What’s Happening with the Broomfield
City Council’s Proposed Sales Tax Increase?
Last updated - July 1, 2023
Broomfield City Council’s Sales Tax Scheme
On August 30, 2022, the Broomfield City Council held a study session providing a fiscal update for the City and County of Broomfield. In that discussion, Broomfield’s City Manager Jennifer Hoffman described the need to “build financial stability” supporting “buoyancy and catalytic development”, with the goal of "growing revenue” for the City and County of Broomfield.
What was their plan to achieve their financial stability? They want to increase the sales tax from 8.15% to 8.9% - a 9% increase - which the Broomfield City Council tried to sell to the citizens of Broomfield, a measure that could have appeared in the November 2023 ballot.
UPDATE: At the June 27 2023 City Council Meeting, the City Council voted unanimously to not place the sales tax increase on the November 2023 ballot. Their decision was based on a recent sales tax survey where 63% of the respondents opposed the sales tax increase. The survey and related details are available here.
The Broomfield City Council wanted to increase Broomfield’s overall sales tax rate from lowest in the north metro area to the 2nd highest. 63% of respondents of a recent sales tax survey opposed the sales tax measure. The City Council has decided not to pursue the sales tax increase…for now.
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They Have Increased Spending
Since 2017, the Broomfield City Council has increased spending per citizen from $2,690 per person to $4,840 per person - an 80% increase. Rather than being judicious with your money, the City Council shows no signs of cutting back on how much of it they spend.
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They Want To Spend Even More
The City and County of Broomfield currently has $490 Million in debt, which is nearly as much as the city’s entire 2023 budget of $527 Million. Rather than stop digging the city into a deeper hole, the City Council wanted to increase spending by $308 Million, including facility costs and operation and staff costs.
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They Want YOU To Pay For It
To pay for their ever-increasing spending and insatiable appetite to add more and more debt, the City Council is banking on more “revenue” from historically high property taxes combined with convincing you to raise Broomfield sales tax to the 2nd highest tax rate in the metro area.
Broomfield’s Increased Spending
Broomfield Spending In 2022
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1) Figures noted for Capital Improvements (CIP), Operations, Debt Service, and Reserves.
2) Fiduciary Funds (e.g. - pensions) and Lease Purchase Payments are not noted.
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Spending Increases Since 2017
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1) Capital Improvements increased from $50.9M (2017) to $153.77M (2022)
2) Operating budget increased from $115.98M (2017) to $198M (2022)
3) Debt service increased from $17.6M (2017) to $24.7M (2022)
4) Additions to Reserves decreased from $37.9M (2017) to $4.3M (2022)
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Broomfield Spending Per Citizen
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1) 2017 spending per citizen = $2,690 / citizen
2) 2022 spending per citizen = $4,840 / citizen
3) 2022 spending per citizen, adjusted for inflation = $4,452 / citizen
4) Calculations include Capital Improvements (CIP), Operations, Debt Service, and Reserves.
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Broomfield City Council’s Desire to Grow the City’s Debt
Broomfield’s Debt Obligations
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1) Debt obligations as of August 2022
2) Debt obligations include Broomfield Event Center (aka 1st Bank Center, Flatirons and street improvements, EPA Mandates and Expansion, County facilities, Broomfield Community Center, 144th Ave expansion, Windy Gap reservoir
3) Broomfield’s collective debt (bond level) is $490 million, equal to approximately one year of annual revenue
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City Council’s Push For More Spending and Debt
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1) Broomfield City Council was looking to increase spending on new facilities and operations and staffing costs to the tune of $308 million.
2) Potential projects included $131,631,000 for new and renovated Library facilities and operations and staffing costs.
3) Potential projects included $176,895,874 for Police Department/Courts renovation and operations and staffing costs.
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Broomfield’s Financial Mishaps
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1) Broomfield’s overall expenditures have increased from $246 million (2017 actual) to $527 million (2023 budget) - a 114% increase in just 6 years.
2) Broomfield City Council recently terminated the operational agreement for the 1st Bank Center, with the intention to demolish the center. In total, Broomfield has spent $130 million on the 1st Bank Center and still owes $35 million.
3) Broomfield City Council terminated the City’s agreement with the Jefferson County Parkway project. Broomfield walked away from the $3.4 million paid into the project, and is facing a lawsuit from Jefferson County and the City of Arvada.
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Broomfield City Council Wants You To Pay A Higher Sales Tax
Broomfield’s Tax Revenues
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1) City and County Of Broomfield (CCOB) revenue in 2017 = $366.6 million
2) CCOB revenue in 2023 (budget) = $574.6M
3) CCOB revenue increased by 56.7% between from 2017 to 2023
4) Highest CCOB revenue in 2021 = $641.6M
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Broomfield Current Sales Tax Rate
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1) Broomfield currently has one of the lowest sales tax rates in the area.
2) In 2022, Boulder voted increased its sales tax rate from 8.845% to 9.045%
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Broomfield’s Proposed Sales Tax Rate *
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1) Broomfield City Council wants to increase Broomfield’s sales tax rate from 8.15% to 8.9%, a 9% increase.
2) The suggested sales tax increase would move Broomfield from one of the lowest sales tax rates to the 2nd highest tax rate in the region, just below Boulder.
3) The City and County of Broomfield conducted a recent “survey” in an attempt to sway pubic opinion on a possible sales tax ballot measure.
4) The results of the sales survey tax survey indicated that 63% of respondents opposed the sales tax increase.
5) On June 27 2023, Broomfield City Council voted to not place the sales tax increase measure on the November 2023 ballot.
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Broomfield City Council February 21 2023 Study Session - Sales Tax Increase (Staff Memo)
Broomfield City Council February 21 2023 Study Session - Sales Tax Increase (Video)
Boulder County Sales tax Rate at 9.045%
City and County of Broomfield Sales Tax Survey
City and County of Broomfield Sales and Use Tax Ballot Measure Survey Results
* On June 27 2023, Broomfield City Council voted to not place the sales tax increase measure on the November 2023 ballot.