Northglenn voters will be asked to extend the one-half percent sales and use tax that expires in 2015 to be used exclusively to enhance or increase the city's water supply during the Nov. 5 election.
City Council approved the ballot question by an 8-0 vote during its Aug. 26 regular meeting. Mayor Pro Tem Susan Clyne, Ward III, was absent.
According to a staff memo to council, the 0.5 percent sales and use tax generates approximately $1.9 million annually and is restricted to enhancing or increasing the city's water supply. Money generated from this tax cannot go to repair or replace aging infrastructure.
Regardless if the money cannot go toward infrastructure, Ward II Councilwoman Leslie Carrico said, “We're always going to need water and it's always going to be high.”
Staff reported that water raters per household may need to be raised by as much as 50 percent if the tax is not extended.
Voters initially approved the 0.5 percent tax in 2001, and extended it in 2008.
There was a brief discussion about how long the extension should last — one councilmember suggested four or six years.
“The only down side to a shorter duration extension is if the city ever wanted to pledge this revenue stream for some form of debt, you wouldn't be able to because it's too uncertain,” said city attorney Corey Hoffmann. “I don't know if that's a consideration of council or not.”
Council decided to make the extension last 10 years, so that if voters approved it, it would expire Dec. 31, 2025.