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Finance director lays out multi-step fiscal strategy: stormwater utility, SSRA/TIF planning and fire-district consolidation
Summary
Finance director Kim Webber presented a three-part fiscal strategy to reduce sales-tax dependency: create a stormwater utility (estimated $3.5M first-year revenue), plan use of SSRA/TIF funds when they expire in 2030 (~$2.8M), and pursue fire district consolidation (potentially freeing ~ $4M). Council debated sequencing, voter messaging and project targeting.
Finance director Kim Webber presented a multi-tiered fiscal-sustainability proposal at the council's July 14 work session that combines a stormwater utility, planning for SSRA/TIF expiration revenue and pursuing fire-district consolidation or inclusion.
Webber said the city is heavily dependent on sales tax (roughly 60—67% of general-fund revenue depending on year) and that inflation and flat sales-tax growth have created operating and capital pressures. She described a three-part approach intended to diversify revenue and provide funds for both operating needs and deferred capital.
On the stormwater utility, Webber summarized the advisory committee's tiered rate model and said a tier-2 model could generate about "3 and a half million dollars in the 1st year," of which roughly $1.8M would substitute for current general-fund stormwater operating and capital spending and $1.2M would expand stormwater services; staff proposed building an initial reserve (~$500,000) in year one.
Webber described SSRA (Steamboat Springs Redevelopment Authority) tax-increment financing (TIF) receipts: the city currently transfers a TIF share to the URA fund (about $2.8M this year) that will revert to the general fund when the TIF expires in 2030. She proposed the city plan to use a portion of that revenue for operating needs and to issue revenue bonds (ballot measure without new tax) to finance a public-works/facilities building ($25M example) or a bundled $30M capital package to address unfunded CIP items.
On fire-district consolidation or inclusion, Webber reminded council that the city currently subsidizes the fire district with about $4M in general-fund support in 2026 and that consolidation would move fire funding toward a property-tax basis; she proposed splitting any freed funds roughly half for operating and half for capital needs and highlighted the need for a public process and clear messaging before any ballot measure.
Council discussion focused on sequencing and political risk. Several councilors argued fire consolidation should be prioritized for near-term voter action (some indicated an early 2027 ballot timeline for consolidation work); others said adopting a stormwater utility before a consolidation ballot could create voter fatigue or opposition because commercial property owners would face both changes. Council asked staff to produce detailed project lists and to conduct community engagement/polling to test support and message trade-offs.
Kim Webber said stormwater revenue (if implemented) would likely begin in 2028; bond examples in staff materials used 25-year repayment at 5% to sketch debt-service impacts. Staff recommended moving forward with the stormwater utility work, planning for the TIF expiration and continuing to support the fire consolidation board's work; council asked staff to return with targeted project lists, polling proposals and ballot language or options for public feedback.
Next steps: staff will continue detailed modeling for the stormwater utility, prepare guidance and project lists for potential revenue bonds tied to SSRA/TIF expiration, and coordinate with the fire oversight/consolidation group on timing, messaging and fiscal allocations to present back to council.
