Littleton's $6.5M Revenue Shortfall: Hearing Scheduled

Littleton CO

25 August, 2021

1:53 PM

Description

LITTLETON, CO — Littleton residents are invited to another hearing Thursday on two proposals for the city's $6.5 million revenue shortfall. After conducting a second opinion poll, City Council has narrowed the revenue-generating options it was considering. Council members directed staff to draft ballot language — for the upcoming Nov. 2 election — that would ask voters about both a half-percentage and three-quarter-percentage increase to the sales tax rate, which is currently 3 percent: Increasing the sales tax rate by 0.5 percent — a half-percent increase would generate an average of $6.5 million per year and cost an additional $0.50 on a $100 purchase.Increasing the sales tax rate by 0.75 percent — a three-quarter percent increase would generate an average of $10 million per year and cost an additional $0.75 on a $100 purchase. Both proposals were introduced Aug. 17 on first reading during the City Council meeting. Both passed unanimously, so they moved on for a second reading and public hearing this week. Don't miss the latest news updates in Littleton: Free Littleton Patch Newsletters and Email Alerts | Facebook | Twitter The projected annual $6.5 million revenue shortfall is in the city's Capital Projects Fund, which pays for roadway maintenance, building enhancements and other infrastructure projects. The fund is set to reach zero in 4 years, and the city has a $98 million list of more than 70 unfunded capital infrastructure projects over the next 15 years. "This deficit is due to rising infrastructure maintenance and repair costs, steadily increasing capital expenditure needs, an historically low tax rate, and a lack of revenue diversity," city officials said in the Littleton funding fix webpage. The public is invited to the second reading at 6:30 p.m. Thursday at the Littleton Center Council Chamber, 2255 West Berry Ave. >> More information about attending the City Council meeting on Thursday can be found here; learn more about the Littleton revenue shortfall here.