TITLE: CONCERNING THE USE OF STATE REVENUES IN EXCESS OF THE CONSTITUTIONAL LIMITATION ON STATE FISCAL YEAR SPENDING IN LIEU OF SALES TAX REVENUES TO PROVIDE PUBLIC MONEYS FOR A STADIUM PURSUANT TO THE PROVISIONS OF THE “METROPOLITAN FOOTBALL STADIUM DISTRICT ACT”.

STATE FISCAL IMPACT SUMMARY	FY 1998/99	FY 1999/2000
State Revenues General Fund (TABOR Exempt) Other Fund		$9,000,000
State Expenditures General Fund - transfer to Metropolitan Football Stadium District Other Fund	$180,000,000
FTE Position Change	None	None
Local Government Impact —The bill repeals provisions for revenue sharing with all cities and counties in the district.

This bill requires the State Treasurer, by January 30, 1999, to transfer from the General Fund to the Metropolitan Football Stadium District up to $180 million from sources not excluded from state fiscal year spending that are in excess of the fiscal year spending limitations for FY 1997-98. The bill stipulates that the provisions of the bill, subject to voter approval, shall supersede any previously existing statutory provisions and, as a result, the district shall not have the authority to impose a sales tax or issue multiple-fiscal year obligations.

The bill amends the powers and duties of the district board of directors to negotiate an agreement with the franchise by:

• requiring the franchise to pay all renovation or construction costs in excess of the amount of revenues transferred from the General Fund to the district, or 25 percent of the total cost whichever is greater;

• requiring the franchise to repay the amount transferred to the district in equal annual payments not to exceed 20 years from the date the revenue was transferred.

The bill limits the use of any operating revenues generated by the district to be used for expenses incurred by the board, repair and maintenance of the stadium, and capital improvements to the stadium. The bill requires the board to negotiate and enter into stadium management and operation agreements when the moneys are transferred to the district. The bill allows the district to enter into a lease agreement so long as the term of the lease is not less than 20 years.

The bill prohibits interest from being charged on the outstanding amount to be repaid as long as the franchise is current in its repayment obligations. The bill requires the district to require security in property or other assets of the franchise to ensure the repayment. The bill repeals provisions for revenue sharing with the counties in the district.

The bill specifies that all proceeds from the sale or lease of the name of the stadium or any symbol, including trademarks and logos shall be transferred to the General Fund for credit against any outstanding balance if the franchise is in compliance with the repayment agreement. Upon repeal of the article, the bill requires any unexpended funds to be credited to the General Fund. The bill specifies that any moneys credited to the state General Fund shall constitute a voter-approved revenue change, and shall not be included in state fiscal year spending.

The provisions of this bill would be submitted to a vote of the registered electors of the State. Upon approval by the voters, the bill will become effective and will supersede the provisions of the “Metropolitan Football Stadium District Act”.

The provisions of this bill will affect state, local government, and special district revenue and expenditures, subject to the vote of the people. Therefore, the bill is assessed as having a conditional fiscal impact.

Under the provisions of this bill, the franchise would be required to repay the amount transferred to the Metropolitan Football Stadium District in equal annual payments not to exceed 20 years from the date the revenue was transferred to the district. The bill stipulates certain conditions for any proceeds from the sale of trademarks, the name of the stadium, or other sales of the district to be applied against the outstanding balance owed by the franchise. This fiscal note assumes the franchise would be required to repay the state General Fund at a rate of $9 million per year for 20 years.

The bill specifies that any revenue paid to the state General Fund for the purpose of reducing the outstanding balance shall not be considered state fiscal year spending for the purposes of Section 20, Article X of the State Constitution and Section 24-77-102 (17), C.R.S.

Section 20 of Article X of the Colorado Constitution, limits the maximum annual percentage increase in state fiscal year spending. Once total state revenue from all sources that are not specifically excluded from fiscal year spending exceeds these limits for the fiscal year, the state constitution requires that the excess shall be refunded in the next fiscal year unless voters approve a revenue change as an offset. Based on the current Legislative Council economic forecast, it is projected that the state will be in a TABOR refund position during each of the next five fiscal years. Any increase or decrease in state revenue from changes in fees, fines, licenses, or other revenue sources will affect the amount of the state revenue to be refunded.

This bill would transfer $180 million of excess state revenues to the Metropolitan Football Stadium District by January 30, 1999. This amount would not be deemed to be an appropriation subject to the “Arveschoug-Bird” limitation (Section 24-75-201.1, C.R.S.).

Current law authorizes the board of directors of the district to negotiate with the counties in the district and the City and County of Denver, and to enter into an agreement to provide those entities a benefit from the revenues of the stadium, other than sales tax during the period of time the district is collecting the sales tax. This bill repeals those provisions.

This bill repeals the district’s authority to issue special obligation bonds and to levy a sales tax to provide a revenue source to redeem those bonds. This bill requires the district to enter into long-term management and operations agreements with the franchise to ensure repayment of the amount of money transferred to the district from the state General Fund.

This fiscal note would imply that the Metropolitan Football Stadium District would require a General Fund transfer of $180 million subject to approval of the voters at the 1998 General Election.