Centennial studies 1-point sales-tax increase for infrastructure gap
Officials say raising the city sales tax from 2.5% to 3.5% could generate about $23 million a year as Centennial looks for ways to cover a roughly $20 million annual street-funding shortfall.
Centennial officials are studying a 1-point sales-tax increase, from 2.5% to 3.5%, as one way to cover a roughly $20 million infrastructure gap, Mayor Christine Sweetland told Arapahoe County commissioners during a July 6 study session.
City budget materials say Centennial's Street Fund needs about $35 million a year but receives about $15 million in dedicated revenue, leaving a gap of about $20 million. Sweetland said a 1-point sales-tax increase would generate an estimated $23 million annually.
According to city materials, that funding would support street work and related infrastructure, including roads, bridges, traffic signals, sidewalks, snow removal and paving. The city also says aging infrastructure and flattening sales-tax revenue are making it harder to keep up with those needs.
The proposal remains in the public-input stage. Officials are gathering feedback through outreach and surveys, with City Council set to review results July 21 and consider next steps in August, according to the county meeting summary.
Centennial's public materials describe the tax increase as one option under consideration, not a final decision.