Growing Commercial Business

Why Wellington Needs More Commercial Growth

 

Due to the Taxpayer Bill of Rights (TABOR) and the Gallagher Amendment, Colorado municipalities typically receive the bulk of their revenues from sales taxes.  Wellington, however, does not generate sufficient sales taxes because we do not have enough commercial businesses to meet the needs of our residents.  If fact, Wellington’s sales tax revenue is only 0.2% higher than property taxes.  By comparison, Timnath generates almost 800% more sales taxes than property taxes.

 

Wellington has experienced rapid residential growth, but little commercial development to support our growing population. Commercial development provides:

​

• Goods and services our residents use every day

• Jobs for our residents

• Sales and commercial property tax revenue to support our growing population

​

 

The Cost of Shopping Elsewhere

 

A 2018 market study showed that $11 million in sales tax revenue is lost every year as residents travel to neighboring communities to purchase the goods and supplies they use every day.  $11M/year could help improve roads, expand parks and recreational services, build a new I-25 interchange, and even support a recreation center. Without it, however, Wellington's future will become unsustainable as rising costs outpace revenues.

​

Wellington must also do a better job supporting small businesses.  Local business owners say opening or expanding in Wellington is often slowed by unnecessary barriers and added costs.

We need to:

• Streamline our codes and processes

• Reduce delays and expenses

• Work closely with the Chamber and Main Streets

• Make Wellington a place where small businesses can thrive

 

How to make it happen!

 Wellington needs to become a Home Rule community

 

Home Rule is a form of local self-governance that gives a community more authority over its own affairs. Instead of relying on state statutes for most decisions, a Home Rule municipality can adopt its own local “constitution,” called a Home Rule Charter, to address community needs more directly and efficiently.

 

Wellington is currently a statutory town, which means our powers and authority are defined entirely by state law (Title 31, Colorado Revised Statutes). However, under Article 20 of the Colorado Constitution, Wellington has the option to become a Home Rule municipality by creating and adopting a Home Rule Charter.

 

A Home Rule Charter allows a community to design its own governmental structure, pass local laws that better meet the needs of the local community, create and manage zoning that works, and provide incentives to attract commercial development, something a statutory town is prohibited from doing.  

​

Home Rule is the norm in Colorado: 108 municipalities have adopted home rule, and 91% of all Coloradans live in home rule jurisdictions.

 

Why Consider Home Rule for Wellington?

​

1.  More Local Control — Less State Interference

Home Rule lets Wellington call the shots on local issues. When something is defined as a “local matter,” our local laws can override state laws.  This means we make can:

• Make decisions faster

• Have more control over how tax dollars are used

• Shape our government and services to better fit the Wellington community.

​

2. Stronger Economic Development

Home Rule gives Wellington better tools to grow our economy. With more flexibility, we can:

• Offer local tax incentives to attract businesses

• Use sales tax dollars to improve our roads, services, and infrastructure

• Create zoning rules that bring in the types of businesses we want

​

3. Better Control of Our Tax Revenue

With Home Rule, Wellington can decide how to collect and enforce sales and use taxes.
We can even “self-collect,” meaning we handle it ourselves instead of relying on the state. Benefits include:

• Keeping more tax revenue in Wellington

• Reducing money accidentally going to nearby towns

• Improving enforcement so the community gets its fair share​

Home rule is just the start.  Wellington also needs to consider other economic development tools such as a Downtown Development Authorities (DDA) and Urban Renewal Authorities (URA).  Together with home rule, Wellington would have the tools necessary to to create new commercial growth.

​

More information on Home Rule, DDAs, and URAs can be found on the Resources Page.