I_Gallagher_2018A 08/21/2018 09:03:23 AM Committee Summary

Michael Morgan, Colorado Division of Fire Prevention and Control, Department of Public Safety, introduced himself and discussed the 2018 fire season thus far.  He discussed the coordination between state, local, and federal agencies.  He responded to questions from the committee.  Mr. Morgan noted that the vast majority of fire response resources comes from local fire districts rather than utilizing state or federal resources and that local governments may coordinate with one another.

Ms. Gerstle responded to comments from the committee concerning the language in the third Blue Book draft and responded to questions from the committee.

Pam Feely, Feely Consulting, discussed her concern about the financial impact of property taxes on businesses caused by the disparity in residential and nonresidential assessment rates.  She responded to questions from the committee.

Alan Fletcher, Fairmount Fire Rescue, described the impact on changes to the assessment rate in budgeting for a small fire district.  He discussed the complex requirements of a small department that responds to all kinds of emergency calls.

Don Lombardi, Colorado State Fire Chiefs, discussed the impact of changes to the residential assessment rate on fire departments.  Many departments are trying to plan for a likely decline in revenue and deciding where to cut services. He indicated he was aware of several fire departments that are planning to submit local ballot questions to request funding increases.  He responded to questions from the committee.

Mr. Lombardi continued to respond to questions from the committee regarding local mill levy elections being considered by some fire districts to help maintain current funding levels.

Ken Brownlee, Mesa County Assessor, discussed the disparity between residential and nonresidential property taxes.  He described the challenges of coordinating local ballot questions with the timing of when rates are set.

Richard Elsner, Park County Commissioner, made comments about the legislative options the committee has discussed to address issues with the Gallagher Amendment.  He expressed support for allowing localities to float their mill levies.  He responded to questions from the committee.

Tony Gagliardi, National Federation of Independent Businesses, discussed the number of small businesses in the state and how small business is defined.  He noted that his organization has coordinated discussions among small business owners about ways to address issues created by the Gallagher Amendment.  Mr. Gagliardi responded to questions from the committee.

JoAnn Groff, Property Tax Administrator, discussed her concerns with the impact of Initiative #93 on any potential adjustments to the residential assessment rate.  She responded to questions from the committee.

Christina Lara, Northwestern Railroad Construction Services, described her experience as a small business owner and the impact of increases in nonresidential property tax rates on maintaining her business in the state.  She responded to questions from the committee.

TJ Steck, Elizabeth Fire District and multiple rural fire districts, discussed his community's decision to hold an election for increasing funding for the district.  He described the challenge of bringing a ballot issue with such a quick turn around.

The committee recessed.

The committee came back to order. Representative Esgar explained the procedure for requesting bill drafts.

Ed DeCecco, Office of Legislative Legal Services, provided additional detail about the bill drafting process for interim committees.  He explained when drafts will be available for review and discussed the timeline for preparing fiscal notes.  He responded to questions from the committee.

The committee discussed a proposal to repeal the Gallagher Amendment.

The committee discussed a proposal to classify short term rentals as non-residential properties for purposes of property tax assessments.

The committee discussed the need for a bill to set the residential assessment rate at a particular, and currently undetermined, number in statute.

The committee discussed the need for a bill to ensure adequate funding for local fire districts by using state general fund to backfill lost revenue from a reduction in the residential assessment rate.  Discussion continued about whether to authorize legislation for a similar requirement for water districts and library districts.  The committee also discussed combining all three district backfill requirements into one bill.

The committee discussed the need for a bill to develop a regional system for determining the residential assessment rate.

Mr. DeCecco responded to questions from the committee.

The committee discussed the possibility of moving the provisions of Initiative #93/Amendment 73, if passed, from the Constitution to statute.

The committee discussed the need for a bill to refer a constitutional amendment to voters to permit counties to float their mills.  Mr. DeCecco responded to questions from the committee.

The chair made closing comments and the committee adjourned.