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Weld County School District Re-4
Long Range Facility Planning Committee
November 2010 Ballot Initiatives
Overview and Impl...
The Three Initiatives
 Amendment 60 – cuts SD property taxes in half
 Amendment 61 – borrowing limits
 Proposition 101 ...
Amendment 60 Provisions (Nine)
1. Overturn ALL property tax increases approved in
local elections since 1992;
2. Limits ta...
Amendment 60 Provisions – Con’t.
6. Allow electors to vote on property taxes in
any district in which they own real proper...
Fiscal Impact Summary First Year* Fully Implemented*
State Revenue General Fund at least $0.9 million at least $8 million
...
Effects on taxpayers:
Source: Colorado Legislative Council.
Property Tax Differential
  Year 1
Full
Implementation
Home Va...
Amendment 61 Provisions
Effects on State:
 Prohibits state from borrowing in any form:
• “The state shall not contract an...
Fiscal Effects:
Source: Colorado Legislative Council.
Table 3. Annual Estimated Tax Impacts Based on Current Borrowing
(Fu...
 Reduces vehicle specific ownership taxes “over four years to
nominal amounts” ($2 new; $1 other)
 Sets yearly registrat...
Effects on Local Governments
Source: Colorado Legislative Council.
Table 3. Local Government Revenue Impact of Proposition...
Effects on Taxpayers
Source: Colorado Legislative Council.
Property Tax Differential
  Year 1
Full
Implementation
Home Val...
Weld Re-4 Effects – Amend. 60 & Prop. 101
Effects of Amendment 60 & Proposition 101 on Current Fiscal Situation
Example Ba...
Weld Re-4 Effects – Amend. 61
Impact if Amendment 61 was in Place for 2007 Bond Election and Current
Current If NOT Qualif...
Questions?
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Long Range Planning Committee - 3 Initiatives

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Describes intent and effects of the "Ugly 3" initiatives

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Long Range Planning Committee - 3 Initiatives

  1. 1. Weld County School District Re-4 Long Range Facility Planning Committee November 2010 Ballot Initiatives Overview and Implications for Weld Re-4 September 21, 2010 Picture taken 12-3-07
  2. 2. The Three Initiatives  Amendment 60 – cuts SD property taxes in half  Amendment 61 – borrowing limits  Proposition 101 – state income tax & vehicle taxes Note: Six other initiatives will also be on the ballot. General effects Weld Re-4 effects
  3. 3. Amendment 60 Provisions (Nine) 1. Overturn ALL property tax increases approved in local elections since 1992; 2. Limits tax rate increases to 10 years and requires periodic re-approval (no more than 4 years) of subsequent property tax increases; 3. Cut local school district property tax rates in half over 10 years; 4. Replace local school district property taxes with state revenue; 5. Require government owned businesses (e.g. community colleges) to pay property taxes, which MUST be offset by lower local property tax rates;
  4. 4. Amendment 60 Provisions – Con’t. 6. Allow electors to vote on property taxes in any district in which they own real property; 7. Require that elections on property taxes be held only in November; 8. Prohibit related tax and debt issues from being included in the same ballot measure, even where the taxes will repay the debt; 9. Permit voters to petition any local government to reduce property taxes; and 10.May increase severance tax collections to offset property tax deductions.
  5. 5. Fiscal Impact Summary First Year* Fully Implemented* State Revenue General Fund at least $0.9 million at least $8 million State Expenditures General Fund $338 million $1,469 million FTE Position Change 1.5 FTE 1.5 FTE Local Government Impact: See Local Government Impact section. * All figures for state expenses and revenue are reflected in today's dollars. The first year of implementation is FY 2011-12. The measure is fully implemented in FY 2020-21 . Fiscal Effects on State: Fiscal Effects on School Districts: (millions - statewide) Source: Colorado Legislative Council. Type of School District Property Taxes Current Law Amendment 60 Difference Property Tax Revenue to Repay Debt $762 $762 $0 Property Tax Revenue to Operate Schools $2,513 $1,257 ($1,257) Total Property Tax Revenue $3,275 $2,019 ($1,257) State Expenditures for Public Schools $3,746 $5,003 $1,257
  6. 6. Effects on taxpayers: Source: Colorado Legislative Council. Property Tax Differential   Year 1 Full Implementation Home Value $ 295,000 $ 295,000 Property tax reduction (annual) $ 87 $ 376 Commercial Value $ 1,100,000 $ 1,100,000 Property tax reduction (annual) $ 1,181 $ 5,106
  7. 7. Amendment 61 Provisions Effects on State:  Prohibits state from borrowing in any form: • “The state shall not contract any debt by loan in any form.”  Note: state already prohibited from using GO debt  Must accumulate funds and pay for expenses up front Effects on Local Governments:  Limits GO debt to 10% of assessed value  Elections only in November  Debt must be repaid within 10 years  Borrowing must be issued with ability to be repaid at any time  After repayment, taxes must be reduced by an amount equal to annual debt payments
  8. 8. Fiscal Effects: Source: Colorado Legislative Council. Table 3. Annual Estimated Tax Impacts Based on Current Borrowing (Fully Implemented over 40 Years)   Total Outstanding Borrowing (Excluding Enterprises) Total Tax Reduction Taxpayer Impact* (Tax Reduction) State Government $2.2 billion $0.2 billion $49 Local Governments $24.8 billion $0.9 billion $225 Total $27.0 billion $1.1 billion $274 *Based on a household earning $55,000 per year living in a $295,000 home.
  9. 9.  Reduces vehicle specific ownership taxes “over four years to nominal amounts” ($2 new; $1 other)  Sets yearly registration/license/title charges at $10 per vehicle total  Phases in over four years a $10,000 vehicle sales price exemption  Eliminates taxes on vehicle rentals and leases  Lowers state income tax to 3.5% over 10 years (IF net income tax growth exceeds 6%)  Ends state and local taxes and charges (exc. 911) on telecommunication service customer accounts  Requires annual state audit -- costs to implement audits of local government to ensure compliance: ~$400,000± first year; $120.7 million annually at full implementation Proposition 101 Provisions
  10. 10. Effects on Local Governments Source: Colorado Legislative Council. Table 3. Local Government Revenue Impact of Proposition 101 (Millions in Today's Dollars) Local Government Revenue Source First Full Year Impact Fully Implemented Sales Tax Revenue* ($357) ($471) Specific Ownership Tax Revenue ($172) ($431) Transportation-Related Revenue ($99) ($99) 911 Fees ($2) ($2) Total** ($629) ($1,002) * Due to data limitations, the sales tax impact excludes the revenue reduction from sales tax that would no longer apply to cable and satellite television services. Thus, the revenue reduction will be larger. ** There are likely other revenue impacts to local governments that are not included due to data limitations. These impacts may include a reduction in franchise fee revenues that some local governments apply to telecommunications bills. Other governments, such as public highway authorities, can charge additional vehicle registration fees. The revenue impact of reducing or eliminating any of these fees has not been estimated. However, the table reflects most of the revenue impact to local governments. Totals may not sum due to rounding.
  11. 11. Effects on Taxpayers Source: Colorado Legislative Council. Property Tax Differential   Year 1 Full Implementation Home Value $ 295,000 $ 295,000 Property tax reduction (annual) $ 87 $ 376 Commercial Value $ 1,100,000 $ 1,100,000 Property tax reduction (annual) $ 1,181 $ 5,106
  12. 12. Weld Re-4 Effects – Amend. 60 & Prop. 101 Effects of Amendment 60 & Proposition 101 on Current Fiscal Situation Example Based On Current Current With Effects Year Operating Funds Statute of Amend. 60 Amendment 60: Re-4 Property Tax Revenues $ 16,800,000 $ 8,400,000 State "Backfill"* NA 8,400,000 Total "Like" Revenue $ 16,800,000 $ 16,800,000 Proposition 101: Re-4 Specific Ownership Taxes, etc. $ 1,700,500 $ 0^ State "Backfill"* NA 985,500 Total "Like" Revenue $ 1,700,500 $ 985,500 *: Theoretical; assumes state has the funds to accomplish. ^: Insufficient information to calculate but revenue would be inconsequential.
  13. 13. Weld Re-4 Effects – Amend. 61 Impact if Amendment 61 was in Place for 2007 Bond Election and Current Current If NOT Qualified With Effects   Statute as Fast Growing of Amend. 61 Assessed Value $ 363,573,560 363,573,560 363,573,560 Bonding Rate* 25.0% 20.0% 10.0% Bonding (Debt) Capacity 90,893,390 72,714,712 36,357,356 Bond Amount 41,500,000 41,500,000 41,500,000 Pre-existing Debt 31,605,000 31,605,000 31,605,000 Remaining Debt Capacity 17,788,390 (390,288) (36,747,644) Current Assessed Value $ 524,000,000 524,000,000 524,000,000 Current Outstanding Debt $ 61,795,000 $ 61,795,000 $ 61,795,000 Current Net Debt Capacity 69,205,000 43,005,000 (9,395,000) *: District qualified as fast growing so could bond to 25% of AV rather than 20%.
  14. 14. Questions?

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