Agenda Date: 07/25/2017
Subject:
Title
TABOR discussion to refer ballot question for November 7, 2017 election
Body
Presented By:
Tiffany Hooten, Finance Director
POLICY QUESTION:
Does city council support referring a ballot question to registered electors authorizing the city to retain TABOR excess revenue for capital projects?
BACKGROUND:
For the fiscal year ended December 31, 2016, Littleton's revenue exceeded the Colorado Taxpayer's Bill of Rights (TABOR) limit. This excess must be refunded in the next fiscal year unless voters approve a revenue change as an offset.
The TABOR excess is $1,937,904. The city council must decide by the end of the year to either: 1) refund the excess revenue in some manner or, 2) ask voters to keep the money to spend on local projects or services.
Staff is seeking direction from council to determine the next steps regarding the TABOR excess.
Article X of the Colorado Constitution, more commonly known as TABOR, imposes revenue restrictions on state and local governments. A provision within TABOR allows voters to remove these restrictions, either temporarily or permanently. The permanent removal of TABOR revenue restrictions is commonly known as "de-brucing." There are very few municipalities in Colorado that are not permanently "de-bruced." Littleton is one.
The TABOR excess has many contributing factors. Revenue increases over 2015 in the general fund, as well as significant increases in impact fees and building use taxes all contributed to the TABOR excess. It is important to note that all eligible revenue received during 2016 ultimately contributed to the TABOR surplus.
In 2006, the city had a TABOR excess of $1,119,484. The city elected to issue refunds to registered voters and property owners within the city in the amounts of $20 and $41.49, respectively. In all other TABOR excess years, 1994-1995, 1998, 1999-2001, 2002-2003, 2004 and 2007, council asked voters to approve TABOR excess revenue be used for...
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