Agenda Date: 06/10/2025
Subject:
Title
Potential Ballot Question Adjusting the City's Indebtedness Cap
Body
From:
James L. Becklenberg, City Manager
Prepared by:
Kathleen Osher, Deputy City Manager
Presentations:
Kathleen Osher, Deputy City Manager
PURPOSE:
Discussion of a potential ballot question to the registered electors of the City of Littleton, Colorado regarding an adjustment to the City's indebtedness cap identified in the City Charter.
LONG-TERM OUTCOME(S) SERVED:
Vibrant Community with a Rich Culture; Robust and Resilient Economy; Safe Community
DISCUSSION:
During the March 14-15, 2025, retreat, Council discussed priorities for capital investments and the potential use of debt. While the City has made progress in addressing deferred maintenance, a growing backlog would benefit from accelerated action through debt. During that retreat discussion, Council noted that while the City may need significant capacity for debt financing, the indebtedness cap identified in the City's charter could be a hinderance to addressing needed capital and operating investment in the future.
City Charter in Section 89. General Obligation Bonds, states that: "the total outstanding general obligation indebtedness of the City, other than for water and/or sewer bonds, shall not at any time exceed three and seven-tenths percent of the assessed valuation of the taxable property within the city as shown by the last preceding assessment for tax purposes."
C.R.S. ? 31-15-302 sets forth general indebtedness caps for municipalities at three percent (3%) of the actual value of the taxable property in the municipality which differs from the City's Charter which caps indebtedness at three and seven-tenth percent (3.7%) of the assessed value.
The difference between using "actual" value as set forth by state law as the basis and "assessed value" as set forth in the ity's Charter as the basis is a significant amount. Three and seven-tenths percent (3.7%) of "assessed value" equ...
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