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HomeMy WebLinkAboutPACKET Town Board Study Session 2015-04-14 Tuesday, April 14, 2015 TOWN BOARD 4:30 p.m. – 6:10 p.m. STUDY SESSION Rooms 202/203 4:30 p.m. Trustee Comments & Questions. 4:40 p.m. Future Study Session Agenda Items. (Board Discussion) 4:50 p.m. Procedure for Scheduling Executive Sessions. (Administrator Lancaster) 5:00 p.m. Dinner Served. 5:10 p.m. Downtown Development Authority. (Administrator Lancaster) 5:50 p.m. Community Reinvestment Fund 5 Year Plan. (Finance Officer McFarland) 6:10 p.m. Adjourn for Town Board Meeting at 6:15 p.m. “Informal discussion among Trustees concerning agenda items or other Town matters may occur before this meeting at approximately 4:15 p.m.” AGENDA                    April 28, 2015  Discussion of Town Owned Fish Hatchery Property  Sign Code Revisions – Follow Up May 26, 2015  FEMA Community Rating System (Request for Approval to Engage Public in Discussions About Joining CRS Program)  Possibility of Joining RTD Items Approved – Unscheduled: (Items are not in order of priority)  International Property Maintenance Code (Dangerous Buildings Code) and Adoption of New International Building Code Draft Reviews  Town of Estes Park Financial Policies  Wildlife Ordinance – Follow Up  Local Preference Purchasing Policy  Discussion of How to Better Involve and Reach Out to the Hispanic Members of the Community Study Sessions Items for Board Consideration:  Update on Vacation Rental Project and Objectives Requested by Administrator Lancaster  Update on EDC Broadband Project Requested by Administrator Lancaster and the EDC Broadband Committee  Truancy Ordinance Requested by School District and Chief Kufeld Future Town Board Study Session Agenda Items April 14, 2015 4/9/2015 1 Improvement Districts for Colorado Cities and Towns Study Session with Town Board 4/14/15 Adapted from a CML Conference Presentation in June 2014 by Rick Kron Spencer Fane Britt & Browne LLP Dee Wisor Butter Snow LLP Introduction •Acronyms SID, GID, BID, URA and DDA refer to types of “districts” that may be used by Colorado cities and towns to finance many types of public infrastructure or to provide services 4/9/2015 2 DDAs What are they? •DDA: A downtown development authority organized by a municipality. 31-25-801 et seq. DDAs What are they? •A DDA is an entity specifically designed to halt or prevent the deterioration of central business districts •“Central business district” means the area in a municipality which is and traditionally has been the location of the principal business, commercial, financial, service and governmental business center, zoned and used accordingly. •“Downtown” means a specifically defined area of the municipality in the central business district, established by the governing body of the municipality. 4/9/2015 3 DDAs What are they? •It is declared to be a body corporate under state law, and it exercises a variety of powers. •A DDA may be organized only within a municipality. •Boundaries appear to be limited to the downtown. DDAs Organization •The creation of a DDA is initiated by ordinance of the governing body of the municipality which submits the question of organization to the qualified electors. 4/9/2015 4 DDAs Electors •Qualified Elector – A resident, landowner or lessee: •“Resident” means one who is a citizen of the United States and a resident of the state of Colorado, eighteen years of age or older, who makes his primary dwelling place within the district. •“Landowner” means the owner in fee of any undivided interest in real property or any improvement permanently affixed thereto within the district. “Owner in fee” includes a contract purchaser obligated to pay general taxes, an heir, and a devisee under a will admitted to probate and does not include a contract seller of property with respect to which the contract purchaser is deemed to be the owner in fee. •“Lessee” means the holder of a leasehold interest in real property within the district. “Leasehold interest” does not include a license or mere contract right to use real property within the district. DDAs Governing Body •A DDA’s governing body is appointed by the governing body of the municipality: •5 to 11 members. •One member must be a member of the governing body of the municipality. •All others must be a resident, business lessee or property owner in the downtown development district. •A majority must reside or own property in the downtown development district. 4/9/2015 5 DDAs Plan of Development •No development project may be undertaken until plan of development is approved by governing body of municipality. •Notice and public hearing and submittal to planning board required. •School district has advisory role on including a TIF provision in the plan. •Following hearing, governing body must determine by resolution that there is a need to halt or prevent deterioration of property values or structures or to halt or prevent the growth of blight. DDAs Financial Powers •A DDA’s main financing source is property and/or sales tax increment. •May only be used pursuant to the plan of development approved by governing body of municipality. •TIF provision lasts for 30 years – with possible extension for another 20. •Sales tax TIF is only for all or a portion of municipal sales tax. 4/9/2015 6 DDAs Financial Powers •May levy an ad valorem of tax of up to five mills. •Any debt which is issued payable from the TIF is issued by the municipality, not the DDA. •Debt must be approved by qualified electors of the DDA •May fix rates, fees, tolls, rents and charges for use of property of DDA. DDAs Types of Improvements & Services •May provide public facilities which include, but are not limited to, any streets, parks, plazas, parking facilities, rights-of-way, structures, waterways, bridges, lakes, ponds, canals, utility lines or pipes, and buildings, including access routes to any of the foregoing, designed for use by the public generally or used by any public agency. 4/9/2015 7 DDAs Types of Improvements & Services •May propose and implement any plan of development for development of public facilities and other improvements to public or private property, including removal, site preparation, renovation, repair, remodeling, reconstruction, or other changes in existing buildings. DDAs TABOR •Issuance of bonds or levy of ad valorem property tax by the Town Board requires the holding of a TABOR election in the DDA. •Has its own TABOR revenue limit. 4/9/2015 8 URAs What are they? •URA: An urban renewal authority organized by a municipality. 31-25-101 et seq. URAs What are they? •A URA is an entity specifically designed to halt or prevent slums or blight. •It is declared to be a body corporate and politic under state law, and it exercises a variety of powers. 4/9/2015 9 URAs What are they? •A URA may be organized only within a municipality. •Boundary of the URA is the same as municipal boundary. •But an urban renewal plan may include unincorporated property with county consent. URAs Organization •The creation of a URA is initiated by a petition signed by at least 25 registered electors of municipality. •Notice and hearing required. •Municipal governing body must find by resolution that one or more slum or blighted areas exist in the municipality, and finds that the acquisition, clearance, rehabilitation, conservation, development, or redevelopment, or a combination thereof such area is necessary in the interest of public health, safety, morals, or welfare of the residents of the municipality, and declares it to be in the public interest that the urban renewal authority be created. 4/9/2015 10 URAs Governing Body •A URA’s governing body is either: •Appointed by the Mayor with the consent of the governing body of the municipality: •5 to 11 members •No qualifications •May be municipal governing body •Change from appointed to governing body requires a vote at the municipal election. •No express authority to transfer from governing body to appointed. URAs Important Concepts •There is only one urban renewal authority in a municipality. •There may be more than one urban renewal project area within the municipality. •There is an urban renewal plan for each urban renewal project area. 4/9/2015 11 URAs Urban Renewal Project •Urban renewal project: undertakings and activities for the elimination and for the prevention of the development of spread of slums and blight and may involve slum clearance and redevelopment, or rehabilitation, or conservation, or any combination or part thereof, in accordance with an urban renewal plan. URAs Urban Renewal Project •Such undertakings and activities may include: •Acquisition of a slum area or a blighted area or portion thereof; •Demolition and removal of buildings and improvements; •Installation, construction, or reconstruction of streets, utilities, parks, playgrounds, and other improvements in accordance with the urban renewal plan; 4/9/2015 12 URAs Urban Renewal Project •Disposition of any property acquired or held by the authority as a part of its undertaking of the urban renewal project for the urban renewal area (including sale, initial leasing, or temporary retention by the authority itself) at the fair value of such property for uses in accordance with the urban renewal plan; •Carrying out plans for a program through voluntary action and the regulatory process for the repair, alteration, and rehabilitation of buildings or other improvements in accordance with the urban renewal plan; and URAs Urban Renewal Project •Acquisition of any other property where necessary to eliminate unhealthful , unsanitary, or unsafe conditions, lessen density, eliminate obsolete or other uses detrimental to the public welfare, or otherwise remove or prevent the spread of blight or deterioration or to provide land for needed public facilities. 4/9/2015 13 URAs Urban Renewal Plans •No urban renewal project may be undertaken until an urban renewal plan is approved by governing body of municipality. •Within 30 days of commissioning blight study, notice to owners. •Notice to public and public hearing and submittal to planning commission required. •Submittal to county with impact report required. No veto. •Following hearing, governing body must determine by resolution that urban renewal area includes a slum, blighted area or both. URAs Urban Renewal Plans •There are 11 blight factors, 4 of which must exist to support a finding that blight exists (except as noted below on slide 28) •“Blighted area” means an area that, in its present condition and use and, by reason of the presence of at least four of the following factors, substantially impairs or arrests the sound growth of the municipality, retards the provision of housing accommodations, or constitutes an economic or social liability, and is a menace to the public health, safety, morals, or welfare: •Slum, deteriorated, or deteriorating structures; •Predominance or defective or inadequate street layout; •Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; •Unsanitary or unsafe conditions. 4/9/2015 14 URAs Urban Renewal Plans •Blight •Deterioration of site or other improvements; •Unusual topography or inadequate public improvements or utilities; •Defective or unusual conditions of title rendering the title nonmarketable; and •The existence of conditions that endanger the life or property by fire or other causes. URAs Urban Renewal Plans •Blight •Buildings that are unsafe or unhealthy to live or work in because of building code violations, dilapidation, deterioration, defective design, physical construction, or faulty or inadequate facilities; •Environmental contamination of buildings or property; •If property owners or tenants do not object, only need one blight factor. 4/9/2015 15 URAs Financial Powers •Main financing source is property and/or sales tax increment. •May only be used pursuant to the urban renewal plan approved by governing body of municipality. •TIF provision lasts for 25 years. •Sales tax TIF is only for all or a portion of municipal sales tax. URAs TABOR •Court of Appeals has held that URAs are not subject to TABOR. 4/9/2015 16 URA’s Estes Park Municipal Code •Chapter 2.90 of the Municipal Code requires that the voters must approve the creation of a URA at a regular or special election. BIDs What are they? •BID: A business improvement district organized by a municipality. 31-25-1201 et seq. 4/9/2015 17 BIDs What are they? •A BID is an entity designed for public improvements, economic development and business-related services such as marketing. •It is a separate political subdivision under state law, and it may exercise a variety of powers. BIDs What are they? •A BID may be organized only within a municipality, and its boundaries may include only commercial property. •It may have a service area that is broader than its boundaries and that service area may be made subject to the revenue raising powers of the BID only when it becomes commercial property and is later included in the boundaries. 4/9/2015 18 BIDs What are they? •The “service area” is defined so that no less than 50% of the area must have been developed and used as commercial property prior to the adoption of the ordinance creating the district and, at the time of the adoption of such ordinance, must be used primarily as commercial property. •Or, the municipality may designate the area as a location for future commercial development. BIDs Petition Process •The creation of a BID is initiated by a petition which must be signed by the persons who own real or personal property in the service area of the proposed district having a valuation for assessment of not less than 50% or such greater amount as the city or town may provide by ordinance. •After notice and hearing, a BID is created by ordinance. 4/9/2015 19 BIDs Governing Body •A BID may have any of four different forms of governing body: •Ex Officio Board – City Council or town board of trustees acts as the ex officio board of directors. This is the case unless the city or town acts by ordinance to provide otherwise. •Appointed Board – if the city or town adopts an ordinance so providing, board members of the district may be electors of the district who are appointed by the city or town. BIDs Governing Body •Overlap with other entities – If more than one-half of the property located within the district is also located within an urban renewal area, a downtown development authority, or a general improvement district, the city or town may provide by ordinance that the governing body of the urban renewal authority, downtown development authority, or general improvement district created by the municipality shall constitute ex officio the board of directors of the district. •Elected Board – If the organization petition or a subsequent petition so requests, the city or town may provide that the members of the district board are to be elected by the electors of the district. 4/9/2015 20 BIDs Electors •Elector – A natural person who is a citizen of the United States and a resident of the State of Colorado, who is eighteen years of age or older, and who: •Makes his primary dwelling place in the district; or •Owns taxable real or personal property within the boundaries of the district; or •Is the holder of a leasehold interest in taxable or personal property within the boundaries of the district; or •Is the natural person designated by an owner or lessee of taxable real or personal property in the district which is not a natural person to vote for such owner or lessee. Such designation must be in writing and filed with the secretary of the district. Only one such person may be designated by an owner or lessee. BIDs Financial Powers •May levy ad valorem taxes and issue general obligation bonds. •May levy special assessments on both benefitted property and issue special assessment bonds. •May impose rates, fees and charges and issue revenue bonds. 4/9/2015 21 BIDs Types of Improvements & Services •The BID statute is very broad as to the types of public improvements that may be built and maintained. It includes: •Public improvements, including but not limited to streets, sidewalks, curbs, gutters, pedestrian malls, streetlights, drainage facilities, landscaping, decorative structures, fountains, identification signs, traffic safety devices, bicycle paths, off-street parking facilities, benches, rest rooms, information booths, public meeting facilities, and all necessary, incidental, and appurtenant structures and improvements. “Improvements” also includes the relocation and improvement of existing utility lines. BIDs Types of Improvements & Services •A BID has specific powers relating to business and economic development, such as: 1. Consulting with respect to planning or managing development activities; 2. Promotion or marketing of district activity; 3. Organization, promotion, marketing, and management of public events; 4. Activities in support of business recruitment, management, and development; 5. Security for businesses and public areas located within the district; 6. Providing zoning assistance. 4/9/2015 22 BIDs TABOR •Issuance of bonds (other than for an enterprise) by a BID requires the holding of a TABOR election. •The operating revenues of a BID do not constitute revenues of the body which created it, for purposes of TABOR’s revenue limitations, because a BID is a separate political subdivision. SIDs What are they? •SID is a Special Improvement District which is organized by a city or town. 31-25-501, et seq. 4/9/2015 23 SIDs What are they? •Sometimes referred to as “Assessment Districts.” •Not separate political subdivisions and do not have an independent corporate existence. SIDs What are they? •Merely geographical areas within which improvements are constructed and assessments levied. •No board of directors. •The governing body of the municipality or county makes all decisions. 4/9/2015 24 SIDs Revenue Raising Power •Raise revenue primarily through the special assessment process. •Do not levy property taxes. •Special assessments are charges applied to individual properties in the amount of the “special benefit” conferred on such property by the improvements. SIDs Types of Improvements •Any public improvement that the municipality or county may provide. •Must confer special benefits upon the property charged with assessments. •Most likely candidates include: •Roads •Sidewalks •Water lines •Sewer lines •Stormwater/ Flood control 4/9/2015 25 SIDs Special Benefits •Special assessments must be in an amount not greater than the special benefit conferred on such property by the improvements. •The method by which the assessments are distributed over the benefitted properties, must be formulated so as to equitably distribute such assessments based upon such benefit. SIDs Special Benefits •Common methods of assessment include the front-foot method, area method, and the per-lot method. •Other methods may be used so long as they reasonably allocate the burden of the assessment upon the benefitted properties. 4/9/2015 26 SIDs Special Benefits •In development context, usually the case that the property owner is requesting the government to create the district and impose the assessments. •The developer often signs an agreement establishing the method of assessment and consent to the particular formula used. SIDs Special Benefits •Assessments constitute a lien on the benefitted property, which lien may be foreclosed upon generally in the same manner as foreclosures for property taxes. •Property taxes constitute a lien superior to that of the assessments. 4/9/2015 27 SIDs Financing •Special assessment bonds for the purpose of financing the improvements. •With a few exceptions, special assessment bonds are payable solely from the special assessments levied upon the benefitted property. SIDs TABOR •Issuance of special assessment bonds requires holding a TABOR election to approve the municipal-fiscal year financial obligation represented by the special assessment bonds. •Elections must be held on one of the TABOR dates, which are every November, and every biennial election date of the issuer (i.e. the municipality). 4/9/2015 28 GIDs What are they? •GID is a General Improvement District organized by a city or town. 31-25-601, et seq. GIDs What are they? •Unlike assessment districts, GIDs are separate political subdivisions, with their own board of directors, powers, and duties. •In both cases the governing body of the organizing government (city council, board of trustees, or board of county commissioners) is the ex officio board of directors of a GID. •No provision for independent board. 4/9/2015 29 GIDs Revenue Raising Power •May levy a property tax imposed on the property within the district. •May levy special assessments on benefitted property within the district. •May impose fees, tolls and charges for revenue- producing services or facilities. GIDs Types of Improvements •May construct and operate any improvement or provide any service which the city or town, as the case may be, which created them is statutorily authorized to provide. 4/9/2015 30 GIDs Organizational Requirements •Petition must be signed by 30% or 200, whichever is less, of the property owners within the proposed district. •After a public hearing, organized by the adoption of a resolution or ordinance. •If the petition is signed by 100% of the owners, the governing body may waive the requirements for notice, publication, and a hearing on the proposed district. GIDs Organizational Requirements •One of the following must be true: •The boundaries of the proposed district include at least one hundred eligible electors; •The boundaries of the proposed district include at least one eligible elector for each five acres of land included within the proposed district; or •The petition is signed by one hundred percent of the owners of taxable real property to be included in the proposed district. 4/9/2015 31 GIDs Organizational Requirements •Eligible electors: •Person registered to vote in Colorado who •Is resident of district, or •Owns, or spouse owns taxable real or personal property. •If an owner of property is not a natural person, the owner may designate a natural person to vote. •Note that HB 14-1164, did not make the civil union partner change to the GID law. GIDs Financing •May issue general obligation bonds. •May also issue revenue bonds. •May also issue special assessment bonds. 4/9/2015 32 GIDs TABOR •Issuance of bonds (unless for an enterprise) requires the holding of a TABOR election in the GID. •Election must be held on one of the TABOR dates in November. •Operating revenues of a GID do not constitute revenues of the government which created them, for purposes of TABOR’s revenue limitations, because GIDs are separate political subdivisions. •But GID is also subject to TABOR revenue limits unless a debrucing election is passed. Improvement Districts for Colorado Cities and Towns Questions and Discussion FINANCE DEPARTMENT Memo To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Steve McFarland, Finance Officer Date: April 14, 2015 RE: Study Session: Community Reinvestment Fund 5-year plan Objective: To present a timely summary of certain Funds that house capital projects, specifically the Community Reinvestment, Open Space and 4 new sales tax – related Funds. This report does not discuss/cover the General, Light & Power, Water or Vehicle Replacement Funds, within which capital expenditures also occur. Present Situation: Community Reinvestment Fund (CRF) The CRF has been updated to reflect the current status of projects active in 2015. Projects have been listed with their original costs. The “NEW 2015” column shows amounts remaining from the original project budget. For example, the MPEC project was originally $7,150,000 in CRF (another $350,000 was transferred to the Community Services Fund for start-up costs). The 2015 column show $959,547 remaining. The most recent action taken that affected CRF was the $750,000 increase of the project cost to the Parking Structure, coupled with the $200,000 for CVB restroom upgrades. These adjustments reduced estimated fund balance at the end of 2015 to $49,322. There is an additional $200,000 set aside for the Museum Storage Facility. Regarding inflows to CRF, the revenue stream of $800,000/yr from the General Fund has been posted, along with $70,000/yr (for 4 years) to recapture the balance of the reduction of the transfer made in 2015 ($520,000 v $800,000). These numbers are placeholders and do not represent guaranteed inflow. The first financial priority is to balance the General Fund, and expenditure reductions will almost certainly need to be made in order to accomplish this. The General Fund will need to continue to fund the CRF at least $520,000/yr in order for the CRF to make the annual note payment on the COPs (MPEC mortgage). No projects beyond 2015 have been entered in the CRF 5-year grid. However, projects have been listed on the next page of the attachment, grouped into 3 main categories: Roads and Bridges, Parking Improvements, and Buildings. With the CRF only expected to have at the most, ~$1,500,000 by the end of 2019, and with over $55,000,000 worth of projects having been identified, the Town will see significant funding challenges in the future. Funding will have to come from multiple outside sources, such as grants, partnerships, taxing instruments, and public financing. Larimer County Open Space Fund The Open Space tax (0.25% of sales tax), originally scheduled to sunset in 2018, was extended another 25 years in November 2014 (via ballot issue). This will provide the Town with ongoing funding (currently ~ $300/000/year) for acquisition, maintenance and repair of its open space and trail system/network. The Town has budgeted $500,000 for 2015 for non-specified flood-related projects. Emergency Services (2.5% of 1.0%), Community Center (25% of 1%), Trails (12.5% of 1.0%) and Streets Funds (60% of 1%) Created as a result of the April 2014 ballot issue, these 4 Funds share revenues resulting from a 1% sales tax increase, effective July 2014. The tax sunsets after 10 years. The 1% sales tax increase is expected to generate $2,100,000 in 2015. The Police Department has already mapped out a plan for implementation of the Emergency Response funds for the near term. The Community Center Fund will continue to amass revenue until such time as a building permit is issued for said Community Center (deadline – January 1, 2017). If no permit is pulled, the ballot language says that funds “shall be used for expansion and construction of the Estes Park Senior Center and Estes Park Museum facilities”. The Trails Fund exists to provide monies for “construction and expansion of public trails within the Estes Valley Planning Area”. The Estes Valley Parks and Recreation District, with grant-funded aid, is developing a Master Plan for trails in the Estes valley. The Town is providing $5,000 in assistance and will be involved with the process. The Street Fund will receive 60% of the new sales tax, tentatively estimated at $13,000,000, over the life of the tax. The Town has already planned a major project for 2015 (Dry Gulch Rd.). A paving manager will be hired this year to supervise the creation and implementation of a paving index and management system. Additional capital concepts The Town has been successful in maintaining its Vehicle Replacement Fund program, but has yet to create and maintain a similar program for its other relevant assets (carpet, roof, equipment, etc). With the hiring of the Facilities Manager, the Town will begin to look at the costs associated with an asset replacement program. This will put additional strain on the General Fund, but represents prudent long-term financial management. Proposal: N/A Advantages: N/A Disadvantages: N/A Action Recommended: N/A Budget: The capital expenditure portions of these Funds will be dramatically affected based on what budget appropriations are made mid-year and during the annual budgetary process. Level of Public Interest Varied. As each financial area is summarized, certain citizens/Trustees may have more interest in particular sections than in others. Sample Motion: N/A Attachments: Attached are summary sheets for the Community Reinvestment, Open Space, Emergency Response, Community Center, Trails and Street Funds.