Carson City Supervisors discuss additional taxes for local road maintenance and repair
Submitted by Kelsey Penrose on Fri, 02/17/2023 - 12:03pm
On Thursday, the Carson City Board of Supervisors discussed road funding sources, and instructed staff to create ballot measures, taking the decisions regarding increased taxation avenues to the voters.
The discussion began with a presentation, during which results of a roads assessment were produced.
During the assessment, it was determined that “Regional Roads” such as Hells Bells are satisfactory, the second highest category, while “Local Roads” such as Little Lane are fair to poor, the third to fourth highest category out of seven total categories, with “failed” being the lowest.
The majority of road funding sources come from three categories: grants, gas/diesel taxes, and a 0.25 percent sales tax.
However, when broken down into regional vs local, regional roads receive the majority of funding, while local roads receive very little in funding.
Local roads only have three sources of funding: local grants, miscellaneous investment income, and a 3 percent fee charged to solid waste providers.
While several regional road funding sources account for millions of dollars each, local roads funding accounts for tens of thousands to hundreds of thousands.
Between operating expenses ($5.5 million), Capital Projects ($4.5 million), and Pavement Upkeep ($25.5 million) there is a funding gap of $21 million each year.
Hansford Economic Consulting was asked to look into various funding options, including Local Improvement Special Districts (SID)s, General Improvement District (GID), Special Purposes (Transportation) Sales Tax, and Infrastructure Sales Tax.
New monthly costs to homeowners range from $3.50 to $35, with a total of $50 per month:
Special Purpose Sales Tax at 0.24 percent: $11.50 for pavement maintenance regional and local roads
Infrastructure Sales Tax Continuation: $3 per month is currently being paid, but would be changed to roads
GID Special Assessment: $35 for pavement maintenance of local roads only
GID Parcel Charge: $3.50 for snow removal and street lighting of regional and local roads
While the state has discussed tackling roads on a state level, it will not be for several years, according to staff.
Supervisor Stacey Giomi said it was “troubling” that the state would be “kicking the can down the road” for the next decade.
He went on that Carson City has spoken with the Governor to try and get local governments involved in the conversation of tackling roads from a statewide perspective.
“It’s a big ask to say that every home in Carson is going to pay $35 a month,” Giomi said.
Giomi said he’d be more comfortable with an advisory question being placed on the ballot regarding the formation of the GID and the SIDs.
Giomi also said that the public’s input will lead the discussion — but if the public decides against paying for more road maintenance, then they will have to deal with the repercussions.
“If the overwhelming majority are against it, then we need to be prepared to drive on roads that are going to be eventually dirt,” Giomi said. “I’m not trying to be overdramatic but they will eventually go back to being dirt roads. And if our community is okay with that, then we’ll have to be okay with that.”
Supervisor Maurice White said that the sales tax “spreads the pain” through all users of the roads, both residents and visitors, and he supports the idea of the GIDs because they can be “customized.”
“This comes down to one thing and that is maintaining asphalt,” White said. “I’m not interested in snow removal, sidewalks, lighting, bike paths — we can get funding for all those things. For me this is strictly asphalt maintenance and rebuilding roads.”
Bagwell said that the interesting idea of the SID is that neighborhoods could come to the city wanting to organize to fix their roads.
For example, a group of neighbors living on a particular street could come to the city petitioning to have their road fixed and forming a SID between themselves.
“If that neighborhood wants to come and say ‘We want to pay $300 a year [...] for the next 15 years so I can have a specific purpose to fix my road,’” Bagwell said. “The SID could be brought to us. I’m not opposed to that. We would entertain that.”
Bagwell said she supported the two sales tax options going onto the ballot as well.
During public comment, some residents stated that $35 to $50 would be too much for many residents to pay, especially seniors living on a fixed income.
Others said if any new taxes are passed, they want to see them go only to local roads — with none to the regional roads which are already funded.
Following discussions, staff was directed to begin work on ballot measures.
“The thing people need to realize is we are speeding toward the brink of no return,” Supervisor Curt Horton said. “It’s hard to understand it, but if you take a look at these streets and roads and the conditions that they’re in, you’ll soon realize we are on our way to trouble if we do not take action. We have to move forward. We all have to participate. This problem is here, it is upon us, and we have to work together on a solution as a community.”
