Council pauses plan to ask voters to change debt-cap charter language; refers matter to charter review commission

City of Littleton staff briefed the City Council June 10 on research into a potential ballot question to amend the city charter’s debt-cap provision. The research examined how Littleton’s cap is calculated now, how peer cities treat debt limits, and whether a November 2025 ballot effort would be appropriate.

Kathleen Osher, who led the staff research, told council: “These two items on your agenda for study session are paired really well together,” and summarized staff findings that many peer cities tie debt limits to actual property value rather than assessed value. Osher said staff had drafted sample language that would reduce the percentage limit and use actual value — staff suggested a model that referenced a 3 percent limit on actual value as one possible approach.

Staff advised caution. Osher told the council that public awareness of the need and rationale for an amendment is limited and that several pieces of information are still pending, including a facilities assessment report expected in August and the Charter Review Commission’s work, whose recommendation is due in early 2026. Staff said informal conversations with business leaders and a polling partner indicated more public education and policy development would be needed before placing a charter amendment before voters.

Council discussion was mixed. Some council members argued for a proactive November 2025 question to build capacity for future projects and to avoid higher construction costs later. Others urged patience: they said the city already has debt capacity to move forward on priority projects, wanted a more detailed debt policy and conservative revenue and debt-service assumptions, and preferred the Charter Review Commission do a broader study before asking voters to change the charter.

Council did not adopt a ballot measure or take a formal vote to place a question on the November ballot. Instead, staff reported that council consensus was to refer the subject to the Charter Review Commission for study and public engagement and to return to council with recommended policy language and additional analysis. The referral will give the commission time to consider valuation methods, statutory context and dedicated public outreach, and to provide a recommendation to council in early 2026.

Key policy instruments discussed included general obligation bonds, certificates of participation, and other borrowing tools; staff highlighted that the choice of metric (actual value versus assessed value) materially changes a city’s usable debt capacity. Council members also stressed the need for a clear narrative about what problem a charter change would solve and what projects it would support.