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Colfax leaders discuss 1% sales-tax option to fund road repairs
Summary
City staff outlined exploring a 1% local sales-tax measure to raise roughly $1.1–$1.3 million a year for road maintenance; officials and residents debated whether a general or special tax best protects road funding and how state grant limits affect eligibility.
Colfax officials used the April 9 town hall to explain why they are considering a local sales-tax increase to pay for road maintenance and repairs.
City manager (city manager) told the audience that declining and more competitive state and federal grant funding has left the city with a shortfall for maintaining existing roadways. “The decision to pursue a sales tax increase measure stems from the urgent need to generate revenue for maintaining, repairing existing roadways and transportation infrastructure within the city,” the city manager said, describing the measure as a way to create matching funds and steady local revenue.
The council and staff described two primary ballot options. A general sales-tax increase would go into the city’s general fund and requires a majority (50% plus one) of voters to pass; a special sales-tax measure dedicated to roads would place revenue into a separate account but requires about a two-thirds (approximately 66.7%) approval threshold. “A special tax…does guarantee the money stays just for roads,” the city manager said, but council members warned it is harder to pass.
Staff provided several figures to illustrate need and scale. An example one-mile truck-grade roadway rehabilitation was cited as costing about $1,000,000; the engineer’s estimate to rehabilitate Canyon Way was described as between $4.5 million and $5 million. The city manager said the council would target a 1% local sales-tax increase; using a long-term average of sales tax collections, staff estimated an additional 1% could yield roughly $1.1 million to $1.3 million annually.
A resident asked whether Colfax still qualifies for Community Development Block Grant (CDBG) funds; staff said that because measured average household income in some areas is above program thresholds, the city is planning area-income surveys to identify pockets that could still qualify and that for the areas that do not qualify, a local tax may be the only practical revenue source. The city also said it keeps the majority of locally collected special-district tax revenue (staff estimated the city receives approximately 97% of the locally collected 1%).
City staff disclosed the current dedicated road balance as $130,139 and said budget details will be discussed during the upcoming budget review meetings in the next one to two months. No formal vote or ballot placement was taken at the town hall; council members said the town hall was intended to start community discussion and that the council will decide whether to place a measure on a future ballot after further study and outreach.
What happens next: councilmembers asked staff to continue analysis, including cost estimates, targeted outreach and a schedule for community education; the city’s budget review in the coming months will provide a detailed accounting of current allocations and potential gaps.
