Wellington eyes sales tax change

By JoAn Bjarko
North Forty News

Faced with multi-year declines in reserve funds due to a stagnant economy, Wellington leaders are looking for a way to prop up the general fund for the upcoming year.

Town administrator Larry Lorentzen's recommended solution is to ask voters in April to let an existing 1 percent sales tax designated for streets be used for other programs such as parks and recreation. Other tax income, not designated by voters, will also be diverted from the street fund. Altogether, the changes would put about $258,000 more into the park fund.

The town has been using general fund revenues to subsidize parks and recreation, so the diversion of sales taxes from streets to parks would make general fund reserves last longer. It also means the diversion of revenue could cause problems for the street fund in six to 10 years, depending on future maintenance needs and costs.

The town board will likely decide whether to pursue the ballot issue on reallocating sales taxes at its Jan. 25 meeting. Also at a January meeting, the board will consider raising recreation fees to help balance the budget. Town leaders want to bring in an additional $16,680 from fees. Board agendas are posted online at www.townofwellington.com.

In the meantime, the board will officially adopt the 2011 budget on Dec. 14 following a public hearing. The meeting begins at 7:30 p.m. in the Leeper Center.

Wellington proposes to spend $7,721,568 in 2011 to operate town government and make capital improvements. Wellington employees will get no salary increases in 2011, but the town will pay a 14.8 percent increase in health insurance premiums and a 4 percent increase in dental premiums for its employees.

Budgeted items include $609,000 to contract with the Larimer County Sheriff's Office for law enforcement services. The contract provides four deputies, one sergeant and crime investigation services.

There is $493,203 designated for the park fund, which includes recreation programs. The town is also thinking about ways to come up with matching money should it be successful in getting a grant to develop the community park in the Buffalo Creek Subdivision.

Wellington is budgeting $8,000 in the general fund to waive some impact fees and tap fees as incentives to future developers. The same amount was budgeted this year. Another $2,000 will be set aside for economic development activities typically conducted by the chamber of commerce.

On the revenue side, the projected tax levy on property will be about the same at 14.235 mills. Property taxes will bring in about $770,000 to town coffers.

In October, the town board raised water and sewer rates for homes and businesses. Increases will take effect Jan. 1. The town's engineering firm is recommending ongoing annual increases through 2016, which the board will consider later.

Copies of the proposed budget are available at Wellington Town Hall.ated for streets be used for other programs such as parks and recreation. Other tax income, not designated by voters, will also be diverted from the street fund. Altogether, the changes would put about $258,000 more into the park fund.

The town has been using general fund revenues to subsidize parks and recreation, so the diversion of sales taxes from streets to parks would make general fund reserves last longer. It also means the diversion of revenue could cause problems for the street fund in six to 10 years, depending on future maintenance needs and costs.

The town board will likely decide whether to pursue the ballot issue on reallocating sales taxes at its Jan. 25 meeting. Also at a January meeting, the board will consider raising recreation fees to help balance the budget. Town leaders want to bring in an additional $16,680 from fees. Board agendas are posted online at www.townofwellington.com.

In the meantime, the board will officially adopt the 2011 budget on Dec. 14 following a public hearing. The meeting begins at 7:30 p.m. in the Leeper Center.

Wellington proposes to spend $7,721,568 in 2011 to operate town government and make capital improvements. Wellington employees will get no salary increases in 2011, but the town will pay a 14.8 percent increase in health insurance premiums and a 4 percent increase in dental premiums for its employees.

Budgeted items include $609,000 to contract with the Larimer County Sheriff's Office for law enforcement services. The contract provides four deputies, one sergeant and crime investigation services.

There is $493,203 designated for the park fund, which includes recreation programs. The town is also thinking about ways to come up with matching money should it be successful in getting a grant to develop the community park in the Buffalo Creek Subdivision.

Wellington is budgeting $8,000 in the general fund to waive some impact fees and tap fees as incentives to future developers. The same amount was budgeted this year. Another $2,000 will be set aside for economic development activities typically conducted by the chamber of commerce.

On the revenue side, the projected tax levy on property will be about the same at 14.235 mills. Property taxes will bring in about $770,000 to town coffers.

In October, the town board raised water and sewer rates for homes and businesses. Increases will take effect Jan. 1. The town's engineering firm is recommending ongoing annual increases through 2016, which the board will consider later.

Copies of the proposed budget are available at Wellington Town Hall.