Why is the Town requesting a 10-year “TABOR timeout?”

The Town is anticipating receiving grants and other financial contributions to construct the I-25/Crystal Valley Parkway interchange.

If the Town obtains $40 million in intergovernmental and developer contributions toward the interchange, its total TABOR revenues for 2023 could be about $120 million, or roughly $30 million over its projected TABOR revenue limit for the year. In the absence of a TABOR timeout, that means the Town would have to stop the interchange and return the contributions or cut expenses elsewhere – like in fire, police, parks and rec, or roads – by $30 million so it could issue TABOR refunds.

Further, strong sales tax revenue thus far in 2021 has created the possibility that the Town will exceed its TABOR revenue cap for this year. Granting the TABOR timeout would allow the Town to use all funds collected in 2021 – and in any year through 2030 where financial performance is strong – to meet needs while still preserving other aspects of TABOR that require voters' approval for tax increases or multiyear financial obligations.

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1. How do CRPD’s staffing levels compare to police departments in neighboring communities?
2. Is a new fire station planned in Castle Rock?
3. How much would the new housing construction tax add to the cost of the average home in Castle Rock?
4. How do recent home sales prices in Castle Rock compare to that of other Front Range communities?
5. CRPD has requested 34 more staff and CRFD 41, for 75 positions total. The new housing tax is estimated to generate $13.9 million annually. Does that mean these employees would each be paid $185,000?
6. Doesn’t growth – new homes and new commercial developments, like the Promenade – generate enough sales tax to pay for the firefighters and police officers the Town needs?
7. Why is the Town requesting a 10-year “TABOR timeout?”
8. What would the effective date be for the ballot measures if they are passed?
9. Has the Town worked to cut its costs prior to requesting additional revenues?
10. My home’s value has increased, and I’m expecting a big increase to my property tax bill. Won’t the Town get some of that money to help meet its needs?
11. How does the Town’s sales tax compare to that of neighboring communities?
12. I understand the Town receives a nominal portion of my property tax, but I think I pay enough overall. If the Town needs more revenue, can’t it negotiate with other local tax recipients for some?
13. Don't the police and fire departments benefit from the impact fees the Town charges on every new house built?
14. Would a sales tax increase disadvantage Castle Rock businesses by driving people to instead make online purchases?
15. Does the Town spend all the revenue it brings in each year? If not, why can’t prior years’ savings be used to fund the needed fire and police positions?
16. I heard the Town can’t ask for a 10-year TABOR timeout – that five years is the maximum timeout allowed. Is that true?