Agenda Date: 08/15/2017
Subject:
Title
A resolution of the city council of the City of Littleton, Colorado, to establish a refund method for excess TABOR revenues from 2016
Body
Presented By:
Tiffany Hooten, Finance Director
POLICY QUESTION:
Does city council support a resolution establishing a refund method for excess TABOR revenues from 2016?
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 2017 to either: 1) refund the excess revenue in some manner or, 2) ask voters to keep the excess revenue to spend on local projects or services.
A study session was held on July 25, 2017 to discuss the options. Council directed staff to prepare two TABOR resolutions referring two ballot questions to the voters in November.
On August 1, 2017, the city council approved two resolutions (as amended with additional language) referring two separate ballot questions to the voters. If approved, one question allows the city to retain the excess to be used for specific capital projects, and the other allows the city to adjust the base used for calculating the TABOR limit.
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 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 ...
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