Ouray Road Tax

Ouray County Road Funding Supported

November 07, 2008

Written By: Patrick Davarn

Posted By: Erin Eddy

www.ourayland.com
www.ridgwayland.com

Ouray County has gained voter approval to supplement its Road & Bridge budget. The proposed one-cent sales tax passed by a slim margin of 66 votes (1,464-1,398), according to unofficial counts from the County Clerk's office.

Keith Meinert, Board of County Commissioners chairman, said he was gratified the public agrees that the county must maintain road infrastructure and preserve its most valuable asset. The additional funds are specifically earmarked to the Road & Bridge Department.

"As we are also seeing at both the state and national levels, the maintenance of our roads and bridges will only get more challenging due to escalating costs of construction, high fuel costs, increased usage and decreasing fuel tax collections," said Meinert. "This additional funding from a sales tax increase will help us meet these challenges and reduce our dependence on trickle-down handouts from Denver. I want to assure the public that the county will use this additional funding wisely. I encourage the public's participation in Road Committee and BOCC meetings to help us develop the county's road maintenance strategy and prioritization."

This year's result counters last November's outcome, when voters decided 901-802 that they did not want a 3% use tax to help pay for road maintenance and improvements. The county has had a 1% sales tax, as allowed by the state, since 1985. Earlier this summer, the state legislature set new rules that allow counties to ask voters for additional sales tax revenues.

County officials told voters that the additional 1% sales tax was necessary due to projected reductions in the Highway Users Tax Fund (HUTF), which annually provides 40% of the monies in the Road & Bridge Department budget. The BOCC has have pledged 60% of these new proceeds toward routine road operations and 40% to improvements and capital purchases.

Total revenue in the 2008 Road & Bridge budget is estimated at $1.5 million. Of this amount, approximately 42% ($601,114) is derived from state sources (primarily HUTF) and 19% is from local property taxes ($315,729). Road & Bridge currently has a dedicated revenue source of 1.5 mils and the BOCC has historically transferred the equivalent amount of 1 mil levy ($194,401) from the General Fund. Other revenue sources include federal sources, reimbursements and impact fees utilized for capital infrastructure.