Angelique Espinosa and Elisabeth Patterson The city of Boulder has launched a yearlong planning process for an update to its Transportation Master Plan, and simultaneously has been exploring the idea of a transportation maintenance fee. At first blush, the two have as much in common as grapes and gravel.
At a recent city council study session, however, staff linked the two because of a dearth of funding, at both the state and federal levels, and a concern that it will not be able to fund the “transportation vision” outlined in the master plan.
The city frames the funding problem by positing that the current sales-tax funding model erodes the system, impedes progress and diminishes buying power, resulting in a $3.2 million shortfall for transportation operations and maintenance. Enter the transportation maintenance fee as a proposed solution.
The fee, which would be charged as part of customers’ water and sewer utility bills, would be based on land use and vehicle trip generation based on data from the Institute of Transportation Engineers. The data is intended to approximate the burden that different properties impose on city streets.
But what is this fee exactly? What problems might it solve? And, what will it cost?
Is the TMF really a fee, or is it a tax? We would define a fee as a charge for use of a service or amenity, the amount of which is related to the cost of providing that service or amenity. A tax, on the other hand, while it may be applied to a particular good or service, is collected to raise general purpose revenue.
Taxes go into the general fund, and the city government can spend tax revenue on anything it wants. Some argue that without addressing the prioritization of how the city manages its budget overall, taxpayers have no assurance that revenue generated would go to needed road repair and maintenance.
We strongly support multimodal transportation as integral to the Transportation Master Plan and as an important asset in attracting and retaining employers and talent. However, we are concerned that the mundane basic safety expenses like asphalt repair may take a backseat to alternative-mode goodies such as universal Eco Passes and lighting for bike paths.
One problem a TMF solves for the city is TABOR, or Taxpayers’ Bill of Rights. By identifying this revenue stream as a fee, rather than a tax, the city could sidestep a vote of the people and could adjust the fee should costs increase.
At a study session in April, council members indicated that if they do opt for a fee, they would ask for an advisory vote on the initial amount, but we are left wondering what safeguards are in place for any future adjustments.
So, what will it cost? The city’s summary, maxing out at $6 monthly for the all-inclusive package, seems like a steal. What’s missing from their one-page summary is the cost for Boulder’s businesses, federal labs, BVSD and CU. This cost was disclosed in the city’s extensive community outreach to impacted organizations, including the Boulder Chamber, and we can tell you – it’s a big bite.
Rates for commercial and industrial properties would be considerably higher than those for residential properties. Based on the city’s proposed options, which range from $2.5 million to $5.6 million yearly, commercial and retail users would pay the highest rate, $16,000 to $20,480 annually, and warehouses the lowest, $525 to $672 annually. The federal labs would be charged $27,681 to $58,255, CU $70,536 to $158,000 and BVSD $93,599 to $209,662 per year.
If revenue must be raised for transportation purposes, we strongly recommend that the city put the question forward as a tax, subject to a vote of the people, with clear ballot language stating how the tax revenue will be spent. If passed, we ask for a regular and clear accounting on the measure and a restrained fiscal approach to managing the general fund overall, in accordance with the city’s Blue Ribbon Commission on Revenue. That way, no one gets taken for a ride.
Angelique Espinoza is the public affairs manager, and Elisabeth Patterson is a public affairs associate for the Boulder Chamber. They can be reached at 303-938-2077 or angelique.espinoza@boulderchamber.com.
