Page 146 - Littleton, CO Comprehensive Plan

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52% Percent of the City’s 2018 general fund revenue from sales and use taxes.

The 2019 adopted budget projects that sales and use taxes will increase to 71 percent of the
City’s general fund revenue. In dollar terms, this revenue is expected to increase only slightly
in 2019. However, this revenue will account for a much higher percentage of the City’s total 2019
revenue, which will be down due to the discontinuation of the fire partner contract reimbursements.
Given the reliance of Colorado cities on sales tax revenue, the City of Littleton must monitor multiple trends that
could move future revenue both up and down and, therefore, have implications for managing its future land use
mix. This includes a nationwide shift away from stand-alone retail toward more “experiential” commercial development
mixed with residential and other uses (as validated locally by redevelopment scenarios considered in the 2018 Belleview
Avenue Corridor Vision study). Concurrently, online sales remain a relatively small but growing share of all U.S. retail
spending. However, Colorado like other states may eventually enable the sales tax from online sales to be captured
locally by requiring tax payment based on the destination address.
Property taxes are the second largest revenue source, estimated at 12 percent of revenue in the 2019 budget.
A significant change in the City’s 2020 budgeting relates to the South Metro Fire Rescue (SMFR) inclusion approved by
voters in 2018 which goes into effect January 1, 2020. This change results in decreased revenues and expenses for the
City. In particular, the property tax mill levy will be reduced to 2.0 mills from the previous rate of 6.662 mills per $1,000 of
assessed value which had not changed since 1991. As a result, in the proposed 2020 budget property taxes drop to the
third largest revenue source, decreasing eight points from 2019 to four percent

Source: City of Littleton Annual Budget, 2019, and proposed Annual Budget, 2020.
18 Shopping centers (not including downtown) that were built 30 or more years ago.

This number is a subset of 25 main shopping centers identified within the city (see map on next page).
Some of these centers are underperforming or no longer exist, such as the former Columbine Square
center along Belleview Avenue. Through its review of proposed new development and redevelopment,
the City’s Planning Commission has observed both opportunities for and challenges to commercial projects in the city:

Littleton’s Commercial Positives Littleton’s Commercial Challenges
A robust, historic downtown. Aging, underperforming shopping centers.

Redevelopment in areas surrounding downtown. Aging office and retail structures.
Continuing new development on South Santa Fe Gaps in needed retail.
Drive, Broadway, and Littleton Boulevard.
Fast changing nature of retail.
High quality of South Park commercial and Commercial encroaching into residential
areas around County Line Road and West Mineral neighborhoods.
Avenue.
Commercial zoned parcels too small to allow for
Large, undeveloped properties on South Santa Fe newer development.
well positioned for new development.
Commercial properties with outdated or inappropriate
Small, disjointed commercial properties along South zoning.
Santa Fe primed for redevelopment.
Commercial properties with outdated and
Some “big box” retail (e.g., home improvements).
inappropriate uses by right.
Relatively healthy retail on West Belleview Avenue.
Limited raw land for future development.