Fort Collins voters consider sales tax to support services

By Dan MacArthur
North Forty News

Fort Collins voters soon will face a taxing proposition.

On Nov. 2, they will decide whether to impose an additional 0.85 percent sales and use tax on purchases within the city limits.

That translates into a tax of 8.5 cents on a $10 purchase of everything other than groceries and prescriptions. The use-tax would apply to goods bought by residents outside Fort Collins and brought into the city. Manufacturing equipment would be exempt from the use tax.

The taxes would expire in 10 years in December 2020.

Estimated to generate almost $19 million in its first year, half the proceeds would be directed to streets and other transportation-related needs. Public safety would receive the next largest slice with 17 percent to supplement police and 11 percent to fire services. Another 11 percent is earmarked for parks and recreation.

The remaining 11 percent originally was designated for unspecified "community priorities" determined by the city council. But reacting to criticism characterizing it as a "slush fund," the council later attempted to better define its use.

Supporters have formed an advocacy group called Keep Fort Collins Great. It is co-chaired by Gary Thomas, chair of the city's transportation board, and Mary Atchison, a member of the library district board. Both also have been involved as volunteers in several community causes.

No formal opposition group has registered with the city clerk yet. Council members Wade Troxell, Aisslinn Kottwitz and Fort Collins Area Chamber of Commerce president David May have, however, sharply criticized the proposal.

The Resourcing Our Future sales tax issue arose from months of public outreach to identify community priorities and fashion a tax issue city officials believe will be acceptable to better fund them. The tax issue was pared from the originally proposed 1 percent because feedback indicated greater support for something less. There also was broad consensus that any tax should "sunset" rather than go on forever.

Residents further preferred any new tax revenues be dedicated to specific purposes and insisted on accountability to ensure they are being spent as promised. Thus, the ballot issue requires the city manager to report annually to the city council on how the tax revenues were used.

Finally, the public made clear that they expected the city to keep seeking efficiencies and cutting expenses. Those ongoing economizing efforts are the foundation for one of the city's chief arguments advocating the tax increase.

Since 2005, city officials note that they have cut some $24 million in existing or planned expenses by eliminating lower-priority services and implementing new efficiencies. Other substantial savings resulted in personnel. More than 150 jobs were eliminated while bringing salaries and benefits more in line with those in the private sector.

"Despite these efforts, we do not have the revenues needed to maintain Fort Collins' strong economy, healthy environment and high quality of life," said Mayor Doug Hutchinson. "We need to ask the people to consider a sales tax increase to secure our city's future."

Transportation tops the list of priorities. A third of the new tax revenues, or some $6.2 million, would be dedicated to street maintenance and repair.

Another 17 percent, or $3.2 million, would go toward other transportation capital improvements including bridges, pedestrian and bike facilities, transit services and "traffic calming" efforts.

Police services would receive an identical slice to hire additional officers and civilian staff to increase neighborhood and traffic patrolling, improve downtown safety and better respond to party, noise and nonemergency complaints.

Poudre Fire Authority would receive an estimated $2.1 million in the first year to maintain staffing and make limited improvements to reduce emergency response times.

Finally, another $2.1 million would go to parks maintenance and recreation programs. Without an infusion of funds, city officials have warned that a major facility such as the Senior Center, the Northside Aztlan Center or the Edora Pool Ice Center could face closure.

Confronted with the criticism about the vague language, a bitterly divided city council subsequently voted 5-2 for a measure to better identify the four priorities the remaining $2.1 million would be applied toward. They are economic health, including midtown and Foothills Mall redevelopment; neighborhoods, including code compliance and affordable housing; environment, including air quality and recycling; and critical internal services, including vehicle and facility maintenance.

Even with the increase, advocates note that Fort Collins' sales tax rate – which has not increased since 1982 – would remain among the lowest among 14 comparable Front Range cities. At the current 6.7 percent, Fort Collins has the second lowest sales tax rate, slightly more than Greeley at 6.36 percent. With the 0.85 increase to 7.55 percent, it would have the fourth lowest rate. Loveland has 6.7 percent, and Colorado Springs has 7.4 percent.

Greeley, however, is seeking an additional 0.75 percent sales tax dedicated to road maintenance. In addition, the city is seeking renewal of the sales tax applying to groceries, which also is dedicated to street maintenance. If the new tax is approved, Greeley would move toward the middle of the pack.

Supporters also point out that out-of-town shoppers contribute a quarter of the tax revenues, easing the burden on Fort Collins residents and contributing toward the services they require.

Fort Collins has a mixed but generally supportive record of extending established sales taxes, especially for specific purposes.

Voters definitively approved sales-tax extensions in 1997 earmarked for street maintenance, transportation projects, capital improvements, natural areas, parks and trails.

But they firmly rejected a proposed transportation tax in 1999 and a tax proposal to fund a library, museum and performing arts center in 2001. In 2002, electors by seven votes rejected another proposed transportation tax but overwhelmingly approved extension of the open space tax. A pair of proposed taxes for street maintenance were also rejected in 2003. Extending a sales tax for street and capital improvements won overwhelming support in 2005. A tax extension to continue the earlier capital improvement program also was strongly endorsed that year.

City officials have elaborately detailed the proposal at www.fcgov.com/resourcingourfuture.