2023 Town of Superior Budget Summary

2023 Town of Superior Budget

The Town of Superior’s Budget packet is a long and complex document that is close to 200 pages long.  The Board of Trustees approved the 2023 budget at its October 10 meeting, and held review meetings on Sept. 27 and 28.  While I know there are some financial diehard gurus that will read every page of it, my guess is the majority of people will not.  So, I attempted to summarize the major points of the budget in my post because I think it’s important for all of us to understand how the town manages its finances.  If you are interested in seeing the actual budget, please follow this link and view the Budget Summary Presentation here.  

How does the 2023 budget compare to 2022?

The 2023 budget is $11.5 million higher than the 2022 budget, due mainly to Marshall Fire rebuilding efforts and investments in utility operations. 

And yes the Marshall Fire has and will continue to have a material negative financial impact on Superior.

Lost Revenues (2022 – 2024) = $4,000,000

• Sales tax (Target, Tesla, Element Hotel combined with 8% of the Town’s population displaced)
• No utility bills to 400 customers
• Property tax revenue drop 

Additional Unreimbursed Expenses:  $12,000,000 (detailed list on Town web site)

3 year impact: $16,000,000

What are we doing to cover this deficit created by the Marshall Fire?

• Working with our partners at the Federal, State and County level
• We have cut/delayed over $2.3 million in 2022 operating/capital programs
• Additional cuts to the ‘23 preliminary budget
• Delayed CIP projects by several years (ex. reconstruction of north and south pools)
• Used $4 million of the Town’s General Fund reserve and $5 million of water fund reserves
• November Ballot Item – Repurpose expiring/existing .16% SMID sales tax which will generate $800k per year for 10 years

Revenues & Assumptions

Sales/Use Tax Revenues are critical for town operations and represent the majority of General Fund Operating Revenues. Total sales tax revenues are anticipated to be $14.5 million.  The majority of sales tax collected (70%) is generated by five businesses and sales tax funds the majority (60%) of Town operations.  

The Town’s sales tax rate is 3.46%, broken down as follows:

•  2.7% Town General Fund
• .3% Capital Improvement Fund
• .3% Open Space Fund
• .16% Marshall Fire Recovery (approved by voters in November 2022; Expires 12/31/2032)

The property taxes that we pay vary depending on where you live in town (for instance SMID mills are only assessed against properties located in and around the Superior Marketplace and the diverging diamond bridge over US-36).  Here’s a breakdown of the property taxes that an average homeowner pays in Rock Creek: 

• BVSD – 47.5%
• Boulder County – 24%
• Mountain View Fire District – 17.3%
• Town of Superior – 9.3%
• Urban Drainage & Northern Co. Water – 1.9%

The property taxes that you pay to the Town of Superior only make up about 9% of the total property taxes that each and everyone of us pays to live here.  Also, although the Town of Superior is authorized to collect up to 12.127 mills, the Town Board has consistently, over the past decade and a half, reduced the total amount or mills assessed on each home in Superior.  This practice will continue into 2023 and the Town will only assess 7.93 mills (reflecting a 4.197 mill levy reduction).  As a result, the property tax rates that you will pay to Superior in 2023 will remain constant and are calculated as follows: 

• Town General – 7.93 mills 
• Town Library – 1.5 mills
• Superior/McCaslin Interchange District (SMID) – 22.17 mills.

Debt

Debt is an important tool in a low-interest rate environment for the Town to finance its operations and growth.  Superior reached its high point of outstanding debt in 2006/2007 — $71.5 million. Now, the total outstanding debt is around $30 million. The largest portion of outstanding debt is attributable to Superior Metropolitan District 1 (SMD 1) for water and sewer plant construction and water right purchases.

In 2023, cumulative debt principal and interest payments will be $2.9 million.  Over the next three years, three debt obligations will be paid off: SMID (2024) which will result in lower property taxes for Superior Marketplace businesses and Downtown Superior residents; SMD1 (2025) which will stabilize utility rate increases; and Open Space Bonds (2025) which will allow the Town to focus on paying off the Coyote Ridge open space debt issued in 2020.

Here’s a chart of our Town’s debt over time:

Spending

In 2023, the Town of Superior is budgeting for approximately $55.5 million in expenditures.  Here are the projected 2023 expenditures for each budget:

Town of Superior = $33.96 million

• General – $25 million
• Capital Improvement Plan – $5.6 million 
• Landscape Fee – $1.87 million
• Open Space Operations & Debt – $1.1 million

Superior Metropolitan District #1 = $16.32 million

• This money is used to pay for our water, sewers, and storm drainage.

Superior Urban Renewal Authority (SURA) = $3.94 million 

• This money is used to pay the Downtown Superior Property Tax.  A percentage is also transferred into the Town of Superior’s General Fund and debt service.

Superior McCaslin Interchange District = $962,000

• This money is used to pay for the McCaslin Diverging Diamond.

Monthly trash and recycling fees will increase to $14.49.  In order to continue the high standard of landscape/park maintenance and annual flower plantings, monthly landscape fees will increase 3%, or less than $1/month.  Utility fee changes include a 5% increase in sewer service/usage charges.  A residential customer will see their bill increase $1.70 per month as a result of this fee increase.  This rate adjustment is necessary to offset increased operational utility costs, routine system capital maintenance, debt service and utility system capital improvements anticipated as a result of unfunded State and Federal mandates.  Previously, water rates were projected to increase 0% annually for the foreseeable future (at least through 2027).  However, there are proposed water rate increases in 2026 and 2027 of 5% as a result of Marshall Fire recovery costs.   The last water fee increase was in 2017.  The last storm drainage fee increase was in 2015.

Capital Improvement Projects

Here’s an overview of several big projects (and their price tags) that are coming up in 2023:

• Rock Creek Parkway/McCaslin Intersection Reconstruction.  This will reconstruct the intersection of McCaslin and Rock Creek Parkway as well as the roadways of Rock Creek Parkway to Wiggins.  The project will also include underpass rehabilitation. ($2.5 million)  Note: Rock Creek Parkway reconstruction (from Wiggins to Coal Creek Dr.) is scheduled for 2025 and the McCaslin mill and overlay (from Rock Creek Parkway to Coalton) is scheduled for 2027.
• Wastewater Treatment Plant & Drinking Water Treatment Plant Improvements.  Water Treatment Plant improvements: Granular Activated Carbon System ($1.7 million) and WTP Solids Handling Facility ($250,000).  Wastewater Treatment Plant improvements: WWTP Sludge Dewatering & Thickening Upgrades, Centrifuge Removal ($1.425 million); WWTP Aeration Basin Improvements ($2 million); Ultraviolet Disinfection upgrades ($475,000), which will result in less chlorine in our drinking water and better pathogen and virus control; and WWTP Aeration Blower Upgrades ($390,000).
• Windy Gap Firming Project (Loan/Allotment Contract).  This item is related to the construction of Chimney Hollow Reservoir ($700 million project — Superior’s contribution is $36.75 million), which will secure our drinking water for the future. ($1.49 million debt service)
• McCaslin Transmission Watermain.  This project will provide funding for a new, upsized transmission watermain to serve original town. The project will boost pressure and provide redundancy for overall town supply.  ($250,000)
• Drainage Way Improvements. Two projects are necessitated due to the damage accumulated by the Marshall Fire. As a majority of the mature trees immediately west of the Second Avenue bridge have been cut down for safety reasons, the roots of those trees now have a diminished ability to stabilize the channel of Coal Creek. The channel will be armored using large terraced boulder walls to prevent failure of the banks. The second stabilization project is for the LB-3 channel on the east side of McCaslin Blvd. Work will include slope stabilization, drainage improvements/curbing to reduce erosion across the slope area. The projects will be funded by a Grant from the USDA (75%), with the local share split between MHFD (12.5%) and the Town (12.5%). Town’s share $185,875. Total cost of the projects is estimated at $1,487,000.  
• Reservoir & Ponds Maintenance and Upgrades.  This is an ongoing program of drainage way and pond maintenance for the Storm Water system. ($150,000)
• Rebuilding of big and little Sagamore and Children’s parks (post Marshall Fire).  Funding for rebuilding & improving Big and Little Sagamore, Children’s and Founders Park with features such as Poured-in-Place surfaces. Improves maintenance, ADA and fire resistances.  ($300,000)  Note: Community Park Playground replacement is scheduled for 2024 and a poured-in-place playground surface for Wildflower Park is slated for 2025.
• Playground/shading/park improvements.  Addition of shade structures and trees for existing playgrounds in larger parks. Priority parks include; Cabin, Castle, Big and Little Sagamore, Children’s, Wildflower, North Pool.  ($145,000)
• Community Center Building Maintenance.  Crawl Space Ventilation Renovation, Drainage and Back Lot Renovation Project, and Spot store-front.  ($250,000)
• Tree, Plant, and Shrub Enhancements & Xeriscaping.  ($330,000) 
• Downtown Superior Civic Space Tenant Improvements.  The Downtown Superior master developer will be building civic space for the Town. Town budget is for furniture, fixtures and equipment for this space.  ($300,000).
• Coyote Ridge Open Space Trailhead & Wayfinding.  Parking and Wayfinding for the 182-acre parcel. ($145,000)

For those wondering about our pools, the North Pool is scheduled for design in 2024, with renovations in 2025-2026 (bathhouse/pool renovation).  Estimated budget for that project is $3.85 million.  The South Pool is scheduled for design work in 2027.