2012 Colorado November election: Rifle city officials pitch sales tax hike as relief for water rate payers

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From the Rifle Citizen Telegram (Mike McKibbin) via the Glenwood Springs Post Independent:

Question 2A on the Nov. 6 general election ballot asks Rifle city voters if a 0.75 percent sales and use tax hike should be approved. It would take effect in January and increase the city’s sales and use tax rate from 3.5 percent to 4.25 percent. The added tax would raise an estimated $1.65 million a year. The issue has not led to any organized opposition…

In a memo to City Council, City Manager John Hier recommended that if the sales tax is approved, the city should eliminate a second water rate increase planned for April 2013, and lower the recent increase, “so the combined revenue from the sales tax and new rates will generate only that revenue needed to pay the debt service and increased operation and maintenance cost on the new plant.”

Due to the rock-bottom loan rate received from the state agency, Hier wrote in the memo, “it may be possible to lower … monthly base rates to $23 per month and significantly reduce the … tier rates.”

When the debt on the water plant is paid off, the 0.75 percent sales and use tax will end.

More Rifle coverage here and here.

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