A proposal to raise Lakewood’s sales tax from 2 percent to 3 percent appeared headed for victory Tuesday night with 53 percent approving and 47 percent against , the first increase in the rate since 1971.
City officials said that if the proposal to increase the sales tax failed, Lakewood would have to cut $10.5 million in services, programs and staff over the next two years.
“It’s not over, but we’re real pleased with the direction it’s going,” Mayor Steve Burkholder said. “It is not a major mandate … but I think it really reaffirms the direction the city is going.”
Bill Smith, spokesman for the Lakewood T Party, said the opponents’ group was disappointed, “but I think we sent a message loud and clear … and we’re not done.”
City officials advocated for the tax hike, citing rising costs and dwindling revenues. The trend began in 2001 and has meant five years of budget cuts.
The extra 1-cent sales tax on every dollar spent in the state’s fourth-largest city should bring in an estimated additional $16.7 million a year.
Half is earmarked for police and court activities, and the other half is committed to streets, parks and emergency funds.
Opponents labeled it a 50 percent tax increase and argued that the city has done a poor job of managing public funds.
They also contend the city has given away too much to developers, citing sales-tax exemptions for Colorado Mills, Wal-Mart and the Belmar Center in favor of “public improvement fees.”
Smith said city critics were excited about the apparent victories of council candidates Vicki Stack and Doug Anderson.
In Arvada, voters approved, 55 percent to 45 percent, a sales tax increase to put more police on the streets. Referendum 2A would hike the sales tax one- quarter of 1 percentage point.
The tax would reap an estimated $3 million annually for the Police Department and allow the hiring of 23 police officers, three sergeants and seven civilians.
Staff writer Ann Schrader can be reached at 303-278-3217 or aschrader@denverpost.com.
