TAB endorses city’s proposed transportation maintenance fee; council review scheduled this fall

The Transportation Advisory Board voted on Sept. 8 to endorse a proposed Transportation Maintenance Fee (TMF) and to forward a letter of support to City Council. The endorsement passed 3–0, and staff outlined the fee’s purpose, schedule for council consideration and next steps for implementation.

What the TMF is: Chris Hagelin, principal project manager, described the TMF as a property‑based fee charged to residential and nonresidential properties to pay for the maintenance of transportation assets. The city developed the fee to create a stable, predictable and scalable revenue source that can be indexed to inflation; rates are set by a property’s proportional share of person‑trip generation, Hagelin said. Intended spending includes pavement maintenance, bridge asset management, sidewalk and multiuse path repair, roadway markings and bus stop maintenance.

Engagement and legal context: Hagelin said the TMF has been under study for years, including a 2009 funding report and working‑group reviews. City staff have engaged institutional stakeholders (University of Colorado, federal laboratories and Boulder Valley School District) though those entities are not required by state law to pay city fees; the city has sought voluntary intergovernmental agreements. The staff team is also preparing outreach to the business community and the general public and provided a TMF fact sheet to TAB members.

Council schedule and implementation: Hagelin said the TMF has been integrated into the 2026 budget process. Two ordinances are planned: an originating ordinance to list the fee among city charges (ordinance number referenced in presentation: 4‑20‑78) and an enabling ordinance with rate methodology and program administration details (referenced as 8‑2‑26). The enabling ordinance is scheduled for an initial council reading Oct. 9 and public hearings and formal council consideration on Oct. 23. If adopted, staff said it may take until fiscal 2026 (starting July) for the city’s billing and administrative systems to start collecting revenue.

TAB endorsement and next steps: TAB member Mike Mills presented a draft endorsement letter and the board voted to send it to council, recorded as a 3–0 approval. The letter supports the TMF as a stable funding source, notes the person‑trip charging methodology, and asks that equity considerations such as exemptions or reduced rates for low‑income households be addressed in implementation. Hagelin and staff said that, if council adopts the TMF, additional internal work and public outreach would follow, including integrating collection into the city’s billing systems.

What to watch: City Council study session on the city budget (which will include the TMF) was scheduled for Sept. 11; the TMF enabling ordinance first reading is scheduled for Oct. 9 and public hearings Oct. 23. If adopted, start of collection could be in the 2026 fiscal year after administrative setup.