Steamboat will likely contribute the lion’s share of funding for regional transportation, but the existing free bus service would still need to be paid for from city coffers.
Steamboat Springs City Council member Michael Buccino is floating the idea of an additional half-cent sales tax to help fund a Regional Transportation Authority in the Yampa Valley, a question that is expected to go before Steamboat Springs voters this fall.
Buccino, who is chair of the local RTA formation committee, said he wanted to get the conversation about this potential sales tax going now in an effort to gauge if city voters would approve the tax or if officials should go a different direction. In addition to the funding question, voters will see another question about forming an RTA in general, Buccino said.
“I want people to know ahead of time that you got a resource here in town. We’re going to have town halls for it, come talk to me,” Buccino said, while encouraging residents to reach out to him directly with their opinions on the idea by emailing him at mbuccino@steamboatsprings.net. “Maybe there is no problem at all. people have been waiting for us to do this for the last decade. We won’t know that until we start reaching out to people, and I don’t want to do that in August.”
A regional transportation authority has long been talked about in the Yampa Valley and is seen by officials as a way to ease traffic on U.S. Highway 40, reduce the area’s carbon footprint by getting people out of their cars and to address increased housing costs by making it easier to live in communities outside of Steamboat Springs.
Steamboat Springs Transit Manager Jonathan Flint said the city has consistently seen strong demand for its regional bus route, even after adding additional bus service to the route between Craig and Steamboat in recent years.
The boundaries of a Yampa Valley RTA are expected to include most of Routt County and the city of Craig. This proposed half-cent sales tax would only be applied in Steamboat Springs and only voted on by Steamboat Springs residents. Other municipalities like Craig, Hayden and Oak Creek are expected to come up with their own funding mechanism to support an RTA.
Most items in Steamboat Springs are currently subject to an 8.4% sales tax, with 4.5% being collected by the city, 1% collected by Routt County and 2.9% collected by the state of Colorado. An additional half-cent sales tax (0.5%) would increase that to 8.9% for most items. Groceries, known as “food for home consumption, are not subject to county or state sales taxes, but are taxed by the city of Steamboat Springs. If a half-cent sale tax increase was approved, groceries would be taxed at a rate of 5%.
Ballot questions likely won’t include details of exactly what routes an RTA would add locally, but an initial service plan will be developed before a vote. Buccino said being able to communicate a general plan for routes to voters is important before they head to the ballot box.
“You will be getting a public transportation system throughout all of the Yampa Valley,” Buccino said. “Whether you use it or not, your neighbors might need it.”
A summary of potential RTA services includes regional bus service between Craig and Steamboat, a circulator route in the city of Craig, a route connecting South Routt and Steamboat, service from Steamboat II into town and a dedicated route to the Yampa Valley Regional Airport. An RTA would also include infrastructure projects like improved bus stops, wildlife crossings and park-and-ride facilities, among others.
A half-cent sales tax in Steamboat Springs is expected to raise nearly $5.4 million annually, according to a March 2024 report about creating an RTA in the Yampa Valley drafted by consultant Fehr & Peers.
The city of Steamboat Springs is expected to provide the lion’s share of funding for an RTA. Buccino said Steamboat Ski & Resort Corp. has also agreed to pitch $1 million annually toward an RTA as long as officials agree not to impose a lift ticket tax at the resort. Other municipalities will develop their own plans to support an RTA, with Buccino saying the hope is that these contributions would equal roughly $1 million a year.
While Steamboat is expected to contribute the most to an RTA, an RTA likely won’t save the city much from its general fund. This is because the city’s free bus service will continue to be funded via the general fund.
According to Flint, the Steamboat Springs Transit Manager, the city would save roughly $50,000 a year in relation to the regional route between Steamboat Springs and Craig. Those savings would vary based on factors like costs for fuel and parts. There are also some savings for the city related to costs for administration and recruiting bus drivers. The city also has stepped in to buy new regional buses when needed, another cost that would be shifted to the RTA, Flint said.
Fiscal sustainability is one of Steamboat Springs City Council’s goals for 2025, a conversation that at times last year included the idea of adding a property tax in the city. Steamboat’s general fund is largely funded via the city’s 4% sales tax. The city also has a 0.5% sales tax that goes to the Steamboat Springs Education Fund, which supports education initiatives in schools across Routt County. City Council plans to discuss fiscal sustainability at its Feb. 11 work session.