During a recent city council meeting, Greeley officials discussed the proposed renewal of a 3% sales tax on food for home consumption, which has been in place since 1990. The tax is set to expire at the end of 2026, and the council is considering placing a permanent extension on the November 2024 ballot. This change aims to provide a stable revenue source for funding essential city projects, particularly the repayment of transportation debt related to critical infrastructure improvements.
Kaylin Myers, a city finance staff member, outlined the extensive public engagement process that has taken place since last year, including public opinion polling and focus groups. The food tax generates approximately $11 million annually, which is primarily allocated for capital maintenance and construction projects, including park improvements and traffic safety enhancements.
The proposed ordinance marks a significant shift from the previous five-year renewal cycle to a permanent tax, a change that has sparked considerable debate among council members and community members alike. Supporters argue that the tax is vital for maintaining city services and infrastructure, while opponents express concerns about the regressive nature of the tax, particularly in light of rising food prices and inflation.
Public comments during the meeting reflected a range of opinions. Some residents voiced strong opposition to the permanent extension, arguing that it places an undue burden on low-income families. Others supported the tax, emphasizing its role in funding necessary city services and infrastructure improvements, particularly at dangerous intersections.
Council members engaged in a robust discussion, weighing the need for stable funding against the potential impact on residents' finances. Ultimately, the council voted 7-0 to advance the ordinance for voter consideration, emphasizing the importance of allowing the community to decide on the tax's future in the upcoming election. The council reiterated their commitment to transparency and fiscal responsibility, assuring residents that their concerns would be taken into account as the city moves forward.