Lakewood – The City Council on Monday night voted 9-2 to let voters decide whether to raise the sales and use tax from 2 to 3 cents on every dollar.
The vote to put the issue on the November ballot came during a more than three-hour-long hearing on the issue, which has divided the city.
Some say the increased tax will protect jobs and preserve services. Others say the city overspends and more money won’t change that.
The proposed increase would be the first sales tax hike in Lakewood in more than 30 years. City officials say the only alternative is a $10.5 million budget cut over the next two years.
“If you want a city that provides more than roads and parks, you have to think seriously about this,” said Councilman Mike Stevens. “It goes back to what kind of city you want to live in.”
More than 50 supporters of the tax hike rallied at City Hall before the meeting. Both sides spoke to the council.
“The heart of the matter is mismanagement of funds,” said Justin Blackburn.
The sales and use tax provides approximately $37.2 million of the $72 million 2005 budget, or 52 percent, according to Stacie Oulton, public information officer for the city.
The increase would bring in an extra $16.7 million, Oulton said, which would allow the city to keep current services and bring back some programs that have been cut since 2001.
If the tax increase is not approved, council members plan to eliminate 72 city jobs and reduce services.
The tax increase would not apply to all sales within the city. Colorado Mills mall, Belmar Center and a new development that includes a Wal- Mart Supercenter would be excluded because they already charge shoppers a public-improvement fee ranging from 1.4 percent to 2.5 percent. Exempting these developments would keep shoppers from paying both the public improvement fee and the increase in sales tax, Oulton said.
Council members could decide to apply the increased sales tax to those developments in the future. Without a resolution, however, the shopping centers will be automatically excluded each year, Oulton said.
Bill Smith doesn’t believe Lakewood is facing a budget crisis. Smith chairs the Lakewood “T” Party, which opposes the tax hike.
“If the new Wal-Mart is doing as well as it’s supposed to be doing, if Belmar is as good as they say it is, and if Colorado Mills is as good as they say it is, they should be rolling in money,” Smith said.
Dorothy Wisecarver, a former City Council member, believes Lakewood may be facing a budget crisis, but she opposes the tax increase.
“It’s not going to get better by putting more money into hands of the same people,” Wisecarver said. “We have to have a council that will think about all its citizens, not just the big developers.”
Staff writer Michelle Wallar can be reached at 303-820-1201 or mwallar@denverpost.com.
