Arapahoe County asking voters to ‘de-Bruce’ tax collections currently capped by state law

AURORA | Arapahoe County voters will decide whether the county can keep more property taxes collected from its residents, currently limited by state tax restrictions.

The proposal is what’s known as a “de-Brucing” measure, a legal adjustment of a local government’s relationship with revenue limits set by the Taxpayer’s Bill of Rights, or TABOR. 

The name refers to Douglas Bruce, a Colorado Springs resident who championed TABOR, which limits both tax collections and spending.

The ballot measure, if passed, would eliminate the Arapahoe County revenue cap set by TABOR, allowing the county to keep up to an additional $72 million per year from property taxes.

The measure does not raise taxes, but allows the county to keep all current taxes collection from property owners in the county.

In a 4-1 vote earlier this year, the commissioners referred the measure to the Nov. 5 ballot, with District 3 Commissioner Jeff Baker dissenting. He said many of his constituents opposed the measure going to the ballot.

In Colorado, more than 50 of the state’s 64 counties have passed similar measures to eliminate TABOR revenue caps, including historically conservative Douglas and El Paso counties.

For months, the county has been sounding an alarm on a brewing budgetary crisis that could prompt cuts to some essential services. If the measure is passed, the county hopes the additional revenue would help it avert or reduce cuts.

“This county’s belt is tight,” District 2 Commissioner Jessica Campbell said at an Aug. 20 public hearing. “There’s no tightening of a belt that can happen here without losing levels of service.”

Without more revenue, the county would look at up to $35 million in cuts next year, including up to $12 million from the sheriff’s office, up to $3.7 million from public works and up to $4.7 million from community resources, public health and human services.

Finance Director Todd Weaver said the county’s authorized property tax rate is $15.821 per $1,000 of assessed property value. But, because of revenue limits set by TABOR, the county is permitted to retain $11.206 per $1,000 of assessed property value in 2024, which comes out to about $32 per month for a property valued at $500,000. This money, plus declining one-time funds from the pandemic, funds county services.

If the measure is passed, the county will be able to collect and retain $15.821 per $1,000 of assessed property value, which would be about $44 per month on a home valued at $500,000.

Natalie Menten, a member of the TABOR Foundation, a group that advocates for TABOR, spoke at the public hearing against placing the measure on the ballot. She said the ballot language does not make it clear that more money will be going from residents’ wallets to the county.

“The ballot language is misleading, and it’s unfortunate the county spent taxpayers’ dollars … to go out and do that public persuasion that was presented in the earlier section of this meeting,” she said, noting the county’s public events and outreach related to the ballot measure.

Some residents spoke in support of the measure, expressing concern about what declining funds would mean for county services. Some spoke on behalf of social service organizations including Family Tree and Gateway Domestic Violence Services, saying they would no longer be able to provide their services without the county’s financial support.

Others spoke about county services they fear losing.

“It’s about time that this group of county commissioners puts this issue on the ballot,” one resident said. “I’m old. I’m getting older by the minute. And there’s a large population — the state of Colorado is aging — and many of them are going to need services that they’re going to come to the county for.”

Campbell said the commissioners were respecting TABOR by bringing the measure to the voters.

“America is about self-determination,” she said. “That’s what TABOR does. TABOR — and in what we are doing here, in referring something to the ballot … that is consent of the governed. We are not eradicating TABOR. This is part of TABOR.”

District 1 Commissioner Carrie-Warren-Gully said she recognizes that people across the county are struggling financially.

“We see people sitting around their kitchen tables struggling, and we want to recognize that,” she said. “But we, too, sit around the commissioner’s conference table and make equally difficult decisions.”

If voters approve the ballot measure, the county would still need to bring tax measures to voters regarding mill levy increases and sales taxes, county attorney Ron Carl said.

Spending from the property taxes would be reported in an annual audit and would be reviewed by a resident advisory committee, said Michelle Halstead, director of the commissioners’ office.