September 30, 2024 - On Thursday, September 19th, the Parachute Town Council unanimously approved a resolution outlining the reasons they support a yes vote on ballot question 2B.
The ballot measure, if approved by voters on Nov. 5, 2024, would increase the Town’s sales and use tax rate by 0.5%.
"I believe the Town is headed in the right direction, and we want to keep it that way," said Mayor Tom Rugaard. "Most sales tax is paid for by non-residents, and we think this is the best way to accomplish our goals and improve the town, without a lot of impact to our residents."
Parachute’s current sales tax rate, which hasn’t been increased since 1994, is currently one of the lowest rates in the state. Even with the increase, the Town's sales tax rate will be even with the City of Rifle, and still much lower than major shopping centers like Grand Junction and Glenwood Springs.
Many essential household purchases, like groceries, fuel, housing, utility bills, medications, etc. would be exempt. This added revenue would be utilized to maintain vital Town services including:
Repairing, maintaining, and improving Town streets and aging infrastructure;
Carrying out the projects and vision in the Downtown Development Plan to revitalize the Downtown Corridor / 1st Street; and
Constructing and improving parks, trails, and open space.
You can learn more about the proposed increase at www.parachute.gov.
Find the complete resolution language below:
TOWN OF PARACHUTE, COLORADO
RESOLUTION NO. 2024-40
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARACHUTE, COLORADO, SUPPORTING A YES VOTE ON QUESTION 2B SEEKING VOTER APPROVAL FOR A 0.5% SALES AND USE TAX INCREASE FOR THE PURPOSE OF MAINTAINING, REPAIRING, AND CONSTRUCTING VITAL TOWN INFRASTRUCTURE AND ASSETS, SUCH AS STREETS, SIDEWALKS, UTILITIES, PARKS, TRAILS, AND OTHER ESSENTIAL PUBLIC IMPROVEMENTS
WHEREAS, in accordance with the Taxpayer's Bill of Rights, Article X, Section 20 of the Colorado Constitution ("TABOR"), governmental entities are required to seek advance voter approval for any new tax or tax increase it seeks to impose; and
WHEREAS, the Town Council referred ballot issue 2B to be placed on the ballot for the November 5, 2024 coordinated election, seeking voter approval to impose a sales and use tax rate increase of 0.5% for the funding of vital Town infrastructure and services including repairing, maintaining, and improving Town streets, sidewalks, utilities, and aging infrastructure, and constructing and improving parks, trails, and open space; and
WHEREAS, the Town’s Street and Alley Fund does not have a dedicated revenue source that is sufficient to cover ongoing costs for the repair and maintenance of Town infrastructure, requiring the Town’s general fund to pay for repairs and capital projects in direct competition with other essential Town services, such as the police department; and
WHEREAS, the construction costs for capital projects like streets and sidewalks have continued to rapidly increase and outpace increases in corresponding revenues from the existing sales and use tax rates; and
WHEREAS, the Town of Parachute’s sales tax rate of 3.75% has not be increased in over 30 years and the combined rate of 7.65% is lower than most Colorado municipalities; and
WHEREAS, a 0.5% sales tax increase would have minimal impact on Parachute households as the majority of the Town’s sales tax revenue is generated from visitors who travel I-70 and live outside of Parachute; and
WHEREAS, sales from groceries, fuel, residential energy usage, wholesale goods, long-term real estate leases and real estate purchases, prescription drugs, and services are exempt from sales tax; and
WHEREAS, the Town Council adopted the community Trails Master Plan after extensive community engagement and feedback from stakeholders, and has identified new projects to construct additional recreational trails and pathway connections in Parachute, such as at the base of Mt. Callahan, along Parachute Creek, on the Parachute River Island, and along the Colorado River; and
WHEREAS, the Town Council adopted the Downtown Development Plan in 2023 after extensive community engagement and feedback from stakeholders and business owners to envision the revitalization and reconstruction of the Downtown Core; and
WHEREAS, the Town has identified over $16 million in other necessary repairs and projects to existing Town streets, including Cardinal Way near the Grand Valley High School, Hill St., Diamond Loop, W. 1st Street, Meadow Dr., Laurel Dr. 3rd St., and more; and
WHEREAS, a 0.5% increase to the Town’s sales tax rate would be used to finance some of these projects and help bring them to reality; and
WHEREAS, the Town Council and Town Staff have engaged with the community extensively and surveys have shown support amongst residents for increasing the sales tax rate to invest in the community; and
WHEREAS, an increase in sales tax revenue would ensure financial stability of the Town so that the Town can continue to provide exceptional services and community investments; and
WHEREAS, if approved by voters in the November 5, 2024 coordinated election, the Parachute sales and use tax will be increased by a total of 0.5 percent.
NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF PARACHUTE, COLORADO THAT THE TOWN COUNCIL HEREBY SUPPORTS A “YES” VOTE ON LOCAL BALLOT QUESTION 2B AND URGES THE REGISTERED ELECTORS OF PARACHUTE TO VOTE IN FAVOR OF THE PROPOSED 0.5% SALES AND USE TAX INCREASE TO PAY FOR ESSENTIAL TOWN INFRASTRUCTURE, MAINTENANCE, AND CAPITAL PROJECTS.
INTRODUCED, PASSED, ADOPTED, AND APPROVED by a vote of 7 to 0 of the Town Council of the Town of Parachute, Colorado at a regular meeting held at Town Hall in the Town of Parachute, Colorado, on the 19th day of September, 2024 and approved by the Mayor on the 19th day of September, 2024.
TOWN COUNCIL OF THE
TOWN OF PARACHUTE, COLORADO