Contact: Jaime Walker
Community Relations Officer
Town of Avon
970-748-4087
jwalker@avon.org

Avon Town Council Opposes Three State Tax Measures

Avon, CO—The Avon Town Council on Tuesday night approved a resolution in opposition to three state ballot initiatives: Proposition 101 and Amendments 60 and 61. The Council cited detrimental fiscal concerns that would result if the measures pass in November.

The three tax measures individually and collectively will have a dramatic impact on reducing revenue at the state and local government levels. If passed, these initiatives will significantly limit property taxes, limit the ability for state and local government to issue dept, as well as reduce vehicle fees, income tax and telecommunications revenue. Since these measures affect collection and the ability to issue debt, all areas of the Avon’s general fund budget will be affected. If passed, the Town of Avon will loose at least $556,000 in 2011 and more revenue each subsequent year.

Avon’s Town Council and staff have been prudent guardians and fiscal stewards of the budget and of taxes and fees. The Town has been fiscally conservative so it could weather reductions in revenue, but these measures will likely constrain the Town’s budget further. Earlier this year, the Town reduced staff, municipal services and reduced bus service levels to maintain a stable fund balance and balanced budget. Further cuts will be likely if these three measures are passed in November.

“I am afraid that these proposals will move us far behind and that their revenue reductions and restrictions on our municipal operation will not be in Avon’s best interest” said Scott Wright, Assistant Town Manager of Finance.

Avon, like other communities, leverages revenues from the State to maintain infrastructure, implement new programs, and build new projects. If these measures pass, projects that typically receive State support would require a vote to move forward and would likely not receive the funding from the State, therefore limiting economic development and the creation of local jobs.

“These measures will limit both future job growth and our economic development activity by restricting our revenues and ability to plan for the future” said Larry Brooks, Town Manager.

Proposition 101 will freeze emergency 9-1-1 fees at their 2009 levels. These fees can never be increased to meet on-going demands for public safety and emergency service.

Amendment 60 places significant limitation on government’s ability to raise revenue from property tax. In addition, it substantially increases the number of people who can vote on a property tax increase by allowing people who live outside of town, but who own property here, to vote. Community influence over local decisions will be diminished as a result.

Amendment 61 places severe restriction on government’s ability to plan for the future and pay for needed public improvements by limiting the type of debt financing a municipality can undertake. It will also require simple leases for equipment, such as a fire truck or a police car, from being used unless a vote is held.

For more information on these tax measures, visit Colorado Municipal League at http://www.cml.org/advocacy/general.aspx.