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HomeMy WebLinkAboutresolution.council.048-261 Series of 2026 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO IN OPPOSITION TO COLORADO INITIATIVE 175 (2026) AN AMENDMENT TO THE COLORADO CONSTITUTION CONCERNING A CHANGE TO THE STATE REVENUE LIMIT AS IT APPLIES TO TRANSPORTATION -RELATED REVENUE, AND IN CONNECTION THEREWITH, DEDICATING AN INCREASING AMOUNT OF EXISTING STATE REVENUES TO ROAD TRANSPORTATION PURPOSES AND DECREASING FUNDING FOR OTHER TRANSPORTATION -RELATED SERVICES AND PROGRAMS AS CERTIFIED FOR THE 2026 COLORADO STATEWIDE BALLOT WHEREAS, Colorado Initiative 175 (2026) proposed for the 2026 ballot proposes a constitutional amendment changing existing law on transportation funding to mandate state revenue from tolls, vehicle -related sales taxes, fuel taxes, and fees be used exclusively for "road transportation" defined to include building and fixing roads and bridges, improving driver safety, covering related planning and engineering costs, and funding Colorado State Patrol; and �VI�REAS, premised from concerns over Colorado's rapid growth, increased vehicle miles traveled, and chronic underfunding of road maintenance, Initiative 175 proposes a funding shift of state sales, use and excise taxes/fees, in addition to two-thirds of sales tax on vehicle parts/accessories to the Highway Users Tax Fund (HUTF); and WHEREAS, the proposed redirection of funds would reduce current revenue in the general fund, which could negatively impact K-12 and higher education, healthcare and human services among other core services; and WHEREAS, Initiative 175 focuses on car dependency encouraging sprawl and congestion and fails to address the need for amulti-modal transportation system, and WHEREAS, Colorado should prioritize and protect current policy and focus on compensation for electrifying vehicle fleets, encouraging multimodal transit, public transport, and installing electric vehicle charging stations; and WHEREAS, as a local, regional, state and national leader in all aspects of environmental stewardship, the City of Aspen is committed to providing an efficient, multi -modal and integrated transportation system that reduces congestion and air pollution, and NOW, THEREFOF:E, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO that the City Council of the City of Aspen hereby. 1. Supports projects that maintain existing infrastructure and that are multimodal in design. 2. Supports legislation that encourages "complete streets" that accommodate people using all modes of travel. 3. Encourages measures that include increased transportation funding for both ongoing and new transit planning efforts, transit operations, clean transit vehicles and safe transit infrastructure that reduce the reliance on single occupant vehicle travel. 4. Supports innovative multi -modal projects including bicycle, pedestrian and first/last mile services. 5. Encourages a balanced state transportation policy that addresses the need to maintain and expand roadway, bicycle, pedestrian, transit, carpool/ vanpool and demand management options to improve Colorado's transportation system including preservation of the constitutional requirement that highway user revenues be used for the construction, maintenance and supervision of the public highways and bridges of the state. 6. Advocates for the continued use of transportation funds for mass transportation and transportation demand management purposes. 7. Strongly Opposes the use of Colorado transportation funds being diverted only to fund roads. 8. Opposes Colorado Initiative 175 amendment to the Colorado constitution concerning a change to the state revenue limit as it applies to transportation -related revenue, and in connection therewith, opposes the proposed dedication of increasing the amount of existing state revenues to road transportation purposes and decreasing funding for the other transportation -related services and programs as certified for the 2026 Colorado statewide ballot. BE IT FURTHER RESOLVED that copies of this resolution be sent to the members of the Colorado Congressional Delegation and the Governor of Colorado. RESOLVED, APPROVED, AND ADOPTED FINALLY by the City Council of the City of Aspen on the 14th day of April, 2026, Rachael E. Ri Mayor I, Nicole Henning, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held on the day hereinabove stated. Nicole Henning, Ci Clerk CDOS Received: November 07, 2025 2:09 P.M. CH 2025-2026 #175 - Final Text Be it enacted by the people of the state of Colorado: SECTION 1. In the constitution of the state of Colorado, article x, add section 22 as follows: L. State revenue collected to support road transportation — required use. (1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY DISTRICT, AS THAT TERM IS DEFINED BY SECTION 20 OF THIS ARTICLE MU ST SPEND ANY STATE REVENUE COLLECT ,ED TO SUPPORT ROAD TRANSPORTATION ON ROAD TRANSPORTATION. (2) STATE REVENUE COLLECTED TO SUPPORT ROAD TRANSPORTATION SHALL BE ALLOCATED AMONG LOCAL GOVERNMENTS AND THE STATE HIGHWAY FUND, CONSISTENT WITH THE HIGHWAY USERS TAX FUND PROVIDED IN STATE LAW, AND EXPENDED AS SET FORTH IN THIS SECTION. (3) AS USED IN THIS SECTION: (a) "MOTOR VEHICLE" MEANS ANY SELF-PROPELLED VEHICLE THAT IS DESIGNED PRIMARILY FOR TRAVEL ON, AND I5 COMMONLY USED TO TRANSPORT PERSONS OR PROPERTY OVER, PUBLIC STREETS, ROADS, HIGHWAYS, OR BRIDGES, THIS TERM INCLUDES ANY SUCH VEHICLE WITH A TRAILER OR SEMITRAILER ATTACHED THERETO, BUT DOES NOT INCLUDE ANY VEHICLE THAT IS DESIGNED TO AND DOES OPERATE AS A FARM TRACTOR OR ON (b) "ROAD TRANSPORTATION" MEANS: (I) THE CONSTRUCTION, SURFACE REPAIRS, MAINTENANCE, AND OPERATION OF PUBLIC STREETS, ROADS, HIGHWAYS, OR BRIDGES, DESIGNED AND PRIMARILY USED FOR MOTOR VEHICLE USE; (II) THE DEVELOPMENT AND IMPROVEMENT OF SAFETY MEASURES FOR MOTOR VEHICLES TRAVELING ON PUBLIC STREETS, ROADS, HIGHWAYS, OR BRIDGES; (III) THE DIRECTLY RELATED DESIGN, ENGINEERING, AND MANAGEMENT COSTS REQUIRED FOR ROAD TRANSPORTATION; AND (IV) COSTS OF THE COLORADO STATE PATROL. (C) "STATE REVENUE COLLECTED TO SUPPORT ROAD TRANSPORTATION" MEANS: (I) ALL SALES AND USE OR EXCISE TAXES OR FEES IMPOSED AND COLLECTED BY THE STATE ON MOTOR VEHICLES AND MOTOR VEHICLE FUEL; AND (II) TWO-THIRDS (2/3) OF STATE SALES AND USE TAXES IMPOSED AND COLLECTED BY THE STATE ON MOTOR VEHICLE PARTS, EQUIPMENT, MATERIALS, AND ACCESSORIES THAT ARE AFFIXED TO A VEHICLE. �4) THE EFFECTIVE DATE OF THIS SECTION SHALL BE JANUARY 1, 202%. CDOS Received: November 07, 2025 2*09 P.M. CH 2025-2026 #174 & #175 - Draft Variation Chart 2025-2026 initiatives State Revenue Collected for Road Transportation to be Spent on Road Transportation Initiative # 126 162 163 174 175 Applies to Enterprises yes yes no yes no 70-year Sunset yes yes yes no no HUTF statute A lies no yes* yes* yes** yes** Include Federal$ yes no no no * "consistently with the highway users tax fund as provided in state law" ** Specific to statutory HUTF allocation among local governments and state highway fund Pay design, mngt., Pay costs engineering costs St. Patrol no no Initiative 175 Legislative Council Staff Nonpartisan Services for Colorado's Legislature INITIATIVE 175: STATE REVENUE SUPPORTING ROAD TRANSPORTATION Analyst: Amanda Liddle, amanda.liddle@coleg.gov, 303-866-5834 Date: December 22, 2025 Summary Information Overview. Beginning January 1, 2027, the measure requires state revenue collected to support road transportation to be spent on road transportation. Types of impacts. The measure is projecfied to affect the following areas: • State Revenue TABOR Refunds • State Expenditures Local Government • Diselaimer. This initial fiscal impact statement has been prepared for an initiative approved for petition circulation by the Secretary of State. If the initiative is placed on the ballot, Legislative Council Staff may revise this estimate for the ballot information booklet (Blue Book) if new information becomes available. Any appropriations required to implement this measure will be addressed through the annual or supplemental budget process if this measure is approved by voters. Type of Impact State Revenue State Expenditures Transferred Funds Change in TABOR Refunds Change in State FTE Table 1 State Fiscal Impacts Budget Year FY 2026-27 MI Up to $1.02 billion 0.0 FTE Out Year FY 2027-28 Up to $2.09 billion 0.0 FTE Page 2 December 22, 2025 Initiative 175 This constitutional measure defines road transportation and requires that, beginning January 1, 2027, state revenue collected to support road transportation only be used for road transportation. Functionally, the measure requires all state sales and use tax, excise taxes, and fees on motor vehicles and motor vehicle fuels, as well as two-thirds of state sales and use tax revenue collected on motor vehicle parts and accessories, to be spent on: • the construction and maintenance of public roads; • the development and improvement of safety measures for motor vehicles on public roads; • directly related design, engineering, and management costs required for road transportation; and • costs of the Colorado State Patrol. The measure creates a new General Fund revenue obligation towards road transportation and may narrow or alter the allowed uses of certain transit -related revenues. Under current law, road transportation and other transit -related spending is primarily funded by Highway Users Tax Fund (HUTF) revenue streams, with support from General Fund transfers and other transit -related cash funds and special accounts. State revenue deposited into the HUTF is allocated between the state, counties, and municipalities after paying off -the -top appropriations to the Department of Public Safety (DIPS), the Department of Natural Resources (DNR), and the Department of Revenue (DOR). The allowed uses of HUTF revenue are similar, though not identical, to the definition of road transportation created by the measure. General Fund revenue is subject to appropriation by the state legislature and is not currently budgeted for FY 2026-27 or future years. However, current law requires General Fund transfers to transit -related cash funds' in the amount of $61.0 million in FY 2026-27 and $110.5 million in FY 2027-28 through FY 2031-32. A portion of the General Fund transfers are to be used for air pollution mitigation efforts, while the rest follows the allowed uses under the State Highway Fund and Multimodal Transportation and Mitigation Options Fund, described below. � Section 24-75-219, C.R.S. Page 3 December 22, 2025 Initiative 175 other fransitmielated Lashis and is i - .? ' 1.. ccounts Highwayhe State • 2 receives revenue fromseveral different• and • sources, both transit -related and others. State revenue initially collected in the State Highway Fund that may be defined as revenue collected to support road transportation under the measure is estimated at $25.0 million in FY 2024-25 from special transport permits, the fluoroalkyl fee, nuclear and hazardous material permits, commercial electric vehicle fee, commercial motor vehicle safety fee, construction workers safety, wildlife crossing zone, access permit fees, interest, and miscellaneous fine revenue. After paying for administrative costs within the Department of Transportation (CDOT), the Colorado Transportation Commission allocates the remaining funds for transit -related purposes. A portion of retail delivery fee revenue is deposited into the Multimodal Transportation and Mitigation Options Fund to be used for state and local pedestrian and bicycle infrastructure, transit service enhancements, streetscape and lighting improvements, and other related developments to multimodal transportation. Revenue to the fund totaled $15.0 million in FY 2024-25 and is managed by the Colorado Transportation Commission within CDOT. Direct fees on license plates, decals, and tabs are deposited into the License Plate Cash Fund,3 which generated $12.0 million in revenue in FY 2024-25. Revenue in the fund is used by the Motor Vehicle Division within the Department of Revenue to cover the costs of making and providing license plates. The Peace Officer Standardized Training fee is a $1 fee applied to Tax Class A, B, and C motor vehicles at the time of registration and after paying administrative costs is distributed to the Peace Officer Standards and Training (P.O.S.T.) Board, which approves and revokes approval of training programs and training academies. The P.O.S.T. Board Cash Fund generated $5.8 million in FY 2024-25 revenue. The Emergency Medical Services surcharges is a $2 surcharge applied to most motor vehicles at the time of registration and is distributed to the Emergency Medical Services account within the Department of Public Health and Environment for grants to local emergency medical and trauma service providers and funding to support improvements to the statewide emergency medical and trauma services system. The account generated $11.6 million in FY 2024-25. The Emissions -Statewide and Emissions -Area Air Account fees are assessed on Tax Class A, B, and C motor vehicles at the time of registration and is distributed to the Department of Public Health and Environment to cover the direct costs of motor vehicle emissions activities. The Air Account generated $9.7 million in FY 2024-25 revenue. 2 Section 43-1-219, C.R.S. 3 Section 42-3-301, C.R.S. 4 Section 42-3-304 (24), C.R.S. s Section 42-3-304 (21), C.R.S. 6 Section 42-3-304 (18), C.R.S. Page 4 December 22, 2025 Initiative 175 A portion of the annual $50 electric plug-in vehicles license decal fee' revenue, paid at the time of registration, is deposited into the Electric Vehicle Grant Fund which is used by the Colorado Energy Office to provide grants to install charging stations for electric vehicles. Revenue to the fund totaled $4.3 million in FY 2024-25. Certain registration-, plate- and driver's license -related fees$ are deposited into the DRIVES fund to support costs of the state's system for motor vehicle services. The DRIVES fund totaled $64.0 million in revenue in FY 2024-25. Certain surcharges and fees applied to motorcycles are collected in the Motorcycle Operator Safety Training (MOST) fund' and are used to fund the state's MOST program, providing safety and training courses for motorcycle users. Revenue to the fund totaled $1.1 million in FY 2024-25. The projected state expenditures to be impacted by the measure are calculated using the LCS September 2025 forecast. The fiscal impact statement encompasses most transit -related funds as an upper bound for what may be impacted, though all transit -related funds included may not be legally determined to fall under the revenue and expenditure definitions created by the measure. To the extent that road transportation fund usage under current law does not align with the requirements in the measure, impacted programs and agencies will see reduced funding or require a new source of funding to be maintained at the same level as under current law. FY 2026-27 and future years are not currently budgeted; therefore, it is unknown how much of the funds described below would have gone toward road transportation under current law. The measure is expected to obligate towards road transportation up to $1.02 billion in FY 2026-27 and up to $2.09 billion in FY 2027-28 with similar amounts in future years. The potential impacts are summarized by fund in Table 2 and described in more detail below. ' Section 42-3-304 (25)(a), C.R.S. a Section 42-1-211 (2)(a), C.R.S. 9 Section 43-5-504, C.R.S. Page 5 Initiative 175 December 22, 2025 Table 2 Potential Road Transportation Revenue Obligations by Fund General Fund Highway Users Tax Fund Other Transit -Related Cash Funds Out Year FY 2026-27 $264.4 million $670.7 million $81.7 million Out Year FY 2027-28 $538.9 million $1,395.0 million $161.6 million Total Expenditures $1901'66 million $2,089a also ton State Sales and Use Tax on Motor Vehicles, Parts, and Accessories The measure redirects an estimated $264.4 million in FY 2026-27 and $538.9 million in FY 2027-28 with increasing amounts in future years of General Fund revenue to be used for road transportation. This General Fund revenue projection is based off of the historical state sales and use tax revenue from motor vehicles plus two thirds of historical revenue from motor vehicle parts and accessories, trended forward using economic projections from the LCS September 2025 forecast. i y SerS ax un The measure is expected to obligate up to $670.7 million in FY 2026-27 and $1,395.0 million in FY 2027-28 and future years from the HUTF. Major sources of revenue to the HUTF are shown in Table 3 and discussed below. Table 3 Highway Users Tax Fund Revenue Streams HUTF Revenue Streams Fuel Excise Taxes Road Usage Fees Registration & Registration -Related Fees FY 2026-27 $318.1 million $88.4 million $215.3 million FY 2027-28 $646.1 million $201.7 million $443.6 million Other Taxes and Fees (See Table 4) $48.9 million $103.6 million Page 6 December 22, 2025 Initiative 175 The measure obligates the states motor vehicle fuel excise tax revenue to be used only for road transportation. Accounting for a half -year impact in the first fiscal year, the measure is projected to obligate Highway Users Tax Fund revenue from motor vehicle fuel taxes, estimated at $318.1 million in FY 202&27, $646.1 million in FY 2027-28, and similar amounts in future years, toward road transportation. Estimates are based on the LCS September 2025 forecast. The measure is additionally expected to obligate HUTF revenue from road usage fees, estimated at $88.4 million in FY 202&27, $201.7 million in FY 2027-28, and increasing amounts in future years, toward road transportation. The measure is expected to obligate HUTF revenue from registration and registration -related fees totaling $215.3 million in FY 202&27 and $443.6 million in FY 2027-28, with comparable amounts in future years, toward road transportation only. This includes standard registration fees, late registration fees, road safety surcharge revenue, short-term registration fees and permits, and other special registration fees for certain classes of vehicles. The measure may additionally obligate other HUTF funding streams to be used only on road transportation, including $48.9 million in FY 202&27 and $103.6 million in FY 2027-28 with comparable amounts in future years. Table 4 summarizes these relatively smaller sources of revenue. Miscellaneous HUTF revenues include the passenger -mile tax, identification plate fees, low -power scooter registration fees, revenue from the sales of abandoned vehicles, and any other funds credited to the HUTF. Table 4 Other Revenue Streams to HUTF Retail Delivery Fee Daily Vehicle Rental Fee Supplement. Oversize/Overweight Fee Interest Court, DUI, and DWAI Fines $13.7 million $31.2 million $22.0 million $45.6 million $0.7 million $1.5 mon $1.9 mon $3.7 million $4.9 million $10.0 million Miscellaneous $5.8 million $11.6 million Qther Taxes and Fees $48.9 million $103.6 million Page 7 Initiative 175 December 22, 2025 Fhe measure may also obligate other transit�relatecl revenue streams to be used only toward oad transportation. Table S below outlines the transit�relatecl cash funds whose revenue treams may be obligated towards road transportation under the measure, More information on the revenue streams can be found in the ion backround sect gabove. 1� Other Transit -Related Cash Funds and Special Recounts Cash Fund State Highway Fund License Plate Cash Fund P.O.S.T. Board Cash Fund MOST Fund Air Account Emergency Medical Services Account Law Enforcement Assistance Fund DRIVES Fund MMOF $13.6 million $6.6 million $3.2 million $0.6 million $5.3 million $6.3 million $0.6 million $35 million $8.2 million FY 2027-28 $26 million $12.5 million $6 million $1.1 million $12.1 million $1.2 million $66.7 million $15.6 million Electric Vehicle Grant Fund $2.3 million $4.5 million The measure is expected to increase state government revenue distributions to county and municipal governments by $138.2 million in FY 2026-27 and $277.4 million in FY 2027-28 with similar amounts in future years. Of those amounts, $58.2 million is expected to go to municipalities and $80.0 million to counties in FY 2026-27, and $116.8 million is expected to go to municipalities and $160.6 million to counties in FY 2027-28. The measure additionally prevents local governments from using road transportation revenue collected and distributed by the state on projects not permitted under this measure. If approved by voters at the 2026 general election, this measure takes effect on January 1, 2027. Page 8 December 22, 202S Transportation Local Affairs Public Safety Behavioral Health Administration Natural Resources Revenue Initiative 175 Colorado Energy Office Public Health and Environment This estimate is about $8.8 million lower than the fiscal summary estimate as a result of a smaller set of State Highway Fund revenue streams and other transit -related cash funds expected to be impacted, which are only partially offset by the addition of the Electric Vehicle Grant Fund as a revenue stream that may be impacted by the measure.