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GLENWOOD SPRINGS, Colorado — The Glenwood Springs Rural Fire Protection District seems to have figured a way to cover its share of operating costs for the next two years, which would save them from defaulting on the intergovernmental agreement with the city.
By eliminating a temporary tax credit, which they've given homeowners within the district for the past 15 years, the rural district will be able to cover the projected $191,000 shortfall for 2010. However, the district will still have to figure out a long term solution, within that time frame, in order to keep operating under the current agreement with the city's fire department.
The City of Glenwood was going to cover the shortfall through its general fund so that the district could continue to operate under the current agreement.
Glenwood Springs has a unique way of funding its emergency services by using a combination of city general fund sales taxes, about $2.3 million a year currently, and rural district property taxes, which is currently about $380,000. Other revenues come from ambulance service fees.
However, by the fire district doing away with the temporary tax credit, and with increasing property valuations, next year the district will be able to cover the shortfall according to Glenwood Finance Director Mike Harman.
“By them not having a temporary tax credit to reduce property taxes, they will be able to cover their expenses,” Harman said.
According to Garfield County Treasurer Georgia Chamberlain, the mill levy for homeowners living within the rural district in 2008 was 5.5 mills. However, the taxing authority's mill levy of 6.3 was passed by voters in 1994. For the past 15 years homeowners received a temporary tax credit to maintain the level of taxes collected for the fire district. In 2008 the tax credit was .823, Chamberlain said, which maintained the approximate 5.5 mills homeowners paid into the fire district.
Carbondale attorney Eric Gross, who also handles some legal issues for Carbondale Fire Protection District, wrote in a letter to the Glenwood district board that in 1994, voters authorized the district to “receive, retain and expend the full revenues generated” from ad valorem property taxes for that year and each subsequent year.
Gross brought to the board's attention that the district had not been collecting its full mill levy of 6.3 for the past 15 years, which Glenwood Rural Fire Protection District Board Chairman Bill Livingston said resulted in a loss of about $500,000 for the district over that time. And by collecting the full mill levy next year, they would be able to cover the operating costs for the next two years.
According to Livingston, voters approved to debruce the taxing district in 1994, however the taxing district never acted as if it had been debruced.
Debrucing is a term named after the author of TABOR, Douglas Bruce and refers to elections where voters are asked to allow government to keep and use all or part of the revenues collected beyond the TABOR limit of 5.5 percent.
“We haven't collected the full mill levy in 15 years,” Livingston said. “But now we have an opinion that says we are entitled to that.”
With the increased valuation of property, collecting the full mill amount will increase the amount paid into the rural district's general fund.
On a $300,000 home, for example, Chamberlain estimated that the increase would be roughly $20 a year if the full mill levy is collected.
“We would like to collect the full mill levy next year, and that changes the picture dramatically,” Livingston added. “Particularly in light of the fact that [property] valuations are going up.”
Livingston said that the board is waiting for Harman to return an actual number to them to identify what the district will actually collect. But the board certified to collect the full mill at it's board meeting on Nov. 10.
Harman said that by the district collecting the full mill levy it would gain about $202,000, which would cover the projected shortfall for next year.
Glenwood's rural district is an independent taxing authority with its own elected board, which operates under an agreement with the city to cover about 64 square miles of surrounding area. In return for the district's property tax revenues, the city provides fire protection and ambulance service to the rural areas.
jgardner@postindependent.com
By eliminating a temporary tax credit, which they've given homeowners within the district for the past 15 years, the rural district will be able to cover the projected $191,000 shortfall for 2010. However, the district will still have to figure out a long term solution, within that time frame, in order to keep operating under the current agreement with the city's fire department.
The City of Glenwood was going to cover the shortfall through its general fund so that the district could continue to operate under the current agreement.
Glenwood Springs has a unique way of funding its emergency services by using a combination of city general fund sales taxes, about $2.3 million a year currently, and rural district property taxes, which is currently about $380,000. Other revenues come from ambulance service fees.
However, by the fire district doing away with the temporary tax credit, and with increasing property valuations, next year the district will be able to cover the shortfall according to Glenwood Finance Director Mike Harman.
“By them not having a temporary tax credit to reduce property taxes, they will be able to cover their expenses,” Harman said.
According to Garfield County Treasurer Georgia Chamberlain, the mill levy for homeowners living within the rural district in 2008 was 5.5 mills. However, the taxing authority's mill levy of 6.3 was passed by voters in 1994. For the past 15 years homeowners received a temporary tax credit to maintain the level of taxes collected for the fire district. In 2008 the tax credit was .823, Chamberlain said, which maintained the approximate 5.5 mills homeowners paid into the fire district.
Carbondale attorney Eric Gross, who also handles some legal issues for Carbondale Fire Protection District, wrote in a letter to the Glenwood district board that in 1994, voters authorized the district to “receive, retain and expend the full revenues generated” from ad valorem property taxes for that year and each subsequent year.
Gross brought to the board's attention that the district had not been collecting its full mill levy of 6.3 for the past 15 years, which Glenwood Rural Fire Protection District Board Chairman Bill Livingston said resulted in a loss of about $500,000 for the district over that time. And by collecting the full mill levy next year, they would be able to cover the operating costs for the next two years.
According to Livingston, voters approved to debruce the taxing district in 1994, however the taxing district never acted as if it had been debruced.
Debrucing is a term named after the author of TABOR, Douglas Bruce and refers to elections where voters are asked to allow government to keep and use all or part of the revenues collected beyond the TABOR limit of 5.5 percent.
“We haven't collected the full mill levy in 15 years,” Livingston said. “But now we have an opinion that says we are entitled to that.”
With the increased valuation of property, collecting the full mill amount will increase the amount paid into the rural district's general fund.
On a $300,000 home, for example, Chamberlain estimated that the increase would be roughly $20 a year if the full mill levy is collected.
“We would like to collect the full mill levy next year, and that changes the picture dramatically,” Livingston added. “Particularly in light of the fact that [property] valuations are going up.”
Livingston said that the board is waiting for Harman to return an actual number to them to identify what the district will actually collect. But the board certified to collect the full mill at it's board meeting on Nov. 10.
Harman said that by the district collecting the full mill levy it would gain about $202,000, which would cover the projected shortfall for next year.
Glenwood's rural district is an independent taxing authority with its own elected board, which operates under an agreement with the city to cover about 64 square miles of surrounding area. In return for the district's property tax revenues, the city provides fire protection and ambulance service to the rural areas.
jgardner@postindependent.com
