Joint Committee Committee on Joint Local Government (01/27/2009)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON JOINT LOCAL GOVERNMENT

Date:	01/27/2009	ATTENDANCE

Time:	02:02 PM to 03:24 PM	Acree	X
		Bradford	X
Place:	SCR 356	Cadman	E
		Foster	X
This Meeting was called to order by		Hodge	X
	Senator Schwartz	Kester	X
		Liston	*
This Report was prepared by		Lundberg	X
	Kori Donaldson	McKinley	*
		Middleton	*
		Newell	X
		Schafer S.	X
		Soper	X
		Tipton	X
		Vigil	X
		Waller	X
		Peniston	X
		Schwartz	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Discussion About Housing in Colorado Overview of Colorado Special Districts Overview of Tax Increment Financing Local Government Stakeholder Perspective on Tax Increment Financing		Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only

02:02 PM -- Discussion About Housing in Colorado

The committee was called to order. A quorum was present. Ms. Alana Smart, Executive Director, Housing Colorado, gave an overview of the function of her organization. Committee members received a Housing Colorado facts book (Attachment A) and an overview of new federal funding streams for housing (Attachment B), both prepared by Housing Colorado. Ms. Smart said that working families now spend, on average, 59 percent of their household income for combined housing and transportation costs. She said Housing Colorado is committed to securing adequate, reliable funding for affordable housing. Ms. Smart discussed upcoming legislation that her organization supports. She then explained a new source of federal funding available for affordable housing. Ms. Smart addressed questions about federal funding for housing in Colorado.

02:15 PM

Ms. Meghan Pfanstiel, Executive Director, Rocky Mountain Home Association (RMHA), explained that her organization represents manufactured housing interests in Colorado. Committee members received a packet of information about housing in Colorado, prepared by RMHA (Attachment C). Ms. Pfanstiel said that in 2007, Colorado was one of the top ten states for total modular home sales in the country. Ms. Pfanstiel explained the difference between a manufactured home and a modular home. She continued by describing different aspects of the housing industry. She explained that her organization is concerned with landlord-tenant issues. Senator Schwartz expressed her support of the modular and manufactured home industry, particularly for mountain and rural communities.

02:22 PM -- Overview of Colorado Special Districts

Mr. Evan Goulding, Executive Director, Special District Association, gave an overview of special districts in Colorado. Mr. Goulding explained that special districts in Colorado have existed in the state for about 75 years. He said that special districts are formed to provide needed services such as fire protection or public sanitation. Mr. Goulding said that in recent years there has been a growth in the formation of special districts in order to help finance the infrastructure necessary for new development. Mr. Goulding then gave an overview of how special districts are formed and governed. He explained that special districts are particularly effective because they are not bound by city or county boundaries and are a political subdivision of the state of Colorado. He then outlined several circumstances leading to the formation of special districts.

02:32 PM

Mr. Goulding continued his overview of the formation and governance of special districts in the state. Mr. Goulding addressed a question about term limits for members of special district boards. Mr. Goulding then explained the regulatory guidelines governing special districts. In response to a question, Mr. Goulding explained that special districts are eligible for most of the state's local grant programs. He answered a question about mapping special districts in the state.

02:42 PM -- Overview of Tax Increment Financing

Ms. JoAnn Groff, Property Tax Administrator, and Mr. Greg Schroeder, Property Tax Specialist III, both of the Division of Property Taxation, Department of Local Affairs, gave an overview of tax increment financing (TIF). Committee members received a summary of the presentation (Attachment D), and a list of active TIF projects in the state (Attachment E), both prepared by the Division of Property Taxation. Ms. Groff explained that some form of tax increment financing exists in every state. She said there are about 86 active TIF projects in the state. Ms. Groff explained that Colorado law authorizes the use of TIF by urban renewal authorities (URA) and downtown development authorities (DDA). She continued with an explanation of who is involved in TIF and how TIF revenue is collected. Ms. Groff explained some differences between URAs and DDAs. Mr. Schroeder explained how URAs can have multiple plan areas within their boundaries.

02:53 PM

Ms. Groff said the more parameters added to a TIF district, the more complicated it becomes for the assessor to assess property taxes. Senator Foster expressed her support for TIF as a tool to address blight in cities.

02:59 PM -- Local Government Stakeholder Perspective on Tax Increment Financing

Several local government representatives came to the table to discuss the impact of tax increment financing (TIF) on counties and municipalities. Representatives included Mr. Chip Taylor, Legislative Affairs Director, Colorado Counties Inc.; Ms. Erin Goff, Senior Staff Attorney, Colorado Municipal League; and Mr. Evan Goulding, Executive Director, Special Districts Association. Committee members received an overview of the impact of TIF on county services and revenue, prepared by Colorado Counties Inc. (Attachment F). Mr. Taylor said that counties are not opposed to TIF, and walked the committee through Attachment F.

03:10 PM

Mr. Taylor addressed a question about the graph on page 7 of Attachment F. Representative Vigil said that in rural Colorado, counties are the largest employers, but do not benefit from TIF like urban areas.

03:15 PM

Ms. Goff said that municipalities create urban renewal authorities and that URAs help the local economy. She explained that URAs want to maintain their current autonomy to create TIFs in order to help with redevelopment. Committee members received a table that illustrates the impact of TIF on the local economies of about 30 cites and the state (Attachment G), and a table that illustrates the impact of various Denver Urban Renewal Authority TIF projects on the local and state economy (Attachment H), both prepared by the Colorado Municipal League. Mr. Goulding said that special districts are generally very supportive of urban renewal projects. He said when a TIF district is created and some tax revenue is diverted away from a special district, it is important to give special districts a voice in the process in order to recoup some of their revenue losses.

03:24 PM

The meeting adjourned.