HomeMy WebLinkAbout20181079.tiffBerthoud Fire Protection District
275 Mountain Ave, Berthoud, CO 80513
Phone: (970) 532-2264
"To Serve, To Care, To Support"
Commissioner Julie Cozad
Chair, Weld County Commissioners
1150 0 Street
P.O Box 758
Greeley, Co 80631
Dear Commissioner Cozad,
March 20, 2018
RECEIVED
MAR 2 6 2018
WELD COUNTY
COMMISSIONERS
In April of 2017, the Department of Local Affairs (DOLA) published the Residential Assessment
Rate (RAR) Study final findings which lowered the RAR from 7.96% to 7.20%. The continued
increase in residential property construction, primarily in Colorado's large metropolitan areas,
will result in another RAR decrease in 2019.
In 2018, District property tax represented 90.9% of the District's General Fund revenue. The
District serves portions of Larimer, Weld and Boulder Counties. Special districts rely on
property tax revenue from both commercial and residential properties to fund all aspects of their
operations. Colorado's special districts, including the Berthoud Fire Protection District are facing
significant revenue losses because of the Gallagher Amendment, in combination with the
"ratchet down" effect of the TABOR Amendment. DOLA projections for 2019 reduce the RAR
from 7.2% to 6.11%.
In areas of the State that are experiencing significant residential growth their special districts will
not experience the revenue hardships created by the Gallagher and Tabor Amendments. Over the
past two years, the District has experienced moderate residential growth, in comparison with
other northern Colorado communities, with only one commercial building currently under
construction. The rate of residential and commercial growth within the District is currently not
off -setting the negative impact the rate of reduction in the RAR.
If the RAR had stayed at the 7.96% the District would have collected $182,654.43 more in
revenue. However, because of the reduction, our District had to eliminate several
operational items from our budget and had to take $52,000 from our reserves to cover
budget needs. If the trend continues and the taxable percentage continues to decrease, our
District will see a major loss of income that will prevent important operations from taking
place.
To further complicate the issue, DOLA is mandated to conduct a RAR study every odd year.
Assessed valuations are likely to increase incongruently in the rapidly growing large
metropolitan areas as opposed to bedroom communities such as the District. This will drive the
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2018-1079
RAR down even further resulting in devastating tax revenue decreases not only for our District,
but for all districts which rely heavily on residential tax revenues to fund their operations.
As written, the Gallagher Amendment will significantly impact the ability of most special
districts to meet the statutory requirements of Title 32 in protecting life and property. It is a well-
known economic fact that recessions cyclically occur. When, not if, the next recession happens,
and residential valuations drop dramatically in conjunction with an already significantly reduced
RAR, the District and other Special Districts in Colorado will be financially devastated, that
providing even a marginal level of service may not be a possibility.
We understand that you, as an elected public servant, will find the negative impacts of the
Gallagher Amendment and the TABOR Amendment "ratchet down" effect on public safety
agencies unacceptable. On behalf of all Colorado special districts negatively impacted by future
RAR decreases we respectfully request that you support the passing of legislation in the current
2018 legislative session to extend the 7'20% RAR for 4 years. While only a temporary solution,
this would give state legislators time to find a permanent solution for this fiscal crisis.
Sincerely,
President
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oard Vice
Eric Ryplews ', Board Member Da '� Shiple , B.. d Member
Stephe,,Charles, Fire Chief
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