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The Rifle City Council unanimously passed a resolution opposing tax and spending reform measures Proposition 101, Amendments 60 and 61, at its July 21 meeting.
The city is the next in a long list of municipalities, government entities and private entities opposing the measures.
Proponents argue that the measures will bring much needed tax relief to the state while reining in government spending and debt.
However, according to the resolution approved by council the measures would significantly reduce both state and local revenues in several ways. The overall impact to the city of Rifle could mean a $1 million reduction in the city's general fund, according to Mike Braaten, government affairs coordinator for the city of Rifle.
Proposition 101 aims to cut vehicle registration fees, state income taxes and telecommunications fees, which opponents argue would potentially cost state and local government billions in revenue. The proposition proposes to reduce registration fees to a straight $10 annual fee. It would also reduce telecommunication fees which would have a huge impact on the city's budget.
“All put together it's about a $1 million impact to the city's budget,” Braaten said.
Which is significant considering that the city's 2010 budget was about $8 million.
“This would be a big hit,” Braaten said if proposition 101 is passed. “Especially after we just reduced our budget significantly this year already.”
Amendment 60 aims to lower property taxes. While that may sound good to residents especially in Garfield County, in doing so, government enterprises, such as the City of Rifle Utilities would be required to pay property taxes for their respective facilities. However, enterprise funds such as sewer, water and sanitation have to be funded through user fees, Braaten said.
“It would require the city to raise user fees to cover the property taxes,” Braaten said.
Amendment 60 would also repeal the so-called de-Brucing measures that have been approved in the years since Colorado's TABOR law was passed in 1992, which allow governments to keep and spend tax dollars above certain yearly limits. This amendment would cancel the voter authorized override of TABOR and would require a voter approval override every four years, according to Braaten.
“Rifle voters already have voted for a permanent override for TABOR,” Braaten said.
Amendment 61 would require voter approval to allow local governments or school districts to borrow money. It also aims to limit the form, term and amounts borrowed by government entities. Major projects needing multi-year funding would be difficult, or in come cases impossible, for the city or school districts to undertake unless the state could pay for the project in cash.
According to Braaten, the amendment would decrease the City of Rifle's borrowing capacity to around 10 percent of the city's assessed value. Rifle's current assessed value is about $153 million, so the city would only be allowed a debt amount of about $15 million, according to Braaten.
In comparison, the city of Rifle borrowed $18 million to build the wastewater treatment plant just a few years ago. And in the next couple of years, the city is already looking to build a new water plant at an estimated $20 million. That project wouldn't be possible if this amendment is passed, Braaten said.
“It goes to the extreme where it prohibits improvements in a lot of communities,” Braaten said. “For us it would shut down any kind of improvements because of the debt limit change.”
The Colorado Mountain College Board of Trustees formally opposed the measures in late June saying that they would damage state and local government's ability to fund basic services.
Others opposing the measures include Club 20, an association of Western Slope governments and business interests, the Colorado Center on Law and Policy, the Special District Association of Colorado and, locally, the Aspen Valley Hospital Board.
Arguments for the initiatives can be found at www.cotaxreform.com, while opposition arguments can be found at www.donthurtcolorado.com.
The city is the next in a long list of municipalities, government entities and private entities opposing the measures.
Proponents argue that the measures will bring much needed tax relief to the state while reining in government spending and debt.
However, according to the resolution approved by council the measures would significantly reduce both state and local revenues in several ways. The overall impact to the city of Rifle could mean a $1 million reduction in the city's general fund, according to Mike Braaten, government affairs coordinator for the city of Rifle.
Proposition 101 aims to cut vehicle registration fees, state income taxes and telecommunications fees, which opponents argue would potentially cost state and local government billions in revenue. The proposition proposes to reduce registration fees to a straight $10 annual fee. It would also reduce telecommunication fees which would have a huge impact on the city's budget.
“All put together it's about a $1 million impact to the city's budget,” Braaten said.
Which is significant considering that the city's 2010 budget was about $8 million.
“This would be a big hit,” Braaten said if proposition 101 is passed. “Especially after we just reduced our budget significantly this year already.”
Amendment 60 aims to lower property taxes. While that may sound good to residents especially in Garfield County, in doing so, government enterprises, such as the City of Rifle Utilities would be required to pay property taxes for their respective facilities. However, enterprise funds such as sewer, water and sanitation have to be funded through user fees, Braaten said.
“It would require the city to raise user fees to cover the property taxes,” Braaten said.
Amendment 60 would also repeal the so-called de-Brucing measures that have been approved in the years since Colorado's TABOR law was passed in 1992, which allow governments to keep and spend tax dollars above certain yearly limits. This amendment would cancel the voter authorized override of TABOR and would require a voter approval override every four years, according to Braaten.
“Rifle voters already have voted for a permanent override for TABOR,” Braaten said.
Amendment 61 would require voter approval to allow local governments or school districts to borrow money. It also aims to limit the form, term and amounts borrowed by government entities. Major projects needing multi-year funding would be difficult, or in come cases impossible, for the city or school districts to undertake unless the state could pay for the project in cash.
According to Braaten, the amendment would decrease the City of Rifle's borrowing capacity to around 10 percent of the city's assessed value. Rifle's current assessed value is about $153 million, so the city would only be allowed a debt amount of about $15 million, according to Braaten.
In comparison, the city of Rifle borrowed $18 million to build the wastewater treatment plant just a few years ago. And in the next couple of years, the city is already looking to build a new water plant at an estimated $20 million. That project wouldn't be possible if this amendment is passed, Braaten said.
“It goes to the extreme where it prohibits improvements in a lot of communities,” Braaten said. “For us it would shut down any kind of improvements because of the debt limit change.”
The Colorado Mountain College Board of Trustees formally opposed the measures in late June saying that they would damage state and local government's ability to fund basic services.
Others opposing the measures include Club 20, an association of Western Slope governments and business interests, the Colorado Center on Law and Policy, the Special District Association of Colorado and, locally, the Aspen Valley Hospital Board.
Arguments for the initiatives can be found at www.cotaxreform.com, while opposition arguments can be found at www.donthurtcolorado.com.
