House Committee on Local Government (02/12/2009)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Date:	02/12/2009	ATTENDANCE

Time:	10:11 AM to 11:54 PM	Acree	*
		Bradford	*
Place:	HCR 0111	Liston	X
		McKinley	X
This Meeting was called to order by		Middleton	*
	Representative Peniston	Schafer S.	X
		Tipton	X
This Report was prepared by		Vigil	X
	Raegan Robb	Waller	X
		Soper	X
		Peniston	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB09-001 HB09-1013 HB09-1213		Referred to Agriculture, Livestock, & Natural Resources Referred to the Committee of the Whole Amended, Referred to Finance

10:11 AM

The chair, Representative Peniston, called the meeting to order and discussed changes to the committee's calendar.

10:13 AM -- Senate Bill 09-001

Representative Scanlan, prime sponsor, presented Senate Bill 09-001, concerning the establishment of community wildfire protection plans by county governments. Representative Scanlan explained that Senate Bill 09-001 was recommended by the Interim Committee on Wildfire Issues in Wild Land-Urban Interface Areas. She explained that a House Bill 09-1199 was drafted as an omnibus bill to address several wildfire issues in the state. She requested that the committee refer Senate Bill 09-001 to the House Committee on Agriculture, Livestock, and Natural Resources.


BILL:	SB09-001
TIME:	10:14:22 AM
MOVED:	Bradford
MOTION:	Moved to refer Senate Bill 09-001, to the Committee on Agriculture, Livestock, and Natural Resources. The motion passed on a 9-0-2 vote.
SECONDED:	Soper
		VOTE
	Acree	Excused
	Bradford	Yes
	Liston	Yes
	McKinley	Yes
	Middleton	Excused
	Schafer S.	Yes
	Tipton	Yes
	Vigil	Yes
	Waller	Yes
	Soper	Yes
	Peniston	Yes

Final YES: 9 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: 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).

10:17 AM

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.

10:27 AM

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. Ms. Berry explained that special districts and the URA reached agreements on tax distribution prior to implementing TIF projects.

10:29 AM

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.

10:40 AM

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.

10:45 AM

Representative Sonnenberg entered closing comments on the bill and requested support from the committee members. Discussion ensued between Representative Sonnenberg and the committee members.


BILL:	HB09-1013
TIME:	10:49:26 AM
MOVED:	McKinley
MOTION:	Moved to refer House Bill 09-1013 to the Committee of the Whole. The motion passed on a 7-4 vote.
SECONDED:	Liston
		VOTE
	Acree	Yes
	Bradford	Yes
	Liston	Yes
	McKinley	Yes
	Middleton	No
	Schafer S.	No
	Tipton	Yes
	Vigil	No
	Waller	Yes
	Soper	Yes
	Peniston	No

Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:03 AM -- House Bill 09-1213

Representative Gagliardi, prime sponsor, presented House Bill 09-1213, which concerns the creation of the Housing Development Grant Fund in the state treasury to be administered by the Division of Housing for purposes associated with increasing the supply of affordable housing in the state.

11:05 AM

Kathi Williams, Director, Division of Housing, Department of Local Affairs, testified in support of the bill, described the fund distribution, and the process for funding projects through the Housing Development Grant Fund. Director Williams explained that state fiscal rules delay the distribution to grantees and place unrealistic requirements on affordable housing projects. She testified that the bill would remedy this problems by allowing state funds to remain under the Housing Development Grant Program, which would exempt them from state fiscal rules. She addressed questions from the committee members regarding the distribution of state and federal funds by the division.

11:13 AM

Director Williams and Representative Gagliardi addressed questions regarding foreclosure prevention programs offered by the Division of Housing. Committee discussion ensued.

11:18 AM

Rachel Nance, Colorado Association of Realtors, testified in support of the bill and talked about the importance of reserving funds for affordable housing instead of reverting funds back to the state General Fund. She talked about foreclosures affecting the housing market, discussed a past state initiative to increase a real estate transfer tax, and discussed prepared amendment L.001 (Attachment B).

11:22 AM

Joyce Alms-Ransford, Rocky Mountain HDC Inc., testified in support of the bill, described the process of receiving funds from the Division of Housing, and talked about specific projects that have benefitted from state funds. Ms. Alms-Ransford discussed the state fiscal restrictions that create narrow deadlines and can make receiving and spending state funds difficult. She addressed questions from the committee members concerning affordable housing developments.

11:30 AM

William Lunsford, Development Manager, Lakewood Housing Authority, testified in support of the bill and talked about the process of receiving state funds from the Division of Housing. He talked about specific affordable projects in the City of Lakewood, the long time lines for completing projects, and the complications created by the state fiscal rules for affordable housing projects.

11:33 AM

Alana Smart, Housing Colorado, testified in support of the bill, talked about the need to finance affordable housing projects, and discussed the importance of the state providing housing development grants. She explained that state housing grants serve as important start-up funds for affordable housing projects, even though they only make up about 5 percent of a total project budget.

11:37 AM

Bruce Eisenhauer, Deputy Director, Department of Local Affairs, testified in support of the bill and talked about the need for flexibility with housing grant funds in order for the Division of Housing to continue to support affordable housing projects. Mr. Eisenhauer talked about the need for grant funds to remain in the Housing Development Grant Fund, instead of reverting funds back to the state General Fund.

11:41 AM

Representative Gagliardi distributed prepared amendment L.001 (Attachment B) and made closing comments to the bill.


BILL:	HB09-1213
TIME:	11:43:03 AM
MOVED:	Middleton
MOTION:	Moved amendment L.001 (Attachment B). The motion passed without objection.
SECONDED:	Schafer S.
		VOTE
	Acree	Excused
	Bradford	Excused
	Liston
	McKinley
	Middleton	Excused
	Schafer S.
	Tipton
	Vigil
	Waller
	Soper
	Peniston

Not Final YES: 0 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: TIE

11:44 AM

Representative Liston introduced prepared amendment L.002 (Attachment C) and discussed the amendment with committee members. The committee members discussed prepared amendment L.002 (Attachment C).


BILL:	HB09-1213
TIME:	11:44:59 AM
MOVED:	Middleton
MOTION:	Moved to refer House Bill 09-1213, as amended, to the Committee on Finance. The motion passed on a 8-3 vote.
SECONDED:	Schafer S.
		VOTE
	Acree	Yes
	Bradford	No
	Liston	No
	McKinley	Yes
	Middleton	Yes
	Schafer S.	Yes
	Tipton	Yes
	Vigil	Yes
	Waller	No
	Soper	Yes
	Peniston	Yes

Final YES: 8 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:54 AM

The committee adjourned.