City workshop explores tax districts for road funding

Four hypothetical options faced survey participants at a public workshop on road funding Monday night. One choice was a financial contribution of zero. The second was $1-10, the third $11-20, and the fourth option was a contribution greater than $20.

The choices stemmed from a survey question of how much a property owner in Carson City would be willing to pay monthly to maintain local roadways as part of a general improvement district. Such a district, or GID, was one possible funding mechanism explored by Carson City leaders during the workshop at Seeliger Elementary, one of two workshops in recent weeks. The problem looming behind all hypotheticals is an estimated $21 million gap between annual road funding and maintenance needs of the current road network.

“I would say so far, a mix,” Catherine Hansford said of public reaction to the GID idea. “I would say we have had some people who are very much in favor of it, the main reason being that they really like the separation and accountability and knowing that charges or assessments that they pay will go directly to roads and not be commingled with any other city funds.”

Hansford is principal of Hansford Economic Consulting hired by the city in 2021 to explore road funding sources. In a report presented to the Carson City Regional Transportation Commission last year, Hansford estimated a GID could raise more than $12 million annually for road maintenance. Another idea included in the report was a new .25 percent sales tax that could generate an estimated $4 million. Re-using the .125 percent V&T infrastructure tax, a current sales tax scheduled to sunset in 2027, could add another $1 million.

The problem the city faces is federal grant funding can be used for regional arterial or collector roads but not for smaller, neighborhood streets.

“Since 2018, Carson City has been successful in getting over $37 million (in) federal grants for projects,” the city said in a FAQ sheet distributed Monday. “Only regional roads (collectors and arterials) are eligible to receive federal funding for reconstruction. Local, neighborhood streets, which account for 70 percent of Carson City’s roadway system, are not eligible for federal funding.”

The transportation division within Public Works has warned that pavement conditions of neighborhood roads will continue to deteriorate without adequate funding. More information about pavement conditions and the GID survey can be found at www.preservecarsoncityroads.com.

In February, during a hearing on road funding sources, the Board of Supervisors generally supported a new .25 percent sales tax for the 2024 ballot but wanted more information on GIDs.

Monday, Carson City Transportation Manager Chris Martinovich told the Appeal he expects survey results from the workshops to be presented to RTC members this year before going to the Board of Supervisors next spring. He said Hansford and the city are looking at GIDs around the western U.S. to get an idea of what has worked for other communities.

“A GID is unique,” he said. “We know we need to do more explaining, and we’re going to have another meeting about GIDs in the spring. We just have to slowly take a step-by-step approach to not only inform everybody of our challenges and our solution, but how is the solution going to be implemented, what is the best method. We need your input in helping select the best method.”

According to the city, a GID is a legal entity that would be overseen by the Board of Supervisors. Special assessments would likely appear on monthly utility bills and could be based on front footage of a parcel to city road; parcel acreage; square footage of livable buildings; or estimated traffic generation according to land use, among other factors being considered.

Retired teacher and Carson City homeowner Linda Martin expressed skepticism of the GID idea Monday but was supportive of a new sales tax, which she called “reasonable.”

Resident Greg Brooks, cofounder of the nonprofit Better Cities Project, was more supportive of the GID measure. He stressed infrastructure is integral to the community.

“Big picture, this is not unique,” he said. “There is not a city of this size or larger in America that is adequately covering its long-term operations and maintenance costs on its roads. Nobody has this figured out.”

Supervisor Lisa Schutte, who also sits on RTC, attended Monday’s workshop as well.

“I’m hearing the whole gamut,” Schuette said of constituents’ opinions. “I’m hearing from some people who absolutely understand that the roads need more funding and that as users of the roads, we all have an obligation and an opportunity to help solve this problem of the road conditions that we have.

“I also hear the complete other end of the spectrum, that whatever the city has, that we need to live within the budget and so we should be able to fix the roads and manage the roads with the money we have. The reality is we don’t have the money. There is a shortfall.”

Schuette said roads affect everyone, from visitors to residents who receive deliveries.

“We all, in my opinion, benefit from well-funded roads, and that’s going to take the community,” she said.