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Greeley City Council discusses budget impacts of potential tax increases

The Greeley City Council continues to debate three potential ballot measures that would each implement 0.5% tax increases, which are projected to raise an additional $12 million to $14 million in revenue for city departments.

During a special work session on Tuesday, the city council continued its discussions on the proposed ballot measures, which aim to raise taxes by 0.5% for public safety, economic development and homelessness and housing. City staff estimate these increases would add at least $12 million to support new projects.

    The public safety tax, which was held from last year’s ballot due to low public support, would increase funding for police and fire departments to hire more staff and finance new and improved public safety facilities.

    The housing and housing tax would help maintain existing programs that aid people experiencing homelessness and assist them in transitioning into permanent housing. This tax was proposed to be combined with the public safety tax during the city council’s last discussion about the measures in April.

    A significant motivation for this combined tax, as proposed by Councilman Tommy Butler and Councilwoman Deb DeBoutez, was to fully fund a year-round homeless shelter —a measure that DeBoutez had emphasized as sorely needed when the council passed the camping ban in June. However, in the compiled ballot measure, a year-round shelter was not among the list of items to be funded by the tax as Interim Budget Director Kalen Myers said the city was “prioritizing breadth over depth.”

    Additionally, city staff noted they are unable to combine two unrelated issues into a single ballot item due to the Taxpayer’s Bill of Rights. According to Myers, funding for the year-round shelter would be too distinct from the proposed staff increases needed by firefighters, police officers and the housing outreach team, as well as the construction of a new fire station.

    Butler questioned whether it was necessary to construct a new fire station, asking staff if it would be needed within the next five years.

    “What I can tell you is that call volume is starting to increase for Station 6,” Fire Chief Brian Kuznik said about the station at 10603 20th St. “As the resources become busier at Station 6, so do the resources in the center of town and on the east side of town, drawing Station 6 further to the east, which then increases response time to the western portion of the district.”

    Butler then asked Kuznik if it would be more helpful to have more stations or more full-time employees. Kuznik told the council that while additional personnel would be beneficial, if they don’t have a place for them or the necessary extra equipment, more staff wouldn’t be helpful. But he wouldn’t refuse additional firefighters.

    The economic development and community revitalization tax would help fund downtown development projects and provide funding to help small businesses. This proposal appeared to move closer to the chopping block Tuesday, much to Councilman Dale Hall’s reluctance. Hall pointed out to the rest of the council and staff that the economic development tax is the only measure that could result in a return on investment, in terms of generating additional revenue for the city.

    City Manager Raymond Lee agreed, saying the city could see a twofold return on their investment with the economic development tax increase. But polls have consistently shown little support among residents, he added, and the city would need to conduct a massive education campaign to give it a chance.

    “We also know a huge education campaign has to go along with something like this, because the everyday citizen doesn’t truly understand the full impact of something like this,” Lee said.

    With the mention of the extensive education campaign and low polling, the council’s enthusiasm for the proposal appeared to wane.

    City staff will return to the city council on July 22 with the results from a second round of polling to gauge Greeley residents’ opinions on these issues.

    The council will finalize its decision on which of these potential measures will see the ballot this November on Aug. 19.

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