Blue River’s notably tax-averse voters will decide on Election Day whether to eliminate the cap on property taxes used, in part, on roads and law enforcement.
Town Mayor Lindsay Backas and treasurer Allyn Mosher support the move that would raise the average tax bill by at least $41, but opposition has emerged.
“It’s critical to the future of the functioning town,” Mosher said of the ballot item.
But Town Councilman Jon Warnick disagrees with the proposal.
“There’s no immediate need for that money,” he said. “I believe they’re bothering with it because it’s a way to get a lot more money in the future.”
The present 12.29 mill levy — approved by voters in 1995 — would be eliminated, allowing the town to set the amount, provided it doesn’t exceed the state’s limit of a 5.5 percent annual increase.
“We’re not trying to raise taxes. We’re not trying to increase peoples’ tax burden.
All we’re trying to do is get the town to receive revenue under the 5.5 percent limit,” Mosher said.
The town’s share of taxes on an average home, with an actual value of $619,833 in 2008, would rise from $606 to $647.
If the ballot item were approved, the town could receive an extra $33,800 in the first year.
The town went to its voters last year for a property-tax increase of about three mills to raise an additional $100,000 per year. It failed by a 100-41 vote.
“Blue River’s very conservative, and the idea of a tax increase was difficult to swallow,” Mosher said. “We’re not trying to do a tax increase this year … it’s for the mill levy to fluctuate, the way it was supposed to.”
Last year’s proposal was intended to help supply money for a second bridge from Colorado 9 to the east-side subdivisions, allowing an alternative route for hundreds of homes in case of emergency. After voters rejected the tax increase, the town dipped into reserve funds for the bridge’s construction, expected to begin soon.
About two-thirds of the town’s 2008 budget of $711,929 comes from property taxes. Annual expenses include $140,000 for snow removal, $107,000 for public safety and the remainder for governmental expenses, municipal court and other public-works costs.
Town construction is slowing and approaching build-out. With the realestate market’s slow-down, property values have leveled off or decreased, according to a 2008 town election fact sheet.
“If the cap is not removed, the town in the near future may be forced to reduce the essential services it provides,” according to the fact sheet.
But according to Summit County assessor Beverly Breakstone, the town’s property values for 2009 actually are likely to increase 15 percent from 2008.
Warnick said instead of raising taxes, the town should take steps to reduce spending.
“I personally have not seen an effort to reduce spending, be more efficient and effective,” he said, adding that he’d like snow-removal services to be put out to bid.
Sam Mamet, executive director of Colorado Municipal League, said Colorado voters tend to approve tax increases at the municipal level. Since 1992, when the Taxpayer’s Bill of Rights was approved, about 54 percent — or 305 — municipal taxincrease questions have been approved across the state.
“I haven’t seen many questions written like this,” Mamet said, noting that it’s unusual to have no tax rate specified. Voters will be deciding one of the longest ballots in state history, with several statewide items. The Summit County government also will have an item on the ballot to increase revenue.
