Summit County’s elected officials remain undecided about whether to reduce tax rates for certain county funds as a way to generate some property tax relief for homeowners next year. 

The Summit Board of County Commissioners discussion on Tuesday, Dec. 5, regarding the matter marked a continuation of budget conversations that began to ramp up in October, when the finance department unveiled its initial draft budget proposal for 2024. 

In that proposal, county officials included an average 4.4% reduction to mill levies, which they estimated would generate $22 in property tax savings for a $1.1 million home. A mill is a $1 payment on every $1,000 of assessed value that is factored into property taxes that generate revenue for entities such as county governments and schools, as well as water and fire districts.

The weeks since that proposal have been dotted with major developments, including a special legislative session. The session produced a property tax relief package and a call from Gov. Jared Polis for local entities to lower their mills — efforts meant to dampen the expected rise in property taxes next year due to skyrocketing home valuations. 

As the county continues to build a budget while dealing with inflationary expenses, commissioners said they’re in a difficult position to provide further relief. 

Commissioner Elisabeth Lawrence said she appreciates the governor being involved with the discussion, “but on the other hand we’re the ones elected to really know about what’s happening locally and understand our local priorities.”

The crux of the dilemma, commissioners say, is whether the property tax relief they could provide would be worth the loss in funds to certain county programs. 

The county was initially projected to net around $21 million in property tax revenue next year, with the bulk of those funds going to voter-approved initiatives. Following legislation passed during the special session, which will slightly reduce the statewide assessment rate and allow up to $55,000 of home value to be exempt from taxation, the county is predicting a $19 million increase. 

Much of that, officials say, will be eaten away by inflation, which has driven up costs for everything from road repair to equipment. The county is also operating at near full-staff capacity compared to last year and is paying staff more to keep up with the rise in the area’s cost of living. 

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County leaders have resisted any cuts to mill levies that go to the general fund, the county’s largest fund account that pays for staffing in various departments as well as public safety and some capital projects. While the general fund is expected to see a $6 million increase in 2024, officials claim it will also lose about $4 million due to the incorporation of Keystone. Officials said they are anticipating an overall loss of $6 million from Keystone next year. 

Yet the county may still be called upon to provide services to Keystone until it cements its own town operations. The county, as mandated by state statute, must provide services for at least 90 days after the new town’s council is seated, which is likely to happen in February. However, the town can request services for up to a year.

Officials have instead turned to the Strong Future Fund as a source for potential mill levy reductions. Strong Future is a voter-approved mill levy that generates property tax revenue for child care, behavioral health, fire mitigation, recycling and public infrastructure programs. The fund would receive just over $16 million next year without any change. 

According to Finance Director David Reynolds, the county could reduce that mill by 6.7%, which in turn would mean a roughly 4.4% reduction in the taxes owed to the county by property owners next year. 

That would translate to a $1.1 million cut in revenue for the Strong Future Fund and a rough savings of $22 for a million-dollar home. By comparison, the state’s legislation would create more than $200 in savings for that same home. 

Reynolds added that a 10-person citizens advisory committee tasked with reviewing and making recommendations on the draft budget largely opposed a mill reduction. 

“To use their vernacular, ‘the juice was not worth the squeeze,'” Reynolds said. “They did not favor a mill levy reduction almost unanimously across that budget committee just because the savings to the individual was not worth the loss to services.”

Lawrence said it’s hard for the county to provide much relief with a mill levy cut without buy-in from other local taxing entities. Of all the property tax revenue generated in the county, about one-third goes to the county government, another third goes to the school district and the rest is dispersed between dozens of other entities. 

So far, only Colorado Mountain College has pledged to reduce its mill levy, though it does not yet know by how much. In a prior statement to the Summit Daily News, Director of Marketing and Media Relations Brian Barker said it could be a roughly 25% reduction in the taxes home and commercial properties are slated to pay to the college next year. 

Lawrence said the county has reached out to other taxing districts but has yet to hear of any that are planning for a mill reduction. 

“For us to do it on our own … it would have such a big impact to us but such a small impact to the property owner,” she said. 

Commissioner Nina Waters said she needs more time to weigh any mill changes and wants to hear from more constituents about what they want. 

Commissioner Tamara Pogue said she is “leaning towards a float” in mill levies but has not decided on an amount. Pogue said she would not support a mill reduction that exceeds 4.4% countywide. 

“I’ve really struggled with this one,” Pogue said. 

County leaders are aiming to pass their 2024 budget during a special meeting on Wednesday, Dec. 20, roughly three weeks ahead of the state-mandated deadline of Jan. 10.