Oak Creek's November Vote Is Really About Who Pays for the Water Pipes

In 2023, the Town of Oak Creek treated about 8.62 million gallons of water and lost nearly 6.8 million gallons before it reached a tap. A typical distribution system loses about 10%. Oak Creek's 2024 water-loss study put the town's average annual loss at 78.5%, roughly eight times that benchmark, according to the Steamboat Pilot & Today. A full upgrade of the water system was estimated at more than $14.3 million in 2024 dollars.

That leak explains Ballot Issue 2A on the November 3, 2026 ballot. The town is asking voters to approve a 2% sales tax for capital improvements, groceries included, which would raise Oak Creek's town rate from 3% to 5%. Rate increases are coming whatever voters decide. What the vote settles is who pays for them. For anyone comparing Oak Creek's carrying costs with Steamboat's, that changes how the comparison works.

The Bill Arrives Either Way

In July 2026, trustees reviewed a utility rate study from consultant John Krajewski of JK Energy Consulting. It found the town's electric, water and wastewater systems financially stable today but headed for deficit within several years unless rates go up. The recommended path:

• Electric: about 9% a year for four years, driven by wholesale power costs and a five-year reliability plan
• Water: 10% increases in both 2027 and 2028, tied to work at Sheriff Reservoir and the distribution system
• Wastewater: 15% increases in each of the next two years, citing regulatory risk and treatment upgrades

Together, those steps would raise the average residential utility bill by about $26 a month in 2027 and another $29 a month in 2028, so more than $50 a month higher after two years. At a September mayoral forum, Mayor Melissa Dobbins described a possible increase in residential utility bills "as high as a 43% jump" over four years, the Pilot reported.

Town Administrator Louis Fineberg has said a tax would soften the increases, not stop them. Residents will see rate increases next year either way, he told the Pilot, but "passing the sales tax will mean in all likelihood that the rate increases won't be as severe." Electric rates go up regardless because power costs are rising. Capital needs are the main driver for water and sewer, and that is the part a sales tax could carry.

Two Ways to Fund the Same Pipes

Both paths pay for roughly the same projects. They spread the cost across different groups of people.

The town's argument for the sales tax is about who pays. "The advantage … is a large percentage is not paid by Oak Creek residents," Fineberg said at the July 9 meeting, as reported by the Pilot. Later he put the visitor share more modestly, as "some non-zero amount of revenue." Neither figure has been published, so the share of Oak Creek's taxable spending that comes from outside the town is unknown. The town's 2026 comprehensive plan materials flag retail sales lost to other communities. Spending that already happens elsewhere generates no town tax at all.

There is also a financing detail. Fineberg told trustees that recent legal guidance indicates sales-tax revenue can fund utility infrastructure without putting the utilities' enterprise status at risk. That status keeps the town's ability to borrow for utility projects without a public vote. He has described the revenue as seed money for grant matches, enough for "between a $500,000 and $1 million infrastructure project" each year. The Sheriff Reservoir dam safety project shows how that works in practice. A $620,000 matching grant from the Colorado Department of Local Affairs closed its last funding gap, and construction is expected in spring or summer 2027.

The Rate Math That Changes the Oak Creek vs. Steamboat Comparison

A second measure appears on the same ballot. Issue 7A would add a half-cent sales tax for the Yampa Valley Regional Transportation Authority across Steamboat Springs, unincorporated Routt County, Hayden, Oak Creek, Yampa and Craig. It would raise roughly $7.87 million a year, starting January 1, 2027.

The Colorado Department of Revenue's January 2026 rate table puts Oak Creek's current combined rate at 6.9%: 2.9% state, 1% Routt County and 3% town. Steamboat Springs is at 8.4%, made up of the same state and county rates plus a 4.5% city tax. Here is how the general rate changes under each outcome:

If 2A passes, Oak Creek's general sales tax rate ends up above Steamboat's in either case. These are general rates calculated from the published state, county and local figures. The exemption details for the transportation tax were not part of our research, so the table describes the general rate only.

Groceries follow different math. Colorado and Routt County both exempt food for home consumption. Oak Creek's town tax lists no exemptions in the state rate table, so its 3% already applies to groceries, and 2A would raise that to 5%. Groceries bought at Select Super Market on West Main Street come under that town tax.

Where the Disagreement Actually Sits

Supporters and skeptics agree that Oak Creek's infrastructure needs money. They disagree about how the tax is built. Trustees sent 2A to the ballot 3–1 on July 23, with Bernard Gagne, Julie Gregory and Erika Pastor voting yes. Sascha Stanger voted no, mainly over taxing groceries and other essentials.

The same split came up in the mayoral race. Challenger Alvin Powell supports a sales tax but would restructure it to exclude groceries and add a five- or 10-year sunset, the Pilot reported. Dobbins answered that a sunset would undercut borrowing: "if the tax is sunshined, we're not able to say, 'I can make these payments for the next 25 or 30 years.'" She argued that the utility increases would hit household budgets "way more profoundly than the sales tax coming from Franciosi's, coming from the market."

The two measures also overlap in another way. On the transportation authority's board, Dobbins cast the only vote against referring 7A to voters. She cited residents' concern about stacking it on top of Oak Creek's 2% measure, along with uncertainty about how the authority would allocate funds. The authority lists fixed-route bus service on Highway 131 between Steamboat, Oak Creek and Yampa as a top objective.

What This Means for an Oak Creek Cost Comparison

Utility bills and local sales tax are both in play in Oak Creek this fall, and they move in opposite directions depending on the result. If 2A passes, the sales tax rises and utility increases should be smaller. If it fails, the sales tax stays where it is and the rate study becomes the plan.

Some questions that belong in any 2026–27 Oak Creek cost comparison:

1. What are the seller's actual recent utility bills? No average current residential bill was found in published materials, so a property's own statements are the most reliable baseline.
2. How did 2A turn out? After November 3, that result shows which way the 2027 rate increases are likely to go.
3. Where does the household's routine spending happen? A sales tax only applies where the purchase is made, and the grocery portion only applies to purchases inside town.
4. How far along are the major water projects? The Sheriff Reservoir dam work and distribution upgrades are the capital items behind the water and sewer increases.

Sales tax policy can change after any election, so treat the figures here as accurate for the November 3, 2026 ballot as written.

Our small team follows Oak Creek's ballot measures and utility rate decisions so they can be priced into a real carrying-cost comparison, not just the list price. If you own in Oak Creek and want to see how these changes could affect your home's value or your buyer pool, Michelle Parilla can prepare a valuation that accounts for them. Request Your Free Home Valuation.

This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.