Special districts in Colorado: Regional authority players

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Colorado Special District Association Annual ConferenceKeystone Colorado, Thursday, Sept. 19, 2013

Districts’ role in a time of increasing regionalism

• Community development• Infrastructure finance• Going onto the regional field• Recognizing districts as players

Districts’ historic purpose under State law

• Local projects                   • Local choice• Local governance•Local finance A

Concern with proliferation of districts

• Legislative declaration• Fragmentation• Tax source diffusion• Overlapping services• Assumption of services

A

Districts as sub-local entities• Service plan restrictions  • Service plan approval• Action by county, municipality 

                                            

B

Special district evolution• Proliferated and ubiquitous• Evolving to fill niche(s)• Multiple and extrovert structures• E.g., security, covenants, business  C

Finding, filling new niches• Newer, different needs arise• Societal needs• Infrastructure, services

•Decreasing funding available• Federal, state, local

Funding Colorado infrastructure

• The TABOR niche• Enterprises• Less than city- or county-wide vote

• Whole > sum of its parts• Big projects• Revenue stream timing• Economies of scale

Regionalism:  The Goldilocks factor• Not too big• Not too small• Just right• Regional authorities and entities

Opportunities for the regional approach• Transportation• Water• Sewer• Drainage• Parks and recreation

Characteristics of the regional approach

• Accumulated interest (2 or more players)• Collective responsibility• Enterprise funding separate from TABOR “district”• New, customized rules of the game

Forms of regionalism• IGA entities• Colorado Constitution• Statutory embellishment             

• Statutorily-created authorities• Statutorily-enabled authorities• Authorities by another name

DE

Authorities by another name

• IGA association of special districts• Overlay special districts• Joint powers agreements• Multi-district IGAs• Coalitions

Examples of “authorities” allowing districts

• Joint Southeast Public Improvement Authority• Regional transportation authorities, CRS 43-4-601• Southeast Public Improvement Metropolitan District• Common developer district arrangements• C-470 Corridor Coalition

Authorities and the two P3s

• Public-private partnerships• Public-public partnerships• The twain shall meet

Public-private partnerships• Attracting private interests and money• Consolidated or larger projects attract• Making the P3 process worthwhile• “Owner” offloads some cost, risk• Benefits of privatizing

Public-public partnerships• The “other P3”• Can create consolidated or larger projects• Can consolidate work into a single “owner”• Public-public = authorities (and similar entities)

Where special districts can fit in (an example)

F

Multi-Government J oint Funding and Construction AgreementLead Agency with Financial Contribution AgreementProject-Specific Special Legislative EntityMetropolitan DistrictsAssociation of M etropolitan DistrictsPublic Highway AuthorityRegional Transportation AuthorityPublic Improvement Districts (PIDs)Local Improvement Districts (LIDs)General Improvement Districts (GIDs)Business Improvement Districts (BIDs)Entity formed by IGARegional Service AuthoritiesTransportation EnterpriseLegal Authorization for EntityColo. Const. Art. XIV, § 18(2); §§ 29-1-201 et seq., C.R.S. With powers and responsibilities of participants established in the agreementColo. Const. Art. XIV, § 18(2); §§ 29-1-201 et seq., C.R.S. With powers and responsibilities of participants established in the agreementColorado Constitution; Uniform Election Code of 1992, Articles 1 to 10 of Title 1, C.R.S§§ 32-1-101 et seq., C.R.S. §§ 32-1-101 et seq., C.R.S.; Colo. Const. Art. XIV, § 18(2); §§ 29-1-201 et seq., C.R.S.§§ 43-4-501 et seq., C.R.S.§§ 43-4-601 et seq., C.R.S.§§ 30-20-501 et seq., C.R.S.§§ 30-20-601 et seq., C.R.S.§§ 31-25-601 et seq., C.R.S.§§ 31-25-1201 et seq., C.R.S.Colo. Const. Art. XIV, § 18(2); §§ 29-1-201 et seq., C.R.S.Colo. Const. Art. XIV, § 17; §§ 32-7-101 et seq., C.R.S.Colo.Const. Art. X, § 20, §§ 29-1-201 et seq.,C.R.S.Powers No new entity will be formed in this arrangement. Instead multiple governmental entities will enter into an agreement to jointly fund and construct facilities and improvements. The agreement will specify the respective rights and obligations of each party.No new entity will be formed in this arrangement. One lead governmental entity will agree to construct facilities and improvements and will enter into an agreement with multiple governmental entities to jointly fund the facilities and improvements. The agreement will specify the respective rights and obligations of each party.Dependent on legislationShall provide two or more of: traffic and safety control devices, street improvements, public transportation.Any combination of metropolitan districts that are authorized to own and operate streets and other transportation facilities may establish, by IGA, a new political subdivision to effect the development of transportation facilities in whole or in part for the benefit of the inhabitants of such contracting parties or others at the boards discretion.May finance, construct, operate, or maintain all or a portion of a beltway or other transportation improvements in a metropolitan region which, because of the cost or the location thereof in the jurisdiction of more than one municipality or county, cannot feasibly be financed, constructed, operated, or maintained by a municipality or county acting alone.To finance, construct, operate, or maintain regional transportation systems within or without the boundaries of the authorityMay construct, install, acquire, operate or maintain any public improvement or service so long as that county that forms the district is authorized to make such improvements or perform such services under the county's home-rule charter, if any, or applicable state law. May construct, grade, pave, pour, curb, gutter, line, or otherwise improve any street, or to provide street lighting or drainage facilities in the unincorporated area of a county, or within a municipality, with municipality consent. May also construct sidewalks adjacent to any such streets or maintenance roads adjacent to any such drainage facilities. May acquire, install, construct, operate, or maintain any “public improvement” so long as the municipality forming the district is authorized to perform such service or provide such improvement under the municipality’s home rule charter, if any, or under state law. May acquire, construct, finance, install and operate and maintain public improvements, including but not limited to streets, sidewalks, curbs, gutters, pedestrian malls, street lights, drainage facilities, landscaping, decorative structures, identification signs, traffic safety devices, bicycle paths, off street parking facilities, benches, restrooms, public meeting houses, and relocating utility lines.Any combination of municipalities, special districts, or other political subdivisions of the state that are authorized to own and operate streets and other transportation facilities may establish, by IGA, a new political subdivision to effect the development of transportation facilities in whole or in part for the benefit of the inhabitants of such contracting parties or others at the boards discretion.Public surface transportationGenerally, powers match those of county, municipality or all members of a combination of same. Enterprise may be established to pursue transportation. Governing Body Each party to agreement will be governed by its respective board or council in performing their respective obligations and enforcing their respective rights under the agreementEach party to agreement will be governed by its respective board or council in performing their respective obligations and enforcing their respective rights under the agreementDependent on legislationBoard of Directors (5 or 7 member board, staggered terms, elected by eligible electors of the district in May of even years)Board of Directors (composition, term of office and selection will be dependent on terms of IGA)Board of Directors (at least one elected official from each member of combination creating PHA. Composition, term of office and selection will be dependent on terms of establishing contract)Board of Directors (at least one elected official from each member of combination creating PHA. Composition, term of office and selection will be dependent on terms of establishing contract)County governing boardCounty or City and County governing boardMunicipality governing boardMunicipality governing boardBoard of Directors (composition, term of office and selection will be dependent on terms of IGA)15, 9 or 5 member board (depending on population) elected by eligible electorsBoard of Directors as provided for in the enterprise resolution or agreementWeighted Voting for Governing BodyNot Available Not Available Dependent on legislationNo Yes, if provided for in contract establishing associationYes, if provided for in contract establishing AuthorityYes, if provided for in contract establishing AuthorityNo No No No Yes, if provided for in the contract establishing entityNo Yes, if provided forCondemnation Not Available, may be exercised by participating governments Not Available, may be exercised by participating governments Dependent on legislationYes Yes Yes Yes Yes No Yes No Yes Yes NoConcession/P3 No No Dependent on legislationYes Unlikely Yes Yes Yes No No No Maybe Maybe YesOperate and Maintain FacilitiesAgreement may provide for O&M or for turn over to appropriate partyAgreement may provide for O&M or for turn over to appropriate partyDependent on legislationYes Yes Yes Yes Yes No; dissolution upon completion and payment of debtYes Yes Yes Yes YesAd Valorem Property TaxesNot Available, may be exercised by participating governments Not Available, may be exercised by participating governments Dependent on legislationYes Yes No Yes Yes No Yes Yes Yes Yes NoVisitor Benefit TaxNot Available, may be exercised by participating governments Not Available, may be exercised by participating governments Dependent on legislationNo No No Yes No No No No No No NoAssess Costs Not Available, may be exercised by participating governments Not Available, may be exercised by participating governments Dependent on legislationYes No Yes Yes Yes Yes Yes Yes No Yes NoCharges, Rates, TollsNot Available, may be exercised by participating governments Not Available, may be exercised by participating governments Dependent on legislationYes Yes Yes Yes Yes No Yes Yes Yes Yes YesVehicle Registration FeeNot Available, may be exercised by participating governments Not Available, may be exercised by participating governments Dependent on legislationNo No Yes Yes No No No No No No NoGeneral Obligation BondsNot Available, may be exercised by participating governments Not Available, may be exercised by participating governments Dependent on legislationYes Yes No No Yes Yes Yes Yes Yes Yes NoRevenue Bonds Not Available, may be exercised by participating governments Not Available, may be exercised by participating governments Dependent on legislationYes Yes Yes Yes Yes Yes Yes Yes Yes Yes YesSpecial Assessment BondsNot Available, may be exercised by participating governments Not Available, may be exercised by participating governments Dependent on legislationNo No No No Yes Yes Yes Yes No Yes NoSales Tax Not Available, may be exercised by participating governments Not Available, may be exercised by participating governments Dependent on legislationNo No No Yes No Yes-Limited No No No No NoFormation Not Available, may be exercised by participating governments Not Available, may be exercised by participating governments General Assembly legislation with Governor approval, Citizen initiative or legislative referendumPetition & Vote Intergovernmental AgreementEstablishing Contract & Certificate from Division of Local GovernmentEstablishing Contract & VotePetition Petition & Resolution/OrdinancePetition Petition & Resolution/OrdinanceIntergovernmental AgreementCitizen petition or resolution of majority of counties in territory, organization commission, voteIntergovernmental AgreementCooperative Effort with CDOT/HPTECDOT/HPTE could be party to agreementCDOT/HPTE could be party to agreementYes, through contract with special legislative entityYes Yes, through contract with new political subdivision that is createdYes Yes Yes, through CountyYes, through County or City & CountyYes, through municipalityYes, through municipalityYes, through contract with new political subdivision that is createdYes Yes, by intergovernmental agreement or coordinated effortCooperative Effort with RTDRTD could be party to agreementRTD could be party to agreementYes, through contract with special legislative entityYes Yes, through contract with new political subdivision that is createdYes Yes Yes, through CountyYes, through County or City & CountyYes, through municipalityYes, through municipalityYes, through contract with new political subdivision that is createdYes Yes, by intergovernmental agreement or coordinated effort63-20 PIC Conduit FinancingNot collectively; one entity may useNot collectively; one entity may useDependent on legislation; if entity is a political subdivision, yesYes Not collectively; one entity may useYes Yes No; forming County may useNo; forming County or City & County may useNo; forming municipality may useYes Yes Yes Probably not, although founding entity (IES) may use

Where special districts can fit in  B Multi-government joint funding/construction agreementC Lead agency with financial contribution agreementD Project-specific legislative entity incorporating district(s)F Association of special districtsH Regional transportation authorityM Entity formed by IGAO TABOR enterprise (multiple districts)

F

Special districts in Colorado: Regional authority players

ED ICENOGLEICENOGLE | SEAVER | POGUE

A Professional CorporationAttorneys at Law

4725 South Monaco Street, Suite 225Denver, Colorado 80237

Colorado Special District Association Annual ConferenceKeystone Colorado, Thursday, Sept. 19, 2013