To avoid oscillating between increasing and decreasing property taxes, the Erie Town Council this week opted not to reduce mill levies in 2024.

Also, with the passing of the Erie Home Rule Charter, trustees have transitioned to the new “Councilmember” title.

Director of Finance Sara Hancock presented three options to reduce mill levies during the Tuesday council meeting.

Hancock explained that with Senate Bill 23B-001, home value exemptions from taxation increased from $15,000 to $55,000 and the assessment tax rate slightly decreased from 6.765% to 6.7%. This will result in a projected revenue drop of approximately 9%, or $510,000, for the town’s 2024 budget. Hancock said town staff expect Erie’s property tax revenue over the next four years to be reduced by $2.1 million.

Property assessment valuations in Erie increased by 34%, and the town considered mill levy reductions to help with the increase.

Council members explained that they would not like to decrease the levy, as they would probably have to increase it again, the following year.

“We don’t want to pull the rug out from under (taxpayers) and go ‘Hey, we’re reducing your mill levy,’ and then in November of next year go ‘Hey, we’re asking for more mill levy,’” Councilmember Andrew Sawusch said.

Erie’s 2023 mill levy is 13.909, including the general operating levy, the Trails, Natural Areas, and Community Character dedicated levy, as well as Erie Community Center and Public Safety Building levies. The levies are dedicated toward paying off debt. The mill levy has decreased by 0.723 since 2021, as the town was able to use other sources to pay off that debt.

The council also discussed potentially ending the town’s retail marijuana moratorium. Council members directed town staff to begin the necessary research needed to present a marijuana tax question on the November 2024 ballot, which would impose a 5% excise tax. Town staff will also prepare an ordinance regulating zoning, licenses and fee requirements for retail marijuana sales.

Stephanie Pitts-Noggle, economic development manager, further clarified that the town has not yet decided if the retail marijuana tax question will be on the ballot, and that Erie has just started looking into the matter. Currently, retail and medical marijuana sales in Erie are not permitted.

Pitts-Noggle said that while she does not want to diminish the harmful impacts marijuana can have on young people, neighboring communities have reported that retail marijuana sales have not increased crime, nor its use.

She also noted that when Erie residents do purchase marijuana, sales and the associated tax revenue benefit other municipalities, rather than flowing back into Erie’s economy.

Erie could see revenue from marijuana sales ranging from $250,000 to $500,000 annually, according to Pitts-Noggle.

Police Chief Lee Mathis said that with Erie being in both Weld and Boulder County, different regulations apply to different parts of town.

He said very likely, the officer inspecting liquor licenses and establishments would also pick up the job of inspecting marijuana establishments, should the town legalize pot sales.