LOVELAND, Colo. — A year after Loveland voters approved a measure that eliminated a 3% sales tax on groceries, they are being asked this year to approve ballot measure 2E, a 1% sales tax increase on non-food items.
The additional funds from the proposed increase would help patch the city's multi-million dollar budget shortfall, which was created by ballot question 300, the 3% grocery tax elimination, passed by voters in 2023.
"Well, for 2024, we made some capital program cuts, and we also had some other budget savings from 2023 that we were able to use to get through 2024, but you can only do that once," explained Brian Walders, chief financial officer for the City of Loveland. "So if the sales tax base stays the same in 2025, we would be looking at program reductions and not those same kinds of measures that we used to get through 2024."
Over the past couple of months, the city has provided updates online regarding budget cuts. The Loveland Public Library is one entity that could be impacted. With a 33% reduction in budget, they could face major changes, including a change in weekly hours of operation and a reduction in their physical library collection.
Library visitors have seen some changes this month as the library had to reduce its hours.
"We did have to reduce our hours to meet our current staffing level. We had to take a look at what we could continue in the way of programming, and we are still continuing our essential programming," explained Amy Phillips, director of the Loveland Public Library.
Leanne Lindberg described the library as her happy place and is now concerned about changes that could happen not only to the library but also to other public services in the city. She explained that most people she talks to have no idea the food tax is no longer in existence.
"Some of the people who voted for it didn't realize the ramifications of all the cuts that would be happening," said Lindberg. "They just thought like, 'Oh, cool, like I don't have to pay tax on food.'"
Lindberg is involved in Save Our Services Loveland, a group supporting 2E. If passed, the measure would add a 1% sales tax to non-food items to increase general fund revenue, changing the current sales tax from 3% to 4%.
"That 4% will pay for the library and the fireworks and the fire department, and we can still be a full service city," she said.
Earlier this week, Loveland City Council was presented with next year's budget. Waldes explained how the city is prepared for either result following the November election.
"Right now, we have a budget ... that provides for services at that lower revenue level," said Waldes. "So, if that estimate of $10.5 million rolls forward into that 2025 budget, what we're going to be looking at is reducing services by about that amount."
For now, Lindberg and other supporters of 2E hope voters consider how this sales tax could benefit the city.
Still, opponents of the measure could argue they don’t want to see an additional sales tax on non-food items, especially since voters approved nixing the grocery sales tax just last year.
One resident against 2E told the Loveland Reporter-Herald last week that the city's budget shortfall is a "manufactured crisis." And said he doesn't support a new tax "on the backs of the people."
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