City of Colorado Springs / City Clerk / City Elections / Archived Elections / 2006, Nov 7 / DDA - Nov 7, 2006 / 2006 DDA TABOR Notice
Downtown Development Authority Mail Ballot Election - November 7, 2006 - TABOR Notice
NOTICE OF ELECTION ON
A REFERRED MEASURE/TO INCREASE TAXES/TO INCREASE DEBT
CITY OF COLORADO SPRINGS DOWNTOWN DEVELOPMENT AUTHORITY
EL PASO COUNTY, STATE OF COLORADO
| ELECTION DATE: |
|
NOVEMBER 7, 2006 (MAIL BALLOT) |
| ELECTION HOURS: |
|
7:00 A.M. TO 7:00 P.M. |
QUESTION NO. 1-B
Ballot Title and Text:
"SHALL CITY TAXES FOR THE COLORADO SPRINGS DOWNTOWN DEVELOPMENT AUTHORITY BE
INCREASED $750,000 ANNUALLY BY LEVYING AN AD VALOREM MILL LEVY UP TO FIVE MILLS
FOR EXPENDITURES ALLOWED BY LAW?"
If approved, the City of Colorado Springs shall be authorized to impose an ad
valorem mill levy not to exceed five mills on all real and personal property
within the boundaries of the Authority and for the Authority, to be used for the
purpose of paying the Authority?s operations, maintenance, and other expenses,
as allowed by sections 31-25-807, 31-25-808(1)(a), 31-25-808(1)(b), 31-25-816
and 31-25-817 Colorado Revised Statutes.
Fiscal Year Spending Information
| |
Year |
Fiscal Year
Spending (FYS) |
Federal
Funds |
| |
|
|
|
|
|
| |
2002 actual |
$ |
0.00 |
$ |
0.00 |
| |
2003 actual |
$ |
0.00 |
$ |
0.00 |
| |
2004 actual |
$ |
0.00 |
$ |
0.00 |
| |
2005 actual |
$ |
0.00 |
$ |
0.00 |
| |
2006 (estimate) |
$ |
0.00 |
$ |
0.00 |
| |
2007 (estimate) |
$ |
0.00 |
$ |
0.00 |
| |
2008 (estimate) |
$ |
750,000.00 |
$ |
0.00 |
| Overall dollar change to FYS (2002-2008) estimate |
$ |
750,000 |
| Overall percentage change to FYS (2002-2008) |
$ |
Infinity % |
| Overall dollar change to FYS plus federal funds
(2002-2008) |
$ |
750,000 |
| Overall percentage change to FYS plus federal funds
(2002-2008) |
$ |
Infinity % |
| Estimated annual amount of new tax increase |
$ |
750,000 |
| Estimated FYS without tax increase |
$ |
0.00 |
| Estimated FYS plus federal funds without tax increase |
$ |
0.00 |
Summary of written comments for the proposal:
- The DDA concept is used in numerous downtowns across the country. A DDA
is a legal entity that uses finance tools to level the playing field for
downtown development. Downtown has limited markets, and the costs of
development and rehabilitating property in downtown is usually higher than
in other parts of the city. DDA would operate within a defined geographical
district ? in this case, a proposed area of downtown Colorado Springs. The
DDA is funded through two means; a property-based tax, capped at 5 mills,
and capturing a portion of the increased values of property through a Tax
Increment Finance or TIF pool. Over the next 30 years, that might yield
about $90 million to invest in downtown development. Without the TIF, these
taxes would not be retained by downtown for use in downtown. It is similar
to applying the parking enterprise funds to improve downtown parking and
pedestrian areas. Downtown re-captures funds through DDA TIF to apply to
additional improvements in downtown.
- These tools would be used by the DDA to help finance special projects:
residential growth, arts and culture growth and job growth are the major
goals of the existing Downtown Action Plan and the new Imagine Downtown
plan. The DDA would help achieve these goals. In downtown, the process is
more restricted, takes longer and costs 4 ? 5 times more than typical
suburban green field development. Land, access, financing, building codes,
quality of materials ? these are trickier variables for downtown
development. With its revenues, a DDA can stimulate the market with
financing incentives, facilitation of public-private partnerships, and other
unique services.
- Approval of the DDA will result in a 5-mill levy on property as a
funding base for the Authority. Additionally, approval of the DDA will
result in Tax Increment Financing. But most important, approval of the DDA
will result in new funds that will be applied to projects that will benefit
all of downtown and the community. Decisions will be made by those who help
fund the DDA: downtown residents, business and property owners who will
govern the board of directors. The Board will take responsibility for hiring
staff, setting policy, developing the actual programs and maintaining
financial supervision.
- Without the DDA, it will be much more difficult to reach these goals and
develop downtown, whether that means new construction or renovation of older
properties or attracting new residents, business and members of the
community. Recent surveys have shown that people like downtown but they want
"more of it." And throughout the Imagine Downtown community planning
process, the consensus seems to be that yes, we have a good downtown, but we
want a great downtown. And what will make a great downtown is more housing,
more retail, more arts, and more economic vitality. And when that happens,
downtown will be a truly significant economic engine for the entire city ?
not to mention a wonderful community resource.
Summary of written comments against the proposal:
"No comments were filed by the constitutional deadline."
QUESTION NO. 1-C
Ballot Title and Text:
"SHALL THE COLORADO SPRINGS DOWNTOWN DEVELOPMENT AUTHORITY (THE "AUTHORITY"),
OR THE CITY OF COLORADO SPRINGS FOR USE OF THE AUTHORITY FOR PURPOSES OTHER THAN
ENTERPRISES, AND AS A VOTER-APPROVED REVENUE CHANGE, BE AUTHORIZED TO COLLECT,
RETAIN, AND SPEND IN 2007 AND IN ALL SUBSEQUENT YEARS THEREAFTER WHATEVER AMOUNT
IS COLLECTED ANNUALLY FROM ANY REVENUE SOURCES INCLUDING BUT NOT LIMITED TO TAX
RECEIVED AS DESCRIBED IN SECTIONS 31-25-807(3), 31-25-816, AND 31-25-817
COLORADO REVISED STATUTES, FEES, RATES, TOLLS, RENTS, CHARGES, GRANTS,
CONTRIBUTIONS, LOANS, INCOME, OR OTHER REVENUES IMPOSED, COLLECTED, OR
AUTHORIZED BY LAW TO BE IMPOSED OR COLLECTED BY THE AUTHORITY OR BY THE CITY OF
COLORADO SPRINGS FOR THE USE OF THE AUTHORITY, AND SHALL SUCH REVENUES BE
COLLECTED AND SPENT WITHOUT REGARD TO ANY SPENDING, REVENUE-RAISING, OR OTHER
LIMITATION CONTAINED WITHIN ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION,
OR SECTION 7-90 OF THE CHARTER OF THE CITY OF COLORADO SPRINGS AND WITHOUT
LIMITING IN ANY YEAR THE AMOUNT OF OTHER REVENUES THAT MAY BE COLLECTED AND
SPENT BY THE AUTHORITY AND THE CITY OF COLORADO SPRINGS AND SHALL ALL REVENUES
GENERATED BY ANY AD VALOREM TAX LEVY UP TO FIVE MILLS COLLECTED, RETAINED, OR
SPENT IN 2007 AND COLLECTED, RETAINED, OR SPENT IN ALL SUBSEQUENT YEARS
THEREAFTER BE VOTER APPROVED AS AN INCREASED LEVY EXEMPT FROM THE TAX INCREASE
LIMITATIONS CONTAINED IN SECTIONS 29-1-301 AND 29-1-302 COLORADO REVISED
STATUTES?"
Summary of written comments for the proposal:
- If the eligible voters of the DDA wish to form the DDA, and if the
voters also wish to levy the 5 mill property tax, then the voters would most
likely wish for the DDA to have the local authority to set those mill levies
annually, up to the 5 mill cap. Similarly, the voters would most likely wish
to retain any revenues that the 5 mills or less generates each year, for
application to the services and programs that will achieve the Downtown
Development Plan.
- The DDA Board of Directors is empowered to make decisions each year on
setting a budget and developing the program of work consistent with the
downtown plan. Therefore, the Board should also be empowered to make use of
the funds that voters have approved in this election.
- Thus, the DDA should not be subject to any revenue limitations but
rather, to remove those restrictions as allowed under the TABOR law.
Summary of written comments against the proposal:
"No comments were filed by the constitutional deadline."
QUESTION NO. 1-D
Ballot Title and Text:
"SHALL COLORADO SPRINGS DOWNTOWN DEVELOPMENT AUTHORITY DEBT BE INCREASED
$90,000,000 WITH A REPAYMENT COST OF $225,000,000 (MAXIMUM) FOR APPROVED PLANS
OF DEVELOPMENT AND CONSTITUTING A VOTER-APPROVED REVENUE CHANGE?"
If approved, such debt may be issued for the Authority by the City of
Colorado Springs for the purpose of paying the costs of creating and
implementing any plan of development, including operating, maintaining, or
otherwise providing systems, operations, and administration for the purpose of
carrying out the objects and purposes for which the Authority was organized,
together with all necessary, incidental and appurtenant properties, capital
improvements, facilities, equipment, personnel, contractors, consultants, and
costs and all land, easements, and appurtenances necessary or appropriate in
connection therewith, such debt to bear interest at a net effective interest
rate not in excess of seven and one-half percent (7.5%) per annum, such interest
to be payable at such time or times and which may compound periodically as may
be determined by the City Council, such debt to be sold in one series or more at
a price above, below or equal to the principal amount of such debt and on such
terms and conditions as the City Council may determine, including provisions for
redemption of the debt prior to maturity with or without payment of premium, and
which debt may be refinanced at a net effective interest rate not in excess of
the maximum net effective interest rate without additional voter approval; such
debt shall be paid from any legally available moneys of the Authority, including
the revenues pledged or from taxes pledged pursuant to section 31-25-807(3)(b)
Colorado Revised Statutes or both such revenues and taxes with such limitations
as may be determined by the Board of the Authority and the City Council, and
shall the proceeds of any such debt and the proceeds of such taxes, any other
revenue used to pay such debt, and investment income thereon be collected and
spent as a voter-approved revenue change, without regard to any spending,
revenue-raising, or other limitation contained within Article X, Section 20 of
the Colorado Constitution, and Section 7-90 of the Charter of the City of
Colorado Springs and without limiting in any year the amount of other revenues
that may be collected and spent by the Authority and the City of Colorado
Springs.
Fiscal Year Spending Information
| |
Year |
Fiscal Year
Spending (FYS) |
Federal
Funds |
| |
|
|
|
|
|
| |
2002 actual |
$ |
0.00 |
$ |
0.00 |
| |
2003 actual |
$ |
0.00 |
$ |
0.00 |
| |
2004 actual |
$ |
0.00 |
$ |
0.00 |
| |
2005 actual |
$ |
0.00 |
$ |
0.00 |
| |
2006 (estimate) |
$ |
0.00 |
$ |
0.00 |
| |
2007 (estimate) |
$ |
0.00 |
$ |
0.00 |
| |
2008 (estimate) |
$ |
750,000.00 |
$ |
0.00 |
| Overall dollar change to FYS (2002-2008) estimate |
$ |
750,000 |
| Overall percentage change to FYS (2002-2008) |
$ |
Infinity % |
| Overall dollar change to FYS plus federal funds
(2002-2008) |
$ |
750,000 |
| Overall percentage change to FYS plus federal funds
(2002-2008) |
$ |
Infinity % |
| Principal amount of new debt to be issued |
$ |
90,000,000 |
| Maximum annual repayment cost of new debt |
$ |
11,250,000 |
| Maximum total repayment cost of new debt |
$ |
225,000,000 |
| Principal balance of current bonded debt |
$ |
0.00 |
| Maximum annual repayment cost of current debt |
$ |
0.00 |
| Total repayment cost of current debt |
$ |
0.00 |
Summary of written comments for the proposal:
- The proposed Downtown Development Authority?s underlying intent is to
create new financing mechanisms to encourage additional downtown development
of all types. Smaller projects and large will be assisted by Tax Increment
Financing, if approved. The bonding capacity of the TIF is estimated to be
$90 million over 30 years. That means $90 million for re-investment into
downtown that otherwise would not be captured for use in downtown.
- Voters should approve the TIF bonding capacity to insure that the TIF
can be applied to downtown development projects, benefiting the downtown and
broader community by insuring that downtown remains the community?s heart
and soul.
Summary of written comments against the proposal:
"No comments were filed by the constitutional deadline."
Designated Election Official:
Kathryn M. Young, CMC/CERA
City Clerk
City of Colorado Springs
P. O. Box 1575, MC 110
Colorado Springs, CO 80901-1575
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