BLACK HAWK — A discussion about the future of a voter-approved education tax dominated the March 10 meeting of the Black Hawk City Council. Officials reviewed a draft resolution explaining how the tax would automatically end if a new county sales tax were approved.

No vote was taken on the resolution, but the group agreed to draft a resolution for review at the March 25 meeting.

The discussion, similar to the one held at the February 25 meeting, focused on the City’s Education Enhancement Tax, a 1.5 percent sales tax approved by Black Hawk voters in 2008. Revenue collected through the tax is passed directly to the local school district, Gilpin County RE-1.

City officials explained that the original ballot language contains conditions that will automatically terminate the tax if certain events occur.

“The important point is, if one of the conditions… is violated or triggered, the tax ends automatically,” the city attorney told council members. “The language is, in fact, self-executing.” 

If Gilpin County were to place a sales tax on the ballot and voters approved it, the education tax would automatically terminate on either July 1 or January 1 following implementation of the county tax.

Mayor David Spellman said the City would not have discretion to continue the tax if that condition were triggered.

“What the voters approved is what we have to do,” Alderman Benito Torres said. “There is no option.” 

Spellman said he plans to revisit remarks he made when the City first presented funding from the tax to the school district in 2009.

“At the time, one of the phrases I used was that since this is self-executing, everyone needs to understand…you can’t come and cry crocodile tears to the city council and ask us to keep the 1.5 percent education tax intact,” Spellman said. “It automatically terminates.” 

Spellman also addressed comments circulating in the community about the source of the funding.

“There are comments out in the community. I think some folks are as thick as a brick,” Spellman said, referring to claims that the money comes from the casinos and does not affect the City’s finances. 

“If we weren’t giving this to the school, we could have an additional 1.5 percent or $1.5 million going to our general fund,” he said.

He added that the City currently sends the full amount collected through the tax to the school district and does not keep any administrative portion.

Council members said they expect additional discussion and a draft resolution at the March 25 meeting.

Spellman said public input is not normally taken on resolutions, but he was willing to make an exception at the next meeting so the school district could comment. That effectively opens the floor to the public, but the school board president and superintendent were specifically invited. 

Public comment

Earlier in the meeting, Kathleen Ashbaugh of Friends of Charlie’s Place thanked the city for its continued financial support of the nonprofit organization that assists the Charlie’s Place animal shelter. 

Ashbaugh told council the City’s support is unique, saying Black Hawk is “the only government entity that helps Friends of Charlie’s Place.”

She said the funding has helped expand low-cost vaccination clinics and support emergency veterinary care for pets whose owners could not afford treatment. 

Other business

Council also approved several routine items during the meeting, including appointing judges for the April 7 municipal election and authorizing the purchase of public works equipment.

Officials approved a liquor license transfer tied to the sale of Z Casino. Owner Ed Smith, who also owns the Sasquatch and Wild Card casinos, plans to rename the property the Bigfoot Casino.

The meeting concluded with council entering executive session to receive legal advice regarding potential legislation addressing truck traffic on city streets.

The next regular meeting of the Black Hawk City Council is scheduled for March 25 at 3 p.m. at City Hall.