Development money backs tax initiatives

The region’s largest cities are asking taxpayers to contribute a little bit more to make their hometowns a better place to live.

Fort Collins and Loveland each have tax increases on the Nov. 5 ballot to fund transportation issues and Greeley is asking for an increase in sales tax to fund parks, recreation and cultural improvements.

Tax increases are almost always difficult to pass, and the thick layer of uncertainty hovering over the economic environment might make people think even more about even a slight increase.

“Of all the different tax issues that show up on the ballot I see transportation as possibly generating the most support,´ said John Straayer, professor of political science at Colorado State University. “I see competing pressures, but the traffic situation is becoming more and more serious, and the future suggests there could be major problems ahead.”

In Fort Collins, Referred Issue 2C proposes a .25 percent increase in city sales and use taxes and a 1 percent construction excise tax for transportation projects. The plan includes the widening of Timberline Road, the Mason Street corridor extension and improvements at Lemay Avenue and Vine Drive.

Of the $51,260 so far reported by Community Transportation Campaign, the business interests represented are overwhelmingly construction, real estate and banking.

Major contributors include: First National Bank, housing developer Rigden Farms, St. Charles Investment Cos. Inc. of Englewood, Boulder-based builder James Construction Co. Inc., and W.W. Reynolds Cos. of Boulder, all pitching in $5,000.

But while the Chamber of Commerce and Board of Realtors in Fort Collins support this issue, the Northern Colorado Homebuilders Association stands opposed.

“This tax is a burden to all homebuyers,´ said Michelle Jacobs, director of community affairs for the association. “The HBA knows that growth does pay its way and more, primarily through impact fees. The one percent construction excise tax is very severe and punishing to the consumers.”

In Greeley, Ballot Issue 2A asks for city sales and use taxes to be increased 0.3 percent through 2022 to beautify parks and improve and enhance recreation and cultural opportunities.

Of the $46,570 collected by Citizens for Quality of Life, the business interests behind the initiative again include construction and development companies. Major contributors include: Phelps Tointon, Great Northern Properties, and Hensel Phelps Construction Co. offering $2,000 each. Owners of the Greeley Tribune have made the largest corporate contribution at $5,000.

The Greeley/Weld Chamber of Commerce, the Greeley Area Realtors Association and the Homebuilders all support the issue. “It has something for everyone,´ said Lisa Mueller president of the local real estate group.

Loveland also has a transportation tax on the ballot, but no one seems to be taking a large interest in promoting it.

The issue proposes to increase the city’s sales and use tax rates by 0.25 percent for five years to fund the city’s transportation plan. Targeted projects include building a road between U.S. Highways 287 and 34 along 37th Street and Madison Ave.; widening Taft Ave. from 8th Street to U.S. 34; and installing new traffic lights at nine intersections.

David Schneider, who chairs the city’s Transportation Advisory Board and helped form the last-minute support committee, Yes on 2B, said the group only banked two contributions as of late October. One of the donations was from Schneider.

Schneider said he is disappointed businesses have not weighed in on the matter. “Logically, there’s a great deal of potential for businesses to be interested in this issue,” he said. “We continue to ignore the population impacts and there are no local funding sources technically earmarked for transportation.”

Neither the Loveland Chamber of Commerce nor the Loveland Berthoud Association of Realtors has taken a stand on this issue.

“I don’t think it’s got a chance of passing,´ said Kitty Wild, government affairs committee chair for the local real estate association. “It’s a real bad year to get any new taxes passed.”

Business donors lean toward GOP in District 15

The state Senate District 15 race stands as one of the closest political contests in Northern Colorado and one of the most important in the state. Democrats need to retain the seat, which is being vacated by current state Senate President Stan Matsunaka, to hold onto a slim one-seat majority in the Senate.

Matsunaka is running for the Fourth District U.S. House of Representatives seat.

Because of its pivotal nature, District 15 is also a measuring stick for how business interests are positioning themselves on a statewide basis.

Republican candidate Steve Johnson, who has six years experience as a state representative, has campaigned on promises to eliminate personal property taxes for businesses and reducing costs and state mandates involved with health insurance.

Johnson’s also calling for more state dollars spent on tourism and increasing funding for regional transportation issues.

Business interests backing Johnson include Anheuser-Busch Cos., Qwest Communications and Philip Morris USA, as well as political action committees representing the medical, legal and construction professions.

The Democratic contender, current Loveland Mayor Kathy Gilliland, said her biggest interests include finding ways to lower the tax burden on businesses. She wants to find incentives to bring new business into the region, keep expanding business in the region and lower the cost of health insurance for small business.

Gilliland’s business support includes Loveland-area developers McWhinney Enterprises and Loveland Commercial LLC as well as a group of trade unions.

Political analyst Straayer described Gilliland as “a good candidate with experience,” but said she’s “running an uphill battle.”

“Steve Johnson’s voting record is extraordinarily conservative, but he doesn’t wear his right wing conservatism on his sleeve,” Straayer said.

on Facebook on LinkedIn