Two-tax punch aimed at justice needs

By Dan MacArthur
North Forty News

For the first time in memory, Larimer County Commissioners are prepared to ask voters for an increase in the county mill levy.

The property tax is needed to finance expansion of the detention center and programs diverting offenders from jail. Representing a nearly 22 percent increase in the current levy, the proposed five-mill increase would boost property taxes on a $250,000 home by almost $100 a year. Owners of commercial property would pay nearly three times the residential rate.

The property tax, the first of a pair of permanent taxes needed to support the criminal justice system in Larimer County, probably will appear on the November election ballot. In 2008, a companion measure would seek voter approval for a 0.6 percent sales tax dedicated solely to operating and maintaining criminal justice facilities.

The sales tax proposal would seek an actual 0.2 percent increase and extension of two 0.2 percent taxes previously approved by voters - one lapsing in 2012 that financed construction of the downtown justice center, and another one expiring in 2014 that financed the last expansion of the detention center.

Tax revenues would finance a $62 million expansion of the detention center to add a mix of 296 new prisoner beds and a 12-bed medical and mental health clinic.

They also would fund a dramatic expansion of the pretrial program, which criminal justice coordinator Angela Erker said has proven most effective in preventing jail overcrowding. Additionally, part of the proceeds would go toward creation of a mental health program to treat serious disorders.

In total, county budget director Bob Keister estimated, the taxes would generate $1.08 billion over the next 20 years. Just over $100 million would go toward the cost of constructing and financing the previous and proposed detention center expansions. Almost $94 million would go toward operating the pretrial and mental health programs. More than $42 million would be set aside as a contingency for future needs that might arise. And $1 million would be contributed toward construction of a local alcohol and drug detox center.

But the biggest ticket by far is almost $843 million for continued operation of the detention center.

Those mammoth operating costs rising well above revenue and inflation rates were the chief reason for proposing perpetual taxes. County manager Frank Lancaster said it would be irresponsible to depend on a funding source that eventually disappears, as it did with the 1999 detention center expansion. "There is no cliff built into this one as we had in the last one," he said.

Keister said passage of both tax components is critical, but passage of the property tax is absolutely essential.

"It's a fairly aggressive proposal, but it solves those problems for a relatively long time," Keister told the commissioners. "This is expected to be a 20-year solution to the detention center."

Commissioners Karen Wagner and Kathay Rennels expressed resigned support for the proposal while chairman Glenn Gibson remained skeptical. "I just don't think it will be salable to the public," he said.

Gibson objected to proposing a permanent tax and dedicating to criminal justice 60 percent of the total 1 percent sales tax available to the county. Gibson further questioned the adequacy of the proposal in meeting only half the $2 billion in criminal justice needs identified by a citizens advisory committee for the next 20 years.

"I think the county is long overdue for some property tax changes," said John Knezovich, a Fort Collins accountant who served on that advisory committee. But he predicted it would be difficult gaining approval for the sales tax increase in 2008, a presidential election year when voters typically are less receptive to such proposals.

"That sounds like a huge, huge number but we have a $2 billion problem," he said.

While not an ideal proposal, "this is the one in the middle that does the most for the tax dollars," said David Bell. A senior vice president for the county's Denver bond underwriter, he helped structure the tax package. Providing the mill levy passes, Bell said, "at least you'll have the space."

"I think people are willing to fund things if they know what they're funding," he contended.

"They (voters) know there's a problem. The message has to be quite clear," said Rennels.

"I don't know if you have a slogan," Wagner said, suggesting, "If you feel safe now, just wait."

Next, a citizens committee is expected to be formed to begin outreach and advocacy for the proposal while the county prepares wording for an issue to be placed on the ballot by August.