STATE FISCAL IMPACT SUMMARY	FY 1998/99	FY 1999/2000
State Revenues General Fund Other Fund
State Expenditures General Fund Other Fund
FTE Position Change	None	None
Local Government Impact — Allows local governments to establish special improvement districts wholly or partially within the boundaries of another local government if the local government consents.

This bill amends the County Public Improvement District Act and the provisions governing special improvement districts by allowing governing bodies to establish districts wholly or partially within the boundaries of another local government if the local government consents. The bill requires the territory annexed or incorporated by a municipality to remain within an improvement district unless the municipality notifies the district that the territory is to be excluded. The bill also requires that any territory removed by annexation or incorporation remain subject to payment of its share of any outstanding indebtedness or bonds of the district. The bill also:

• amends the provisions governing the number of signatures required for petitions to organize improvement districts;

• authorizes certain petition conditions for the board to waive requirements for public notice and hearings;

• specifies when an election may be held and how the governing body declares an improvement district to be organized;

• authorizes the board of an improvement district to establish local or special improvement districts to defray the costs of providing improvements or services;

• specifies who may vote in an election and what entities shall perform the functions of the local improvement district;

• authorizes the board to include the costs of acquiring and maintaining the improvements and the costs of providing services in its calculation of the amount of the levy on the taxable property in the district;

• eliminates the restriction that the amount of bonds issued by the district not exceed 25 percent of the valuation for assessment of the district;

• eliminates the requirement that bonds be due and payable either semiannually or annually commencing not later than three years from issuance, and allows the board to determine appropriate bond payment schedules;

• authorizes the board to seek judicial review of its actions, establishes the district court as having jurisdiction over all parties interested in the proceedings, and specifies that the Colorado rules of civil procedure shall govern any actions filed;

• exempts the income or other revenues, any property owned, any bonds issued by the district, and any income of the bonds from all state taxation and assessment;

• exempts any bonds issued by the district from the provisions of the Colorado Securities Act and the Colorado Municipal Bond Supervision Act;

• requires any legal action challenging a district’s action to be commenced within 30 days after the action; and

• repeals provisions regarding county and municipal public improvement election requirements, election notices, election returns, and subsequent elections.

The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.

The provisions of this bill will not affect state revenue or expenditures. The bill may affect local government revenue and expenditures if a local government elects to establish a new special improvement district. Therefore, the bill is assessed as having a local government conditional fiscal impact.

Election costs. This bill allows the governing bodies of local governments and special improvement districts to establish local or special improvement districts, subject to election of the people. The bill specifies conditions for voting eligibility, when an election may be held, and how the governing body declares an improvement district is to be organized. Current law, under Sections 30-20-506 and 31-25-605, C.R.S., requires the petitioners to file a bond (or cash deposit) with the governing body to cover the election costs in the event the district is not effected.

Special improvements or services. This bill authorizes the governing board to levy a tax on taxable property in the district to recover the costs of acquiring and maintaining the improvements and the costs of providing services.

Bond issuance. The bill authorizes the governing board to issue bonds to support the costs of acquiring and maintaining the improvements and providing services, subject to approval of the people by election. This bill allows the board to determine the total amount of the bonds to be issued, establish the interest rate, and determine an appropriate bond redemption schedule.

This fiscal note would imply that no new state appropriation or spending authority would be required for FY 1998-99 to implement the provisions of this bill.