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HomeMy WebLinkAbout980948.tiff . h 414I ;14; OFFICE OF BOARD OF COMMISSIONERS PHONE (970) 356-4000, EXT. 4200 IlDFAX: (970) 352-0242 915 10TH STREET P.O. BOX 758 C. GREELEY, COLORADO 80632 COLORADO May 19, 1998 Walter H. Stewart 2636 14th Avenue Court Greeley CO 80631 Dear Mr. Stewart: In response to your May 5 letter, the Board of Weld County Commissioners appreciates your input and concerns. Regarding taxation and Johnson County, Kansas, I would like to offer the following information. We too would like to lower property taxes whenever we can. Historically, since the passage of the home rule charter, Weld County government has operated under the most restrictive property tax limitation in the state. The charter limits the county portion of your tax bill to no more than a 5% increase over the preceding year. This applies to the county's portion of your tax bill only, or roughly 20% of your property tax bill. It does not apply to schools, special districts, municipalities, etc. As you are aware, the assessed value of Weld County is made up of many components besides residential property such as commercial, agricultural, industrial, utilities, and oil and gas production. In addition to this, residential property assessment is limited by the Gallagher Amendment to be no more than approximately 45% of all property taxes in the state. As a result, the residential assessed value ratio has dropped from 29% to 9.74% of actual value in the last two decades. So even though actual property values go up on residential property, the net assessed value to calculate the mill levy goes down. This is much different from Kansas. Another major factor impacting property tax calculation in Weld County is the substantial amount of oil and gas assessed value. This amount has been significantly dropping in the last few years as production and prices drop. In 1996 alone, oil and gas assessed valuation in Weld County dropped 20.39%. Even with all the residential and commercial growth, with the drop in oil and gas assessed valuation, the total assessed valuation for the county dropped 1.26% over the preceding year. As a result, with the TABOR Amendment that limits property taxes in Colorado to no more than the 980948 Walter H. Stewart Page 2 May 14, 1998 new construction plus cost of living, the county's property tax collections dropped 1.26%. This happened even with a 4.10% growth in new construction and a 3.5% inflation factor. The net effect was the county had a growth in service demands equal to the new construction of 4.1% and a loss in purchasing power of 3.5%, with a drop of actual dollars of 1.26%. The above covers what happened in Weld County in the 1996 budget year which is the same budget year the article covered from Johnson County, Kansas. From the information presented, we hope you can appreciate why the property taxes for Weld County did not drop in 1996. I would point out that in 1995, the mill levy in Weld County did drop .419 mills. Within the limitations of the state law and/or home rule charter, we do drop our mill levy like Johnson County whenever the opportunity presents itself. We trust this answers your concerns. If you have other questions, please call Don Warden, Director of Finance and Administration, at 356-4000, extension 4218, or me at extension 4200. Sincerely, BOARD OF COUNTY COMMISSIONERS Constance L. Harbert, Chair cc: Don Warden 2636 14tt}_ Gt,. , Greeley 80631 I)May 5, 199$'Aye� ,!.' _ .PT County Commissioners of Weld County: We have just returned from Olathe, Kan. , the county seat of Johnson County. Right next to Kansas City, Kan. , this is an area of burgeoning economy and building. The enclosed reprint from a Johnson County newspaper shows that this county, when raising assessments of properties there, knows it can find a way not to be so burdensome on its taxpayers -- it has reduced the tax rate. Why can't Weld County adopt a similar method? Some of us don't have the money to continue to support more taxes and more taxes and more spending and even larger spending by the county and state. We believe it can be done here in Weld County just as in Johnson County. Try it, please! Sincerely, Walter H. Stewart 9 � yg A i 44( A 1 401 II hnson County residents about the programs and services of Johnson County Government Fall 1995 Vol. 1,No.2 I Promises Kept alendar: Johnson County Government n "as rl Wastewater Treat- Lowers '96 Property Tax Levy a.m.;20001 W.47th, Johnson County Government's property tax l crease in value during reappraisal will see 1996 county lion,call 338-1300 will drop for the second year in a row in 1996 under taxes reduced about$20. The owner of a$100,000 a budget adopted in August by the Board of County residence whose property increased five percent in source Library grand Commissioners. value as a result of reappraisal will see about a$5 drop ;n house; 9 a.m. to 5 The commissioners further have pledged to hold in county taxes. a.m.Sept.30;Central the mill levy that determines property taxes for 1997 Commissioners promised the rollback to residents th St.,Overland Park. 5 2400 and 1998,barring additional requirements imposed during a successful spring campaign for a quarter- g a Divorce," alook by the state or federal governments, or new items cent sales tax for public safety. Proceeds from the approved by voters. sales tax will be dedicated the first five years to con- ren ahipbet�ween The 1996 mill levy rollback and freeze fulfill a structing a new county jail,sheriff's office and com- leal; 10 a in:,to noon promise made by the county commissioners to off- munity corrections addition, and to operating a ju- lealih Center, 6000 set the results of property reappraisal last spring. venue hall expansion. All the programs had been at xis required, $10/in- The exact levy will be set later in the fall by the capacity. more information or County Clerk's Office,but the budget is built on a 6 The county will save taxpayers$14 million in in- !f Johnson County,",a percent reduction from 1995, the same amount as terest by dedicating the sales tax to pay off jail debt fohnson:Counh with the increase in the county's total appraised value. in five years instead of the usual 20. Jail operations The owner ofa $100,000 house that did not in- (Continued on page 7) vns boomed and oth- .,departingfromMu 1996 BUDGET ALLOCATION BY STRATEGIC AREA ;man Road,Shawnee. i/members; $18/ngn-, For more information, 9, sting: 6-12.Year Old ■Reat:icted Reserves is Debt Service 4% n parenting the grade- 4% I.m;'Johnson County o General Government •Economic Development 13 rvations required,$10/ +y For more information 0. a Culture&Recreation link Again,"looks at "% s of making the deci- p.m.,Johnson County .Public Safety a Judiciary ervations required,no or to register,call 831- �j Q 'lid I Put That." les- 9 si'�``sJ Hello