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Frederick trustees back development of a transportation funding plan; committee proposes 1% sales/use tax

Frederick Board of Trustees · February 4, 2026
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Summary

Trustees heard a transportation funding presentation that proposes a voter‑approved 1% transportation sales/use tax (estimated to raise ~$4 million annually) to accelerate road projects and permit bonding; staff will build a task force and flesh out ballot language, timelines and project buckets.

Trustees received a presentation from the town’s road‑funding committee outlining long‑term transportation needs and a proposed funding strategy that would ask voters to approve a dedicated 1% transportation sales/use tax.

Committee members described the town’s current 'save, wait, and build' approach, which they said can take five to seven years to complete major projects, and contrasted that with a sustained revenue model that would allow the town to bond for projects and complete work in one to three years. The presenters estimated a 1% sales tax could generate roughly $4 million a year (acknowledging not all purchases are taxable) and emphasized that revenue would be dedicated to transportation and remain local.

Trustees and staff discussed four priority buckets the committee proposes to present to voters: (1) Highway 52 corridor and interchange improvements, (2) congestion and safety projects including pedestrian and bicycle connections, (3) rideability and maintenance for pavement and shoulder widening, and (4) strategic regional partnerships to leverage CDOT and county funding. Board members asked for clarifying language on how trails would be categorized (transportation vs. parks), whether sunsets should be included, and for an explicit communications plan that would show stewardship of previous transportation dollars.

Next steps noted by staff include forming a community task force, refining the draft 10‑year project list and ballot language, and determining whether the town will pursue the April or July DOLA application windows and any regional coordination. Trustees indicated support for continuing the effort and requested monthly updates and an early communications package to demonstrate prior stewardship of transportation funds.

What’s next: The committee will recruit a task force and return with refined ballot language, financial modeling and recommended sunset options for board consideration.