Fervently anti-tax Colorado Springs, facing crisis, weighs new taxes

(CBS News) COLORADO SPRINGS, Colo. - There was some good economic news Tuesday: retail sales rose by 0.8 percent in July, the biggest increase in five months. A lot of cities and states watch those numbers very closely, because they depend on sales taxes to pay the bills. But it's hard for sales tax alone to support even the thriftiest of budgets.

The voters of Colorado Springs had a choice three years ago: raise taxes or live with fewer services. They chose dark highways, overgrown parks, and municipal layoffs.

The lights are back on now and the parks look better. But new Mayor Steve Bach is still worried.

"I don't think we are in a crisis," he said, "but we're headed toward a crisis. I mean it's out there."

That crisis is rooted in the way the city raises revenue. More than half its $230 million annual budget is funded by sales taxes -- an unreliable source of money in a volatile economy.

"We've lost close to $30 million a year in revenue here" because people are spending less, Bach said.

City Hall has already privatized grounds-keeping, brought in the YMCA to run the pools, and trimmed non-emergency police services. Now the mayor is considering shrinking public transit.

"We're going to have to live with less services from the government," he said. "We're going to have to come together as citizens and provide more of what we want."

"I think we have to raise taxes," said businessman Richard Skorman. "I know it's a sin to use those words in Colorado Springs."

Skorman ran against Bach in the last election, but refused to sign a no-new-taxes pledge. He lost -- a political outcome that would make Colorado Springs no different from many other cities and towns, if not for a once in a generation calamity: the June wildfires that swept through Colorado.

The fires were the worst in decades and the recovery could cost the city millions, putting even more financial strain on the budget.

Only the voters can approve new taxes in Colorado Springs. It's a long shot in this conservative town -- but even the no-new-taxes mayor is having second thoughts.

"I hope citizens somewhere in the future will increase -- will decide that we should have more stable revenue, which does mean property tax revenue," Bach said.

If they choose not to, they may have more problems than just dark streets.

[alacosgps]

We moved from Houston, TX to Co Springs in 2008/2009 for work and more importantly, for its beauty and climate. (We also had work offers in other places.)
As we read The Gazette everyday, it became evident that we might have made a mistake. We couldn't believe the attitude of the local government and many of our neighbors.
Fortunately we live in a gated HOA where our lights stay on at night because that cost is in our ever-increasing HOA fees. The massive cut backs of services to the city subsequent to the recession/depression are felt by everyone.
I am with Co_Springs_Evacuee in his responses. We too, are looking to make a move away from 'The Springs'. Beauty and climate alone are not enough to keep us in a place where ALL of the citizens can't feel safe and secure.
PS:After paying taxes in TX, we were sure our first property assessment was a mistake. We call the assessors office and no, not a mistake. ALL of the different taxes we pay in CO in no way approach the taxes we were paying in TX. I would be more than happy to pay more taxes if it meant EVERYONE would have basic city services.

[factsnotlies]

Absolutely amazing how people who don't live here and have no idea as to what is going on have so much to say. In Colorado Springs our tax rate is indeed lower than many other places. It's also higher than many places. Please take a look at all of the cities across the country that are going completely under financially. Many of them are cities that have the highest tax rates. Instead of cutting back to make things work while the country is going through an economic downward spiral, they have continued to tax and spend, much like the federal government. Here we live within our means, even when that results in having to make some cuts when times are bad. I have lived here for 37 years and am very proud to live in a city that always puts its citizens first and where the citizens have the intelligence to only vote for tax increases that make good sense.

[Lindag20]

Seems like the birds came home to roost in Colorado Springs. These anti-tax (TEA party) people had better take a look at what's happening there and realize this will be repeated ALL over the country as they get the services from government they have to (gasp) pay for them. All this "smaller government" mantra is going to bite them and the rest of us in the butt. Streets and roads don't fix themselves, public facilities need maintenance, fires don't put themselves out, etc., etc.

[ShaneBrooks]

Sometimes, you just have to let people hit rock bottom...for them to finally get it.

[Paulnib68]

C'mon now. We all know it was too many taxes that was keeping folk from spending money and killing the economy. Why, it's just silly to do things like put money back into the public sector, maintain or increase wages, and regulate risk in financial markets, even when that is where the problem is. Naa, we'll just cut everything we depend on to make our lives better, and that'll make businesses create jobs and folks spend more and boost the economy right? LOL

[CO_Springs_Evacuee]

Well, people are relatively stupid Paul. First, you do know that the Colorado Springs City Gov't does not get a say in regulating risk in financial markets, right? LoL. Surely you understand that. And... you make it seem like the government has caused this problem, which is not true. The problem here is that the people do not want to pay more taxes, and are failing to put money back into the public sector or any of that other fun hyopthetical BS you put out there. It's just not happening. So now Colorado Springs has very little money to work with. People like me, who want their kids to grow up in a place that has parks with bathrooms and teachers for students... we're moving away. That will mean even less income for the government. Which is fine and good, it's the way the people have chosen to do it. Rely on the people to fuel the local economy, and the government can just leave us alone. UNTIL everything starts on fire, and then it's "OMG why isn't the gov't helping us!?" Because they're broke; use all that tax money you saved and put the fire out yourself.

You would not believe how cheap the people here are. Well, it's OK to give 10% to church (since that's tax deductible anyway) but a tax increase of $0.002? No way!! Everybody knew the consequences of voting no on that tax increase, and chose to live without the services. Hard to blame the government, they did give us the opportunity to fund them properly.

[kbaker6474_dotmac]

Mayor Steve Bach says "We're going to have to come together as citizens and provide more of what we want."

Isn't that why we have government and taxes? What is happening in Colorado Springs is what the "ALL government is bad, ALL government workers are moochers, and ALL taxes are bad" mindset gets you.

[lesliep4819]

I'll bet they haven't tried something...cutting administrator salaries.

[boomerwoman]

Oh dear....they have discovered that CITIZENS and CITIES need some way to pay for SERVICES. Gasp. Those wicked people...imagine, wanting to live in civilization!!! Why, they should all move to....Arkansas!

[CO_Springs_Evacuee]

I'm not sure what you're saying, but...

...they (who? presumably the people of Colorado Springs) have discovered that CITIZENS and CITIES need some way to pay for SERVICES. (True. You were saying that is true, right?) Those wicked people...imagine, wanting to live in civilization!!! (Again, I'll presume these wicked people you are referring to are the citizens of Colorado Springs. I agree that people do want to live in civilization. Going back to your first statement, they will have to pay for that priviledge. These particular wicked people want it both ways, they don't want to pay any taxes, and would like their services provided to them via magic or some other mysterious way.) Why, they should all move to....Arkansas! (This is the really good part. I can't stand it here anymore, so I'm moving my family. We went out last weekend and checked out the new place, it's really nice. It's right by a huge park with a drinking fountain and 2 unlocked bathrooms, and all of that stuff had running water! Out there, their school disctricts are competing to be amongst the top in the nation. In Colorado Springs, we're lucky that Texas is a state, or we'd be fighting for dead last. Guess where I found this little piece of paradise on Earth? Arkansas!!

[skeezix06]

Well, I guess they could return to gravel streets, refusal to allow semis and other delivery vehicles enter the city limits due to the stress they add to city streets (that should do wonders for businesses), unincorporate to end all city taxation after which they can start a movement to do the same thing to the county so it too can be destitute, close all the city schools, shut down the city police department (after all everyone should be packing heat so it's not like you actually need the police, right?), shut down the city water and sewer system (running water and a toilet that flushes are unnecessary luxuries), electricity ditto... Yep. Life would be just peachy.