Denver Water Provider Asks Voters for TABOR Exemption to Secure Vital Grants

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In metro Denver, a significant challenge looms for the South Adams County Water and Sanitation District (SACWSD): the constraints imposed by Colorado’s Taxpayer’s Bill of Rights (TABOR) are hindering its ability to secure crucial funding for essential water projects. As a water provider serving 70,000 residents in Commerce City, SACWSD is facing a critical decision that directly impacts the quality and safety of local drinking water.

The Dilemma: Seeking Grants vs. Revenue Limits

Imagine being in a position where you need to choose between securing necessary funds and adhering to strict financial caps that limit your spending. This is the predicament SACWSD finds itself in.

Here’s the situation broken down:

  • State Funding Risks: If the district applies for state funding, it risks exceeding its revenue cap under TABOR.
  • Abstaining from Grants: Alternatively, SACWSD can forgo these grants, leaving essential projects unfunded.

It’s a frustrating choice, and it’s why the district is turning to voters this November with Ballot Issue 6A, asking for an exemption from TABOR’s revenue limits.

Why Now? The Need for Critical Projects

The necessity for a TABOR exemption is underscored by several urgent projects that require immediate attention:

  1. PFAS Treatment: One of the top priorities is the construction of a new water treatment plant aimed at reducing PFAS chemicals in the water supply. PFAS, often referred to as “forever chemicals,” pose serious health risks, including links to cancer and reduced fertility.

  2. Energy Efficiency: The district aims to convert its vehicle fleet to more energy-efficient models, aligning with broader environmental goals.

  3. Sustainable Landscaping: There’s a plan to replace water-intensive turf with native plants better suited to Colorado’s dry climate.

These initiatives are essential not only for environmental sustainability but also for public health and safety.

What Does TABOR Mean for SACWSD?

TABOR, enacted in Colorado in the 1990s, sets strict limitations on how much revenue state and local governments can collect and spend. For most local governments, this often leads to surplus tax revenue being refunded to taxpayers. However, in SACWSD’s case, it is not about over-collecting; it’s about being restricted from utilising available funds.

  • No Excess Revenue: SACWSD has never exceeded its revenue limit due to taxes, which means taxpayers won’t receive a refund if the ballot question fails.
  • Access to Grants: The proposed TABOR exemption is simply a means for the district to apply for grants without the fear of exceeding its revenue cap.

The Support Behind the Ballot Measure

The push for Ballot Issue 6A has garnered support from the South Adams Clean Water Alliance, who stress that this exemption is not about retaining excess tax revenue, but about accessing much-needed funding for essential projects.

Why You Should Care

  • Health Implications: Reducing PFAS levels directly impacts community health, ensuring safer drinking water.
  • Environmental Responsibility: Projects aimed at sustainability benefit not just the local area but the planet as a whole.

A Proven Path: TABOR Exemptions in Colorado

It’s worth noting that many local governments in Colorado have successfully sought TABOR exemptions. According to the Bell Policy Institute:

  • 51 out of 64 counties have sought exemptions.
  • 177 of 178 school districts have exempted themselves.
  • 230 of 274 municipalities have done the same.

This indicates a clear trend: many local entities recognise the need for flexibility in revenue collection to address pressing community needs.

Conclusion: Your Vote Matters

As residents of Commerce City, your vote on Ballot Issue 6A this November could significantly affect the South Adams County Water and Sanitation District’s ability to secure vital funding. This is not just a bureaucratic hurdle; it’s a matter of public health and environmental sustainability.

If you want to see necessary improvements in your community’s water supply and infrastructure, it’s crucial to support this measure.


Relevant Links for Further Reading

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