Below is an overview of economic concerns regarding the proposed West Steamboat Neighborhood.
Wanted: A comprehensive financial plan that considers the potential financial impacts on the City caused by various rates-of-development scenarios of the West Steamboat Neighborhood.
The following is derived from the West Steamboat Neighborhoods (WSN) “Estimated Time-Line for payments” table showing WSN’s payments to the City.
Financial risks to City
- Fees to be paid the City by WSN for impacts on water and transportation infrastructure are termed “Firming Funds” in the City’s financial timeline of payments. Only 5% ($584,000) of these Firming Funds would be paid up front with the remaining 95% ($9,920,274) deferred over the 16 year project life and paid off as each market rate, but not deed restricted, unit is sold. Firming funds would not be paid up until 2034 – if the project proceeds per schedule.
- If the proposed Real Estate Transfer Assessment is found unconstitutional – no alternative revenue source from WSN has been provided for.
- Water and sewer tap fees are assumed to not increase throughout the project.
- City was requested to imagine and present its worst case financial scenarios – request ignored
WSN-influenced issues that will require upfront costs by City.
These should be identified and presented in a comprehensive financial plan for this project. Some would need to be in place early on – risk of insufficient project-generated revenue to pay if project underperforms:
- Bring City infrastructure to WSN boundary
- Extend City bus service to WSN
- Install water supply line along Hwy 40 (City has allowed storage tank in lieu of)
- Develop water supply from Elk River drainage
- Water treatment infrastructure upgrade
- Sewage treatment plant upgrade
- West area new School facilities
- Fire, police and emergency services
- Building Department
- City staff
The City’s Capital Improvement Plan if annexation is approved is estimated at $35,810,923 for projects 2020 thru 2026. The City is relying on an estimated 80% contribution from Colorado Department of Transportation. This is highly questionable due to CDOT’s project backlog, priorities and shortage of funds and recognizing that transportation funding ballot issues were voted down in the last two elections. If CDOT were to fund the 80% that leaves over $7 million to be paid from other revenues. WSN’s firming fund contribution to this would be paid annually until complete in 2034. What are the proposed revenue sources to pay the balance?