Loveland city officials are to be commended, who over time have exercised good stewardship of government resources to consistently provide a wide range of services to residents at a modest cost. I say this as someone who has at times been critical of the council. However, I believe that council members take their responsibilities seriously and generally demonstrate a genuine commitment to the well-being of this city.

Measure 2E asks voters to approve a 1% increase in the sales tax on items other than food for household consumption. This comes after taxpayers approved a repeal of the 3% sales tax on food for home consumption in November last year, representing a savings for anyone shopping for food in Loveland. It also represents a significant loss of sales tax revenue for the city’s General Fund, which Chief Financial Officer Brian Waldes estimates will be around $10 million. While it is difficult to measure the net impact of such a loss to the General Fund, it will surely be significant.

City leadership has been able to consistently provide an impressive array of services without increasing the sales tax rate for 40 years. Unfortunately, that has sometimes resulted in strict fiscal conditions that have led to cuts, as well as reduced hours and temporary layoffs of employees.

However, it is clear from charts shown repeatedly at recent council meetings that Loveland citizens have gotten much more for their tax dollars on services than neighboring cities. As our Finance Department says, “Loveland’s service model (highest level of services) and revenue model (lowest revenue/tax burden) are not aligned and result in the structural imbalance we are now experiencing.”

Some unusual steps have been taken to make it to 2024. Parks and Recreation saved the city $1.87 million by moving some items to a “break/repair model,” apparently squeezing out as much longevity as possible. Some projects are simply being temporarily delayed, such as the Americans with Disabilities Act compliance improvements that will need to be made at Centennial Park. Public Works saved the city $3.87 million through capital reductions, some of which will also need to be reappropriated in the future. The “money saved” in 2024 equals some “delayed obligations.”

Crafting a realistic budget for 2025 has been a huge challenge. The city had to anticipate the possible failure of the 2E tax initiative, which could result in a worst-case scenario of a revenue loss of between $12 and $13 million. Hopefully, the reduction requirements won’t be as severe. (For list of reductions, see City Council Study Session Agenda, July 9; item 2.2, Budget Planning, Annex 1).

It begs the question: What impact would a 1% increase in sales tax have on the most financially disadvantaged among us? Everyone will pay a little more for non-food items. However, most of the increased tax burden will fall on middle- and high-income people. Dan Sichel, an economist at Wellesley College, says, “Typically, food, gasoline, and housing account for a larger share of total spending by low-income households than by high-income households.”

One also has to wonder what the impact of budget cuts will be if the sales tax measure fails. Obviously, almost everyone will notice a reduction in library programs, services, and hours; the elimination of Fourth of July fireworks, the closure of Lake Loveland Swim Beach and increases in recreation fees. That will hurt the most those, typically those with the greatest financial difficulties, who depend on the services provided by Parks and Recreation, the library, the Office of Community Partnership and Cultural Services (the museum, the summer movie program, etc.). ).

We can make Loveland a healthier, more prosperous place to live. Even with a 1 cent per dollar increase in non-food taxes, Loveland will still have one of the lowest sales and property tax rates of the full-service cities in our region. Together, Colorado Larimer County stands with the League of Women Voters of Larimer County and Save our Services in urging you to vote “yes” on Ballot Question 2E.

Chuck Hubbard is a pastor (Evangelical Lutheran Church in the United States) and faith leader of Together Colorado.