Mayor proposes 1% citywide sales tax increase for roads and ballot measure to expand PEDCO spending criteria; council raises concerns

City staff presented two proposed measures for the Nov. 4 ballot: a citywide 1% sales‑tax increase and a ballot question to extend and revise the city’s existing half‑cent PEDCO sales tax. The measures drew extensive council debate about strategy, language and likelihood of voter approval.

City staff said the proposed 1% increase would raise the city sales tax from 3.7% to 4.7%, producing an estimated $26 million annually based on 2024 collections; staff proposed dedicating the first year’s receipts to road projects slated for 2026–2029. “This proposal, if passed by city council, would be on the November 4 ballot,” city staff said during the presentation. Staff noted the city’s sales tax had not been raised in more than 50 years and that existing capital funding for streets had declined in recent years.

On a separate ballot item staff described a proposed amendment and extension to the half‑cent economic development sales tax (the PEDCO fund). The proposal, city staff said, would extend the tax for five years (from its current 12/31/2026 expiration to 12/31/2031) and broaden the ordinance’s allowable uses to include three new criteria: an “economic catalyst project” definition, language to address “economic leakage” (money spent outside the city) and “placemaking” (public amenities to attract residents and visitors). Staff said those additions mirror tools used in other municipalities and would broaden what the city could support while maintaining a focus on primary jobs.

Council debate was robust and divided. Councilor Forrest summarized the concern of several members, saying the PEDCO criteria changes had been rejected by council previously and asking why the administration was now taking the previously rejected ordinance to voters. President Hill and other council members urged a negotiated compromise with PEDCO and suggested the current presentation risked creating an internal split that could harm voter support. Council members also questioned whether the city could realistically attract large retailers such as Costco or Bass Pro and whether the ballot language used “buzzwords” that could confuse voters. Councilor Boston said putting the question to voters was appropriate but urged clear, concise language and better outreach.

Val, the city’s tax expert, explained the consumer impact: “it would be 1p on every dollar,” describing the 1% increase plainly for residents. City staff also explained that the 1% increase would need to be “debruced” (subject to TABOR/debrucing rules) when added to the ballot language.

Councilors discussed timing and political strategy. Multiple council members and administration officials said PEDCO leadership had been engaged in previous months and that PEDCO requested the issue be put to a public vote because the proposed changes alter the ordinance significantly. Several council members asked for a compromise option and additional work with PEDCO before finalizing ballot language.

Ending: Staff said the ballot measure language was being prepared for first reading and that council would consider it for placement on the Nov. 4 ballot; council members asked for additional meetings with PEDCO and suggested refined, less technical ballot language would help public understanding.