25 Years and Still An Urban Blight?

Vote Yes by January 12

Why People Come to Estes

What is Blight? Do these EPURA projects create wealth?

Wiest Drive $1.9 million $20,000 Mural

Park Theatre Mall

Riverspointe

Wiest Drive

Mural

Teak Furniture

Failed or Underwhelming Projects

Its About the FutureWhy We Should Vote Yes

Park R-3 School Board Resolution – Sept 21,2009

Mr. Miller made a motion resolving support in the January 12 initiative to abolish EPURA. Mr. Richardson seconded the motion. All Board of Education directors voted aye in a roll call vote to approve the motion resolving support in the January 12 initiative to abolish EPURA. (Motion carried.)

Park R-3 School District Supports Yes Vote

Colorado Association of School Boards (CASB) position:

Urban Renewal does negatively impact school funding.

CASB legislative delegates, representing all 178 school districts in the State of Colorado voted to support a resolution asking the Colorado Legislature to limit the effects of Urban Renewal Authorities (TIF) on school district finances.

Colorado Constitution ARTICLE VIII State Institutions Section 1.  Established and supported

by state. Educational, reformatory and penal institutions, and those for the benefit of insane, blind, deaf and mute, and such other institutions as the public good may require, shall be established and supported by the state, in such manner as may be prescribed by law.

Public School Finance Public School Finance Act of 1994 – Funding is

distributed to schools on a per pupil basis.

Total Funding = Local Revenues + State Revenue (Backfill)

Local Revenue Sources:1. Property Taxes2. Local Ownership Taxes

State Revenue Sources:3. State Sales Tax4. Personal Income Tax5. Corporate Income Tax

Sources of School Revenue Erosion:

Tax Increment Financing (TIF) Districts Gallagher and TABOR Amendment 23 sunset (2011)

Effect on Park R-3 School District:

20% cut in funding over the next 3 years

It’s Your Money! - It’s Your Choice!

Your $20,000.00 Buys:

- The EPURA mural in the left photoor

- A teacher for a semester

First 25 Years:

About $10 million property tax increment

About $40 million sales tax increment

EPURA gave $30 million back to Town

The Old EPURA—Town funded half the Projects

New EPURA called a “funding mechanism” for Town Hall

Over 97 Percent of Tax Increment Comes from other Taxing Districts

Zero Sales Tax Increment Committed by Town Board

The New EPURA—Takes 97 %+ of Money from Other Districts

EPURA Spending & Sales Taxes

Are these two items related?

Who Loses Tax Revenue?

Park R-3 School District (mill levy & bond issue)

Larimer County Park Hospital District Estes Valley Library District Estes Valley Parks & Recreation District The New Fire District

Who Will Lose Revenue in Estes Park?

Constant Dollars TIF—Districts Lose Growth

Year 0 TIME Year 250

0.5

1

1.5

2

2.5

BaseGrowth

Assessed V

alu

e

Study of TIF in Denver, Front Range Economic Strategy Center (FRESC) 2005:

Performance Falls Short.

TIF-Projects Create Service Needs They Don’t Pay For.

Denver’s Other Tax Payers Pick Up the Difference

TIF Means Taxpayers Pay Subsidies for Developers

Money is lost by taxing districts. “Denver’s other tax payers must either

make up the difference or suffer cutbacks in these services.”

TIF Transactions Lack Transparency, Making Them Unaccountable to the Public

Front Range Economic Strategy Center (2005)

TIF—The Hidden Tax

Swenson & Eathington, Iowa State Univ., 2002:

“Stated differently, existing taxpayers, its householders, wage earners, and retirees are aggressively subsidizing business growth and population via [tax increment financing.]”

Who Pays for Urban Renewal? You the Taxpayer

2009 Fire District Mill Levy Adopted.

2008 Parks & Rec. District mill levy increased to pay for operations.

2006 School District mill levy increased.

2004 Estes Valley Library District mill levy increased to fund operations.

EPURA: Districts Needed Mill Levy Increases as TIF Increased

The Town wants to build $9 million-plus in Fairgrounds improvements.

The Town can fund it with a) cash reserves; or b) a public vote on a bond issue/mill levy

EPURA can issue bonds without a public vote, and repay those bonds with money from other taxing districts

Bond Issues—Voters Should Decide

2008 Town Survey in Utility Bills:

61% of respondents opposed passing a mill levy to pay for Fairgrounds Projects.

Keeping Urban Renewal will allow the Town to finance Fairgrounds and other Projects without Voter Approval.

Should Voters Have a Say?

The Town has increased its tax revenue by:

passing the lodging tax (2008) and the Fire District Mill Levy (2009)

In the midst of a recession, General Fund spending will grow 8.5% from 2008 to 2010—and the Town still had money to transfer to capital projects

The Town Has Plenty of Money for Capital Projects

Downtown Development Authority general improvement districts special improvement districts (municipal) local improvement districts (county), business improvement districts covenant-created public improvement fee

financing

Options that Won’t Take Money from Other Taxing Districts

Regional Tourism Authority: State Sales Tax Increment Independent Review of Plan for unique

economic benefit Could fund Parking Structures, Performing

Arts Center, Fairgrounds Only 2 new projects per year

An Even Better Option

The Ballot Question Provides that If the Town wants an Urban Renewal Authority in the Future, we the voters have the right to approve it.

Yes Vote Provides a Final Option

Vote Yes by January 12

Questions