We all make mistakes, and I suppose it’s generally true that one mistake leads to another.
We watched this process take place yesterday afternoon, at the Archuleta County Board of County Commissioners meeting. When the smoke cleared, we had a montrously long and complicated “Justice System” measure headed for the November 2018 ballot and resignations from two of the four members of the County’s official “Citizens for a New Jail” committee.
Here’s the ballot measure as approved yesterday by our three County Commissioners — Steve Wadley, Michael Whiting and Ronnie Maez:
SHALL THE COUNTY OF ARCHULETA TAXES BE INCREASED $2,970,000 (FIRST FULL FISCAL YEAR DOLLAR INCREASE) ANNUALLY AND SHALL THE COUNTY OF ARCHULETA DEBT BE INCREASED BY AN AMOUNT NOT TO EXCEED $19,200,000, WITH A MAXIMUM REPAYMENT COST OF $25,800,000; SUCH DEBT TO CONSIST OF SALES TAX REVENUE BONDS OR OTHER FINANCIAL OBLIGATIONS ISSUED SOLELY FOR THE PURPOSE OF CONSTRUCTING, IMPROVING, EQUIPPING AND MAINTAINING JUSTICE SYSTEM CAPITAL IMPROVEMENTS, TO INCLUDE BUT NOT BE LIMITED TO A NEW DETENTION CENTER AND A NEW SHERIFF’S OFFICES, AND ALL NECESSARY AND INCIDENTAL COSTS RELATED THERETO WITH SUCH SALES TAX REVENUE BONDS OR OTHER FINANCIAL OBLIGATIONS TO BE DATED AND SOLD AT SUCH TIME, AND AT SUCH PRICES (AT, ABOVE OR BELOW PAR) AND CONTAINING SUCH TERMS, NOT INCONSISTENT HEREWITH, AS THE BOARD OF COUNTY COMMISSIONERS MAY DETERMINE; SUCH AUTHORIZATION SHALL INCLUDE AUTHORIZATION TO REFUND SUCH DEBT WITHOUT ADDITIONAL VOTER APPROVAL; SUCH TAX INCREASE TO CONSIST OF A COUNTY-WIDE RATE INCREASE OF 1.0% IN THE COUNTY SALES TAX (WHICH REPRESENTS A ONE CENT INCREASE ON EACH DOLLAR PURCHASE) BEGINNING JANUARY 1, 2019 WITH A TERMINATION ON DECEMBER 31ST FOLLOWING THE DATE ON WHICH THE REVENUE BONDS, REFUNDING BONDS OR OTHER FINANCIAL OBLIGATIONS APPROVED HEREBY ARE PAID IN FULL (BUT IN NO EVENT SHALL SUCH TERMINATION OCCUR LATER THAN DECEMBER 31, 2033); SHALL THE COUNTY OF ARCHULETA BE AUTHORIZED TO DEPOSIT INTO ONE OR MORE COUNTY FUNDS SUCH AMOUNT OF SALES TAX REVENUES AS DETERMINED BY THE BOARD OF COUNTY COMMISSIONERS TO BE NECESSARY FOR THE PAYMENT OF THE BONDS, REFUNDING BONDS OR OTHER FINANCIAL OBLIGATIONS AUTHORIZED HEREIN; SHALL THE REMAINING PORTION OF THE SALES TAX REVENUES BE DEPOSITED INTO A JUSTICE SYSTEM CAPITAL FUND TO BE UTILIZED SOLELY FOR THE PURPOSE OF CONSTRUCTING, IMPROVING, EQUIPPING AND MAINTAINING THE COUNTY JUSTICE SYSTEM; SHALL RESOLUTION NO. 2018-____ OF THE COUNTY PROVIDING FOR THE IMPOSITION OF THE SALES TAX AS APPROVED AND SHALL THE REVENUES GENERATED FROM THE SALES TAX AUTHORIZED HEREIN AND THE PROCEEDS OF SUCH BONDS, REFUNDING BONDS OR OTHER FINANCIAL OBLIGATIONS AND ALL EARNINGS FROM THE INVESTMENT THEREON (REGARDLESS OF AMOUNT) CONSTITUTE A VOTER-APPROVED REVENUE CHANGE, AND AN EXCEPTION TO THE REVENUE AND SPENDING LIMITS OF ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION, OR ANY OTHER LAW?
Whether the Commissioners made a mistake in approving the above ballot question for the November election is a matter of opinion, of course, and the proof will be in the pudding, so to speak.
Will voters be willing to read this question? Perhaps more importantly, will they be able to understand it, if they do read it?
Maybe voters don’t actually read these kinds of ballot questions. Maybe they vote based on the rumors they hear, from friends, or from the weekly newspaper, or from online news websites…
And maybe it doesn’t make any difference how many mistakes the BOCC made on Tuesday, September 4.
But based on the assumption that the voters have a right to understand, fully, the tax increase they will be asked to weigh in on — beginning in the middle of October, via their mail ballots — we’re going to share a heartwarming little story, and analyze the numerous mistakes made by the BOCC.
1. A Vague But Expensive Proposal
The Archuleta BOCC has been working on a solution to a deferred maintenance problem — the deferred maintenance of the downtown County Courthouse — for at least four years. Here’s part of the solution they now wish to place before the voters:
Shall the County of Archuleta taxes be increased $2,970,000 (first full fiscal year dollar increase) annually and shall the County of Archuleta debt be increased by an amount not to exceed $19,200,000, with a maximum repayment cost of $25,800,000;
This part seems pretty straightforward, at first glance. Governments in Colorado cannot increase taxes, or create new taxes, without voter approval. Nor can they (legally) create new public debt, without voter approval.
The above section allows the County to collect new sales taxes, for a specific purpose, and to create new debt, also for a specific purpose.
What might that specific purpose be?
… such debt to consist of sales tax revenue bonds or other financial obligations issued solely for the purpose of constructing, improving, equipping and maintaining Justice System Capital Improvements, to include but not be limited to a new Detention Center and a new Sheriff’s Offices, and all necessary and incidental costs related thereto…
As we see, the new taxes and debt can be used for a new Jail and new Sheriff’s offices.
But the money can also be used for “constructing, improving, equipping and maintaining Justice System Capital Improvements” in pretty any manner the BOCC wishes to define the term “Justice System Capital Improvements.” (More about that, later.)
Last year, when the BOCC put a very similar question the the ballot, we saw some rough sketches of the (very large) Jail and Sheriff’s admin building, and were told that the building might cost around $17.9 million. One year later, we are being told that the facilities will cost around $19.2 million, but we have not seen — as of today, September 5 — even a single rough sketch of the more expensive facilities.
But there’s another curious aspect to the BOCC’s ballot question.
1. Tax Collection Does not Align with Debt Amount
Here’s that first section once more:
Shall the County of Archuleta taxes be increased $2,970,000 (first full fiscal year dollar increase) annually and shall the County of Archuleta debt be increased by an amount not to exceed $19,200,000, with a maximum repayment cost of $25,800,000;
Two things are happening here, even though the BOCC might want you to believe only one thing is happening.
The first thing is, the sales tax will be increased. The second thing is that the County will be authorized to put us all in debt to the tune of $19.2 million. But those two actions are not necessarily mutually dependent. Let’s consider that little trick.
The new tax will be a one-percent sales tax, possibly lasting until December 31, 2033 (15 years.)
Such tax increase to consist of a County-wide rate increase of 1.0% in the County sales tax (which represents a one cent increase on each dollar purchase) beginning January 1, 2019 with a termination on December 31st following the date on which the revenue bonds, refunding bonds or other financial obligations approved hereby are paid in full (but in no event shall such termination occur later than December 31, 2033);
If you vote “Yes” on this ballot measure, you will be allowing the BOCC to create a debt of $19.2 million, with repayment costs (including interest payments to the bond purchasers) of up to $25.8 million.
You will also be creating a sales tax increase worth up to $2.97 million per year, for up to 15 years, and you will be allowing the BOCC to keep all of that money and use it for “Justice System Capital Improvements.”
Those are two different actions.
According to my pocket calculator, a collection of $2.97 million per year for 15 years totals $44.55 million. If you vote “Yes” on this ballot measure, you are not simply allowing a new debt of up to $25.8 million — you are also allowing new taxes to be collected. Up to $44.55 million.
How will the BOCC be using all that money? On your roads? Nope. They will be using it “solely” on something vaguely defined in the ballot language as “Justice System Capital Improvements.” What the heck does that mean?
Bill Hudson began sharing his opinions in the Pagosa Daily Post in 2004 and can’t seem to break the habit. He claims that, in Pagosa Springs, opinions are like pickup trucks: everybody has one.