Resolution 2002-081 also states the City Council’s intention:

• To seek voter approval of a permanent extension of the existing Building Community Choices .25% sales and use tax that is dedicated to street maintenance, prior to its expiration in 2005;
• To continue to implement the improvement of the City traffic signal system using appropriated City General Fund reserves;
• To adjust the current Street Oversizing fees for new development to account for current construction costs as well as the costs of extraordinary infrastructures such as bridges and culverts; and
• To examine the fee structure related to the anticipated long-range impacts of growth on the existing street infrastructure.
  

Frequently Asked Questions

What are capital projects?
Capital projects are one-time expenses for physical structures and equipment. Street construction, traffic signal systems, right-of-way purchase, bus shelters, bus replacement, and sidewalk installation are examples of capital expenditures. Operating and maintenance expenses are NOT capital projects. Snow removal, street resurfacing, pothole patching and bus service are examples of operating and maintenance expenses.

What does the ballot measure on the April 2003 ballot include?
On February 18, 2003 City Council adopted Resolution 2003-027. The Resolution placed two transportation funding measures before City voters this April 8, as Issues 1 and 2. Issues 1 and 2 include two components: a sales and use tax and a construction tax.

What is the proposed change to the sales and use tax?
Issue 1 proposes the addition of a new.25 cent sales and use tax. This increase would raise about $5.5 million per year, to be used only for transportation capital projects. Grocery foods and prescription drugs would be exempt from the tax. The City currently collects a sales and use tax at a rate totaling 3.00%. Adoption of this measure would increase the current City sales and use tax rate to 3.25%. The tax would run for ten years, beginning July 1, 2003. When the tax expires in 2013, voters will be asked to consider renewing the tax.

What is the proposed new construction tax?
Issue 2 proposes the addition of a 1.00% construction tax that would be levied on new residential and commercial construction. This new tax would generate an estimated $2.3 million annually, to be used only for transportation capital projects. The tax would be applied to the cost of construction (materials and labor). Remodeling work would not be subject to the tax unless it resulted in additional commercial square footage or an additional residential unit. Affordable housing projects would also be exempt from the tax. The tax would run for ten years, beginning July 1, 2003. When the tax expires in 2013, voters will be asked to consider renewing the tax.

What projects would Issues 1 and 2 fund?
The language of Issues 1 and 2 provides that every four years the City Council will establish the list of the projects to be constructed. The measure identifies the following as the top priority projects for funding:

• Harmony Road, College to Seneca
• College/Harmony Intersection
• Shields/Harmony Intersection
• Timberline Road, Prospect to Drake
• Timberline/Prospect Intersection
• Mason Corridor
• Lemay Avenue Improvements, Lincoln to Conifer Right-of-Way
• College/Drake Intersection
• Taft/Elizabeth Intersection
• Shields/Elizabeth Intersection

Future priorities are expected to include projects to widen streets, add traffic lanes, rebuild intersections, coordinate traffic signals, expand bicycle and pedestrian routes, and other transportation capital projects.

Arguments

Arguments for Issue 1 and 2:

• Fort Collins is falling behind in meeting its transportation needs. The proposal’s number one projects priority are good examples. Harmony Road currently presents significant congestion and safety issues. Also, the Timberline/Prospect intersection handles some 4500 vehicles during the evening rush hour. The current volume has earned the intersection an “F’ grade for its ability to move traffic. Traffic models show the volume will increase to 15,000 vehicles during evening rush hour by 2010. The situation repeats itself at other City intersections.
• Local funds leverage state and federal dollars. Among the top priority projects for the City is the Mason Corridor project. It’s anticipated that about $22 million of the new local revenue generated would be used to fund Mason Corridor. Those dollars, coupled with $4 million in existing City revenue would be used as the local match to bring $57 million in federal funds to complete the project.
• The tax proposal is fair. The need for improvements to the transportation system is caused by not only new growth, but by a dramatic increase in the number of vehicle miles traveled by existing residents. The sales and use tax would be paid by existing residents, visitors and regional shoppers who regularly use our streets. The construction tax would ultimately be paid by new residents and new businesses.
• The taxes pay for a balanced package of streets, sidewalks, bikeways and transitways. These need will make safer transportation options available to all citizens.

Arguments against Issues 1 and 2:

• The taxes would increase the burden on existing taxpayers. Rather than increasing taxes, City Council should reprioritize its existing budget to find the funds needed for transportation capital projects. To fund this priority, money spent on other city programs should be reduced.
• The economy would be harmed by the construction tax. The 1% tax would add approximately $1,380 to the price of a new detached single-family house. The tax would also be levied on commercial construction and may discourage business expansion. Businesses are already burdened by too many taxes.
• The capital construction plan would rely too heavily on automobile-based transportation projects. More emphasis should be placed on public transit to get people out of their cars and into public transportation.

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