Budget outlook: Little change

September 2, 2009

By JoAn Bjarko

The Wellington

 

Wellington (Colorado) won’t have to slash government services in 2010 because property tax collections will be about the same as this year.

The town’s assessed valuation, which is used to calculate revenue from property taxes, is up 0.53 percent from the previous year, according to the Larimer County Assessor’s Office. The number comes from market values as of June 30, 2008, which is before the worst of the mortgage crisis hit Larimer County.

Nevertheless, it is the number that will be used for local governments to prepare their 2010 budgets.

According to Wellington Finance Director Mike Cummins, the town will see little change in services in 2010. Few capital projects such as major street repairs will be included in the budget, he noted.

“We’re going to be very frugal,” Cummins said, “but we’ve always been fairly conservative.”

He said the town will continue to set aside funds for the purchase of future water supplies, a line item that has remained unspent for several years.

No decision has been made on salary increases for town employees, Cummins said. Wellington (Colorado) traditionally gives a cost-of-living increase to all employees plus a merit increase to those who qualify.

Cummins said he expects town board work sessions on the 2010 budget to begin Sept. 22. As finance director, he is required to give the board a draft budget by the Oct. 13 board meeting. The final budget is scheduled to be adopted at the Dec. 8 board meeting.

Wellington (Colorado)’s positive picture can be attributed to an increase in commercial property. Ron Kerr, chief deputy assessor, noted that in comparison with values in 2008, the total assessed value of commercial property increased $1.6 million while residential property decreased $1.2 million.

To determine assessed value of a business property, the county assessor multiples the market value by 29 percent. For residential properties, the market value is multiplied by 7.96 percent.

The effect is that business properties pay 3.6 times the amount of property taxes as residential properties with the same market value.

Without the higher percentage placed on commercial property, Wellington (Colorado) would be looking at a decrease in property tax revenue next year. The assessor’s office shows that the market value (also called actual value) of property in Wellington (Colorado) decreased 1.9 percent in 2009 compared with the previous year.

Town government uses the property tax revenue for general operating expenses and to pay off a 40-year bond that financed water treatment plant improvements in 1984 and 1985. Wellington (Colorado) residents will be making those payments until 2024.

Residents wanting to follow the budget process should look for upcoming town board agendas posted online at www.townofwellington.com.