The City Council made a wise decision when it voted 7-2 to delay a vote that would eliminate the city food tax in two years. Based on current estimates of sales of food for home consumption, the tax equals approximately $6 million, or 8 percent of the City’s general fund revenue each year. Staff estimates that the average savings per household would be about $17 per month (while low income families, due to the availability of assistance programs, could save $3-$4 per month).
Is that monthly savings really worth cutting the City’s revenues by $6 million a year? What services would residents lose? What new fees would be needed to make up the difference? Before deciding to approve this ordinance, the Council should have more information about the impact. It is relatively easy to eliminate a tax but very difficult – especially in Loveland – to get a tax approved by the voters. This should not be a partisan issue.