SUBJECT:
Title
1. A Resolution of the Town Council of the Town of Erie Urging Voters to Vote in Favor of the Regional Transportation District Ballot Issue No. ___ at the November 5, 2024 Election
2. A Resolution of the Town Council of the Town of Erie Opposing the Proposed Initiative Measure 2023-24 #50 Concerning Voter Approval for Retention of Additional Property Tax Revenue
3. A Resolution of the Town Council of the Town of Erie Opposing the Proposed Initiative Measure 2023-24 #108 Concerning Valuation for Assessment for All Taxable Property
Body
DEPARTMENT: Legislative
Department
PRESENTER(S): Malcolm Fleming, Town Manager
First Name Last Name, Title
TIME ESTIMATE: 15 minutes
only required for non-consent items
POLICY ISSUES:
• Should the Council adopt a resolution supporting de-Brucing for the RTD because doing so would enable the RTD to retain property tax revenue that RTD would, in the absence of de-Brucing, have to be refunded to residents of the District and that would make it even more difficult for RTD to provide convenient, safe and efficient transit services for residents of the District, including Erie.
• Should the Council adopt resolutions opposing Initiatives 50 and 108 because if voters approve these Initiatives they would reduce property tax revenue available to the Town of Erie for programs and services desired by Town residents, businesses, and visitors? This question may be moot if the Special Legislative Session scheduled for August 26, 2024 results in these Initiatives being pulled from the ballot.
STAFF RECOMMENDATION:
Recommendation
This is a policy decision for Council. If the Council wishes to take action on these measures, it would require 3 separate motions, one on each Resolution.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
During the August 8, 2024 Northwest Mayors and Commissioners Coalition (MCC) meeting in Erie, MCC member jurisdictions were asked to take positions on the RTD De-Brucing measure and Initiatives 50 and 108.
RTD De-Brucing
In 1992, voters approved an amendment to the Colorado Constitution known as the Taxpayer’s Bill of Rights (TABOR). Voters exempted RTD in 1995 from TABOR’s limitations through Dec. 31, 2005. In 1999, voters further exempted RTD from those limitations for the purpose of paying debt incurred to finance the construction of the Southeast and Southwest light rail lines or to operate such, for as long as any bond debt remains outstanding, but in no event beyond Dec. 31, 2026. RTD’s bonds will be repaid in November 2024, and de-Brucing on the 0.6% sales-and-use tax will expire at that time.
In 2004, voters authorized an increase in RTD’s sales and use tax rate from 0.6% to 1%, effective Jan. 1, 2005, to finance the FasTracks transit improvement program. When all FasTracks bond debt is repaid in 2050, the 0.4% sales-and-use tax rate may be reduced, and de-Brucing on the 0.4% will expire.
Approximately 50% or $600 million of RTD's revenues will be subject to TABOR in 2025. This includes virtually all revenue except the 0.4% tax, federal funding, and investment income from federal funding.
Initiatives 50 and 108
The non-partisan Legislative Council’s Fiscal Summary for these initiatives can be found at the links below:
• Initiative 50
o Text <https://www.sos.state.co.us/pubs/elections/Initiatives/titleBoard/filings/2023-2024/50Final.pdf>
o Fiscal Summary <https://www.sos.state.co.us/pubs/elections/Initiatives/titleBoard/filings/2023-2024/50FiscalSummary.pdf>
o Review and Comment <https://www.sos.state.co.us/pubs/elections/Initiatives/titleBoard/filings/2023-2024/50ReviewComment.pdf>
• Initiative 108
o Text <https://www.sos.state.co.us/pubs/elections/Initiatives/titleBoard/filings/2023-2024/108Final.pdf>
o Fiscal Summary <https://www.sos.state.co.us/pubs/elections/Initiatives/titleBoard/filings/2023-2024/108FiscalSummary.pdf>
o Review and Comment <https://www.sos.state.co.us/pubs/elections/Initiatives/titleBoard/filings/2023-2024/108ReviewComment.pdf>
COUNCIL PRIORITY(S) ADDRESSED:
ü Well-Maintained Transportation Infrastructure
ü Effective Governance
ü Fiscally Responsible
ATTACHMENT(S):
1. Town of Erie Resolution regarding RTD Ballot Issue
2. RTD Director’s Report & RTD Ballot Initiative
3. Town of Erie Resolution regarding Initiative 50
4. Town of Erie resolution regarding Initiative 108