Date: 02/19/2015
Final
Potential Committee Legislation
COMMITTEE ON CAPITAL DEVELOPMENT
| Votes: View--> | Action Taken: |
| <none> | <none> |
07:42 AM -- Potential Committee Legislation
Mr. Jon Forbes, Deputy State Treasurer, and Ms. Esther van Mourik, Office of Legislative Legal Services, came to the table to discuss potential committee legislation regarding the use of certificates of participation (COPs) to refinance bonds issued on behalf of the Grand Junction Colorado Bureau of Investigation (CBI) Lab. Committee members received a draft of the potential legislation (Attachment B) and a graphic handout of the refinance provided by Mr. Forbes (Attachment C). Mr. Forbes discussed the proposed legislation and how it has an approximate present value savings of 10 percent. In response to a committee question regarding administrative, monitoring, and closing costs, Mr. Forbes stated that these costs are currently estimated at approximately $200,000. Discussion ensued on the financial aspects of the refinance transaction. Ms. Kori Donaldson, Legislative Council Staff, discussed the current CBI lease payment and its inclusion in the annual Long Bill.
150219 AttachB.pdf
150219 AttachC.pdf
07:56 AM
In response to a committee question regarding municipal bond insurance, Mr. Forbes discussed the difficulty of securing municipal bond insurance since the economic recession of 2008. He also discussed the original 2006 bond issuance. Ms. van Mourik discussed the statute that allows these types of transactions, and the use of COPs by the state. Ms. Donaldson also discussed the committee's involvement with the original 2006 financing and Legislative Council Staff research products related to COPs.
08:07 AM
Ms. van Mourik discussed potential legislation related to creating a depreciation account within the Capital Construction Fund for the Department of Human Services' Regional Centers. Committee members received a draft of the potential legislation (Attachment D). In response to a committee question regarding the payments received by the Department of Health Care Policy and Financing (HCPF), Ms. Donaldson and Ms. van Mourik discussed the past use of the depreciation monies. Discussion ensued. Ms. Donaldson discussed the related supplemental request referred to the Capital Development Committee by the Joint Budget Committee (JBC) for the Heat Detection Fire Alarm Systems, Regional Centers project. The committee requested more detailed information on the proposed legislation from JBC staff.
150219 AttachD.pdf
08:20 AM
Ms. van Mourik discussed the need for committee members to discuss draft legislation regarding a change to Joint Rule 45 with House and Senate leadership.
08:25 AM
The committee adjourned.