Community Rec. Center Process

FACTUAL SUMMARY OF MEASURE B
Proposed Community Recreation Center (CRC) and Field House (FH)
On the April 1, 2014 City Mail-In Ballot

Montrose Drawings 11 06 2013 Page 008
The following is a factual summary of Measure B, which will be on the April 1st, 2014 City Ballot. It has been prepared in compliance with the Fair Campaign Practices Act. As such, this summary includes both arguments for and arguments against the ballot measure. This information is intended to provide relevant facts.

v Measure B is a proposal that will appear on the April 1, 2014 City of Montrose mail-in ballot.  If passed, it will provide a portion of the funds necessary to build a Community Recreation Center at the MRD owned Woodgate/Ogden site at 16350 Woodgate Rd, and renovate the existing pool into an indoor turf Field House at 25 Colorado Ave.

  • A yes vote will temporarily increase the City sales tax from 3% to 3.3%, raising the overall sales tax rate from 7.65%to 7.95%. This would sunset at the end of the projected lease purchase payment term, which is 25 years.
  • The funds from the sales tax plus existing MRD revenues cover the annual lease purchase payment, which is like the mortgage payment. No additional taxes are needed for operations, which is why the 0.3% would sunset after the building cost is projected to be paid off.
  • A no or tie vote will reject the sales and use tax increase.

        Main Level of Proposed Community Recreation Center
Slide4 (2)
Upper Level of Proposed Community Recreation Center
Slide5 (2)
Proposed Re-purpose of the Current Aquatic CenterPics of CRC to MDP, 11.18 (2)

Financial Plan & Operational Budget

v  Projected CRC Operating Budget        
Operating Expenditures         $950,505
Operating Revenues              $788,850
Operating Deficit*                   $161,655 
Cost Recovery                       83%
*Deficit to be covered by existing resources     
 vProjected Field House Operating Budget
 Operating Expenditures       $170,684
Operating Revenues        $171,459
 Operating Deficit                  $0
 Cost Recovery                     100%
                        

      Financial Plan
v  The new Community Recreation Center and the renovation to the existing facility into a Field House would cost approximately $25.5 million dollars.  If Measure B passes, MRD would enter into a 25 year term lease purchase agreement to finance the project, which is similar to a mortgage for a home.  A temporary increase in the City of Montrose sales tax rate from 3.0% to 3.3% ($3 on every $1,000 purchased) will produce about $1,200,000 annually that will be dedicated to making the lease purchase payments.  Those sales tax funds, along with about $700,000 of existing District annual revenues that are available and produced by the District’s mill levy, lottery funds, grants and operating fees, will cover the annual lease purchase payments of approximately $1,900,000.  Existing District revenues will also cover the operating deficit of the CRC.  The Field House is projected to generate enough operational revenue to cover its costs.  The temporary sales tax will sunset when the principle on the lease purchase agreement is projected to be paid in full, at which time MRD would own the CRC and FH free and clear.  If Measure B passes on Tuesday April 1, 2014, the estimated opening date for the CRC is late 2016. 

 Comparison to Other Communities
  Delta  Durango Gunnison Fruita Proposed Montrose*
 Sales Tax Approved 1.0% 0.5% 1.0% 1.0% 0.3%
 Center Size (ft2) 55,000 72,000 50,000 46,000 70,000
 Population 8,915 16,627 5,554 12,646 19,132
 Average Daily Users 500  1,000  300  505 679

*The 0.3% sales tax for Montrose is pending voter approval, with Measure B on the 4.1.14 City Ballot

 Proposed CRC Fees vs. Current Aquatic Center Fees
   Proposed CRC  Aquatic Center
  Resident Rate Non-Resident Rate Rate
 Adult Daily $6.00 $8.00 $5.00
 Youth Daily $4.00 $5.00 $4.25
 Child (under 3) Daily Free $3.00 Free
 Senior Daily $5.00 $6.50 $4.25
 Adult Annual Pass $350 $522 $215
 Youth Annual Pass $200 $348 $180
 Senior Annual Pass $200 $435 $180


Arguments for and against Measure B, a 0.3% temporary sales and use tax increase for the Montrose CRC and FH


For the increase
:                                                                                                         

  • The project meets the currently unmet recreation needs of seniors, adults, and kids thereby improving the wellness, health and quality of life of the whole community.
  • A CRC will have a positive economic benefit, estimated to be $4.6 million annually, and increase property values. This benefit compares with the $1.2 million annual cost of the sales tax, of which about 1/2 of the cost is paid by individuals outside of the City including tourists and residents from outside Montrose County. 
  • Montrose has outgrown its aged, inadequate Aquatic Center, which needs to be re-purposed.

      Against the increase:

  • Sales tax in the City would increase from 3% to 3.3%. Now is not the time for a tax increase because it will hurt the economy.
  • Private health clubs see a recreation center as unfair competition.
  • Residents who live in the County but not the City cannot vote.

For more information on the project, click here.

For Election Information, please go to www.cityofmontrose.org.

To Register to Vote, go to www.govotecolorado.com.