What’s Up with These Petitions?
Community Questions about the URA and Food Tax Petitions
Answered by George Garklavs and Let Us Vote
Curated by The Loveland Voice
July 22, 2023
Q and A: Let’s Get Into It!
The Loveland Voice (TLV): What exactly do the petitions say?
George Garklavs (GG): Here are links to the two petitions:
TLV: Why did you decide to get involved with this effort?
GG: I felt like many elected Loveland City Councilors were not receptive or interested in
finding out what their constituents wanted, needed, hoped for, etc. They seemed to be
rather narrowly focused on personally satisfying agendas, and not considering the big
picture needed for local governance.
I am a firm believer in the need for government (elected officials and civil servants) to
have a broad view of what constitutes “the common good.” Trying to get more than
three thousand signatures so that issues could be placed on a ballot for all citizens to
vote on 1) seemed like a good challenge, 2) might get enough Lovelanders to think
about getting more involved in local issues, and 3) might make some on Loveland City
Council think more about citizen input and involvement.
TLV: Why do these issues matter to you? (URA, food tax)
GG: There are roughly 80,000 citizens in Loveland. They ALL eat. Inflation has made
things more expensive for everyone. A tax on food is regressive, with those less able to
afford basic needs being hit the hardest. It felt like a good time to see if the city could
re-prioritize some spending to help Lovelanders in this economic time.
The tax increment financing (TIF) part of local Urban Renewal Authority (URA) diverts
the incremental increase in property tax from city operating funds to defray costs for a
development. In truly blighted areas this could make sense, but this form of tax
diversion has become a financing tool for non-blighted development.
This takes away funds for the city’s operating expenses which MUST be made up by
other sources - either cuts in some programs, or raising taxes for everyone outside of
the URA. Whereas some on the city council have touted the notion that local
development would generate more income than the taxes diverted, there has been
ZERO proof or substantiation of how this would occur. It comes off as an arm waving
fairy tale that should simply be accepted as presented.
TLV: Where are you at? Numbers wise?
GG: Close. Closer to enough for Food Tax; almost as close for URA. We’re looking to
achieve our goals in the next several weeks.
TLV: What feedback have you received working in the community?
GG: Mostly very positive. The repeal of the food tax resonates with all age groups and
political inclinations. The URA issue is one that many people are not familiar with
regarding its intricacies and long term effects. Those that ask is this like the recent
South Centerra project have primarily been willing to sign the petition. There are some
that wonder how the tax shortfall will be made up. And some (not many) think it’s a bad
idea.
TLV: Have you received any specific feedback from community members that was
negative, or positive, while speaking with the community?
GG: Negative feedback seemed to repeat the same things that some on city council
have voiced as what’s wrong with pursuing this initiative. Regarding food tax, some
question about how to replace that revenue stream... but there’s overwhelming
agreement that we should not tax a basic necessity, such as food.
TLV: How do you respond to messaging from the City, as far as what you know?
GG: We try not to get into the weeds with quibbling about numbers, unless something
very unreasonable is presented. Our message is that people have a right and duty to
tell elected officials what they want from their government. Their voices should be
heard, not suppressed. The issues can be settled using the power of the vote. The
petition is our effort to bring that vote to the people.
TLV: Do you feel the City’s numbers are accurate? Why or why not?
GG: Inasmuch as we do not do forensic audits of city financial records we cannot judge
their accuracy. But how they are presented (what context is implied in the city’s
messaging) can be questionable. At the last city council meeting Brian Waldes (CFO)
portrayed the $6.9 million surplus as being untouchable because it was classified as an
“unspent allocation” intended for future capital projects. All organizations that manage
their finances create budgets and “allocate” funds to various projects and/or
departments. Those “allocations” are not set in stone. They’re simply guides that help
track and plan expenditures and income. Every organization re-allocates funds to meet
shortages, overages, and changes in priorities. Mr. Waldes’ answer to Councilor
Samson’s question was less than forthright, in my opinion.
TLV: What do you want Lovelanders to know about what it means to them to sign
the petition?
GG: It simply means that they are participating in their local government by voicing their
opinion, that they want a chance to have a say in how things are run. It’s about getting
issues on the ballot so that citizen voices can be heard.
TLV: Do you feel the library is at risk?
GG: No. The city used the same sky is falling scare tactic when they tried to increase
taxes several years ago. There was also a hint that your house is at greater risk of
burning down if new fire stations can’t be built.
TLV: Have city staff been comfortable signing the petition without fear of reprisal
or punishment, in your experience?
GG: Having worked in Federal service I’ll say this. At all levels, government employees
are prohibited from engaging in any political activity while on the job. I’ve had yearly
staff meetings to remind employees of this rule. Once not on the job, government
employees are free to engage in any activity they wish. City employees cannot sign
petitions while working.
TLV: What is your deadline?
GG: Because of the upcoming election date all petition packets have to be turned in to
the City Clerk by August 9, 2023.
TLV: Where can people find you?
GG: On Facebook and the “Let Us Vote” web page. Sunday Farmer’s Market at the old
fairgrounds. Frequently mornings and evenings at the Chilson Center, and mornings at
the Library.
Questions from the Community:
Doug Luithly: How does the national target food percentage compare to the local
target food percentage? The national was used by the city finance director as a
basis for all his financial figures. I suspect that the local target would have a far
lower percentage.
GG: I can’t estimate that. We welcome your thoughts.
TLV: Here is the one pager being distributed by the City about the impact of eliminating
the tax on food for home consumption.
Anne Blair: How will the 3% sales tax loss affect us? Will it be replaced with
another tax? Or, will we lose services?
That loss of tax revenue can be dealt with in several ways. My initial reaction is to say
that just like families that have budgets that attempt to balance income and
expenditures, cities do the same. When a family’s income decreases it is common to
see an adjustment in spending. It helps to have priorities to help in that decision.
Imagine having to choose between paying for a child’s medical expenses or buying a
boat. Or choosing between repairing a car or taking a trip to Disney World. Cities can
look at surpluses (Loveland has them) and lower-priority spending. Though the recent
increase in the city’s share of property taxes would not likely cover the tax loss, it would
make up a large part of it. Fewer incentives to businesses would help. I cannot see the
voters approving a tax hike. Also, careful budgeting would likely not change the level of
services.
Blair: Will city employees like their jobs if the grocery tax elimination passes?
GG: I don’t see the connection. Job satisfaction is seldom related to the various sources
of tax revenue. Will city employees “LOSE” their jobs? Unlikely.
Blair: Will there be no tax at restaurants?
GG: The petition only proposes to eliminate the tax on groceries (food for home
consumption). The state of Colorado already has a list that is used to identify taxable
and non-taxable food stuffs.
Diane McInturff: Is this just food to be prepared to eat, rather than deli items or
other convenience food? How is this separated at stores?
GG: As mentioned in the previous question Loveland would (should) use the state
prepared list of taxable/non-taxable food stuffs. I believe that deli items would be
non-taxable, whereas dining out at restaurants would be fully taxed.
Jen Castenda: How does elimination of food tax for home consumption truly
impact families?
It is generally agreed that taxing food for home consumption is a regressive tax, in that it
imposes a tax on a greater percentage of income for those in lower income brackets.
We cannot predict the exact amount that any family will save by eliminating the tax on
food. But as an example, if a family of 4 spends $1,250 a month on food they would pay
$450 a year in tax. Eliminating this tax would put that money in their pocketbook. Not all
families have 4 people, and some will spend more (and some less) than this estimate.
But the most likely result will be that money will quickly go back into the local economy.
Casteneda: Will residents benefit overall by eliminating food tax? If so, how?
Those who have been hit hardest by inflation in recent years will see the most
immediate and greatest benefit to this proposal. With prudent budgetary analysis the
city should be able to absorb this tax reduction with minimal impact on the services
delivered to Loveland’s citizens. Citizens would see that the city is adjusting its budget
just like they do when inflation makes life more expensive. The city would score high
marks for doing something to ease the financial burden on Lovelanders caused by
recent inflationary price hikes.
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Editor’s note: George Garklavs is the Associate Editor of The Loveland Voice. For this
series of questions and answers, he is representing his work with Let Us Vote, not The
Loveland Voice. Originating questions were generated from Jessica Schneider, Editor of
The Loveland Voice, as a matter of curiosity, understanding this is an issue of great
public interest. We also invited community members to submit their own questions.
Jessica Schneider is not a petition gatherer. For further updates, please follow and/or
message Let Us Vote on Facebook.