Lakewood Informer

Resident generated news about Lakewood, Colorado

Lakewood Informer

Resident generated news about Lakewood, Colorado

taxes

Lakewood to Increase and Overcollect Property Tax – Again

By Lakewood News from KarenPosted on Posted in UncategorizedTagged , , , , , ,

Including explanation from Bob Adams Lakewood will vote on a property tax increase on Monday. This will be done through the normal budget appropriation and mill levy certification. It is not called a tax increase anywhere. However, the 2025 Budget Book,  page 62, explains that a temporary reduction in the mill levy rate will lapse in 2025. As a result, Lakewood residents will pay 6% more property taxes and Lakewood will collect an extra $15.5 million in 2025. In 2023, former Councilor Mary Janssen fought to get Lakewood to comply with the Lakewood City Charter and only collect revenues that are legally allowed. That equated to a property mill levy rate of 3.85%. Lakewood Charter has a revenue cap, not a tax rate cap, to protect its residents from windfall taxes, like abrupt property assessment increases. City Council did not agree to Janssen’s original proposal, but they did lower the mill levy to 4.28 mills. For one year. Now that year is up. On Monday, the Council will vote to approve the full mill levy of 4.711 mills, thereby increasing the rate by 0.431 mills from 2024. Your property taxes will go up again this year. “Natalie Menten, board director with the Taxpayer’s Bill of Rights (TABOR) Foundation, emphasized the importance of TABOR’s protections: ‘According to paragraph 7(c), the maximum annual percentage change in each district’s property tax revenue equals inflation in the prior calendar year plus annual local growth (new construction). That safety cap protects taxpayers and gives very sufficient additional revenue to government agencies. Voters shouldn’t waive any tax revenue cap unless it comes with the 4-year sunset prescribed in TABOR.” In 2023, then-Councilor Janssen found out Lakewood revenue from property tax was increasing 12.87%. The City Charter only allows for a 7% increase in revenue growth (see City Charter 12.12) “Growth from projected 2023 to projected 2024 Property Tax Revenue is 12.87%”- Holly Björklund, Chief Financial Officer, Lakewood, 2023 Lakewood will increase property tax revenues over the amount permitted in charter, as they have in previous years, while advocating to keep your TABOR refunds. Explanation of Overcharging from Bob Adams Every two years (odd numbered years), Colorado requires all real estate to be reappraised.  This was done in 2023 and resulted in a huge increase in property valuations.  This reappraisal applied to property taxes paid in 2024.  The Assessor uses the newly appraised county real estate inventory to prepare a report of the assessed value which is provided to all county tax authorities.  Based on that report, the tax authorities are supposed to calculate the overall mill levy needed to provide services (pay their budget) for the following year.  The approved mill levy is then used to calculate individual tax bills. As published by the Colorado Division of Property Taxation: “Each year county commissioners, city councils, school boards, governing boards of special districts, and other taxing authorities determine the revenue needed and allowed under the law to provide services for the following year.  [In other words, prepare a budget] Each taxing authority calculates a tax rate based on the revenue needed from property tax and the total assessed value of real and personal property located within their boundaries. The tax rate is often expressed as a mill levy.” Source:   (https://spl.cde.state.co.us/artemis/locserials/loc811internet/loc8112022internet.pdf) If the law was followed properly, there would be only a minimal tax increase. However, Jefferson County and nearly all county tax authorities, including Lakewood, failed to adjust the mill levies downward to equal their budgets.  Even Governor Polis sent a letter to all tax districts urging them to reduce mill levies.  Most refused.  Instead, nearly all kept a higher mill levy which resulted in property owners being overcharged and the districts received a huge windfall in increased tax revenue.  Now, of course, the city and county have introduced ballot measures to allow them to keep and spend the overcollected tax revenue this year, next year and every future year. and eliminate all other revenue caps so they can freely raise taxes without a vote of the people now required by TABOR. This is the cause of how tax revenues were overcharged and overcollected. See more from Bob Adams on nextdoor.com

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Our Tax Dollars at Work – Jefferson County Property Tax

By Lakewood News from KarenPosted on Posted in UncategorizedTagged , , , , , ,

Repost with permission from Bob Adams, Nextdoor The Jefferson County Commissioners met at 9 AM on, 9 July, 2024 in a public meeting to vote on a ballot proposal to allow them to keep all the excess funds they overcollected with our 2024 property tax billing. These excess funds would normally be refunded to us because of TABOR. I attended the meeting. Why overcollected? For several years, the County Commissioners have failed to produce a sound budget. Instead, they spent more than their revenue and drained reserve funds to make it APPEAR they had a balanced budget. This year, they ran out of reserve funds and accounting tricks. The County Assessor did a reappraisal in 2023 as required by State law. Overall, the appraised value of all properties increased by about 37%. By State law, the commissioners were supposed to adjust the mill levy downward to adjust the overall revenue to equal the County budget. Governor Polis even sent a letter asking them to reduce the mill levy. They failed to do so. Instead, they intentionally kept the previous year’s mill levy knowing full well they would collect millions of excess dollars. The Commissioners then contracted to spend $340,000 of our tax dollars with a politically connected company, The Bighorn Company – Democrat Brittany Pettersen’s husband’s company, to write a ballot proposal (read more about Jeffco and Lakewood lobbying). I attended the 9AM meeting and it originally seemed all sides of the issue would be heard fairly. I was wrong. The commissioners gave no serious consideration to budget cuts and didn’t mention wasteful spending (such as the County Clerk’s holiday party). They politely listened to all public comments, then IGNORED all comments against or to improve the ballot proposal, and quickly voted to approve it with little discussion and no changes. This proposal is sneaky and deceptively written: “WITHOUT INCREASING ANY TAX RATE OR MILL LEVY RATE, AND TO FUND: ● TRANSPORTATION AND INFRASTRUCTURE (BUILDING, MAINTAINING, AND REPAIRING ROADS, BRIDGES, POTHOLES, AND OTHER COUNTY INFRASTRUCTURE); AND ● PUBLIC SAFETY (WILDFIRE AND FLOOD MITIGATION AND RESPONSE, ADDICTION AND MENTAL HEALTH PROGRAMS, CRIME PREVENTION PROGRAMS AND STRATEGIES, AND OTHER COUNTY PUBLIC SAFETY FUNCTIONS); SHALL JEFFERSON COUNTY BE AUTHORIZED TO COLLECT, RETAIN, AND SPEND THE FULL REVENUES FROM AUTHORIZED REVENUE SOURCES BEGINNING IN FISCAL YEAR 2024 AND IN EACH FISCAL YEAR THEREAFTER; AND SHALL RESULTING REVENUE AND EARNINGS BE TREATED AS A VOTER APPROVED REVENUE CHANGE AUTHORIZED BY ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW; AND SHALL RESULTING REVENUE AND EARNINGS BE REVIEWED ANNUALLY BY AN INDEPENDENT AUDITOR AND A CITIZENS ADVISORY COMMITTEE?” Why is it deceptive? The ballot provision does away with ALL current and future TABOR protections – but doesn’t say so. It also does away with the annual 5.5% property tax cap. It implies there would be no tax increase. In fact, it’s a major tax increase. It says no increase in the tax rate or mill levy which is a half-truth. With the huge increase in the 2023 property appraisal, the mill levy was supposed to be reduced. Instead, they kept it at the previous high level resulting in a windfall increase in revenue. As a result, it allows the commissioners to INCREASE future tax rates without any taxpayer control. Looking at and analyzing the facts and events that led to this ballot proposal, it certainly appears this is a deliberate, planned effort by the Commissioners and county to keep and spend the excess property tax revenue they collected this year (2024) and eliminate TABOR and all other legal restrictions on increasing property tax in the future. Don’t be fooled. The commissioners want us to vote to approve a huge property tax increase now and into the future with a clear attempt to pull the wool over our eyes. People who don’t own real estate in the County may think this won’t affect them, but it will. Landlords will pass along the tax increase in higher rental rates and businesses must pass along the tax as higher prices on their goods and services. This ballot proposal will increase inflation even more.

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City Seeks to De-Tabor but Over Collects Property Tax

By Lakewood News from KarenPosted on Posted in UncategorizedTagged , , , ,

Guest Post by Mary Janssen Here we are again! The city of Lakewood is sending out a $73k survey to test the waters if the public is ready to De Tabor again and give up your over paid tax refunds so the city can spend it on their pet projects that they deem important. After asking how things are going… snow plowing, police response, pot holes, the money spent on new parks (a new majority in Ward 5). They ask you if you would reject them taking more of your money. One of the questions made me laugh. The one about the Mill levy. If you didn’t know I made a motion last October to decrease the mill levy from 4.7% to 3.85%. This would have decreased the revenue collected by the city to within the charter rule (12.12) which says clearly that property tax revenue must be below 7% growth from previous year. At a budget meeting I attended The city financial officer Holly Bjorklund was projecting a valuation number that she guessed was going to be the new property valuations. We do property taxes in arrears. After doing some research on what the city was collecting on previous years since the last De Tabor we found the city was over collecting property taxes one year alone was 18%. Based on this information I thought the citizens deserved a real decrease so that’s how my team and I came up with 3.85. It would have decreased the revenue to around 5%. The city would still be collecting a fair amount and provide the citizens the relief so desperately needed since the other districts i.e. school, Fire, etc. did not decrease their mills. My team did some calculations and found that based on Holly’s projected valuation number the city would be increasing property tax revenue by 12%. After getting the real certified valuation number from the Jefferson County Assessors in August the city would have made a whopping 24.5% increase in revenue. That new certified number was never brought up, so I made some papers to inform the rest of council, the mayor and the city manager and the budget committee about the new certified valuation numbers and why we must decrease the mill levy to provide relief to our Lakewood citizens. The only other councilor that contacted me about this was Rich Olver and he decided that based on the research and the facts he would co-sponsor my motion. I had to announce my motion by council request and was denied the first time so I had to wait till the end of October at the budget approval council meeting, when I was allowed to bring my motion forward, as reported in Lakewood news. I had already provided the other councilors the mayor, the budget committee city manager and staff my findings and why we need to decrease the mill. I put my motion forward and councilor Olver seconded my motion, when out of the blue councilor Barb Franks made an amendment to my original motion to raise my mill levy number of 3.85 to 4.28% in an appearance to make it look like the revenue was neutral. I have an email from Holly Bjorklund the chief financial officer admitting that the city will be indeed increasing the revenue by 12.5% , not neutral. During discussion about the amendment I cited the charter 12.12 and was told by the city attorney that we were talking about the mill levy reduction not the charter rule about the revenue cap. I was told that in order for the city to go back and look at the interpretation of 12.12 the city would have to be sued. The 4.28% mill levy amendment was voted on 10-1. I declined to vote for the amendment because #1 it was based on an estimated valuation number not the certified valuation number and #2 I knew that the increased revenue would be above the charter cap. So based on facts do you think its safe to let the city take your TABOR Refunds? Mary Janssen Previous Lakewood City Councilor Ward 5

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