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HomeMy WebLinkAbout20160802.tiff OFFICE OF BOARD OF COMMISSIONERS 18 61 PHONE: 970-336-7204 FAX: 970-336-7233 1150 O STREET P.O. BOX 758 G p U N ¶ Y GREELEY, COLORADO 80632 February 23, 2016 Stephen Town 2737 Ironwood Circle Erie, Colorado 80516 stephentownCalcomcast.net Dear Mr.Town: Thank you for your email regarding Bright Futures.The Board of County Commissioners is faced with many competing interests for the county resources we have to operate county programs,while also serving as good stewards of county funds for all the taxpayers of Weld County. We take our job of being the stewards of the taxpayers' money very seriously, as is evident by the fact Weld County has no debt, no sales tax, and one of the lowest county mill levies in the state. Weld County has reduced the mill levy from 22.038 to 15.800 mills or 6.238 mills with a temporary tax credit the last nine years. With the energy boom, Weld County taxpayers have benefited from a lower county mill levy, which results in lower property tax payments. The oil and gas industry is paying two-thirds of the Weld County government's taxes. The Weld County Commissioners have taken great care not to increase core county programs costs with the added revenue from oil and gas.While core county programs have not grown,the Board of Weld County Commissioners has taken the opportunity of the added oil and gas tax revenues to invest in the future of Weld County.The strategy of investing in the future of Weld County has allowed the county to upgrade our emergency dispatch communication infrastructure, invest in state of the art technology,accumulate a$30 million reserve to accommodate fluctuating oil and gas prices, reserve over$30 million for a future jail expansion,and make significant investments in the road and bridge infrastructure, while at the same time recovering from the 2013 flood damage to our roads and bridges. For example, between the years 2014-2018,Weld County will invest over$150 million in the Weld Parkway(WCR 47/49 Corridor) from I-76 to WCR 392. All of this has been done for the benefit of the current and future Weld County residents on a pay as you go basis with no debt. Just as the Board of Weld Commissioners has invested in capital items, infrastructure, financial reserves, and technology, we feel it is of utmost importance to invest in the future of our students and workforce for the future economic development of Weld County and quality of life for our citizens.The Board sees the Bright Futures program as an opportunity to support both residents and businesses. Through this program, students will further their education, businesses and residents donating to the program will receive a property tax credit toward their taxes,and our overall county workforce will be better trained and skilled.The program investment of$15 million to pay property tax credits to donors will leverage $30 million in financial aid to Weld County students who will be the Weld County workforce of the future. Regarding the County Brochure for 2016,where it lists$326.5 million in expenditures and$420.5 million in revenues, the revenue amount of$420.5 million includes $105,550,000 in fund balance or carry over funds.The fund balance includes $47 million for the construction of WCR 49 over the next two years, $30 million reserve to accommodate fluctuating oil and gas prices, and reserve funds for the construction of the jail expansion in 2018-2019 mentioned earlier. " ivlat\it, LahA 2016-0802 02-x9-0201 fe STEPHEN TOWN FEBRUARY 23, 2016 PAGE 2 With over two-thirds of the county's assessed valuation attributed to oil and gas production, the county has also planned for, in the 2016 budget,a significant drop in the assessed valuation for the 2017 and 2018 budget years due to oil prices dropping from nearly $100 a barrel to $30 a barrel. The drop in oil prices will mean the property tax amount for Weld County with the same mill levy will be reduced by over$30 million in 2017. By planning ahead,the reserves of 29%you mentioned, and other one-time expenses in 2016,will help accommodate this drop in property tax revenues without having to reduce county services in 2017. The Bright Futures program is enabled by legislation passed in 2015(SB 15-82). Part of the requirement of SB 15-82 is that the County Commissioners must include as part of its annual budget process a public budget hearing where the public has an opportunity to comment on the funding of the tax credit amount for the Bright Futures program.The Board would welcome your input and the input of other taxpayers for or against this program to attend and share their views.The 2017 budget hearing will be at 9:00 a.m.on December 14,2016,at 1150 O Street,Greeley,Colorado. Once again we appreciate your input regarding Bright Futures, and hope our above explanation gives you a better understanding of why the Board of Weld County Commissioners is supporting and funding the program. Very truly yours, BOARD OF COUNTY COMMISSIONERS Mike Freeman, Chair • - / Sean Conway,,Pro T Julie A.Cozad arbara Kirkmeye Steve Moreno cc: Don Warden Jennifer Fuller From: Sarah Mundt Sent: Sunday, February 21, 2016 10:36 AM To: mklein; Jordan Jemiola; Don Mueller; grahamb@greeleynet.com; Brett Abernathy Cc: Jennifer Fuller Subject: Fwd: Bright Futures Jen, Would you like to forward this to the Board as well? Thank you, Sarah Sent from my iPhone Begin forwarded message: Resent-From: <countycouncil!,co.weld.co.us> From: Steve Town <stephentown@comcast.net> Date: February 21, 2016 at 10:02:46 AM MST To: countycouncil@co.weld.co.us Subject: Bright Futures Dear Councilmen and Councilwomem, I recently received my property tax statement and coupon. Included was the solicitation for the Bright Futures program. While the program is very sympathetic, I don't understand the economic reasoning behind it. If I'm reading the County Brochure for 2016 correctly, we will have $326.5M in expenditures and $420.5M in revenue. I applaud the fiscal responsibility of running a 29% surplus, however, if the county can afford to give me a 50% credit on a donation to a county program, why can't it fund the Bright Futures program out of the general fund and offer an across the board property tax reduction? Could I get some context to this program and why it is funded by donations offset by tax credits? I would welcome an email or phone call. Thanks, Stephen Town 2737 Ironwood Circle Erie, CO 80516 M: 720-771-7225 Hello