The Palisade Board of Trustees has approved a ballot measure that will ask voters in Palisade to consider a sales tax increase this November. If approved, the town's sales tax rate would rise from 2% to 3%, a change aimed at funding critical local infrastructure projects and strengthening emergency services. This proposal comes more than two decades after the town's last sales tax adjustment, according to Mayor Greg Mikolai.
The proposed 1% increase is slated to remain in effect through the end of 2034. Town officials anticipate that this additional 1% sales tax would generate approximately $600,000 annually. This revenue is designated for a range of improvements impacting daily life for Palisade residents and visitors.
A significant portion of the funds, 0.75% of the total 1% increase, is earmarked for various community projects. These include vital street repairs on 4th, 5th, 6th, and 7th streets, which are main arteries within the town. Additionally, the funds would support improvements at Peach Bowl Park and Riverbend Park, two key recreational areas. The town's swimming pool, an important amenity for families, is also slated to receive funding for necessary enhancements. Mayor Mikolai emphasized the need for these improvements, stating that residents value well-maintained streets, accessible sidewalks, attractive parks, and amenities such as the town's swimming pool.
The remaining 0.25% of the proposed sales tax increase is dedicated to bolstering emergency services in Palisade. Specifically, these funds would address the growing challenge of recruiting and retaining essential personnel, including firefighters, EMS personnel, and police officers. Mayor Mikolai noted that salaries for these positions have become very competitive. He explained that it is increasingly difficult for Palisade to compete with larger municipalities like Grand Junction, where emergency responders can earn an additional $10,000 to $15,000 annually. This makes it tough to keep experienced personnel within the town's fold, impacting local public safety capabilities.
Mayor Mikolai highlighted that the town of Palisade has not implemented a sales tax increase in over 20 years, dating back to when the rate moved from 1% to 2%. During this period, the cost of providing essential services to Palisade citizens has significantly increased. He acknowledged that any tax increase can be difficult for residents, especially given current economic conditions, but stressed the necessity of balancing the benefits of improved services and amenities against the cost. Without the increase, the town would face challenges in maintaining its infrastructure and public safety standards.
