Lakewood – Graffiti still will be painted over and street lights will stay on, but weeds could overgrow and trash could pile up in 70 of Lakewood’s 90 parks, according to budget proposals under consideration.
After five years of spending cuts, the Lakewood City Council once again will decide what programs and services to eliminate and which ones to save and possibly restore.
“We have tried very successfully to increase the tax base, but we’re to the point now we can’t continue the type of service that our citizens expect and require,” said Councilman Ed Peterson. “It’s just not in the cards.”
Costs have outstripped revenues, forcing the city to slice $10.5 million over the next two years after cutting $13 million between 2001 and 2005.
Lakewood relies heavily on sales and use tax revenues – 52 percent of the $72 million annual operating budget comes from sales taxes. Spending, however, has been down, officials say.
“We’ve had an economic valley, and we need to prepare for another one,” said city finance director Larry Dorr.
Council members are preparing two budgets. One calls for deep cuts. The other, based on voters’ approving a sales- tax increase in November, would be less painful, city leaders say. Under that scenario, some programs such as the school resources officers would be restored, and the city’s reserve funds, which now would pay the bills for only six weeks, would be bolstered.
If it passes, the tax hike from 2 percent would be the first since 1971. Currently, the average metro sales and use tax rate is 3.3 percent.
The council has reached a consensus to ask voters to raise the tax rate but has not taken official action on exactly what form the increase will take. Aug. 1 is the deadline for setting the measure’s language.
One plan calls for raising the rate to 3 percent, with food for home consumption being taxed at 1 percent.
Another suggests moving to a flat 2.8 percent on all items, including food, to make it easier for retailers to handle.
At 2 p.m. today and 7 p.m. Wednesday, residents are invited to tell the council what they think about budget reductions and the tax proposal. Both sessions will be held at Lakewood City Hall, 480 S. Allison Parkway.
The council has scheduled an all-day budget meeting Aug. 29. The budget will be finalized after public hearings Oct. 10 and 24.
Some residents already have made their opinions known.
“We’re going to fight the tax,” said former Councilwoman Dorothy Wisecarver, a member of the anti-tax community group Lakewood Tea Party.
“Let’s try to do with what we have,” said businessman Newt Vaughan.
Another businessman, George Valuck of the Alameda Gateway Association, believes the city has done what it can to increase the tax base, but that now it’s time to increase the tax rate.
Staff writer Ann Schrader can be reached at 303-278-3217 or aschrader@denverpost.com.
