WSP10086

• File Number: 8040.100
• Description: Section D General Studies - Power
• State: CO
• Basin: Statewide
• Date: 3/1/1976
• Author: HUD
• Title: Rapid Growth from Energy Projects - Ideas for State and Local Action
• Water Supply Pro - Doc Type: Report/Study

00104~

Seve ra nee Tax
I ncome Tax
Real Estate Transfer Tax
Site Value Tax
Land Value Increment Tax

There are a variety of ways of getting this revenue
to the right place, and at the right time. Some of
these are essentially a way to translate future income
into money needed in the present for construction
purposes:

General Obligation Bonds
Revenue Bonds
Special Assessment Bonds
Industrial Development Bonds
Refunding Bonds
Leasing/Installment Purchase
Non-Profit Corporation

Organizational vehicles for determining a broad
area to which a tax can be applied are listed below.
These are often ways of smoothing out inequities that
would result if cities and counties were used as the
taxing and distribution unit.

Special District
Local Improvement District
General Improvement District
Regional Service Authority
I ntergovernmental Agreements
Regional Revenue Distribution
Industry Assistance

The suggestions for industry assistance to local
governments included:

financing facilities directly (possibly leasing or
loaning to community);
purchase of bonds, or short-term notes;
securing a bond issue;
prepayment of taxes.

Refer to:

Tax Lead Time Study, by Andy Briscoe,
et al for Governor's Committee on Oil
Shale Environmental Problems, State of
Colorado. Cost - $4.00 (Paperback)
$5.00 (Loose-leaf)

Obtain
from:

Colorado Geological Survey, Department
of Natural Resources, 1845 Sherman St.,
Room 254, Denver, Colorado 80203.

D. IDEAS FOR FINANCIAL ACTION

The role of the States in setting overall fiscal
policy and passing enabling legislation is critical. The

major focus of this chapter, therefore, is on potential
programs by States for the benefit of local governments.

Legislative Package: State of Wyoming
In the general session of 1975, the Wyoming State
Legislature passed comprehensive financing legislatio,n
to deal with the impacts of energy development. This
package was based on the well-researched Interim Re.
port and Recommendations of the Legislative Select
Committee on Industrial Development Impact. The
research and recommendations were made with the
assistance and cooperation of local governments,
energy companies and financial institutions. The
findings of the committee, presented below, outlined
in capsule form the fiscal impacts encountered in
connection with energy development:

The effects of energy development, primarily coal
related, will occur throughout the State;
Historical and anticipated revenue patterns show
that municipalities will not be capable of meeting
projected demands for services and public facilities;
The anticipated tax base from the large industrial
developments will accru~ primarily to the counties
and to special districts (including school districts)
while the public demand for services will fall pri-
marily on the municipalities;
Debt limitations restrict a community's ability to
reasonably respond to needs.
Major problems in capital financing include schools,
housing, water and sewer facilities, highways and
roads.
The delivery of health care services, while facing
an obvious need for facilities, faces a more urgent
need - that of staffing new and existing facilities.

Two major objectives are met in the legislative
package. First, local governing bodies are given the
ability to borrow against anticipated future tax
revenues to meet the "front-end" impact needs. And
second, local governing bodies are given extended
ability to repay the monies they borrow.
The Select Committee recommended eight items
of legislation. Six substantive proposals, described in
detail below, were adopted:

1. Wyoming Community Development Authority -
A new State authority was created, capable of
issuing up to $100 million in tax free general pur.
pose revenue bonds. The proceeds would be used
to finance housing and a wide variety of public
facilities. The authority is empowered to borrow
and lend money, build and lease projects, and
generally play the role of a private bank.
The Authority is set up as a "public corporation,"
rather than as a state department. This separates

31