A RESOLUTION IN OPPOSITION TO THE STATEWIDE PROPOSAL, PROPOSITION HH

WHEREAS, the Town of Holly understands the financial burden that an increased property valuation may create and desires to be a part of the solution without negatively impacting the ability to provide the needed services and programs; and

WHEREAS, many local governments, including the Town of Holly, levy a property tax to support essential public services and infrastructure, the State of Colorado does not; and

WHEREAS, the Town of Holly annually prepares a budget and certifies a property tax mill levy through an open and public process under the existing law; and

WHEREAS, the Town of Holly relies on property tax revenue, as a primary source of annual revenue; and

WHEREAS, costs for labor, materials, and services have increased exponentially since 2020, with the inflation having increased by almost eighteen percent; and

WHEREAS, by Senate bill 23-03, the Colorado General Assembly referred to voters “Proposition HH” that, among other things, would:

• Lower property taxes compared to what would be owed under current law by temporarily lowering the assessment rates for residential and certain types of non-residential property, applying value reductions for certain types of residential properties, and by creating new property tax exemptions; and

• Impose an unnecessary and arbitrary limit on the growth of property tax revenue for certain local governments unless the governing body votes to exceed the limit after a public hearing and does not provide any opportunity for reimbursement of revenues lost due to the limit; and

• Permit the state to retain money that would otherwise be refunded to taxpayers under the Taxpayer’s Bill of Rights to be used for education, partial reimbursements to local governments for reduced property tax revenue, and rental assistance programs; and

WHEREAS, Proposition HH will mandate reductions in the local property taxes resulting in lost revenues for the local government without any decrease in the service obligations or needs of the local government; and

WHEREAS, Proposition HH will allow the State of Colorado to retain and spend TABOR funds, that otherwise would be required to be refunded to residents; and

WHEREAS, Proposition HH will create a new and increased cap on state revenue, allowing the state to retain and spend additional revenue each year up to the cap; and

WHEREAS, Proposition HH indicates that local governments will be reimbursed from state funds for lost property tax revenues, but there is no guarantee that they would receive all or any portion of that lost property tax revenue back; and

WHEREAS, Proposition HH will minimize the Town of Holly’s ability to support existing and new public services, to maintain and create new infrastructure for our town, to meet the emergency needs of our community, and to absorb the inflationary costs of supplies, insurances, increased salaries, and employee compensation; and

WHEREAS, the Town of Holly is working with community support to retain and spend revenues for public works, transportation, utilities, public health and safety, emergency management, local events, elections, and law enforcement; and

WHEREAS, the complexity of Proposition HH will impose unnecessary administrative hardships on the Town of Holly.

NOW, THEREFORE, BE IT RESOLVED by the Board of Trustees of the Town of Holly that Proposition HH restricts the administration from providing the necessary infrastructure to this community and so opposes Proposition HH and urges a NO vote on this November 7, 2023 election.

PASSED AND APPROVED THIS 4^TH DAY OF OCTOBER, 2023.

/s/ Larry Sitts, Mayor

ATTEST:

/s/ Cynthia S. Humrich, Clerk/Treasurer