My letter to the editor, below, was submitted to the Gazette. It was published with the exception of the text shown in bold italics. Those three sentences were critical of the Gazette for not making the customary “full disclosure” that media routinely make when there are potential business or other arrangements that could affect the news outlet’s objectivity, or the appearance of its objectivity. It is important for Manitou Springs voters to realize that the Gazette, the Broadmoor Hotel, and the Cog Railway are under the common ownership of Philip Anschutz. — JG
This is in response to the Gazette’s Oct. 10 editorial titled “NO to 2A’s crippling tax hike on Manitou’s attractions.”
The Gazette editorial made a number of assertions that are incorrect. The editorial said that Manitou Springs City Council had been reckless with budgeting, that this is a “desperate, last-ditch bailout,” and that there is “an already hefty ticket tax on the town’s legacy attractions.”
While we take exception to many of the points in the Gazette’s editorial, we also take exception to what was not in it and should have been. The Cog Railway, one of the businesses that pays the excise tax, is under the same ownership as the Gazette. It would have been sporting to make a full disclosure of that.
However, Manitou Springs City Council asks that voters take an informed and thoughtful approach to the question. It’s your future.
Legalizing recreational marijuana in Colorado Springs has cut deeply into our tax collections. This is no surprise. All our Council budget meetings in the last five years have factored in this potential loss, now a real loss. That threat tempered every aspect of our planning.
The facts are that the years of strong income underwrote big, overdue infrastructure projects.
Knowing the rainy days would come, we also built up a capital reserve of $8 million — 6 to 7 months of expenses – as a safety net. However, that only buys us time and will eventually be exhausted unless we act.
At a meeting in late July, attended by residents and business operators, we presented several scenarios for making up the shortfall with sources from property, sales and use, and excise taxes (also known as amusement taxes).
We subsequently decided to ask voters for approval authorizing Council to adjust the excise tax. It has been five percent since its inception in 1972; mild, compared to regional sales tax rates.
A “Yes” vote on 2A would mean Council could set the rate anywhere not to exceed 14%.
Separately – as an effort to not rely entirely on tax dollars — we will channel $1.5 million from our parking proceeds to our General Fund and in the last several weeks have identified reductions that amount to $580,000. Our most recent prediction is that we will need $1.75 million from our reserve next year if 2A does not pass. The trend then would be that the reserve will get tapped to extinction. Long-deferred infrastructure needs will go unmet.
Cost reductions are also critical in safeguarding the core services we provide to both our residents and our visitors.
Tax dollars must be spent wisely, doing the most good for the most people for the longest time. It is essential that the City collects enough to maintain both essential services and infrastructure.
With this in mind, the Manitou Springs City Council asks our citizens to consider the future and vote “Yes” on 2A.
John Graham
Mayor, City of Manitou Springs
Manitou Springs Mayor's Thoughts 