Page 16 - Sentinel July 2018
P. 16
OUT OF SERVICE Continued from page 15 Here are just a few.
In 2017, the RAR declined further – to 7.2 percent - in response 1. Mill Levy Increase
to the ever-increasing number of new homes being built, mainly Property tax increases are never popular – especially if you’ve
along the Front Range. In 2019 the RAR is projected to decline recently asked your community for more operating revenue.
further to 6.1 percent.
Furthermore, fire districts that have recently been successful in
passing an increase in their mill levy have seen those additional
This imbalance is highlighted by a simple fact: the 55/45 ratio revenues wiped out due to the lowering of the RAR required by
is set statewide, regardless of local market conditions. Because the Gallagher 55/45 ratio.
most people in Colorado live on the Front Range, property val-
ues there are setting the formula for the entire state — but tax- 2. De-Gallagherization Initiative
ing districts in rural areas are also paying the price because they De-Gallagherization is a proposal asking voters to allow their
rely more on property taxes than on sales tax.
governing boards to approve a sliding mill-levy, increasing the
levy amount in years the RAR drops below the current rate of
Confused yet? Well, let me muddy the waters further by throw- 7.2 percent. The goal would be to match current revenues a 7.2
ing in TABOR requirements. In effect, TABOR does not allow percent RAR would have produced had the RAR not been de-
the RAR – once lowered – to be increased without a vote from creased due to the requirements of the Gallagher amendment.
the citizens of Colorado. In essence, Gallagher forces the RAR
downward when housing prices go up – but can’t bring the 3. Creation of a Fire Authority through Consolidation/Unifica-
RAR back up when housing prices go down.
tion with Neighboring Departments
Consolidation or combining neighboring fire districts to create
The impact on fire districts? Dramatic decreases in revenues a fire authority leverages the power of economies of scale with
will cripple delivery of emergency services. Unless state leg- a goal to provide high levels of service while reducing redun-
islators fix Gallagher’s unintended consequences, fire districts dancy of operations. Emergency and non-emergency responses,
have limited options on how to continue to provide quality ser- dispatching, training, and administrative staff are just some ex-
vices.
amples of how unification of departments can reduce inefficient
redundancies, thereby lowering costs. Examples in Colorado
Continued on page 17
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“Stewardship not Salesmanship”
990 Glade Gulch Road | Castle Rock, CO 80104 | P 303-663-2150
gregory.jackson@lpl.com | F 303-663-2159
Gregory S. Jackson, MS, CMFC | C 303-918-9271
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Western Wealth Management, a
registered investment advisor. Jackson Financial Management and Western Wealth Management are separate entities from LPL Financial.
Page 16 - July 2018 Perry Park Sentinel
