Centennial mayor warns of flattening sales tax, pitches potential 1% infrastructure levy

Summary

Mayor Christine Sweetland told county commissioners Centennial's sales-tax revenue is flattening due to retail shifts and that rising costs for infrastructure and sheriff-provided services have created a projected $20 million maintenance shortfall; she said a proposed 1% sales-tax increase (from 2.5% to 3.5%) designated for infrastructure could generate roughly $23 million and that the city will present survey results July 21 before a council decision in August.

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Christine Sweetland, mayor of Centennial, briefed the board on fiscal pressures facing the 25-year-old city and a potential sales-tax proposal to address infrastructure and operations costs.

"Big box stores have moved out of Centennial... we don't tax services," Sweetland said as she explained that sales-tax revenue is flattening even while expenditures for services, maintenance and police contracts with Arapahoe County have increased. She told commissioners that Centennial previously paid about $23.3 million to the Arapahoe County Sheriff's Office in 2016 and that costs have since grown dramatically.

Sweetland said one option under consideration is a 1 percentage-point increase in the city's sales tax, from 2.5% to 3.5%, dedicated to infrastructure; the city estimates the 1% would raise about $23 million, roughly the gap officials identified for maintaining roads and bridges.

The mayor said Centennial is conducting outreach and will present top-line survey numbers to its council on July 21. "We're talking to as many community members as possible... there's a community survey," she said, and the council will determine next steps in August. Commissioners praised Centennial's intergovernmental partnerships on transportation and said they look forward to continued coordination on projects that cross jurisdictional lines.