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HomeMy WebLinkAbout2019 AMD TABOR Notice_Nov 1 TO: ALL REGISTERED VOTERS NOTICE OF ELECTION TO INCREASE TAXES ON A REFERRED MEASURE Election Date: Tuesday, November 5, 2019 Election Hours: 7:00 A.M. to 7:00 P.M. Local Election Office Address and Telephone Number: Arrowhead Metropolitan District Beth Johnston, Designated Election Official 28 Second St, Ste 213, Edwards, Colorado 81632 Phone: 970-926-6060 ext. 111 Ballot Title and Text: ARROWHEAD METROPOLITAN DISTRICT BALLOT ISSUE A SHALL ARROWHEAD METROPOLITAN DISTRICT SALES TAXES BE INCREASED BY UP TO $850,000 IN THE FIRST FULL FISCAL YEAR AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER BY THE IMPOSITION OF A SALES TAX BEGINNING JULY 1, 2020 AT AN INITIAL RATE OF 5.0% (50 CENTS ON EACH $10 TAXABLE PURCHASE) WHICH RATE THE BOARD MAY ADJUST DOWN AND UP ANNUALLY WITHIN A CAP OF 5.0% UPON EVERY TRANSACTION IN THE DISTRICT UPON WHICH THE STATE IMPOSES A SALES TAX, FOR THE PURPOSES OF FINANCING, CONSTRUCTING, OPERATING AND MAINTAINING STREETS, TRANSPORTATION, AND SAFETY PROTECTION IMPROVEMENTS; AND SHALL ALL DISTRICT REVENUES BE COLLECTED, RETAINED AND SPENT NOTWITHSTANDING ANY REVENUE LIMITS PROVIDED BY LAW? Total District Fiscal Year Spending: 2019 (estimated) $2,190,792 2018 (actual) $2,220,838 2017 (actual) $2,328,659 2016 (actual) $2,491,445 2015 (actual) $2,249,604 Overall percentage change from 2015 to 2019: -3% Overall dollar change from 2015 to 2019: -$58,812 Proposed District Tax Increase: Estimated first full fiscal year maximum dollar amount of increase: $850,000 Estimated first full fiscal year spending without the increase: $2,338,178 2 Summary of Written Comments For the Proposal: I strongly favor adopting the 5% sales tax on sales of merchandise, food and beverage, and short-term rental revenue within Arrowhead. The primary purpose for adopting a sales tax is that it broadens the Arrowhead Metropolitan District tax base which is now entirely dependent on real estate taxes paid exclusively by Arrowhead property owners and residents. By broadening the tax base, more than half of the sales tax revenue is anticipated to come from non-Arrowhead residents who are either short- term renters or customers at Vista, Broken Arrow and other Arrowhead establishments. To the extent District services are paid for with sales taxes, it will benefit all Arrowhead Property owners. The Metro District Board has adopted a policy to maintain the District’s reserves at the current $2,000,000 level but to not exceed this level. This level was established by the Board to maintain the District’s strong AA- credit rating and to enable the District to continue to provide services and capital replacements (including road overlays) as they become necessary. To the extent the sales tax will generate surplus funds, the Board is committed to: 1. Reduce the mil rate. Current estimates are that the mil rate can be reduced from 18.5 mills to 14 mills by 2022; 2. Replenish property taxes lost due to the Gallagher Amendment which affects all Colorado governments funded with property taxes. In the absence of the sales tax, it is likely that real estate property taxes will need to be increased above the current 18.5 mil rate; 3. The Board may also utilize surplus funds for debt reduction. It is important to note that while short term rentals are subject to sales taxes, those taxes are not paid by the rental unit owners but instead are collected from the renters. Therefore, it does not cost the property owner anything if a sales tax is implemented, that cost is all borne by the renter. And to the extent property taxes are reduced as a result of the sales tax, that benefit accrues to the rental unit owner. Accordingly, paying for District services with a sales tax is to the financial benefit of rental unit owners as well as all property owners in Arrowhead. It is unlikely that the implementation of a sales tax will affect a prospective renter’s decision to rent in Arrowhead. In fact, the sales tax on short term rentals in Arrowhead will be less than or equal to the combined sales and accommodations tax in other surrounding jurisdictions:  Avon 8%  Beaver Creek 6.31%  Vail 5.4%  Bachelor Gulch 5%  Arrowhead 5% 3 The District Board is committed to a “tax and rebate” philosophy rather than “tax and spend” by holding the District’s costs down and using the sales taxes to pay for services that would otherwise be paid with property taxes so the mil rate can be reduced thus effectively rebating those funds to the property owners. Please consider voting Yes on the sales tax question with me. Summary of Written Comments Against the Proposal: PLEASE JOIN US IN VOTING NO ON BALLOT ISSUE A. Ballot Issue A is a sales tax increase redistributing $2.1 million of taxes from high value properties to the rest of Arrowhead.   The tax will be on all online purchases such as Amazon, ebay, Costco, cell phone bills, construction materials, appliances and furnishings being delivered to Arrowhead, food and alcohol purchases in Arrowhead, autos leased to an Arrowhead address etc. Anything purchased in or delivered to Arrowhead will be have a permanent tax increase!   This is of benefit to only a few high-end homeowners as they will receive the largest property tax break. There is little chance the average homeowner will receive a net benefit after paying an additional 5% on all purchases.   PLEASE JOIN US IN VOTING NO ON BALLOT ISSUE A. Arrowhead Metropolitan District Beth Johnston, Designated Election Official 28 Second St, Ste 213 Edwards CO 81632 IMPORTANT VOTER INFORMATION TO ALL REGISTERED VOTERS ARROWHEAD METROPOLITAN DISTRICT SPECIAL ELECTION NOV 5, 2019 ELECTION INFORMATION ENCLOSED This booklet contains summary statements for ballot issues as required by the State of Colorado Constitution, Article X, Section 20. This Notice of Election on a Referred Measure is mailed to each address with one or more registered voters. The Arrowhead Metropolitan District November 5, 2019 Special Election will be conducted as an independent mail ballot election. A mail ballot packet will be sent to eligible electors at their ballot mailing address (as shown on their county clerk and recorder’s voter registration records) between October 14 and October 21, 2019. Your mail ballot must be returned to the District by US Mail to: Arrowhead Metro District, 28 Second St, Ste 213, Edwards, CO 81632 or dropped off at 28 Second St, Suite 213, Edwards, CO 81632 no later than 7:00 p.m. on Election Day, November 5, 2019, to be counted. Postmarks do not count as received. To request to have a mail ballot mailed to an alternate address or to request a replacement mail ballot, you must submit a Request for Mail Ballot to the District. To obtain a Request for Mail Ballot: email the Designated Election Official at bethj@mwcpaa.com or call (970) 926-6060. You may not be eligible to vote on the ballot issue presented. To make sure you are registered to vote in the State of Colorado at your current address, go to www.govotecolorado.com or contact your current County Clerk.