Thursday, October 23, 2008

CPN Debate Heats Up

My previous post, "When is a Tax Increase Not a Tax Increase?...Only in Castle Pines North" has generated a number of comments. One particularly pertinent exchange is reprinted here.

Anonymous said...
Too bad your interpretation does not agree with the Colorado Supreme Court, which is clear that Questions 2D and 2E are NOT tax increases. Doug Bruce tried to convince the Court of your interpretation and was told by that he was legally off base and wrong. After that he went on to kick reporters!

Jeffrey Huff said...
The Colorado Supreme Court has never rendered an opinion on 2D or 2E. The 2006 case you refer to, "Bruce v. Colorado Springs," dealt with a different set of facts. The court attempted to resolve whether a “tax extension” is a “tax increase” in the context of TABOR.

In that case the court found that the issue did not "substantively change the existing sales and use tax OR ITS PROPOSED USE OF THE REVENUE." While the extension lengthened the time period of the tax, it directed the tax revenue to the SAME EXPENDITURES approved by the voters in the original ballot proposal.

The dissenting opinion of Justice Coats noted, "I believe the plain and ordinary meaning of the term “tax increase,” in context, must include the “extension of an expiring tax,” and that the clear intent of TABOR is not only to require voter approval for such an extension but also to PROVIDE THE VOTERS SUFFICIENT INFORMATION TO MAKE A RATIONAL CHOICE."

The tax measure proposed here in CPN anticipates a new tax levied by the City with a corresponding offset from an expiring tax from the Metro District. The ballot question in Colorado Springs clearly noted that the issue involved a "tax extension" while the CPN ballot language does not. I believe the Colorado Supreme Court could reach an entirtely different conclusion under these circumstances.

Anonymous said...
The logic you use to say this is a tax increase bases itself on whether there is a continuation of a tax. Sure seems like an extension to me. BTW dissenting opinions are not law. The majority of the court said that questions like 2D ad 2E are NOT tax increases. That is the law of the land. Is that not binding on this group?

Jeffrey Huff said...
Yes, dissenting opinions are not law. But they are the basis for measuring the commitment of a court's opinion to a particular view. The dissenting opinion may rise to majority status with the election of new judges or the application of the same principles to a new set of facts.

The majority of the Court in the Colorado Springs case ruled on the facts of that case alone. Certainly, you can argue that the same rational should be applied here in CPN. However, 2D and 2E present an entirely different set of facts and courts may interpret the constitutional requirements differently.

Finally, the law of the land applies to all who live under its jurisdiction. I write for myself and my readers, not a group. My opinions are mine alone, not those of any organization, PAC, or government entity. Ronald Reagan said, "Don't be afraid to see what you see." Citizens of CPN should heed his advice.

Saturday, October 11, 2008

When is a Tax Increase Not a Tax Increase?...Only in Castle Pines North

The posting by Lisa Crockett on the CPN website and reprinted in Castle Pines Connection, "City Asks Voters to Consider Re-worded Ballot Questions," emphatically states seven times that the CPN ballot issues will result in "no increase in property taxes!"

The article attempts to portray the new tax measures as simply technical corrections. Voters should be aware that ballot questions 2D and 2E potentially extend current taxes beyond their current expiration. As such, residents will spend more tax dollars in the future to fund city services. That, my friends is a new and additional tax and the first line of the Ballot Question tells you so.


A copy of the article follows. I have added my comments and corrections in red.

City Asks Voters to Reconsider Re-worded Ballot Question
by Lisa Crockett

When residents of Castle Pines North (CPN) voted last November to incorporate, they also overwhelmingly (68% for, 32% against) passed three tax questions – one sales tax and two property taxes. Each of the property tax questions on the ballot last year simply transferred existing taxes to the new city. As a result, CPN became a city and there was no increase in property tax. The 2007 ballot questions did not simply transfer existing taxes. Ballot Question 2E was devised to allow the City to implement a new permanent property tax if the CPN Metro District would lower their mill levy under the notion that the CPN Metro District had excess revenues in their operating budget.

Now, the City of CPN is asking voters to approve a change to correct some technical issues in the original ballot question from November 2007. According to the city, the re-wording of Question 2E from last year will not increase taxes to CPN homeowners. City officials say it involves two technical corrections to the previous tax question related to the transfer of up to 19 mills from the CPN Metro District to the city. The first “technical issue” arose when City officials discovered no revenue could be transferred from the District’s operating mill levy without impairing the bonding capacity of the District. The other “technical issue” was that the Election Commission mandated that any integration of the mill levies leave the community’s renewable water efforts intact. The Commission decided to limit use of the transferred money to water and sanitation services.

“As the new city has come to life, elected city officials have worked to implement the tax questions under the Colorado taxation system,” said CPN Treasurer Doug Gilbert. “Through the implementation process, several issues with the wording of Question 2E – which appeared on the last election’s ballot – as passed by the voters have come to light. As originally approved, Question 2E allows transfer of up to 19 mills from the CPN Metro District operating fund to the city to be used only for water and sanitation.” The limitation on water and sanitation was a safeguard implemented by the Election Commission to prevent the City from redirecting tax revenues intended for renewable water to general city services.

The original text of Question 2E was drafted by the CPN Election Commission in 2007 with the help of attorneys for the incorporation effort.

During the past few months, representatives of the city and the two Metro Districts (CPN Metro District and the Hidden Pointe Metro District) have been in discussions regarding the mechanics of sharing all or part of the 19 mills that was part of the original ballot Question 2E from 2007. According to Gilbert, sharing of funds between the city and the Metro District would allow for lower cost of government through integrated public services with no increase in property taxes. The City’s proposed budget for 2009 includes $2,479,000 of new taxes and $465,000 in fees, most of which go to pay for consultants and attorneys. The City plans to fund these new expenditures with the existing sales tax and a new 9.5 mill property tax that permanently extends our property tax rate in the future.

“Through the better understanding provided by the collaboration of the city and the Metro Districts, it has become apparent that the original Question 2E from last year was too narrowly written,” said Gilbert. It may be too narrow for the City Treasurer, but for citizens concerned about runaway taxation and future water supplies, Question 2E held future city officials accountable.

The CPN Metro District does not want to transfer mills that would reduce its operating fund to the city, but suggested the possibility of transferring some of the 24 mills from its debt repayment program without impacting its ability to meet all of its current debt obligations. According to Gilbert, the CPN Metro District has asked for more flexibility in how the transfer mechanism was structured. Gilbert says all of the safeguards of the original ballot question Question 2E remain. “It is simply a discussion of how best to structure revenue-sharing,” Gilbert said. However, the Metro District has serious concerns about this approach. See the September 22 letter from Metro District attorney John Hayes to City Attorney Smith. The letter is posted at http://www.cpnhomeowners.blogspot.com/ Without the City’s revenue-sharing initiative, residents could expect a lower tax rate to come into effect when the first of the District’s bonds are paid off in 2013.

“This is a critical issue to our community, and the District Board is looking at it carefully before taking any position,” said CPN Metro District Board President Bill Santos. “Ever since the CPN bankruptcy, [which occurred in the early 1980s], the Metro District has worked diligently to develop strong financials and reduce long-term debt. We have to balance the importance of helping to fund city operations with the importance of creating a renewable water solution. Working with the city to fund operations only makes sense, in my mind, if it can be done in a way that does not impact our ability to finance our water solution, which is a fundamental responsibility of the Metro District.”

According to Gilbert, the Metro District and other city interests should work together, not against each other.

“The future of CPN is not only an issue of renewable water.” said Gilbert. “Instead, the city must achieve a viable economy through the tools of a new city and renewable water. If renewable water were enough, Sheridan, Colorado, would be a prime example of a robust economy. Despite having renewable water, a place like Sheridan suffers a blighted economy because of lack of economic development. We must achieve both goals through integration of the city and Metro District services and finances.”

In order to correct the original language of last year’s ballot question 2E, the City Council has referred two tax questions for the November 2008 ballot. The first question, 2D, is a correction to last year’s ballot question and would allow the city to take over a mill levy equal to any reduction in mill levy by the CPN Metro District to be used for general purposes. It is not an increase in property taxes. The new ballot questions are not “corrections.” They are newly proposed laws that expand the powers and funding sources of the City far beyond what was passed in 2007.

The second question on the November 2008 ballot, 2E, would allow the city to collect, retain and spend those property taxes (mill levy) that would be relinquished by the Metro District, and various other taxes such as park fees, water tap fees, facility fees, service charges, inspection charges, administrative charges and grants, etc. This question also is not an increase in property taxes. Evidently, it is not a tax if you call it a fee or a charge. Ballot proponents like the CPN Master Association, city officials and writer Lisa Crockett must feel that if you say “it is not an increase in property taxes” enough times, some people will begin to believe it.

According to city officials, the language of the questions was developed with the input and agreement of the city and the CPN Metro District, as well as bond financing attorneys. “The language changes are seen as very important to allow integrated public services and to ensure that renewable water funds are available,” said Mayor Maureen Shul.

City officials say these ballot questions will NOT increase property taxes (mill levys.) The maximum mill levy remains the same, as does the requirement that the CPN Metro District first reduce its mill assessment before the City can assess the equivalent or lesser amount of mills. The amount of the mill levy does not change, but the time over which it is implemented is extended indefinitely. If residents vote to extend a tax that would otherwise expire, they will spend more dollars on taxes. That is a tax increase!

“The wording of the new questions clearly indicates that there is absolutely no increase in the tax rate,” said Shul. The mayor chooses to focus on the tax rate. She knows quite well that if voters understand that there an increase in tax duration, they may choose to vote against 2D and 2E.

Wednesday, October 8, 2008

CPN Discusses Ballot Questions

On Sunday, the "CPN Homeowners for a Solid Foundation" hosted a citizen meeting for citizens to hear a presentation on upcoming community ballot questions. The presentation covered the Castle Pines North renewable water challenges, how the ballot questions will impact the ability of the community to fund sustainable water supplies, and other tax implications of the CPN ballot issues.

For complete coverage of the story, click here.

Saturday, October 4, 2008

Castle Pines North to Host Candidate Forum

The City of Castle Pines North will host a Candidate Forum on Tuesday, October 7, at 7 p.m. at the CPN Community Center, 7404 Yorkshire Drive. Participating in the forum are U.S. Congressional candidate Mike Coffman, State Senate candidate Mark Sheffel, Colorado House candidate Carole Murray and County Commissioner candidates Steve Boand and Jill Repella.

Tuesday, September 30, 2008

Castle Pines North: A New Website and a New Blog

The City of Castle Pines North announced it's new website to residents via email today. The site promoted a series of "planned financial forums" that will feature a review of the City’s 2008 budget, a presentation of the 2009 budget and an opportunity for citizens to ask questions.

Alternatively, a local citizen organization, CPN Homeowners for a Solid Foundation, launched it's blog yesterday. Citing proposed higher taxes and a reallocation of funds away from water projects, the blog urges taxpayers to "vote no" on City sponsored ballot initiatives.

Links to each site can be found below.

http://www.cpngov.com

http://cpnhomeowners.blogspot.com/

Sunday, September 28, 2008

Summary of Colorado Ballot Issues

The link below presents a summary of ballot issues and the position of the Colorado Republican Business Coalition. The CRBC is the single statewide business advocacy organization that represents small business interests to State legislators based on the Republican principles of less government, lower taxes, individual freedom and personal responsibility.

http://www.smallbusinessrepublicans.com/issues/2008Ballot.htm

The full text of the ballot language for each amendment and referendum can be found on the Secretary of State's web site at http://www.elections.colorado.gov/DDefault.aspx?tid=1035

Tuesday, September 2, 2008

Castle Pines Delegates Darlings of the RNC




Hurricane Gustav may have dampened the opening day celebrations at the Republican National Convention in St. Paul, Minnesota, but that didn't keep three local ladies from attracting hordes of media attention. From the moment they entered the Xcel Center, Keri Brehm, Crista Huff and Charcie Russell were the center of attention. The three wore white T-shirts which proclaimed in large red letters, "Moms Trust McCain," one word on each shirt. On the backs of each were pinned a paper sign proclaiming, We Love Sarah," in reference to the recently announced VP candidate, Governor Sarah Palin.

At first, a few delegates from other states took some photos and the questions revolved around where they were from, how they knew each other, and whether they planned to wear the shirts every night of the four-day convention. But soon the professional cameramen and journalists began to notice. The trio were interviewed by the Minnesota Times Star, Shockwave Radio, Channel Five News in Minneapolis and ABC news affiliate KTTC in Rochester, MN. A Toledo, Ohio newspaper, KIRO radio from Seattle and a correspondent from Taiwan followed. The questions our three delegates answered for the press ranged from reaction to the postponement of the convention, to their opinions on energy, terrorism and presidential candidates, McCain and Obama.

"It was fun at first," said Crista, but soon it got a little tedious. "They all ask the same questions. Now I know how celebrities feel." The delegates from Castle Pines stayed well after the final gavel fell on Monday, answering still more questions from eager journalists and posing for TV cameras and photographers. "It got so crazy, we had to start turning down interviews," said Keri. One interview they turned down was with Bill Maher, the host of "Politically Incorrect." "Can you believe it," said Crista, "we turned down Bill Maher." "He's always mean to the people he interviews," replied Keri, "Let's find Sean Hannity, he's nice."

Charcie Russell of Castle Pines came up with the idea for the shirts and soon convinced Crista and Keri to go along. Jeff Wasden, owner of Proformance Apparrel, printed the shirts on a rush order before the three left Colorado. The ladies bucked the official dress code for the day. The rest of the Colorado delegation wore dark blue polo shirts with a GOP convention logo on the shoulder.

The most interesting question they received? The correspondent from Taiwan asked if they had received permission from the party or if anyone from the government had asked them to tone down their message. "No," replied Keri, "This is America, we have freedom of speech."



Tuesday, August 26, 2008

American Academy and DC School District to Present Opposing Views

Tonight, CPN City Council will hold a public hearing on the rezoning application for the proposed Lagae Development in Castle Pines North. A dispute has arisen between the Douglas County School District and the proponents of the American Academy charter school who hope to build on the site. The District and the Lagae developer, who is donating land to American Academy, disagree over how much money and land the developer will "dedicate" to the school district for the impact of the new homes he is proposing.

On August 22, Douglas County Schools Chief Operating Officer, Steven Herzog sent a letter to Mayor Maureen Shul of CPN objecting to the City's staff report recommending approval of the rezoning application for the Lagae development. The application provided in part for the developer to dedicate land for the construction of the American Academy charter school. The text of Herzog's letter can be read here:
http://www.americanacademyk8.org/aastaffhome/BOD/downloads/LettertoCPNMayor8-22-08.pdf

In addition, the School District distributed it's position through a memo to parents of Buffalo Ridge and Timber Trail elementary schools. The memo can be found here:
http://www.americanacademyk8.org/aastaffhome/BOD/downloads/LettertoCPNFamilies8-26-08.pdf

Representatives of the American Academy refute what they feel are inaccuracies in the District's communications to the public. They prepared a point by point response to the District's concerns which can be reviewed here:
http://www.americanacademyk8.org/aastaffhome/BOD/downloads/LettertoCPNFamilies8-26-08AAResponse.pdf

The District's stated concerns focus on the issue of overcrowding in the public schools. For me, the District's attempt to link the approval of the Lagae rezoning and the American Academy School to overcrowding in the District's existing facilities is unpersuasive. The DCSD Board has decided to place a $395 million bond and $17 million override measure on the November 4, 2008 ballot. The Board is asking Douglas County voters to approve a fixed 4 mil tax increase to provide much needed funding. Successful passage of this bond issue will help alleviate overcrowding in the public schools, not lobbying our representatives to deny private development.

For the reader who is interested in additional information, the City of Castle Pines North will be holding a hearing on the issue at 7:00 p.m. on Wednesday, August 27 at the Castle Pines North Community Center.

Wednesday, August 20, 2008

Castle Pines Area Sends Four Delegates to GOP Convention

Five women from Castle Pines North, Castle Pines Village and Charter Oaks will soon be packing their bags for Minneapolis. Keri Brehm, Crista Huff, Charcie Russell and Kendall Unruh were all elected to be delegates to the Republican National Convention. Susan Malone was elected as an alternate. The five were elected from among 385 statewide candidates at Colorado State Assembly on May 31. Twenty-two delegates and 22 alternates will be represent Colorado at the Republican National Convention, September 1-4.

Crista is District Captain and Keri is Assistant District Captain in District 6. Kendall, Charcie and Susan are all elected precinct people in their respective neighborhoods.

A coalition of statewide representatives from the McCain, Romney, Gulianni and Huckabee campaigns endorsed the four delegates on the "Unity Slate" at the State Convention . In addition, they received the endorsement of the Republican National Coalition for Life. The women have all been active in national, state, and local politics for some time.

Note: I hope to update this blog from the convention in Minneapolis since I will be traveling as a guest of one of the delegates. Be sure to check back for updates or click the subscribe button at the bottom of the page.

City Opposes T-Mobile Cell Site

A cell tower proposed for the corner of Monarch and Daniels Gate was recently denied by the City of Castle Pines North. "The site was designed to provide vastly improved coverage to the residents and Emergency 911 needs of T-Mobile subscribers in northern Castle Pines North," said Matt Butler, Senior Project Manager for T-Mobile.

The City Attorney, relying on a 20-year old document known as the Castle Pines North Development Guide, stated in a letter to City Planner, Sam Bishop that "a cell tower is not a permitted use in the Open Space under the Castle Pines North Development Guide." The City Attorney's letter went on to explain that "facilities of a public utility" are distinct from "utilities services and facilities."

Castle Pines North Metropolitan District Manager, Jim McGrady explained the proposal at the District's monthly meeting on Monday. The cell tower, disguised as a street light, was to have been installed in the right-of-way with underground cabling to a nearby well site. T-Mobile was prepared to substantially improve the well site by adding landscaping, a stone veneer wall and paving the entry to the site. Now it appears these improvements will have to wait, along with the improved phone service.

The City Attorney's narrow reading of the Development Guide may have cost the community an opportunity to improve it's notoriously poor cell phone coverage. Instead of relying on legal nuances in outdated documents, this community would be better served by public officials who found ways to get things accomplished.

Monday, August 4, 2008

Castle Pines North at Important Crossroads (Again)

The City of Castle Pines North will face several key hurdles in the coming weeks. The newly incorporated city has been scrambling to fill a $2 million revenue shortfall. On July 21, City officials suddenly found that anticipated revenues would not be available to the City from the existing mill levy assessed by the Castle Pines North Metropolitan District. Those revenues had been previously pledged to lending institutions by the District in order to secure water storage in the Reuter-Hess Reservoir.

According to CPN Metro District manager, Jim McGrady, transferring the District's mill levy to the City would leave the District too constrained for bonding capacity.

Since then, the City has been discussing alternative financing plans with the District's financial manager and board members. Under consideration is a proposal to have the CPNMD reduce the mill levy currently used by the District to pay down debt. The City would then assess a similar tax to fund it's own operations. This approach would appease City officials who were elected on a "no new taxes" platform. However, it would postpone the defeasance of Metro District bonds. These bonds were scheduled to be retired beginning in 2013, resulting in a lower tax rate to the citizens of CPN. The tax would be picked up by the City and assessed "in perpetuity" to fund City operations. Under this plan, lower taxes for CPN seem a remote possibility.

On July 29, City officials and consultants from CH2M Hill met with members of the CPN Metro District and the Hidden Pointe Metro District, both of which operate within the boundaries of the City. Board members from both Metro Districts questioned representatives from CH2M Hill and the City Treasurer, Doug Gilbert on the accuracy of figures presented in the feasibility study used to promote the incorporation effort. Many board members were skeptical of the consultant's answers, and some viewed the City's efforts to capture Metro District revenues as detrimental to the pursuit of renewable water.

CPNMD board members may soon vote on whether or not to reduce the District's mill levy to allow the City to move forward with it's own tax assessment. In any event, voters can expect to see one or more ballot questions proposed by the City to secure tax revenues to fund City operations. City officials will be faced with the prospect of floating another tax measure with little funds in the coffer to promote it.

Friday, July 25, 2008

Americans for Prosperity Launches Colorado Chapter

On June 24, the national free-market grassroots group Americans for Prosperity (AFP) launched its newest state chapter in Colorado. The organization stated that its first goal would be to educate and mobilize taxpayers in support of the removal of government-imposed barriers to energy development, an improvement that would help lower taxes for all citizens.

“From unnecessarily limiting the supply of energy, to proposed cap-and-trade carbon taxes and regulatory schemes, many state and federal government policies are threatening Coloradans’ quality of life,” said AFP President Tim Phillips. “Current and proposed energy policies amount to higher taxes, lost jobs and less freedom. The Colorado chapter of Americans for Prosperity is going to educate and mobilize taxpayers on this and other issues, and we’re going to make sure their voices are heard loud and clear in Denver, and in Washington.”

Visit the web site here: http://www.americansforprosperity.org/index.php?state=co

Friday, July 11, 2008

Drill Here. Drill Now. Pay Less.


Since May, over 1.3 million Americans have signed the “Drill Here. Drill Now. Pay Less.” petition at http://www.americansolutions.com/. According to information provided by Newt Gingrich, “175 members of Congress have pledged to increase U.S. oil production. Only one is a democrat.” Please sign the petition and read more about the goal of American energy independence.

Another excellent website where you can learn more about American energy resources is http://www.pickensplan.com/.

Senator Ken Salazar supported and voted for domestic off-shore drilling in 2006. In 2008, Senator Salazar opposes offshore drilling. Please contact the Senator at http://salazar.senate.gov/ and tell him that you support off-shore drilling and drilling at ANWR.

Castle Pines North to Host Candidate Forum

The City of Castle Pines North will host a Candidate Forum on Tuesday, July22, at 7 p.m. at the CPN Community Center, 7404 Yorkshire Drive. Participating in the forum are 6th Congressional District candidates, along with candidates for House District 45, Senate District 4, and County Commissioner District II. With some hotly contested races coming up in the primary, this should be a great event!

Bob Schaffer vs. Mark Udall Debate

On Monday, July 14, at 9:00 AM, please join your fellow Republicans in supporting Bob Schaffer at the first debate between U.S. Senate candidates Republican Bob Schaffer and Democrat Mark Udall. The location will be The Wildlife Experience in Parker, which is located just east of I-25 on Lincoln Avenue. Tickets must be reserved in advance by calling 720-377-1600 or emailing teamschaffer@bobschafferforsenate.com.