Colorado Legislative Council Staff

STATE and

 STATUTORY PUBLIC ENTITY

CONDITIONAL FISCAL NOTE

TABOR Refund Impact

No State General Fund Impact

State Cash Fund Revenue and Expenditure Impact

Local Revenue Impact

TITLE:     CONCERNING AUTHORIZATION FOR INCLUDING A PORTION OF WELD COUNTY IN THE REGIONAL TRANSPORTATION DISTRICT.

Summary of Legislation

* Revenues and expenditures would be based on the electorate approving a 1998 General Election ballot issue.

            The bill would place an issue on the General Election ballot occurring in either 1998, 2000, or 2002. If approved by the electorate, the issue would allow portions of Weld County, including the towns of Dacono, Erie, Firestone, and Frederick, to be added to the current Regional Transportation District (RTD) district. The bill would become effective upon the Governors signature and the provisions of the bill would become effective upon approval by the electorate at a General Election.

State Revenues

            The Department of Revenue would be reimbursed the costs of including these new areas in the RTD district from RTD revenues. This would be a one time cash fund increase of $88,000 to the Department of Revenue.

TABOR Refund Impact

            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.

State Expenditures

            Upon approval of the measure at a General Election, the Department of Revenue would have to change computer programs to accommodate the new area in the RTD tax. This is estimated to take approximately 1,760 hours of computer programming at $50 an hour. The estimated expenditure would be $88,000 in cash funds.

Election Expenditure Impacts (For Informational Purposes Only)

            A General Fund line-item in the 1998-99 Long Appropriations Bill will fund the costs of publicizing any initiative or referendum proposal in newspapers and for printing and distribution of the Blue Book to all electors. The General Assembly spent $291,267 GF for one state-wide ballot proposal on the November, 1995 ballot and $1,042,014 GF for the 12 proposals that appeared on the November, 1996 ballot.

            The 1996 General Election fixed costs for mailing the Blue Book to 1.35 million registered voters was $174,036 for postage and $3,800 for obtaining mailing addresses. These costs will be the same regardless of the number of issues on the ballot. Variable costs included: Spanish translation of $11,215; newspaper publication of $644,828; printing costs of $206,806; and other costs of $1,328. Total costs were $1,042,014 GF. Fixed costs totaled $177,837 and variable costs were $72,015 per ballot issue.

            Based on the costs incurred for the 1996 Blue Book, one ballot issue cost $249,852 to print and mail to the public. The $72,015 of incremental cost would be added for each issue to the basic mailing costs of $177,837.

Local Government Impact

            RTD would be required to pay some of the election costs. This cost could be approximately $20,000. In addition, RTD would pay the Department of Revenue the costs of the computer programming to include these new areas in RTD tax collections. The estimated cost is approximately $88,000.

            If approved by the electorate in 1998 General Election, RTD would generate an estimated $157,000 in FY 1998-99, $163,000 in FY 1999-00, and $169,000 in FY 2000-01 from the four cities in this portion of Weld County. There are a number of businesses in the unincorporated part of Weld County included in this bill that would also collect additional taxes that were not included in this estimate.

Spending Authority

            This fiscal note implies that no additional spending authority would be required to implement the provisions of this bill in FY 1998-99.

Departments Contacted

            Revenue

FACTS AND ASSUMPTIONS

Assumptions

1.         That taxable sales from the four cities in the area is estimated at $24,473,440.

2.         That RTD’s tax rate is six tenths of one percent.

3.         That there are a number of businesses in this portion of unincorporated parts of Weld County that are not included in this estimate.

4.         That the Scientific & Cultural Facilities District and the Baseball Stadium District revenues will not be affected by this bill.

5.         That a new sales tax form will be devised for the new area and all existing areas will operate without a change.