 2024

​​Glenwood Springs voters to consider penny sales tax for infrastructure this November

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As ballots begin mailing out this week, Glenwood Springs residents will have their say on Ballot Measure 2A, a proposal to increase the city’s sales and use tax to fund essential infrastructure projects. 

If approved, the measure would double the existing half-cent sales tax, originally approved in 2005, to a full cent. 

The tax would generate approximately $5 million in its first full fiscal year of 2025. The funds will be directed towards the repair, reconstruction, and maintenance of city streets, sidewalks, alleys, and the upgrading of underground utilities such as water and sewer systems. Notably, 25% of the revenue generated would be specifically allocated to utility infrastructure. The measure’s provisions would remain in effect until 2044, allowing the city to meet long-term infrastructure needs without imposing additional direct taxes on residents.



Supporters of Ballot Measure 2A, including Glenwood Springs Mayor Ingrid Wussow, say the tax increase is necessary to maintain and improve the city’s infrastructure, which has been increasingly strained by rising construction costs and aging systems. Wussow emphasized that this initiative was not council-driven but was born from community members who recognized the urgent need for long-term investments in the city’s streets and utilities.

“I think that it’s helpful to know that this isn’t a council-driven initiative,” Wussow said. “Community members recognized that Glenwood streets and our infrastructure are very costly to maintain, and all of our expenses are increasing. Unfortunately, our sales tax isn’t increasing enough to cover the cost of these costly expenses.”



The current half-cent sales tax, approved nearly 20 years ago, has been instrumental in funding various street repairs and infrastructure projects throughout the city. However, inflation and rising construction costs have outpaced revenue, leaving the city unable to keep up with its growing needs. Wussow stressed that continuing the tax at its existing rate would no longer be sufficient to cover both the street and underground utility repairs necessary.

“Increasing it to cover some of the water and sewer infrastructure is a necessary move,” Wussow said. “I think that community members recognized the need for this. They initiated it, and the Chamber [of Commerce] has been very active in supporting it.”

Michael McCallum, chair of Community on the Move, a coalition supporting Measure 2A, echoed these concerns and provided some stark numbers highlighting the rise in construction costs over the years.

“Asphalt per ton was $46, and now it’s $170—that’s a 269% increase,” McCallum said. “Sewer pipe per foot was $2.30; it’s now $13—that’s a 470% increase. Water pipe has seen a 336% increase. So when you average all of these things, the cost is about 4.6 times what it was back then.”

McCallum added that while the tax increase might seem significant, it’s modest when compared to the skyrocketing costs of infrastructure materials. “The increase in the street tax is only a 50% increase, versus a 400-500% increase for housing and construction costs. So if you look at it, let’s keep it in perspective—it’s not that much,” McCallum explained. “Nobody likes to pay more taxes, but it’s fair after 20 years when costs are up over four and a half times.”

A significant argument in favor of Ballot Measure 2A is that it would mean visitors as well as locals help fund infrastructure repairs, rather than placing the entire weight on local residents. Glenwood Springs is a popular tourist destination, attracting visitors from throughout the state and beyond. Tourists use the city’s roads, sidewalks, and utilities, making it fair, supporters say, that they contribute to the upkeep of those systems.

“We can have visitors to our community help cover these costs,” Wussow said. “It’s estimated that about half of the street tax will be paid by visitors, and I think that is so important to hear. Otherwise, if we need to cover these expenses, then property owners and community members who pay for water and sewer are going to have to pay it.”

However, Ballot Measure 2A faces opposition from those who believe the city already has the necessary funds to maintain its streets without raising the sales tax. Gary Vick, a former CFO and vocal critic of the measure, argues that the city has sufficient financial resources but is not allocating them efficiently.

“There’s plenty of money for the streets, but it’s just not being spent on the streets,” Vick said. “Now, that’s not to say it’s necessarily being spent wrongly, but there’s plenty of money for the streets if you just choose to spend it on the streets.”

Vick and others believe that the city’s Acquisition and Improvement Fund (A&I), created in 2016 to support large-scale infrastructure projects, could be used to cover the cost of neighborhood street repairs, thus avoiding the need for a tax increase. He cited the $3 million allocated from the A&I Fund to the Sixth Street renovation as an example.

“If the A&I Fund can be used for Sixth Street, it can be used for neighborhood streets,” Vick said. “These beautification projects can easily be slowed down, not eliminated, but just slowed down to provide funding for streets.”

Yet language within the A&I Fund ballot measure was clear in what it could and could not be used for, Glenwood Springs Public Works Director Matthew Langhorst said. The city is restricted by law to specific projects such as the South Midland Avenue reconstruction and Sixth Street and cannot be redirected for general street repairs.

“The A&I Fund can only spend money on certain streets,” Langhorst said. “Those streets were named in the ballot question when it went out in 2016. If a street itself is not in the question, we can’t maintain, repair, or replace streets with the A&I Fund. It’s not an allowable use.”

Aside from the debate over fund allocation, some residents are concerned about the potential economic impact of the proposed tax increase, particularly on small businesses. If the measure passes, Glenwood Springs would rank among the top 10% of Colorado cities in terms of sales tax rates, a distinction that opponents fear could deter customers and drive shoppers to neighboring areas with lower taxes. The current sales tax rate in Glenwood Springs including state, county and city rates is 8.6%. Other municipalities in Garfield County, such as Rifle and Carbondale, carry a 8.15% sales tax and 8.4% sales tax, respectively. 

Yet a sales tax is likely the best way to fund infrastructure improvements without exclusively relying on city residents to pay for them, city officials said. They note that businesses themselves do not pay the sales tax, as it is collected from consumers, many of whom are tourists and visitors.

“The businesses don’t pay sales tax. They just collect it and remit it to the city,” Glenwood Springs City Manager Steve Boyd said. “The question is whether an additional half a percent of sales tax would keep a customer from coming to that store and buying something, and there really is no evidence that that’s the case.”

Indeed, Glenwood Springs’ unique position as a tourism hub means that a significant portion of sales tax revenue comes from visitors who frequent the city’s hotels, restaurants, and shops. As a result, local residents would not bear the brunt of the tax increase.

“People come from all over to visit Glenwood Springs,” Wussow said. “They use our roads, they walk across our bridges, and they stay in our hotels. It seems only fair that they help pay for the maintenance of that infrastructure.”

Vick remains skeptical, arguing that the city should improve its management of existing resources before asking residents to pay higher taxes. He also raised concerns about the potential use of funds for projects beyond street repairs, such as the South Bridge project, a major undertaking that would involve upgrades to Highway 82 and the South Bridge interchange.

“If you think about it, these funds could be used for part of the South Bridge project,” Vick said. “The voters are thinking more in terms of getting their streets fixed, not funding these larger infrastructure projects.”

City officials have reassured residents that funds from the tax increase will be used as intended and that the allocation of funds will be transparent and subject to audit.

“Our financials are fully audited every year by an independent, third-party CPA firm,” Boyd said. “They check to make sure that the money is being spent where it’s supposed to be spent, and they would fail us if we were using the funds improperly.”

Another key component of Ballot Measure 2A is its inclusion of funding for water and sewer system improvements. As part of the proposed measure, 25% of the tax revenue would be earmarked for the city’s aging water and sewer infrastructure, which requires significant investment to maintain. By addressing both the above-ground roadwork and the underground utilities simultaneously, the city aims to minimize disruptions to residents and avoid the inefficiencies that come with piecemeal repairs.

“When we can have a holistic approach and do everything at the same time with the same dig, we try to do that,” Glenwood Springs Public Information Officer Bryana Starbuck said. “It’s cheaper if you can do multiple things at the same time instead of having crews come back out, remobilize, and re-dig everything up.”

Looking ahead, city staff have committed to ensuring that all funds generated by the tax increase will be carefully tracked, with the public able to review the use of those funds through the city’s budget process. Residents are encouraged to participate in the city’s public meetings and provide feedback.

“Both our budget and our audit are pretty transparent,” Boyd said. “People can see where the money is being spent and offer suggestions. If you have concerns, reach out to the city council.”

Should Ballot Measure 2A pass, the funds generated will help the city undertake major infrastructure projects, such as the completion of Blake Avenue, Glenwood Springs’ second most-traveled road. If the measure fails, city officials will be forced to consider alternative funding options, potentially delaying or scaling back important projects.

Despite the opposition, McCallum remains steadfast in his support for Measure 2A, emphasizing that the small increase in sales tax is a reasonable solution compared to the rapidly rising costs of infrastructure. “We are talking about a quarter of a penny increase for streets and a quarter of a penny for infrastructure. That’s not going to break anyone,” McCallum said. “If this measure passes, we can save $1.7 million a year on utility expenses, which will be paid for by tourism.”

Ballots started to be mailed out on Oct. 11 and the general election, including Measure 2A for Glenwood Springs voters, is Nov. 5.

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