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