Sales tax in Wheat Ridge could rise by one penny next year if voters approve a ballot measure under review by city officials.
The Wheat Ridge City Council is set to vote Aug. 26 on whether to place a proposed city sales-tax hike on the Nov. 5 municipal ballot.
The measure, which would increase Wheat Ridge’s sales and use tax from 3 to 4 percent, would generate an estimated $6.5 million in additional revenue in 2014, according to city documents.
The additional money would be earmarked for roads, bridges, stormwater drainage and other capital improvements, according to the proposed ballot language, to “provide a safe and effective city infrastructure system,” as well as “investing in capital projects that support the business growth of our community.”
City Manager Patrick Goff said without a tax increase, the city will no longer be able to afford even basic capital improvement projects.
“The city is basically running out of funds to complete capital projects, which include taking care of our roads and our drainage systems,” Goff said. “Our revenue sources are only adequate enough today to pay for general operating expenses — paying for cops and public works and parks.”
The structural budget issue has been a source of discussion in Wheat Ridge for a number of years, with city officials deferring maintenance and electing in 2012 to hold off on a ballot measure.
This year, the city council directed staff to start working on a ballot question to present to voters Nov. 5, Goff said.
Under the approved 2013 budget, the capital fund will have a balance of $24,917 at the end of this year. Initial 2014 projections show that another $1 million would be available for basic street maintenance next year — but only if the council chooses to take the reserve fund down to the minimum allowed under city policy, Goff said.
The city has identified $5 million in “critical” deferred maintenance, including $4 million in street rehabilitation and $320,000 in bridge deficiencies, according to city documents.
The general fund budget approved for 2013 was $27.7 million.
“To provide enough additional revenue to pay for capital expenditures, we’d have to cut our operating expenses so deeply that the citizens would be impacted greatly,” Goff said. “Many programs and services would be cut. We’d have to go deep into police services, park services, public works services.”
If approved by voters, Wheat Ridge’s 4-percent sales tax would be among the highest in the area.
Westminster currently charges 3.85 percent in local sales tax, and Denver assesses 3.62 percent. Arvada’s rate is 3.46 percent, compared with 3 percent in Lakewood and Golden.
But Goff said taken with Wheat Ridge’s 1.83-mill property tax levy — on a $300,000 house, the city receives just $44 a year — the overall tax burden in the community would still be competitive. Wheat Ridge does not have a stormwater fee.
“Our citizens are demanding more. They want the drainage issues fixed. They want better mobility options — more sidewalks, more bike lanes,” Goff said. “They want more amenities in their community.”
Emilie Rusch: 303-954-2457, erusch@denverpost.com or
