BILL SUMMARY for HB09-1013
HOUSE COMMITTEE ON LOCAL GOVERNMENT
|Votes: View--> ||Action Taken: |
|Moved to refer House Bill 09-1013 to the Committee||PASS|
10:16 AM -- House Bill 09-1013
Representative Sonnenberg, prime sponsor, presented House Bill 09-013, which concerns an exception to statutory requirements governing the collection of excess property tax revenue by urban renewal authorities (URAs) for certain special districts providing emergency services. Representative Sonnenberg explained the bill and distributed a handout to the committee (Attachment A).
Erin Goff, Colorado Municipal League, testified against the bill and explained the procedure for urban renewal projects to implement tax increment financing (TIF) projects. She described TIF mechanisms and explained the impact that the bill would have on property tax increases intended to pay off URA bonds for TIF projects. Ms. Goff discussed the relationship between URAs and special districts and talked about agreements to provide emergency services to the developing areas of TIF projects. Ms. Goff responded to questions concerning the negative impacts that TIF projects have on special districts. She talked about the time period of TIF projects and explained that there is no current law that requires URAs to notify special districts that would be affected by TIF projects.
Karen Berry, City Council Member, City of Wheat Ridge, testified against the bill and talked about the positive use of urban renewal projects in the City of Wheat Ridge. Mr. Berry explained that special districts and the URA reached agreements on tax distribution prior to implementing TIF projects.
Brian Martens, Fire Chief, Windsor Fire Department, testified in support of the bill and discussed the negative impacts of a specific TIF project implemented in the Town of Windsor. Chief Martens discussed the negative impact to the property tax collected by the fire district despite significant development within the urban renewal project. He explained that the fire district only collects 4 percent of the property taxes generated within the TIF project area from the URA. He talked about problems with new TIF developments that increase the number of emergency responses, but do not increase the property taxes collected by districts in order to provide emergency services and fire protection. He addressed questions regarding a successful special election to abolish the URA in the Town of Windsor and talked about other fire districts in the state that struggle to negotiate with URAs.
Evan Goulding, Executive Director, Colorado Special District Association, testified in support of the bill and described how TIF projects freeze the property tax collection for special districts. Mr. Goulding talked about the growing tendency for TIF projects to create new development as opposed to redevelopment. He explained that this tendency is attributed to competition for sales tax collection between neighboring municipalities. He also explained that the bill would exempt fire protection districts from losing tax revenue generated by an urban renewal projects and explained that fire protection districts could waive all or a portion of property taxes. Under the bill, fire protection districts would receive their portion of the tax increment and the bill would require municipalities to negotiate with special districts to acquire the district's share.
Representative Sonnenberg entered closing comments on the bill and requested support from the committee members. Discussion ensued between Representative Sonnenberg and the committee members.
|TIME: || 10:49:26 AM|
|MOTION:||Moved to refer House Bill 09-1013 to the Committee of the Whole. The motion passed on a 7-4 vote. |
Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS