CONTEXT:

• Loveland's 3.00% sales tax rate has been in place since 1984.
• Sales Tax rates in other municipalities in the area range from 3.00% to 4.35%.
• Of the 9 cities and towns in the area, 6 tax on food items at rates ranging from 2.35% to 3.65%. Only Loveland and Wellington have no sales tax on food items.
• The elimination of Loveland's sales tax on food as of 2024 caused a significant loss of revenue that was not replaced by another funding stream.
• This revenue reduction impacts City departments that rely on the General Fund, affecting police, fire stations, transportation, public works, small business support, parks, library, museum, and recreation offerings.
• Reduced funding will force these departments to significantly curtail expenditures, meaning cutting staff, reducing training, reducing capital projects, reducing hours of service, increasing fees for recreation, eliminating festivals and special events, and making further budget cuts if prior funding levels are not re-established with some additional funding stream.
• Such cutbacks will negatively affect public safety and quality of life in Loveland.

RATIONALE: The League of Women Voters of Larimer County supports Ballot Issue 2E because it creates a stable funding stream that would replace funding lost by the elimination of the sales tax on food. Re-establishing such funding would ensure critical public safety operations are not diminished, would support necessary public works operations, and would permit the City to continue to offer cultural and recreational services at the current level.

LWV Principles & Positions Applicable to Ballot Issue 2E