Johnstown council fails to approve proposed 8-mill property tax cut

The Johnstown Town Council failed to approve on first reading a permanent 8-mill property-tax cut that would have been phased in over four years.

The proposed ordinance called for four cumulative, permanent 2-mill reductions, illustratively lowering Johnstown’s property-tax levy from 23.947 to 15.947 mills. The accompanying fact sheet estimates that a $500,000 home would save about $61.20 in the first year and about $244.80 annually after the full phase-in. It puts savings over the first four years at about $612, all on the town portion of the tax bill. The reductions would come from unrestricted general operating mills, leaving the library’s 3.3 mills untouched.

Councilmember Nick Bashford argued that the permanent cut would ease taxes for residents and businesses without reducing the library levy. “We can be more competitive with our neighboring communities,” Bashford said. Staff warned that the long-term loss could constrain services and funding flexibility for amenities, and said property taxes offer steadier revenue than sales taxes. Councilmember Dianne Morris questioned whether less revenue would leave enough for the police station, senior center, parks, trails and aging pipes.

Mayor Pro Tem Chad Young called for a separate work session and raised a permanent four-mill cut as an alternative. “I think that this warrants a work session of its own,” Young said, questioning the ordinance’s timing shortly before budget approval. A resident opposed the cut, questioning what would happen to town services and whether renters would see lower rents. The resident urged the council to wait for staff analysis of service impacts and how it would cover any budget gap.

The fact sheet estimates the cut would reduce collections by $1,173,582 in the first year, reaching $4,694,327 annually in the fourth and later years. It estimates a four-year total of $11,735,817, assuming the preliminary 2027 assessed value of $598,766,180 stays flat, a 98% collection rate and no pause. The ordinance would require staff to address any General Fund gap through other lawful revenue or spending changes, without restoring reduced mills except with voter approval or as otherwise required by law. “There would still be money left in the bank,” Bashford said of using reserves for the entire four-year cut, though he called that the worst case and suggested phasing or pausing capital projects instead.