The City of Greeley continues to struggle with the rising cost of street maintenance. At recent work session staff explained that the City would need $12 million a year to keep streets maintained at a basic level. The City’s food tax provides $3.1 million a year for streets and the Federal Highways Users Tax Fund brings in another $2.1 million annually, leaving an annual deficit of $6.8 million.
Staff provided the City Council with variety of different options to increase funding: a dedicated sales tax with a sunset clause (voters rejected a similar measure in 2010 that did not include a sunset), a streets utility fee which would be paid by residential and commercial property owners or a residential-only utility fee. Staff noted that a dedicated sales tax would benefit property owners because it would allow the City to dedicate ten percent of the fund to curb, gutter and sidewalk maintenance, relieving owners of this burden while the tax was in effect. Since this issue was discussed at a work session, no final decisions were made and the discussion will continue.