TITLE: CONCERNING LOCAL LAND USE PLANNING FOR URBAN GROWTH, AND MAKING AN APPROPRIATION THEREFOR.

STATE FISCAL IMPACT SUMMARY	FY 1998/99	FY 1999/2000
State Revenues General Fund Planned Growth Planning Fund	$2,196,160	$2,187,560
State Expenditures General Fund - transfer Planned Growth Planning Fund Cash Fund Exempt - Department of Law	$2,196,160 $2,196,160 960*	$2,187,560 $2,187,560 960*
FTE Position Change	2.0 FTE	2.0 FTE
Local Government Impact — Requires certain counties and municipalities to prepare comprehensive growth plans and regulations. Authorizes sanctions to be imposed against jurisdictions that fail to comply. Makes financial assistance available to jurisdictions who apply.

* This amount to the Department of Law is included in the cash fund expenditure above.

This bill establishes statewide planning goals for growth. The bill requires each county that has a population of 25,000 or more and each county that has had a population increase of more than 10 percent during the previous 10 years, and each planning municipality within each county, to complete and adopt a comprehensive plan. The bill allows the board of commissioners of each county that does not meet this criteria to elect to develop a comprehensive plan. In doing so, each municipality within that county must also develop a comprehensive plan.

The bill specifies a time limit of three years for applicable counties and municipalities to complete their respective plans. Each planning jurisdiction is then required to adopt development regulations no later than two years after the comprehensive plan is adopted. The bill specifies the elements of the comprehensive plan including projections for population, land use, urban growth, housing, transportation, open space, natural hazards, capital facilities, and utilities. The bill specifies certain requirements for counties and municipalities in planning and approving urban growth, and provides certain optional elements of comprehensive plans.

The bill prescribes procedures for planning jurisdictions to review applications for project permits for consistency with adopted regulations or the appropriate elements of the comprehensive plan. The bill requires the county to ensure the comprehensive plans of the municipalities are consistent with each other. Any disputes between the planning jurisdictions will be submitted to the interjurisdictional arbitration committee. The bill specifies the procedures for dispute resolution. The bill authorizes the members of the committee to be reimbursed for actual expenses.

The bill requires state agencies, school districts, and special districts to base their planning projections on the comprehensive plans of the jurisdiction in which they reside. The bill requires each planning jurisdiction to file a complete copy of its adopted comprehensive plan and regulations with the Department of Local Affairs within 30 days after adoption. The bill requires the Department of Local Affairs to establish a program of technical and financial assistance to planning jurisdictions. The department shall develop and administer a grant program to provide direct financial assistance to planning jurisdictions, and may establish requirements for the jurisdictions to provide matching funds. The department is also required to provide or arrange for mediation services to resolve disputes between planning jurisdictions. Planning jurisdictions are to pay the costs of mediation services. The bill creates the Planned Growth Planning Fund. Moneys in the fund are subject to annual appropriation by the General Assembly.

The bill authorizes the Department of Local Affairs to recommend sanctions be imposed against any jurisdiction that fails to adopt a comprehensive plan or regulations within 180 days after the time limits specified above. The bill authorizes the arbitration committee or the department to recommend sanctions be imposed against any jurisdiction that fails to comply with a decision of the committee. Sanctions include requiring the Governor to withhold all state-administered financial assistance, grants, loans, or permits from applicable planning jurisdictions. The bill will become effective upon the signature of the Governor.

The bill will affect state expenditures, and local government revenue and expenditures. Therefore, the bill is assessed as having a state and local fiscal impact.

The bill requires the Department of Local Affairs to provide or arrange for mediation services to resolve disputes between planning jurisdictions. The bill requires the planning jurisdictions to pay the costs of mediation services. Any of these costs payable to the state would be deposited to the Planned Growth Planning Fund. The amounts of these costs have not been estimated.

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.

The costs for the Department of Local Affairs to administer the provisions of this bill are based upon the following assumptions:

• that 126 county and municipal planning jurisdictions are required to comply with the provisions of the bill;

• that one-third, or 42, of these jurisdictions will require assistance during each of the next three years; and

• that the department will grant $50,000 to each of these jurisdictions per year for a total of $2.1 million per year.

The bill requires state agencies to base their planning projections on the comprehensive plans of the jurisdiction in which they reside. This fiscal note cannot ascertain whether this provision will affect state expenditures.

Table 1 provides a summary of the expenditures the Department of Local Affairs will incur during FY 1998-99 and FY 1999-2000.

Pursuant to the Joint Budget Committee’s budget policies, the following expenditures have not been included in this fiscal note:

This bill will require county and municipal planning jurisdictions to prepare comprehensive plans and regulations, and to ensure these plans and regulations are consistent within their respective counties. The provisions of the bill will increase county and municipal expenditures for long-term planning and consultation. However, the bill provides state financial assistance to offset those costs.

The bill establishes these plans as binding documents rather than as advisory documents which may increase the opportunity for legal actions. The bill specifies sanctions to be imposed against any jurisdiction that fails to comply with the provisions of the bill.

This fiscal note would imply this bill will require a General Fund transfer of $2,196,160 to the Planned Growth Planning Fund for FY 1998-99. The Department of Local Affairs would require a Planned Growth Planning Fund appropriation of 2.0 FTE and $2,196,160 for FY 1998-99. Of this amount, the Department of Law will require a cash fund exempt spending authority of $960.

Table 1 - Department of Local Affairs Planned Growth Planning Fund Expenditures
	FY 1998-99	FY 1999-2000
Personal Services Prog Admin I (grade 107, step 1) Admin Asst II (grade 68, step 1) Subtotal PERA/Medicare Total	1.0 FTE - $53,028 1.0 FTE - 20,544 73,572 9,528 $83,100	1.0 FTE - $53,028 1.0 FTE - 20,544 73,572 9,528 $83,100
Operating Expenses	1,000	1,000
Travel Expenses	2,500	2,500
Legal Expenses @ $48 per hour	960	960
Computer/ Furniture	8,600	0
Grants	$2,100,000	$2,100,000
Total Expenses	2.0 FTE - $2,196,160	2.0 FTE - $2,187,560