Here's how a November property tax measure could drain some of Pueblo West's pool funds
The Pueblo West Metro District is trying to gaze into a murky crystal ball in hopes of figuring out how Proposition HH could affect the 2024 budget if voters approve the proposal to reduce property taxes during the Nov. 7 general election.
In outlining the 2024 budget, Pueblo West Finance Director Karen Cordova told the district board Monday that "the biggest challenge we have right now is Proposition HH. How is it going to affect our revenue?"
The ballot measure proposes to reduce property taxes and allow the state to retain and spend excess state revenue currently governed by the Tax Payers Bill of Rights (TABOR). If approved, the measure would reduce Colorado's property assessment rate from 6.765% to 6.7% this year, reduce residential property value by $50,000 per home and increase the amount of money that the state could keep and spend above limits set by TABOR which is money that would otherwise be returned to taxpayers.
In the case of Pueblo West, excess property tax revenues have been going into the aquatic center fund since 2016, when Pueblo West voters approved a ballot measure allowing the district to retain excess tax revenues to build a new swimming pool.
Cordova said Pueblo West budgeted $6.768 million in property tax revenues in 2023, which after the 4.7% inflation rate is calculated comes to $7 million.
"In this (2024) budget we budgeted for $9 million (in 2024 property tax revenues) which is what the Pueblo County treasurer gave us. That's a difference of $1.9 million less, so at this point we don't know what is going to happen," Cordova explained.
"If it (Proposition HH) is passed in November then you as a board have to decide on how you want to treat the difference," said Christian Heyn, interim district manager. "The general fund is in the green of about $2.1 million so essentially you could not ask to spend any of that $1.9 million and would have to temporarily lower the mill levy rate to allow for that property tax break to the property owners of Pueblo West."
In doing that, the board would be halting excess revenues going to the aquatic center fund, Heyn said.
So it appears the metro district would dodge a bullet in 2024 if the proposition passes.
"The budget, as it is, balances if we were not to get that $1.9 million we are still in the black. It does not affect us negatively," said Brian Axworthy, board treasurer.
"Which is certainly a good position to be in," Heyn agreed.
The 2024 budget calls for a 4% cost of living increase for district employees and a 3.5% increase in health insurance assistance. If it is approved, that would earmark about $9 million for salaries to the district's 158 employees, 21 of whom are seasonal workers, Cordova said.
Property swap approved for potential admin building site
In other business, the board voted unanimously to trade 23 district-owned lots in exchange for two lots owned by Mand Land LLC, a Colorado Springs-based business. According to Pueblo West Economic Development Specialist Wally Wallace, the administration building search committee has been seeking a site to build a new home base for the district.
The committee identified 20 E. Civic Center Drive as an ideal location due to its proximity to Fire Station No. 1, Civic Center Park and the Pueblo West Library. A lot at 40 E. Hahns Peak Ave. could be used for parking or additional district facilities. The committee suggested the swap of both 20 E. Civic Center Drive and 40 E. Hahn's Peak Ave. from Mand Land LLC to the district in exchange for 23 district-owned properties near Fire Station No. 3 on Maplelawn, Gold, Mapleleaf and Platteville, Wallace said.
The property value for the two parcels is $387,000 and the property value for the 23 parcels is $399,000.
"Whether those properties are used or not for an administration building, they have greater value to the district than the property we own," Wallace explained.
More Pueblo West news: Pueblo West board narrowly OKs spending 25% of marijuana excise tax revenues on events
Chieftain reporter Tracy Harmon covers business news. She can be reached by email at tharmon@chieftain.com or via X, formerly Twitter, at twitter.com/tracywumps. Support local news, subscribe to The Pueblo Chieftain at subscribe.chieftain.com.
This article originally appeared on The Pueblo Chieftain: November property tax measure could drain some Pueblo West pool funds
