Homestead subdivision petitions for a public improvement district to repair roads

Residents of The Homestead subdivision in Gunbarrel filed a petition with Boulder County to form a Public Improvement District, a taxing entity for repaving the roads within the District.

On Aug. 27 the Boulder County Commissioners attended a staff presentation concerning the petition submitted to the Clerk of the Board of County Commissioners proposing a Public Improvement District to be called the Homestead Public Improvement District of Boulder County.

The purpose of a Public Improvement District (PID) is to tax properties to repair and resurface county roads within the district; make sidewalk improvements as needed to comply with ADA law surrounding roadwork; install concrete curbs, gutters, and cross-pans directly associated with road resurfacing; and other costs directly associated with resurfacing activities plus long-term maintenance.

The petition states that the boundaries of the new PID would be all residential parcels located within the Homestead Homeowners, Inc., defined as all properties with direct access to Mt. Meeker Road, Homestead Way (north of Mount Meeker Road, between Mount Meeker Road and Idylwild Trail), La Plata Circle, Crestone Circle, Baca Circle and Ptarmigan Circle, and excluding all properties with direct access to Idylwild Trail.

The proposed Homestead PID is seeking a 23.6 mill levy to fund 70% of the initial construction costs using a zero-interest loan funded by Boulder County. The PID would pay back the loan in eight years via its taxing authority. The other 30% would come from Boulder County’s road maintenance fund. Initial work would begin within two years of the PID's formation. After the 70% loan is paid back to the County, the remaining funds from the tax would go toward future road resurfacing, if needed, and maintenance.

The funds would cover the cost of paving up to 8 miles of roads and will fund other maintenance activities throughout the road’s life cycle, known as the design service life, including chip seals and overlays.

Steve Durian, Boulder County's Public Works Director, began the presentation with three questions: “Does the project benefit the District in proportion to the assessed values of the properties in the District? Was the petition properly presented? Should the question of the District's formation be referred to the voters?”

The total actual valuation of the homes in the proposed PID is $77,899,000. 70% of the initial work is estimated to cost $1,113,141, and the estimated cost over 20 years is $4.4 million. A 23.6 mill levy would equal $158.19 per $100,000 of the current home valuation. According to Durian, based on these numbers, the improvement of road paving would confer a general benefit to the district.

Boulder County’s legal review determined that the petition must be signed by at least 30% of eligible District voters based on tax rolls and voter registration, and that the petition was actually signed by 48% of eligible voters. The legal team concluded that the cost and benefits are proportional to the value of the properties within the District, and the Boulder County Commissioners have the authority and jurisdiction to refer the petition to the voters this coming November election.

Commissioner Stolzman, the team lead on the subdivision paving project, noted that the mill levy could be lowered if assessed values increased more than needed to cover the bond repayment costs.

Local Homestead citizens, including Michael Weiss, Dave Niss, and Amber Morris, commented. Both Niss and Weiss supported the petition due to the deterioration of the roads and were active participants in gathering signatures from the District's voters. Morris, on the other hand, had concerns, including the cost burden that the increased mill levy would impose.

Morris said during the meeting, “The current proposed cost burden to the homeowner is quite high. This is on top of a huge jump in property taxes that will only go up every two years, despite current statewide bills to help cap property tax bills.” She mentioned that her tax bill increased by $1,000, and the new library funding also added hundreds of dollars. Morris said, “The proposed mill levy would add nearly $1,000 more per year to start but would also increase with home values.” She asked, “Why the aggressive paydown of 8% versus 15 or 20 years, and why did the mill levy have to be in perpetuity and not on a time-limited basis?”

Commissioner Stolzman addressed the perpetuity question: "If you let a road fail, replacing it with a new one is expensive. If we maintain roads over time, it is the most cost-effective way to prolong the life of the road by preventing failure.”

Consequently, the county would use the money held in perpetuity for long-term maintenance. Stolzman added that Boulder County was considering creating a Public Improvement District model for other neighborhoods, a plug-n-play that could be easily adapted and implemented.

Commissioners Stolzman and Loachamin voted yes to authorize a ballot issue to be sent to eligible voters living in the Homestead subdivision this November.