Page 203 - Littleton, CO Comprehensive Plan

Fiscal Impact Analysis
The City of Littleton, CO

DISCUSSON OF LAND USE SCENARIOS

Broadly speaking, these land use scenarios were designed to test how residential development
compares to nonresidential development in terms of its impact on the City’s fiscal sustainability. The
City of Littleton is largely built-out, with just over 200 acres of developable vacant land remaining. A
central component of the City’s Comprehensive Planning process is therefore to establish a vision for
how that vacant land will be utilized. The Comprehensive Plan will inform the City’s amended Zoning
Ordinance and Subdivision Regulations, as well as policies and programs responsible for guiding
and incentivizing development (e.g., Economic Development incentive programs, the development
review process, et cetera).

The City’s most recent budget projections indicate that current resources are insufficient to cover the
costs required to maintain current levels of service for certain infrastructure and services—most
1
notably, transportation infrastructure. Although an FIA does not reflect the costs associated with
improving current levels of service or correcting service deficiencies, the City’s internal projections
demonstrate the need to carefully consider the potential costs—and revenues—associated with
different land use regulations and development-related policy decisions.

A review of the City’s FY2019 budget reveals that like many municipalities in the State of Colorado,
the City of Littleton relies heavily on Sales and Use Taxes.

Per Figure 6 below, Sales and Use Taxes account for 71 percent of the municipality’s General Fund
revenue. In contrast, Property Taxes account for only 12 percent; although the City recently
outsourced Fire services which will allow it to transfer General Fund Revenue to the Capital Projects
Fund, this policy decision also requires a decrease in the Property Tax mill levy from 6.662 to 2.00—
future Property Tax revenues are therefore projected to decline, further increasing the City’s reliance

on Sales and Use Taxes.

1 From page 6 of City of Littleton FY2019 budget: “For 2019, resources are adequate to cover basic capital
replacements and minimum street improvements; however, the ongoing revenue sources for [the Capital
Projects Fund] are less than the estimated expenditures and a dedicated revenue source for this fund will be
needed for future capital replacement, including growing street infrastructure costs…public works capital
needs far exceed available funds.”
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