Right direction, wrong time
Arapahoe County commissioners say climate not right for tax measures to solve funding challenges
Arapahoe County commissioners on Tuesday agreed that the County is on the right track to solve a serious and growing structural funding challenge while also acknowledging that this fall’s general election is not the right time to float a tax measure as a possible solution. The decision comes after recent polling indicated a lack of voter support and resident fatigue regarding property valuations and the implications for next year’s tax bills. Commissioners vowed to continue the discussion and set their sights on a potential 2024 ballot initiative.
Why it matters: Arapahoe County has significant needs to support infrastructure, public safety and general services and the funding to support these areas has not kept pace with inflation of demand, especially compared with neighboring counties such as Adams, Douglas and Jefferson, who are smaller in size.
During discussion on the issue, several commissioners noted that one of the biggest roadblocks to the funding challenge is helping residents understand the role of county government plays in their lives.
“The County is really the backbone of our community,” said Commissioner and Chair Carrie Warren-Gully. “We are the people that partner with our federal and state partners, we work with our cities, we work with our school districts and special districts. We are the collaborator, the convener, and the regional watcher of our county as a whole. We have the opportunity to see that in a regional and global manner in order to support our community and make it a place people want to live and to work and to raise their family and to stay.”
Why not now
Commissioners indicated two primary reasons for delaying a ballot measure until 2024. First, recent polling showed little to no voter appetite for either a potential sales tax measure or a “de-Brucing,” which would release the county from the property tax cap of the Taxpayer’s Bill of Rights (TABOR). Residents recently received biannual notices of valuation from the county assessor, causing concern and confusion about next year’s tax bills.
“We understand that lots of folks were upset that the valuation of their homes went up,” said Commissioner Jeff Baker. “So, I agree that this is probably not the right year to do it, but that time is coming. This is something we must address.”
Commissioner Campbell-Swanson echoed that sentiment while also building the case for future action. “We’re having a pinch on our cost of living. People are really feeling it and we’re hearing it all over the place,” she shared. “So, to me it’s an obvious and clear need: if we don’t find a way to raise revenue in a sustainable way, there are going to be some very devastating things that will happen in this county.”
Commissioners were presented with possible scenarios if the funding gap is not addressed soon. Primarily, the county’s backlog of repairs and deferred maintenance on roads and county infrastructure could get even worse, alongside cuts to critical programs like public safety and homelessness efforts. Demand for those services continues to rise, while revenues have not kept pace.
The origins of the funding challenge
Commissioners read a resolution explaining the pressures affecting the County’s finances, noting in part:
- The County has only half the revenue of Douglas, Jefferson and Adams counties and roughly double the population, adding challenges to the county’s ability to provide mandated services, creating a structural budget issue.
- Inflation is making it difficult to provide vital county services.
- Responsible budget management and a long-standing practice of fiscal constraint has meant deferring maintenance on more than $500 million of critical infrastructure projects.
- Over the past 20 years, the County has seen its share of the property revenue decline from approximately 17% in 2003 to 13% today. The County’s tax rate declined from 14.594 to 12.750, which is significantly lower than other adjacent metro Denver counties.
What’s next
As commissioners acknowledged their disappointment in not referring a measure to the ballot, they were adamant in their decision to move forward on the same path.
Referencing the county’s ability to creatively solve the budget crisis in years past, Commissioner Leslie Summey said in a study session that the need has not gone away. “Whatever we do and whenever we do it, let’s make sure we do it right, while overcoming all objections to make sure we are successful because we are in an emergency. We need to help our community.”
Commissioner Bill Holen made a promise to the audience. “It’s our commitment to the constituents of this county that we are going to work with you, we are going to sit down and continue our dialogue to find out what’s important to you and the services we provide and how we can best deliver those services in an economically sensible manner.”
Chair Warren-Gully agreed. “I was very sad and disheartened that we could not go forward this year to try and find a solution to this problem,” she said. “We care about you and we know what the need is and we want to provide that and we are going to continue to move forward with this conversation. This is an ongoing conversation not an end to the conversation. We want to do this and unfortunately this wasn’t the year.”
