Options for Street Repair Board of Trustees

April 14, 2015

∗ Public Works Director, Daymon Johnson ∗ 13.84 Total Lane Miles ∗ 13.70 Requiring some type of repair or reconstruction

Road Analysis

∗ 2015 Estimate: $5,600,00 ∗ Includes 13.70 lane miles in need of repair; Original

Bennett, Brothers Four, Centennial, Kiowa Bennett Road, Antelope Hills

∗ 39% increase over original 2013 estimates $4,034,650 ∗ Better economy, rising asphalt prices

What does it cost to fix the roads?

∗ Town operates on four major funds ∗ General Fund

∗ General Administration, Public Safety, Courts, Parks, Buildings and Grounds, Road and Bridge Contribution

∗ Water Fund ∗ Enterprise fund; revenue can only be used for Water expenses

∗ Waste Water Fund ∗ Enterprise fund; revenue can only be used for Waste Water

expenses ∗ Road and Bridge Fund, 2010

∗ Dedicated funding for road maintenance

Why can’t we use the money we already have?

∗ Other Funds ∗ Open Space, Conservation Trust

∗ Only used for parks projects ∗ Cemetery

∗ Only used for cemetery ∗ Impact Fee Funds:

∗ Only used for specific areas and capital projects; transportation fee only for NEW roads

∗ Grants Funds ∗ Grant only projects, NO grant funds available for road

maintenance

Why can’t we use the money we already have?

∗ General Fund minus obligations for 2015 is $2,204,585 ∗ Must have Public Safety, Clerk, Court and Finance which

leaves $1,010,515 remaining ∗ Save to pay: would take years 5.5 years without rising costs ∗ Begin again to defer maintenance on parks, trails,

buildings, systems, equipment ∗ No management of code enforcement, community and

economic development, animal control, parks, buildings ∗ Not highly feasible

Why can’t the general fund be cut to pay for roads?

∗ Road and Bridge Fund as an enterprise ∗ Would not require voter approval ∗ Creation of toll roads for Bennett ∗ Not highly feasible

Could we charge drivers a toll?

∗ Because of the Colorado Tax Payor’s Bill of Rights (TABOR) and since roads are not an enterprise fund today, requires voter approval

∗ Tax free bonds to pay for project ∗ Bonds can be repaid in two ways ∗ Property Tax Increases ∗ Sales Tax Increase

Can you borrow money?

∗ Only Tax Bennett Residents ∗ Total assessed valuation is $20,607,113 and current mill

rate is 11.950 mills. ∗ Debt service for project would be $469,746 ∗ Requires an additional mill levy increase of 22.795 for

a total of 34.745 ∗ Average price of Bennett home: $185,000 ∗ Current tax to Town $175.00 ∗ Additional tax for Roads $335.00

Option 1 Property Tax Increase

∗ To pay debt service would require 1.0% increase today ∗ (See 3rd Party Analysis)

∗ Average grocery bill of $100 per week would pay $1.00 or over the course of a year $52.00

∗ Issue bonds for 20 years ∗ Additional sales tax revenue on the 1% increase

available for maintenance and capital ∗ Recommended option

Option 2 Sales Tax Increase

∗ Equitable: ∗ Estimated 10% of Bennett residents would pay the tax ∗ Serving population of 25,000; Bennett 2,411

∗ Bennett sales tax rate would be 4% for a total of 7.75% ∗ Compare to Aurora 8.5%, Denver 7.62% and Brighton 8.5%

Why would a sales tax make the most sense?

∗ Currently we are saving every year to do major maintenance every three years.

∗ This plan allows for approximately .3 lane miles of repair

∗ Annual crack sealing ∗ At this rate it would take 48 years to do all the roads

Why do anything at all?