Andrew Sawusch for Erie | Official Blog for Andrew Sawusch, Council Member Candidate for the Town of Erie Town Council

2025 Budget: A Bleak Forecast for Erie

Mon, 02 Sep 2024 05:10:13 GMT

What you need to know:
Spending has run rampant at Town Hall since 2022 with operating expenses increasing by 55%, capital expenses increasing by 108%, but revenues only increasing 15%. Based on the current financial forecast — which only provides $6.5 million in funding for capital projects in years 2027, 2028, and 2029 — the Town is expected to deplete our Capital Fund in 2028.

This lack of funding availability has the potential to create a domino effect. Simply put, if the Town's current position does not change, and there are any decreases in revenues or any unexpected funding needs in the near future — it will have an impact on things as simple as maintaining our roads. In order to avoid this bleak and potentially dire situation, action must be taken now to change course — before it is too late.

The Capital Fund Forecast

Each year in October, Town Staff proposes the next year's budget for review by the Town Council, prior to final adoption in November. While Town Staff is still working on compiling the information required for the budget process, a July study session outlined the 5-year Capital Improvement Plan (CIP) for the Town, which uses the Town’s newly created Capital Fund to provide funding.

Projects which use this Capital Fund include the Town’s major maintenance and capital expenditures that aren’t paid through an enterprise fund (ie. water, wastewater, storm drainage) or a special fund (ie. "Transportation Impact Fund", "Trails, Natural Areas, and Community Character (TNACC) fund", etc.). Funded for the first time after the 2024 calendar year by the Town's General Fund, this account is comprised of the remaining balance after all revenues, expenses, and minimum emergency reserves have been accounted for. This account is intended to fund the various CIP projects in the coming years, including street maintenance, the proposed Makerspace, Affordable Housing initiatives, park fixture replacements, streetlights, police equipment, and many other items.

Based on the volume of capital requests from each department, the total funding required would have depleted the Town's Capital Fund in 2025. With this knowledge, Staff not only had to prioritize funding requests, but in many cases had to reduce funds allotted or defer projects entirely to future years.

As part of Staff's 2025 capital project recommendations :

Annual Street Maintenance was reduced from $4.5 million initially requested to $4.0 million
Traffic Calming projects were reduced from $200,000 initially requested to $75,000
Traffic Signal Improvements were reduced from $105,000 initially requested to $52,500
Affordable Housing Fund allocation was reduced from $1.0 million initially requested to $800,000

After the capital requests were outlined, a projection as to the amount remaining in the Capital Fund could be generated. The financial forecast based on Staff's recommendations — which assumes 10% annual growth in sales and use taxes, 4% annual growth in operation expenses, and 10% annual growth in personnel costs — estimates that the capital fund will be fully depleted by year 2028.

This same forecast, using the Staff's recommendation, indicates that the town will only have $6.5 million available for all capital projects receiving funding from the General Fund in years 2027, 2028, and 2029. With street maintenance immediately consuming $4 million of these funds, this ultimately means that the Town is projected to only have $2.5 million available to fund the various required needs in the coming years .

How did this happen

Spanning 3 different Finance Directors since 2022 when the first 5-year financial forecast was provided, each of these presentations provided by Staff told us that this point was coming. During these meetings, although I had been very vocal about this bleak outlook and our potential inability to fund projects in the future, the council majority failed to heed these warnings. In fact, they have gone as far as to denounce my comments publicly during meetings, rationalizing that these are only future projections and that they aren't real numbers because a lot can change between now and then. However, every single time one of these new forecasts came before us, each one painted an even more grim picture than the last one.

To make matters worse, for the 2024 Adopted Budget, the Council majority went as far as to repeal a $7.5 million stabilization "rainy day" reserve beforehand — saying that these reserves were not required anymore. This was done by the majority in order to release $7.5 million in funds towards the $10 million needed to balance that year's budget, as well as to draw down the required minimum fund balance so that this additional spending could occur. Essentially, if these funds had not been released, the Town would have been below the minimum ending balance as required by our reserve policies, and the requests by Staff would not have been able to be included.

Although this adopted budget passed 5-2, Council Member Bell and myself made it known to the Council majority that the Town was deficit spending in order to balance the budget, (i.e. the town had more expenses than revenues coming in) — which was not the "fiscal responsibility" that 97% of residents demanded from their elected officials, as per the 2023 Community Survey .

Since 2022 under this current Council majority, spending has run rampant at Town Hall. The Town's personnel expenses have increased by 41% and operations expenses have increased by 80% — for a total increase of 55% among all operating expenses — in addition to capital expenses increasing by 108%. All while there were these rapid increases in expenses, Town revenues only increased by 15% in this same timeframe. Simply put - it was just a matter of time before the forecasts became a reality because Town Hall has been overextending themselves.

With this limited amount of Capital Funding available, if there are any decreases in our revenues, or any major unexpected funding needs in the near future — it will have the potential to create a domino effect towards our ability to fund projects, including things as simple as maintaining our roads.

How can we resolve this before it's too late

As a currently elected Council Member, I am going to continue to voice these concerns and work with both Town Staff and the Council majority when it comes time to review (and vote) on the 2025 Adopted Budget. This is the reason I decided to run for re-election - to do everything in my power to make sure this doesn't become a reality. In terms of the short-term future and potential ultimate "fixes" for this issue, there are only two things that can be done to affect a change — either increase revenues (e.g. jump-start our economic development projects) or decrease expenses (e.g. reduce operational costs). In terms of the immediate future with the impending 2025 Budget which needs to be adopted by the end of this calendar year, Town Hall needs to be immensely fiscally minded to ensure we are living within our means. The Town can not rely on unexpected revenue gains, as has occurred in the past, to resolve this issue. We need to plan accordingly and take specific steps to address the issue.

As residents, we must voice our concerns so the Council hears that the actions taken to-date are not ok. The actions taken by the Council majority have dug us into a hole that is going to take years to get out of. With the impending November municipal election, we can as well all vote for individuals who will maintain the fiscal responsibility demanded by Erie's citizens. We all deserve to have individuals represent us who first and foremost know what they are voting on and the repercussions of their votes. We also deserve to have individuals represent us who aren't afraid to ask questions that come with making decisions on-behalf of 37,000 Erie residents.

Our Town's future success depends on leaders who are willing to stand up for the Erie residents and ask the tough questions others won't, leaders who remain Forward Thinking for Erie’s Future!

*Just a side note to all of the items that I discuss: I am a solutions driven problem solver by nature. I wonder how things work, why they work the way they do, and how to make them better. This means seeking different, outside-the-box methods to figure out solutions to various issues. Accordingly, I am always open to learning new ideas, different ways of doing things, as well as constantly learning from others' experiences to make better decisions. When I see an issue, I view it in a holistic fashion, and then dive into specific areas to remove deficiencies and create efficiencies. If you, who are reading this, have some thoughts or ideas about any of the subjects I discuss, I would be more than happy to speak with you to hear your opinions. Please reach out to me here through my website . Listening, hearing, and understanding different perspectives is the only way that we can all grow and create positive change - by learning from others, and delivering ideas that push the needle to become Forward Thinking.

Erie's Housing Diversity Issue

183:787856552 (Andrew Sawusch) — Tue, 22 Mar 2022 17:56:45 GMT

While some call it an "Affordable Housing" issue, in reality the root of the problem is a lack of housing diversity. During the Town's massive growth over the years, a lack of available inventory and the national housing market have created a housing affordability issue as the Town's makeup has comprised almost entirely of single family homes. The best way to resolve this issue is to work with our stakeholders in the community - our development partners - to address the cause, not the symptoms of the issue.

Since January, I have personally been asked about the topic of "Affordable Housing" in Erie by various residents and organizations. While this has become a hot-topic as of late, this is in actuality not a new issue for the Town of Erie. In fact, this topic and its relation to our community goes all the way back to circa 1999-2005.

When the Town’s Comprehensive Plan was updated back in 2015 – a technical update from the 2005 full update – it retained an “Action Plan” item specifically related to Affordable Housing - a section kept in its entirety without any modifications made from the 2005 version:

Town of Erie Comprehensive Plan - 2015 Update redlines , December 8, 2015 (pages 15-6, 15-7)

This means that 17+ years ago, our Town's leaders identified the real truth of the matter on this topic: Erie's housing affordability issue is really resulting due to one main reason – a lack of housing diversity. However, even though this was identified almost 20 years ago, we have only recently begun to see additional types of residential units being proposed other than single family residential.

Before 2021, the Town of Erie's Building Division only tracked "Single Family New Construction Building Permits", because that was really the only type of home being built within the Town:

January 2021 Planning & Development Monthly Report , Town of Erie Building Division, page 26

Starting last year, the Town finally saw movement towards other types of residential dwellings being built besides for single family residential. By the end of 2021, there were a total of 528 non-single family residential dwelling building permits issued by the Town - which accounted for just over half of the total of all new dwellings built in the year:

January 2022 Planning & Development Monthly Report , Town of Erie Building Division, page 20

Boulder County's Affordable Housing Goal:

In August of 2020, the Board of Trustees, by resolution , adopted "the Boulder County Regional Housing Partnership's Priorities and Strategies for Expanding Access to Diverse Housing for Our Community."

While the organization appears to be an independent entity, and their website homewanted.org says the BCRHP "was formed in 2016 under the guidance of the Boulder County Consortium of Cities to help address our area’s escalating housing costs", it is the Boulder County Housing and Human Services department - specifically the Boulder County Housing Authority - whose plan which the Board of Trustees agreed to.

Boulder County Housing Authority Website

Within the resolution, it noted that the Town adopted the plan "including the recommended goals for percent of affordable housing stock by 2035."

As outlined in the plan, the goal is to attain a percentage of "12% of all homes affordable by 2035."

Boulder County Regional Housing Partnership Presentation , BOT Study Session - August 18, 2020, Slide 8

In terms of the definition of "Affordable Housing", this is defined as no more than 30% of a household's gross monthly income, and the home must also be deed restricted in perpetuity.

BCRHP Regional Affordable Housing Plan - Expanding Access to Diverse Housing for Our Community , Page 8

However, when you look at the current housing market in Erie - the term "Affordable Home" appears to really take on another meaning.

Erie's Housing and Rental Market

To understand the importance of this 30% amount outlined in the BCRHP plan - which follows the general rule of thumb that no more than 30% of your household expenses should be used for rent or mortgage - it is important to compare it against the current housing and rental markets in Erie.

At the time or writing this, the median listing home price in Erie is over $700,000 - with the median sale price being over $750,000. In comparison, the median sale price one month prior was approximately $650,000 - meaning home prices in just one month increased over 15%.

For a first time home buyer receiving an FHA loan with 3.5% to 5% down required, this would mean that the buyer would need to bring $26,250 to $37,500 at closing. For a conventional loan at 20% down, the amount is $150,000 required at closing.

Based on 30-year fixed loan and rate of approximately 4.5% - the first time home buyer would have a monthly mortgage payment of approximately $3,610, while the conventional loan home buyer would have a monthly mortgage payment of approximately $3,040. If the 30% rule is applied, this would mean that a home buyers would need to have a household income of approximately $121,600 - $144,400 per year.

In terms of rental prices, the 2020 American Community Survey indicated that 78.8% of Erie residents living in rental properties were paying $1,500 or more per month on their rent, with 56.1% paying over $2,000 or more. Assuming the 30% rule – and adjusting for inflation from 2020 to 2022 – this means that over 3/4 of all renters must have a household income of $64,332 annually, and over 1/2 of all renters must have an annual household income of $85,776 to rent in Erie. Based on a Median Gross Rental amount of $2,128 per month - this means that the average annual household income required to rent in Erie is $91,266.

With Erie's median household income currently at $124,480, this identifies how so many households within our community are able to afford the current housing prices. However, based on the information noted earlier - affordability does in fact become an issue for anyone attempting to move into our Town.

How to Address Housing Affordability

The largest contributing factors to Erie's sales and rental prices - besides for the Colorado housing market in general - is not only due to a lack of inventory, but specifically the lack of diversity in terms of the housing types available within our community. This includes alternative types of homes - including duplexes, townhomes, condos, apartments, and other types of non-single family units.

Ultimately, my strategy for tackling housing affordability in Erie is through collaboration. To address this issue, we must work with our development community members to outline a path to achieve our goals. In fact, I believe it would be unwise for the Town to dictate terms to the development community, and that we should rather approach this situation in a different fashion. I believe that if the Town attempts to solely rely on the strategies of deed restricted housing or mandates placed upon the developers to provide X% of "affordable housing" in a development project - without any discussion or involvement from the development community - we will not be able to attain the results that are desired.

We should attempt to achieve a solution to this issue by looking at the developers as stakeholders and partners in our community. This means bringing them to the table, sitting with them and saying "How can you help us achieve these goals? How can we work together to attain the best results for our Town?" If we approach the situation in this way, the development community will respond positively and will actively work with us on this initiative.

Having personally spoken with countless development partners in our community, they too have identified that housing diversity is the main issue. This is exactly why we have begun to see various developments which will begin with alternative housing types offered sooner in the development phasing process - which this phasing strategy is exactly what our Town should be promoting - instead of starting out with single-family homes, and then only meeting the developer's housing diversity requirements at the very end of the project.

As well, while we might have our own ideas of how to attain these goals towards housing affordability, they will as well come to the table with many other solutions that can positively impact our community. We have many developers in Town that we can receive insight resulting from their experiences in other communities - what worked, what didn't work, why it did or did not work. We can then consult with these other jurisdictions to say "How was this implemented? What are the positive and negative impacts that came from these actions?" From there, we can then implement our Town's own initiatives to address housing affordability within our community - specifically to increase the diversity of housing within our Town.

Blueprint: Forward Thinking for Erie's Future

183:787856552 (Andrew Sawusch) — Sat, 26 Feb 2022 17:45:43 GMT

Erie has quickly moved from "the best kept secret" to "the gem of North Metro Denver", becoming a destination that others want to call home. In order to set our Town up for the best chances for success, a plan must be created that provides us with an ability to manage our current and future growth.

The blueprint below is designed to do just that, providing an understanding of where we are now (our "Current Position"), where we are going (our "Upcoming Needs"), and where we want to be (our "Future Growth"). It starts with assessing what's needed at this moment, preparing for what's needed later, and then having a vision to plan for the future.

Assessment: Current Position

This step creates a base and foundation to build upon. A full understanding and analysis of the Town’s current position takes place, identifying where we currently are – the good, the bad, and the ugly.

After the evaluation is complete, two sets of action steps are outlined:

Items requiring immediate action
Items which require planning to act upon

Financial Standing

This piece assesses how our Town is performing at this very moment. Using our monthly financial reports as the basis, what are our current expenses and revenues to date? How does this compare to our approved Budget? What are deficiencies or under funded balances?

Strains on Town Resources

At a high level, this step is to assess what areas of our current resources - Staff, Infrastructure, Finances, Facilities, Various Department functions, etc. - are currently meeting their limits. This will help to provide an overarching idea as to what are seen as the most important items that may need to be addressed first.

Current Infrastructure Levels

This item assists with understanding the standing of both our Public Works and Enterprise activities. What are our current levels for water, sewer, storm drainage, road capacity, gas, etc.? What is our max capacity for these items, and at what point are we currently projected to max out these resources?

Current Town Staff Resources

Since Town Staff are the individuals who are running the Town's day-to-day operations, this step assesses the resources that are currently available to them. How does our current staffing look? What does resource allocation look like for the various departments - time, expenses, et. al.? What are we currently doing to address these items?

Town Sponsored Projects

With a large number of town projects already underway or about to be started, this provides an inventory of these various items. What project are currently in-progress? Which projects are about to start? What is the current status and estimated delivery date for these various items? Are the projects currently or expected to meet their budgeted amounts - it not, why?

Active Land Development

This step provides information as to the growth that is occurring to our Town as we speak. Which developments do we currently have applications or agreements for? Which developments are currently in progress? What is the current status of the various developments? What items are still left or remaining to complete these?

Current Agreements & IGA's

Our Town must be sure to honor what we promised, and this step outlines those items. Where and for what items are we contractually obligated to perform related to specific functions? What IGA's are currently extended to other jurisdictional entities? What IGA's are expired or non-existent and require involvement with these parties to address?

Current Staff and Departmental Work Plan

Providing an understanding of what our Town Staff is currently working on, this step outlines what the priorities, projects, and day-to-day functions the various departments are currently or about to be working on. What are the current priorities and initiatives that each department is working on? What is the status of the various items? What resources are needed to accomplish these items? When is the estimated completion date? What resource availability is there for additional projects/initiatives?

Current Board of Trustees Work Plan

The Board of Trustees' Work Plan outlines the items which they have noted as priorities for the year, so an full understanding of what these items are is important to know if they should be continued or deprioritized. What are the current items on the Boards Work Plan? What is the current status of the various items? Which items are currently in progress? Which items can potentially be removed? Which items are priorities?

Other Miscellaneous Items

This is the "and the kitchen sink" area - for the items that do not fall under one of the other categories. This will round out the full understanding of all current Town activities. These items largely include all of the continuously ongoing initiatives - Sustainable Revenues, Relationship Building, Maximizing Quality of Life.

Preparation: Upcoming Needs

Now that there is an understanding of what is needing to be planned, thought and strategy must go into the next steps taken. The items here will outline the actions which will be taken within the next 3-12 months. The items are then prioritized based on urgent and non-urgent, important and not-important.

Assessment Items Requiring Planning

From the assessment completed previously, all of the items that weren't currently being accomplished, or which may need further attention, are outlined. These items may be ranked, bucketed, or organized based on the importance to the community, as well as the urgency to which they need to be completed.

Town Budget

These are the yearly - or supplemental - budgets that are completed by the Finance team every year. After the various departments place their yearly funding requests and they are submitted into the budget, the new inclusions are discussed and scrutinized to decide on whether funding should be approved. A priority should be placed on reducing expenses so that the Town's reserves can be increased for various upcoming needs.

Capital & Infrastructure Projects

Preparing for what needs to come next, working with various Town departments to understand the projects that need to be completed now, or those that can wait until later. Based on available resources and funding, if it is possible to start projects sooner than initially believed, this is the time to make those decisions.

Town Facilities

The various facilities in Town regularly require maintenance, expansions, or additional capital improvements. Understanding when, at what points these need to occur, will determine timing and costs required.

Town Staff Resource Needs

Understanding the strengths and weaknesses of Town Staff, this item outlines what can be done to assist them with additional resources, or identify where current resource allocations may not be most affective. Based on the findings, a strategy as to when and how to make these adjustments is created.

UDC & Municipal Code Updates

As various items are identified to be concerns, or introduced as new additions from years' past - our Municipal Code and Unified Development Code must reflect our Town's rules, regulations, and laws surrounding the items so there is consistency in the way that our Town functions.

Board & Commission Work Plans

Each body should be delegated greater responsibilities, creating a work plan of the various activities that they might discuss or take on. These items included may be those which would normally have been taken on by a previous Board of Trustees body in years past. Whether the items are directed by the Board of Trustees, or left to the individual bodies to come up with on their own, each body is empowered to “leave an impact” on the Town’s future.

Staff & Departmental Work Plan

After identifying and discussing the various items currently being worked on and planned, direction is provided to the Town Administrator in order to direct the various Departments as to any changes in priorities. While most of the items will probably remain, there are some that could be decided to be moved to a future year, or simply removed.

Board of Trustees Work Plan

Based on all of the items found in the previous step and current step, the priorities of the Board of Trustees come into view. In past years, the lists were extensive - which at times did not provide for the necessary attention to detail. Realistic, yet timely schedules must be created for the various items - without placing a strain on Staff's or the Town's currently available resources.

Other Miscellaneous Items

Just as before, this is the "and the kitchen sink" area - for the items that do not fall under one of the other categories. This will round out all Town activities requiring careful preparation. These items largely include all of the continuously ongoing initiatives - Sustainable Revenues, Relationship Building, Maximizing Quality of Life.

Planning: Future Growth

This is the fun part. This is where the long-range vision is set, and a path becomes clear as to how we will get there. We may be looking at it from a 30,000 foot view overhead, but we can see the starting point and finish line – which provides us with the basis for how to get from where we are to where we are going.

Comprehensive Plan

The Town's Comprehensive Plan provides the vision for the Town. It outlines exactly how we see our Town growing - from the future land use planning map to overarching ideas and concepts as "guiding principles." This document involves a wide array of engagement types with various groups of community members, and will be the guiding document for our Town for years to come. Being that our current Comp Plan is largely just a revision of the one drafted in the early 2000's, a full rework is required.

UDC & Municipal Code Updates

Planning for the future requires us to understand how our municipal code and UDC may need to change as time evolves. While everything might not need to be completed today or in the next 12 months, a running list of potential edits - or additional items not yet though of due to our ever growing and evolving community - should be documented in order to ensure that we are always staying on-top of these items.

Various Additional Town Master Plans

Just like the Comprehensive Plan, our Town has various master plans for additional functio n s . Once the Comprehensive Plan is updated and adopted, all of the various master plans may need to follow suit in order to align with it. Additionally, these other Master Plans should, like the Comprehensive Plan, be ever evolving to change as our Town continues to evolve.

Infrastructure Needs & Requirements

Based on current levels and future projections - both in terms of our Enterprise activities and Development activity - we can project and forecast roughly when we will require capital improvements. These levels and forecasts should be monitored, then planned accordingly based on scheduling and financial requirements.

Long-Range Financial Planning

To date, we have only been looking at the present financial situation (Monthly Financials), as well as our current year accounting (Budget). In order to stay one-step ahead of whatever might come, we should begin to look at a long-range plan that looks 3 to 5 years out, adjusts based on current or projected trends, so that we can address the various items before they affect the Town.

Home Rule

If our Town is going to move to Home Rule in the next few years, there are many things that are required before then. This includes understanding exactly what Home Rule would mean for us - what are the in's and out's, what are the specific items that we cannot currently do that we would be able to do under Home Rule, and what changes would we need to have at Town Hall to accomplish these items.

Sustainable Revenues

One of three on-going efforts that must be continued at all stages. Economic Development is the key to Erie's future success, which provides a stable and sustainable revenue source. All of the locations listed below are currently outlined on our Town's Zoning Map and Future Land Use Zoning Map as Commercial or Mixed-Use zoning. Some may be currently in progress, while others are yet to be achieved. A diligent effort must be taken to activate and attain businesses for the various locations below, working with developers and community members to do so.

Nine Mile

CO-7

Town Center

I-25 Gateway

Erie Commons

Old Town

County Line Road

Erie Airport

Highway 52

Westerly

Erie Highlands

Relationship Building

The second of three on-going efforts that must be continued at all stages. To accomplish any of the items noted above - engagement, communication, and involvement must occur with various groups. Transparency and an open dialogue is key to building trust and relationships with those that have an interest in our community.

Residents

The residents are the most important group in Town. To date, transparency and engagement has been limited - which would need to be increased substantially. This will build trust with Town Hall, as well as open a dialogue to discuss various topics which might be needed.

Boards and Commissions

Delegation of duties should be provided to these bodies so that they have a greater role with the community. These individuals are volunteers who step-up to make a difference in the community, but in years past, they have been used as “feel good” or “rubber stamp” committees.

Town Staff

These are the individuals who operate the Town on a day-to-day. Town Staff should feel open to discuss and address various items as they see fit. Sitting down with the department leads and the Staff within is important to create a rapport and provide an "open door" to further discussions about items as necessary.

Business Owners

Our businesses are the lifeblood of the Town. In order understand what their needs or concerns are, the Town should engage with business owners more frequently and on a regular cadence. If the Town is to have any success in creating Economic Vitality, we must also identify and address the exact reasons which are hindering businesses from being able to do business within the Town.

Community Partners

For the other groups and organizations within the Town which provide a dedicated function - including non-profits, business associations, et. al. - the Town must work with them to understand what their needs are too. In certain situations, these partners have a better understanding of specific issue topics, and can provide a guide as to how the Town might be able to support or take-on various action steps to address these items.

Local & Regional Governmental Agencies

The Town should work with other local and regional agencies to mend or strengthen current relationships. When we look at what the Town is trying to achieve, as well as the items which are preventing potential successes - other communities within our region are also experiencing these same issues. Working together to achieve the same goals and discussing what we are each trying to accomplish increases the chances of a win-win for both sides.

Developers

Developers are our partners in the community, and we must continue regular conversations, have open dialogue, and work together to accomplish our mutual goals. The only option for Erie is to work with developers in order to see our Town grow the way that it should – both commercial and residential. Developers become community partners who become our biggest allies to help reach these visions and plans for the Town. These relationships should be equitable for both parties, and not one-sided for either. The Town must ensure equitable relationships with developers, assisting with the Town's needs, and within the vision set by the Town. When possible, the Town must work with the developers to use their resources to build our infrastructure, and then provide them with reimbursements for doing so - working with them so we can "cross two 'Ts' with one stroke of the pen."

Maximize Quality of Life

The third of three on-going efforts that must be continued at all stages. This becomes the culmination of all efforts completed in the various Town aspects above. These items make Erie a great place to work, live, and play - and why we love to call it "home". Whether it is the feeling of safety when you walk out the door, having a place to buy your groceries and other goods, or where you walk your dog - continuous growth in these various areas is paramount - and determines our ultimate "success".

Public Safety

Public Health

Parks & Recreation

Open Spaces

Places to Live

Places to Shop

Employment Opportunities

Sustainability

Other Town Services

ELIFE Magazine - The Full Responses

183:787856552 (Andrew Sawusch) — Thu, 24 Feb 2022 02:50:47 GMT

The full responses to the ELIFE Magazine "Candidates Edition" questions

Tell us briefly about yourself and where you are from and why you think you're a good candidate for the position you are running for:

Originally from the Chicagoland area, I have been a resident of Erie since 2016, previously a resident of Broomfield for 7 years. I graduated from CU Boulder in 2009, with a Bachelor of Science degree in Business Administration with dual concentrations in Management and Marketing.

I am a business operations and marketing professional, with experience growing businesses from the ground up. Currently, I serve as the Sr. Manager of Customer Operations for a data analytics software company. As a solutions-driven individual, I use a holistic-view approach to identify and resolve issues that deliver results, which are both effective and efficient.

I am married to my amazing wife, Gabrielle, and am the doting father of my two husky fur-babies, Kaia and Koda.

I currently serve as both a Planning Commissioner and a Comprehensive Plan Amendment Steering Committee member for the Town.

As an individual from the business world, I believe the Town needs leaders who can create solutions that will be positive and Forward Thinking for Erie’s Future. I believe that I am a good candidate for the position of Trustee because I am committed to making Erie the thriving and sought-after place to live, work, and raise a family - the place we love to call "home"!

What are your top three priorities as a candidate?

In my opinion, the three most important issues facing Erie are all central to growth management due to our ever-growing community: Infrastructure Sustainability, Financial Accountability, and Economic Vitality.

Infrastructure Sustainability:

The Town has grown faster than ever before, moving from a population of just over 6,000 residents in 2000, to just over 18,000 in 2010, and now to a staggering population of over 30,000+ residents in 2022. From 2015 to 2020 alone, the town grew nearly 40%. Understanding the actual growth rate is important because the town had only forecasted and planned for a 15% rate in this same amount of time. Whether it be the lifespan of a roadway, or capacity of our water and sewer enterprises – these infrastructure pieces have become strained due to our Town's rapid growth.

Financial Accountability:

Due to the Town's rapid growth and the current economic situation, we have seen that specific fund accounts have been significantly reduced or depleted, compared to years past. In the 2022 Budget, the Town has admitted that they have been underrepresenting General Fund costs, instead absorbing these expenses to our Enterprise activities. Then, to make matters worse, the Town has as well admitted that they stopped issuing monthly financial reports - because they weren't able to reconcile actual costs against budgeted costs due to years of non-transparent financial methods. A priority should be placed on reducing expenses so that the Town's reserves can be increased for various upcoming needs. As well, in order to stay one-step ahead of whatever might come, we should begin to look at a long-range financial plan that looks 3 to 5 years out, adjusts based on current or projected trends, so that we can address the various items before they affect the Town.

Economic Vitality:

To date, we have relied on residential development to grow our Town's finances. This has worked for many years and has grown the Town to the point we are today. However, we must ensure that reliable and steady recurring revenues are in place for years to come to avoid any potential shortfalls. This will become crucial to maintain, as well to provide new and additional opportunities for our Town's future successes which are yet to be realized. These initiatives will help to ensure that we can meet our infrastructure and financial responsibilities, as well as to provide residents with greater employment, recreational, and every day-life needs.

What do you think are Erie's biggest challenges and successes?

Both the Town's biggest challenges and successes have been its rapid growth.

This growth has created the large portfolio of open spaces, parks, recreational activities, and other amenities that we have today. It has added much needed revenue to our Town's budget and accelerated the Town's overall net worth; provided the opportunity and means for our Town to have its own Water, Wastewater, and Storm Drainage facilities; brought us community partners and developers which will continue to be paramount to our future successes. Most importantly, it has provided the opportunity for all of our friends, family, and neighbors that currently live in Town the chance to also call Erie their "home".

However, this rapid growth has not been without its downsides. Negative consequences have occurred from this due to the lack of forethought and planning necessary to accommodate the growth. It has led to the strains on our infrastructure - to the point where our water, wastewater, storm drainage, natural gas, and road systems have either reached max capacity or max life expectancy; to our Town being almost entirely dependent on residential development to fund all of the various Town functions; to our Town being unsure of how we are going to pay for the maintenance of our roads, or the upkeep of our parks and open space areas; to a Town Hall which doesn't have the capacity for all of the Staff that has been hired over the years, the individuals who maintain our Town's services on a day-to-day basis. As well, it has in the eyes of some, turned our development partners, individuals who helped us to grow the Town that we love today, individuals who will assist us in attaining the future successes that our Town is yet to attain, into the perceived "enemy" - as though they were the reason for our problems, when in fact it was individual's at Town Hall who were the ones who decided to grow the Town and grow it quickly.

Please tell us your thoughts on having Erie as a "Home Rule" town? Are you for or against this and why?

I do in fact see the Town moving to home rule in the near future. However, there are too many unknowns and there is too much distrust currently of Town Hall. There are steps which could have been taken in the past, policies and procedures which could have been set, rules and regulations which could have been implemented, and they have not been. Once the Town is able to prove that we can govern ourselves within our current form, then we should have the conversation of a home rule charter. Now is not that time.

Home rule is intended for municipalities which have outgrown their current municipal ordinances and town codes. It is meant to be a tool that is used to add to their already enumerated powers of local governance, only after the Town has fully extended and exacerbated their current abilities within their Town's ordinances and provisions. It is not meant to be used as a tool for a governing body to exert their authority over others within their jurisdiction on specific matters that are important only to those leaders.

The Town should first and foremost fully utilize their already existing abilities and powers of governance that are constitutionally provided to the Town as a statutory municipality. This starts by first adding, amending, and repealing specific items within the Town's municipal code and Uniform Development Code, creating a comprehensive and fully outlined set of Town municipal laws that can later be added upon from a home rule charter. The Town does not currently have the resources at Town Hall to properly attend to the resulting effects that a home rule charter would bring. As well, not only does the Town not have the proper oversight or leadership necessary at Town Hall, but there is also not enough trust with the current Town government to prove that this will be beneficial or in the best interests of the residents.

If the Town's leaders attempt to move forward on fast-tracking a home rule charter initiative - as they have already begun to - without addressing and completing the necessary steps prior for navigating this new direction for the Town, I believe that they will be providing a great injustice and immense disservice to the residents of Erie.

What vision do you have to bring diversity to Erie regarding businesses?

I envision the Town attaining a wide variety of businesses - ranging from large to small, service to retail, and everywhere in between. The businesses will not only provide a diverse mix of employment opportunities, retail needs, or restaurants to patron, but will be the key to Erie's future success by providing a stable and sustainable revenue source.

In order to bring these businesses to Erie, the Town must work on activating (or completing activation) of the locations which have been outlined for years on both our Town's Zoning Map and Future Land Use Zoning Map:

Nine Mile, CO-7, Town Center, I-25 Gateway, Erie Commons, Old Town, Erie Airport, County Line Road, Highway 52, Westerly, Erie Highlands

To do this, we must work with the developers, current business owners, community members, local organizations - and most importantly, the residents.

The main issue isn’t that business owners and commercial developers don't want to come to Erie – they have already been trying to do so. In fact, some businesses that were once located here, as well as some that began the process to establish their business in Erie, decided to simply move out of Town, or to start working with neighboring municipalities due to how difficult or cost-prohibitive it is to do business here.

After speaking with countless business owners and developers – both current and prospective – economic development in Erie has been restricted due to the barriers to entry that are prohibiting businesses and commercial developers from entering the Town. Besides for the already limited office or retail spaces available, these barriers include the tap fees, impact fees, infrastructure fees, permit fees, the UDC municipal codes, the amount of time that it takes, the roadblocks from Town Hall staff, parking requirements, and the list goes on and on.

To alleviate these issues and become more "business friendly", the Town must start by listening to and addressing the concerns of the Town's current or prospective business owners and development partners alike. This starts by engaging with business owners more frequently and on a regular cadence to understand what their needs or concerns are.

The Town must have open dialogue with our partners in the community - the developers. Developers are the driving force behind our Town's future economic prosperity. They work directly with small businesses and large corporations alike, in efforts to attract them to specific developments that they are working on. In some municipalities, these organizations become the Town's largest supporters and advocates, assisting the Town by working hand-in-hand with them.

As well, the Town must work to engage community members, local organizations, and the residents. These stakeholders not only have valuable insight to the issues and concerns facing the Town, but they are also the individuals who live here - the individuals who these efforts would most affect and benefit.

From the information received, our Town must then address the exact reasons which are hindering businesses and commercial development from being able to do business within the Town. This means redeveloping and instituting very specific initiatives at Town Hall to address and alleviate these barriers to entry.

Finally, the Town must work with developers to identify alternative funding mechanisms in order to pay for the infrastructure required. Instead of solely relying on developers to pay for the properties upfront and in-full, these funding mechanisms can include items such as special taxing districts, revenue bonds, or a combination of multiple mechanisms.

Tell us something that most people don't know about you:

I love technology and to nerd out on data. My favorite sports teams are the Chicago White Sox, Chicago Bears, and the Colorado Avalanche. I love to golf and have had the privilege of playing at some of the best-rated courses around the nation. I learned how to skate before the age of 3, played hockey for over 16 years, including at CU-Boulder when I was in college. The sport took me all over the world, but most frequently to Canada. I even played this winter in the inaugural Erie Outdoor Hockey league

If any residents have some thoughts, ideas, or concerns regarding any topics, I would be more than happy to speak with you to hear your opinions. Please feel free to reach out to me through my Facebook page ( www.facebook.com/Andrew4ErieCO/ ) or website ( www.AndrewSawusch.com ). Be sure to check out my plan to address the various items discussed above ( bit.ly/Andrew4ErieBlueprint ), view my full responses to the questions above ( bit.ly/Andrew4ErieELIFE ) - and please vote for me on April 5th!

Erie's Face Covering Order: An Overreach of Legal Authority

183:787856552 (Andrew Sawusch) — Fri, 04 Feb 2022 22:50:20 GMT

Below is my stance on the current Face Covering Order issued by the Town in September 2021 - which in my opinion is an overreach of legal authority placed upon the Weld County side of Town

I have recently been asked my stance on the Town's current face coverings order. This is an issue which by now, I am sure we have all formed our own personal opinions on. Since 2020, it has affected our daily lives and has been a “hot topic” locally, nationally, and world-wide. It has created division between families, friends, neighbors, communities, and nations alike – and likewise, Erie too has also seen its fair-share of division surrounding the subject.

Personally, I abide by the orders issued by a county’s Public Health Agency, as their respective agency has final-say on the specific orders currently in place within their respective boundaries. As well, I abide by the requests and policies of a business which may not be under a mask mandate, but request that patrons within their establishment wear one.

However, as I will go into further, the current Town of Erie Face Covering order is in actuality an overreach of legal authority applied to the Weld County side - due to Erie not having its own Public Health Agency, and due to Public Health order which was referenced in the Town's order being from the Boulder County Health Department. The decision made by the Board of Trustees and Town Administrator to administer this upon those in Weld County has not only hurt our businesses, but it has as well placed our Erie Police Department in a situation which they have no option but to enforce the order.

The Erie Face Coverings Mandate

Erie is uniquely situated in a location where we are split between two counties, with each county having differing views when it comes to various topics – and COVID has been no different. Statutorily, CRS §31-15-103 notes that the Town has the power to issue ordinances “which are necessary and proper to provide for the safety, preserve the health” of the Town’s residents. As well, we are statutorily provided with the authority to create our own Board of Health, as described in CRS §31-15-201 (1) (c), as well additionally in CRS §25-1-507 which notes:

However, since our Town has not formed our own Health Board, we are beholden upon the guidance, recommendations, and orders of the County health departments for direction. As noted within CRS §25-1-506 (2)(a)(I):

This means that each county can only be responsible for, and their authorities can only be rendered to, those that are physically within their county boundaries. Specifically, their authorities, as listed in CRS §25-1-506 (3)(b), include:

After a Public Health Agency and Public Health Board is formed, only then does the jurisdictional entity have the authority to exercise various powers as identified in CRS §25-1-508 (5), including:

This is exactly why the face covering order is an overreach of legal authority when extending it upon those on the Weld County side. The Town of Erie does not have a health board nor health agency, meaning it does not have the specific powers or authorities vested to it required to do so.

In fact, when the Town issued their most recent Emergency Declaration regarding Face Coverings , they specifically referenced Boulder County Order 2021-08 from September 3, 2021 . Boulder County Public Health Order 2021-08 specifically notes on page 12, “Nothing in this Order should be construed to preempt any other local Public Health Orders.” This is exactly what it would be doing if it were also to be applied to an area outside of its jurisdictional boundaries, which Erie has attempted to do.

As well, Boulder County also notes on page 12 of the order, “Nothing in this Order shall be construed to prevent a municipality from adopting more protective standards than those contained in this Order”. As noted earlier, this is only applicable to municipalities which have their own Public Health Agency – which we do not.

Unless Weld County were to change its health orders in relation to face coverings, or unless the Town of Erie were to create their own Public Health Agency – the Town’s decision to administer a Boulder County health order against individuals outside of that county’s boundaries is an overreach of legal authority.

By extending this Boulder County Order to Weld, what the Board of Trustees and Town Administrator have done is placed our amazing Erie Police Department between a rock and a hard place. Due to the fact that this has been issued as a Town order, Erie PD must uphold the laws issued by the Board of Trustees. It places them in a situation where they become the ones to receive backlash because of our Town's leaders. This is exactly why if EPD is called and the individual is unwilling to abide by the face covering order, they are forced to issue a "Failure to Obey a Lawful Order" citation.

If this face covering order was removed, a business could, if they decided to, still require patrons to wear face coverings to enter. The business could simply require that all patrons wear a face covering as part of a "dress code", then it could be enforced by Erie PD for trespassing.

However, as outlined above - the fact is our Town's leadership are currently just extending their authorities and powers beyond those which are legally granted to them - which is inexcusable.

Erie's Finance Department and the Mess Inherited

183:787856552 (Andrew Sawusch) — Sat, 29 Jan 2022 21:18:23 GMT

Due to the Town's accounting methods and practices used in the 2021 and prior budgets, revenues and expenses - and their respective cost allocations for reporting purposes - were gradually becoming almost indecipherable. Now, our Town's new Finance team has been tasked with trying to unravel these activities in order to provide an account of our Town's financial health.

First off, this issue has nothing to do with the capabilities of our Town's current Finance team. I am in no way, shape, or form "throwing them under the bus." I think they are doing a fabulous job, and are making amazing strides in rectifying many issues that they ultimately inherited.

These issues should have been found out sooner, and lies entirely and squarely on the shoulders of previous Board of Trustees, as well as our Town Administrators. These individuals are the leaders within Town Hall. They are the individuals who are either our elected, or appointed by those elected, to be Stewards of our Town's finances.

Our next board must contain individuals who understand the Town's budgets and finances, who review them thoroughly - as well as those who provide scrutiny, ask questions, and request clarification on these items (and others) from Staff.

As someone who believes that our Town's Financial Wherewithal is an extremely important topic for our Town's future success, and having identified this issue in 2020 , I am disappointed in our Town's leadership for placing this situation upon our Town's Finance department.

I am providing this information because of the opaque nature in which our Town has acted with in years past. I am also providing this information because there are many more issues that these individuals are attempting to rectify at this very moment, some that might take a year or two to finally be able to accomplish, as well as to say to our Town's Finance Department (Stephanie and Candice - and Victoria who just left as well) "Thank you for all that you are doing to illuminate and resolve these issues for our Town!"

Backstory

After my last article regarding the Town's 2022 Budget and the changes made within, another Trustee Candidate and myself were discussing the Town's budget online, referencing both the Town's Comprehensive Annual Financial Report's and Monthly Financial Reports in our comments. Less than a week later, I noticed that the Monthly Financials were removed from the Town's website. I decided to post on my Candidate Page about this in jest, and tagged the Town's official Facebook account - assuming that I wouldn't actually receive a response about it.

Facebook Page Post, Andrew Sawusch for Erie Trustee, January 27, 2022

Much to my surprise, the Town's official Facebook account replied - providing a response that I truly couldn't believe:

Facebook Page Post, Andrew Sawusch for Erie Trustee, January 27, 2022

Personally, I didn't understand how the Town could think it was ok to "deprioritize" Financial reporting. So I replied, asking for clarification about this - and received another response:

Facebook Page Post, Andrew Sawusch for Erie Trustee, January 27, 2022

Why this is Important

These Financial reports are important because they provide a snapshot up to that time of reporting, in terms of actual cash on hand, revenue and expense amounts by fund, and other various items. This is then matched against what our Town's approved budget outlined as to what we were supposed to receive and spend. These reports ultimately provide a "health check" of how we are actually performing financially year-to-date at a given moment in time, against how we are supposed to be doing by year's end (ie. budgeted vs. actuals).

The Board of Trustees are our publicly elected officials tasked with being stewards of the residents in respect to the Town's financial resources, and since our Town Administrator is the Board's appointed "chief operating and administrative officer" for the Town - I would have expected these reports to be invaluable to them. I would have especially expected these to be important to them during a pandemic when Town Finances were expected to decline and potentially fluctuate unexpectedly, as noted in an April 2020 memorandum to the Boar d.

Our Town's Municipal Code also clearly states in 2-1-3 (D):
5. Expenditure accountability: The Town of Erie will maintain a budgetary control system to ensure it adheres to its adopted budget. Town staff will prepare monthly status reports comparing actual revenues and expenditures to budgeted amounts.

Seeing that Monthly financials were produced for 9 of the 12 months in 2019, and that Town Staff had failed to produce a Monthly Financial Report in 20 of the past 24 months - then receiving the Town's response that they have been "deprioritized" - the first question that came to mind is "who provided this direction to Town Staff?"

Our municipal code says that the Board of Trustees have the "full authority to direct the town administrator with respect to the performance of his duties and responsibilities", and although they "shall be authorized to discuss all matters relating to town operations with employees", they are "not authorized to give any direct orders to town employees" ( Town of Erie Municipal Code, 1-6A-3 ) . All Staff direction must come from the Town Administrator who is "responsible to the board of trustees for the proper administration of all affairs of the town placed in his charge", as this is the only individual who is "responsible for the supervision and direction of the activities of all employees of the town" ( Town of Erie Municipal Code, 1-6A-2 ).

This means that either the Board of Trustees provided direction to the Town Administrator to "deprioritize" these reports - which would have meant that these reports and our financial standing wasn't really a priority to them (as it should have been). Or it means that it was the Town Administrator, using his authority to direct staff - which would have meant that these reports and our financial standing wasn't really a priority to him as well (as it should have been).

In my eyes, this is unacceptable. Our Town's finances must always remain a priority - and must never be "deprioritized", especially by our Town's leaders.

With the monthly financials inexplicably being removed of all Monthly reports ever produced and posted to the Town's website, with no financial reports noted in any of the Trustee agendas for the past 2 years (except for Budgets and discussions of Comprehensive Annual Financial Reports), and then receiving these responses from the Town directly - I wanted to find out exactly what was going on at Town Hall - specifically, why we have been unable to report these on a regular frequency.

The Real Issue: An Inherited Mess

Trying to understand this situation better, I reached out to some individuals to find out more. What I have come to find is that this issue goes much deeper, and provides an explanation as to why the Town is not able to provide Monthly Financials (and exactly why we have only received 20 in past 24 months). Short story: our new Finance Team inherited a mess, and they have been trying to resolve this before they can provide reports of any kind to anyone.

Yes, the Town has individual transactional data, which the Finance team is able to see ("All of that data still exists in the native software systems"). Yes, they are able to pull this data within their accounting system ("tracking and analyzing financial data").

However, if Town Staff pulls the transactional data from the system, that is all it would be: data. It doesn't tell them what we're really spending, as the information would not be representative of the budget.

This is because the new Finance team inherited a mess, specifically related to previous financial methods and practices used by the Town's former Finance Director. Then, these practices and how they were being used weren't documented, and the knowledge wasn't transferred before the former Director departed.

Specifically, this issue and the ensuing mess was created by the way that revenues and expenses were being allocated directly to various funds, as was noted in a previous post . The Town's finance team found out that in Budgets 2021 and earlier, costs were being absorbed by various funds without any explanations or notations available as to how these were being done.

For example: Say we have an employee working for the Town and their salary is $100k. In the Town's accounting system, it shows a salary cost of $100k. In budgets prior to 2022, $80k of this salary was allocated as an expense to the General Fund, and the remaining $20k was expensed to the Water Fund.

The Finance team couldn't figure out how to show this $100k properly for reporting purposes as it related to the Budget. There simply wasn't any corresponding information available to indicate what the amounts or percentages were being allocated to which accounts.

This was the case for many personnel, operations, and other miscellaneous costs throughout various fund account. Ultimately, this resulted in them being unable to properly report on the Town's activities as expected, because they simply didn't know how the numbers should line up.

As well, this was the same situation with impact funds - where the amounts would be received and just tossed into one "pot". There wouldn't be any indication as to what these fees were intended for, although they were charged for a very specific purpose.

For example: A developer on the South side of Town is charged a Traffic Impact fee for their development. The funds were supposed to be used for roads specifically within their vicinity on the South side. However, the funds were used elsewhere - on the North side of town - because there wasn't any notation as to what they were supposed to be used for specifically, nor the timeframe when they had to be used by.

Again, our Finance team is now having to sort through these transactions, pull developer agreements, to identify what funds were spent, what they were spent on, and how much is still remaining - since the remaining should be allocated for future and specific items.

Conclusion

As stated multiple times, this is a mess which the Finance team inherited. I believe that this new team is doing a great job, and I personally like the changes being made. It provides transparency to us, the residents, as well as provides proper cost allocations to the various funds as they should have been originally. I also like that they are beginning to undo the years of potential mishandlings committed by those previously in our Finance department.

There are also many more items which I have come to find are currently being identified as they continue to sift through our finances. The steps that they are taking now, and will ultimately continue to take, are possibly some of the most important ones that are currently being undertaken at Town Hall. I will continue to applaud them for their actions.

If provided the chance to be your Trustee, I will continue my efforts to ask the tough questions in order to keep Town Hall accountable. This specific item is truly just the tip of the iceberg when it comes to our Town's financial issues, but if provided the opportunity, I will continue to ensure that Financial Accountability and transparency become a pillar for our Town. These are the necessary actions required to remain Forward Thinking for Erie's Future.

2022 Town Budget Confirms Utility Bills Paid for Town Operations

183:787856552 (Andrew Sawusch) — Wed, 19 Jan 2022 22:54:57 GMT

The Town's 2022 Budget claims a revenue increase of 18% YoY from 2021. However, if you look deeper into what's presented - it's really 7%, and confirms that our Utility bills have been paying the Town's operations - to the tune of $4.0 million in 2022 alone

The General Fund is the primary operating fund for the Town. This single account is where all revenues and expenses are allocated relating to Town Administration, Legal, Legislative, Parks and Recreation, Public Works, Finance, Economic Development, Communications and Community Engagement, HR, IT, Public Safety, and Central Charges (ie. Debt and Transfers to other funds). The revenues that fund this account results from our sales taxes, property taxes, development related fees, recreation fees, landfill fees, oil and gas related income, and other miscellaneous sources.

Adopted by the Board of Trustees in November, this year’s budget was prepared for the first time in over 10 years by someone other than our previous Finance Director. The 2022 General Fund Budget projects a total of approximately $42.6 million in revenues for the Town. This is an increase from approximately $36.1 million in 2021, for a year-over-year growth of $6.5 million or 18%.

At first glance this might look great, but the Budget then continues to explain that this double-digit growth is largely just a result of an “accounting change.”

Town of Erie, Adopted Budget 2022 , page 37

In other words, the 2022 budget actually projects an increase in General Fund revenues to $38.6 million, or a 7% year-over-year change of approximately $2.5 million. The budget then includes this additional $4 million amount, relating to both personnel and operation expenditures, which will now be included annually:

Town of Erie, Adopted Budget 2022 , page 37

Town of Erie, Adopted Budget 2022 , page 30

In the new Finance team’s very first budget presented for the Town, they included an expense line-item called “Indirect Cost Allocation”. As stated in the narrative, this change was made because “in the past, the practice has been to lower the budgetary representation of those costs. It is more appropriate to show the full costs in each department.”

So where is this additional $4 million dollar amount being included from, which results in 11% of this supposed 18% year-over-year growth? The answer is simple – this almost entirely comes from our water, sewer, and wastewater bills.

This new revenue source for the General Fund is actually received from all “Enterprise Fund” accounts (ie. Water, Wastewater, Storm Drainage, Airport) and “URA Fund” accounts (ie. Airport, Daybreak/Colliers Hill, Historic Old Town, Highway 287/Nine Mile, Four Corners, and I-25 Gateway). Of this almost $4 million total, 92% is received directly from the Water, Wastewater, and Storm Drainage funds.

Town of Erie, Adopted Budget 2022, Budget Details ‐ Expenses, pages 166-265

The next question then becomes: what is the amount of these additional expenses which weren’t previously included? While the 2022 Budget includes the note “the administrative cost for prior years is not calculated because that would require significant effort for minimal value” (page 22) , the budget Memorandum presented to the Board of Trustees sheds some additional light on this change – noting that it will be now “recognized as a revenue source instead of previously being reflected as a reduction expenditure in the General Fund.”

Town of Erie, Town - 2022 Budget Overview Memorandum , pages 10-11

Explaining just how much this change would have affected the 2021 budget, this would amount to another approximate $4 million in “expense reductions” to the General Fund. This was made possible because before 2022, these expenses were, as noted within the Town’s Comprehensive Annual Financial Report, “Indirect Costs”, of which “the Town does not allocate indirect expenses to functions in the statement of activities.”

Town of Erie, 2020 Comprehensive Annual Financial Report , page 57

Ok, so if we are shifting personnel and operating expenses to the General Fund, which sound like they should have been in there from the beginning – where were these expenses located before 2022? Well, you guessed it – they were tucked away inside of the “personnel” and “operations” line-item expenses for the Water, Wastewater, Storm Drainage, and URA funds.

Yes, you read that correctly – it is confirmed that our Utility Bills were in fact paying the Town’s bills – in that the funds were expensed directly to, and paid from, the Water Fund and other enterprise activities, instead of being charged to the General Fund directly. Because they were seen as “indirect charges”, the items had to be expensed from one of the various funds (the Town chose the enterprise funds), and the General Fund simply saw these as “expense reductions” – meaning the expenses were not attributed to the General Fund directly.

This has now changed, where the personnel and operations which should have originally been paid and expended directly from the general fund, are now accounted for in the General Fund. This alone has decreased the Water Fund “Personnel Total” by $1.5 million annually ( 2022 Budget Book, page 241 ) and the Wastewater Fund “Personnel Total” cost by $1.4 million ( 2022 Budget Book, page 254 ) – which is then recovered through the Indirect Cost Allocation expense charged to these enterprise activities’ accounts.

Conclusion:

Personally, I like this change made by the Town’s new Finance Department team. It provides transparency to us, the residents, as well as provides proper cost allocations to the various funds as they should have been originally. The changes made here directly address what was pointed out in an article back in 2020 , and explain the funds balances that were seen at that time: the cash on hand went up because the funds were never expended from the general fund - no general fund expenditures means the on-hand amount goes up.

I also like it because it begins to undo the years of potential mishandlings committed by those previously in our Finance department (yes, these mishandlings include the bridge fiasco). While we don’t know the full amount as to how much this budgeting method affected the General Fund, based on a span of 10 years at an average of $2 million each year – this would mean that our Utility Bills for Water, Wastewater, and Storm Drainage paid for at least $20 million of the General Fund's expenses in that timeframe, paying for Town operations from a Fund which should not have been able to do so.

Our Town needs proper financial oversight if we are going to be able to pay for the infrastructure , public safety, parks and recreation, and other activities that make this the great place we call home. While COVID has been partly, but not entirely to blame, in the past 2 years alone, our Town has seen a net-reduction of almost $10 million in our available unassigned General Fund balance. Meaning if we stay on the path as we currently are, it will become harder and harder for us to maintenance our open spaces, service our roads, or even to simply pay our bills - potentially requiring us to divest our investments or to dip into our emergency reserves.

Town of Erie, Comprehensive Annual Financial Report, Years 2011-2020
Town of Erie, 2021 2 ^nd Supplemental Budget, Page 20
Town of Erie, 2022 Budget, Page 43

If provided the chance to be your Trustee, I will continue my efforts to ask the tough questions in order to keep Town Hall accountable. I know that this specific item is just the tip of the iceberg when it comes to our Town's financial issues, but will continue to make sure that our Town's finances are managed properly. These are the necessary actions required to remain Forward Thinking for Erie's Future.

At-Home Activities During COVID-19

183:787856552 (Andrew Sawusch) — Thu, 19 Mar 2020 20:48:07 GMT

As we all practice social-distancing and isolation due to COVID-19, what happens when we run out of activities to do around the house?

Below are many different items - ALL COMPLETELY FREE - including educational materials for children, books, music, and virtual activities, in order to continue learning or simply pass the time.

Have more items to add to the list? Send me a message here or on Facebook . (I will continue adding to the list as additional suggestions come in - but remember, they must be FREE!)

ACTIVITIES

Fitness 1440 - Erie

Virtual training for its members on their Facebook page, to help stay mentally and physically active (On-Demand FREE for current members, Facebook video classes also posted for current and non-members)
(just a side note: you can still also purchase their smoothies, picking them up curbside from 10am-12pm, by texting or messaging your order to them!)

https://www.facebook.com/fitness1440erieco/

Virtual Field Trips

Take a virtual trip to locations arround the world: View exhibits from The Louvre Museum in Paris, the Anne Frank House in Amsterdam, explore the surface of Mars, and more

http://freedomhomeschooling.com/virtual-field-trips/

Virtual Disney World Rides

Even though the Disney parks are closed, you can still ride their rides virtually online

https://www.wesh.com/article/virtual-disney-world-rides/31782946

Paris Musées Virtual Exhibit

Collection of 150,000 digital art reproductions in High Definition of works in the City’s museums

http://parismuseescollections.paris.fr/en

GoNoodle

Movement and mindfulness videos created by child development experts

https://www.gonoodle.com/

CHILDREN'S EDUCATIONAL MATERIALS - GAMES, LEARNING, & VIDEOS

Khan Academy

Expert-created content and resources for every course and level (requires sign-up)

https://www.khanacademy.org/

Newsela

content from the world's most trusted providers and turn it into learning materials that are classroom-ready

https://newsela.com/

XtraMath

Program that helps students master addition, subtraction, multiplication, and division facts

https://xtramath.org/

Teachers Pay Teachers

Online marketplace for original educational resources with more than four million resources available for use (requires sign-up)

https://www.teacherspayteachers.com/

Create Printables

Variety of worksheets and printables ideas to personalize for your child

https://www.createprintables.com/

PBS Kids

Educational games and videos from Curious George, Wild Kratts and other PBS KIDS shows

https://pbskids.org/

Sesame Street

Play educational games, watch videos, and create art with Elmo, Cookie Monster, Abby Cadabby, Big Bird, and more of your favorite Sesame Street muppets

https://www.sesamestreet.org/

Education.com

A library of games, activities, educational worksheets, and lesson plans for PK-5th, curated by educators (requires sign-up)

https://www.education.com/

BrainPOP

Animated Educational Site for Kids - Science, Social Studies, English, Math, Arts & Music, Health, and Technology

https://www.brainpop.com/

(Normally this is a paid subscription service, but they are offering free subscriptions due to the COVID-19 pandemic)

Starfall

Allowing children to have fun while they learn - specializing in reading, phonics & math - educational games, movies, books, songs, and more for children K-3

https://www.starfall.com/

BOOKS (KIDS AND ADULTS)

Magic Blox

Offers a large library of free online books & children's stories

https://magicblox.com/

Epic!

Digital library for kids offering unlimited access to 35000 of the best children's books of all time (30-day free trial available)

https://www.getepic.com/

Open Library

Collection of books from the Library of Congress, other libraries, and Amazon.com, as well as other contributors

https://openlibrary.org/

Project Gutenberg

Library of over 60,000 eBooks, including free epub and Kindle eBooks, download them or read them online

https://www.gutenberg.org/

TV & MOVIES

Tubi

Stream and watch movies and TV shows online in HD on any device

https://tubitv.com/

Pluto TV

Watch 250+ channels of TV and 1000's of on-demand movies and TV shows

https://pluto.tv/

MUSIC

Spotify

Digital music service that gives you access to millions of songs

https://www.spotify.com/us/free/

Pandora

Music streaming and automated music recommendation internet radio service

https://www.pandora.com/

TuneIn Radio

Internet radio, sports, music, news, talk and podcasts

https://tunein.com/

Forward Thinking for Erie's Future: The Leadership Required by Resident's

Wed, 11 Mar 2020 20:58:42 GMT

This post addresses the reason why I began my interest in running for Trustee, how our Town's current leadership has failed us as residents, and the most pertinent items that I will address if elected Trustee

Summary

The key factor to the success of any great municipality is the residents. The residents are the ones who communicate the direction that they want the town to move, then instill their faith in specific community members by electing them as the Town's leaders. In turn, these elected individuals must then be able to provide the governance and leadership required by the residents, in order to guide the town in a wide-breadth of areas consisting of a vast number of topics. Currently, Erie's leaders have failed the residents who elected them.

The current Board of Trustees have failed residents solely because they have not lived up to the promises that they have made. Whether the promises made were to increase the diversity of residential development, to be the stewards for the financial well-being of residents' hard earned tax dollars, to negotiate on behalf of and in the best interest of residents, or to develop regulations addressing concerns for residents' health and safety - the current board has failed residents.

When I see that the Town's leaders, who we as residents elected, are negatively affecting our Town's future, or are simply not maintaining the level of governance which we expect - I can either do nothing and simply wait for something to change, or I can stand up, say enough is enough, and effect the change that we all want to see. For this reason, and due to the items below which are of the most concern to me, I am running for Trustee.

How My Interest in Trustee Began

On November 26th of last year, we received the snow storm that accumulated over a foot of snow throughout the area. With this large amount of accumulation, I assumed like most residents, that the Town would handle it by plowing the streets. After all, the Snow Removal Procedures posted on the Town's website did say "only in instances when snowstorms leave large accumulations that are expected to remain for several days, Residential Streets are plowed down the center of the street (one pass)."

Then on November 30th, the Town issued a communication saying "the Public Works Department decided not to plow local streets due to the likelihood of creating further problems." The message continued on to say that they were still mobilizing teams to attend to the snow-packed streets. I thought this meant that they were still attending to it, and would surely get around to my street soon enough. But on December 3rd, I had yet to see a snow plow come through our street. The streets were now an ice rink as the snow melted and froze, creating a layer of ice at least 3 inches thick. I then saw online all of the other Erie residents venting their frustration too, and realized that this was a Town-wide issue, not just my subdivision.

I thought, "this must be a funding issue." But when I looked at the Town's 2019 Budget , it indicated that we had a surplus of approximately $95 million. So I did what other Erie residents were doing, and I commented on a post in the Erie Colorado Facebook group, saying that this did not make sense, since we could have commissioned CDOT to assist in plowing our roads with those amount of funds on-hand. To my surprise, two current Trustees reached out, where both provided me with the same answer. They said that those funds were not actually available because they were restricted for projects or were needed to be kept as future reserves.

One of the Trustees went so far as to request an explanation for me directly from Town Hall. The response provided to me was as follows:

The Trustee continued to say that the Town decided their plan of action in terms of the snow, was no action, and that they were simply going to wait for it to melt. Personally, as someone who is originally from Chicago, I know the history of public officials who have been ousted because of their lack of concern for residents when it comes to snow removal. Also, with the response that I received from Town Hall, it still did not make sense as to why all of our roads were like driving on a slip-and-slide. After all, there was $17.6 million cash-on-hand for the General Fund which could pay for additional snow-removal.

And then it all made sense on December 30th, when we were alerted through the Town Administrator's Weekly Newsletter , that the Town had been scammed out of $1 million for payments on the Erie Pkwy bridge. It turned out that the snow removal debacle was in fact due to a funding issue. The Town required General Fund emergency reserves of $15.6 million to be kept on-hand for 2019, meaning there was approximately $2 million available for non-emergency uses, but some of it was "expected" to be received, and had not actually been received yet. The only other fund that could have been used, the Transportation Impact Fund, was reduced to $4.8 million to cover the $1 million loss, and there were additional large-scale projects still planned in 2020 where those remaining funds would be required.

As I dug in deeper, as I started to understand the chaos that was evolving at Town Hall, and as I started to understand just how much the Town was wasting resident's tax dollars, I understood that something had to be done. I understood that the Town was not in a position to properly manage the continued growth that was occurring, and that we were all going to be up a creek without a paddle in just a moment if something did not change.

This was the point where I understood, having over a decade's worth of experience in building and growing organizations, specifically in business operations, that the Town's leadership was not suited for the task that laid before them. This was the point where I understood exactly how I could personally develop solutions that would address the issues seen by Erie residents. This was the point where I understood that I could ensure that the proper governance required for the Town was made - by running for Trustee to create positive change, so that Town Hall becomes Forward Thinking for Erie's Future.

Managing the Town’s Growth and Assuring our Infrastructure is Sustainable

First and foremost, it is overly apparent that the Town has not been properly planning for our future. The Town must first start by issuing a plan that is guiding the steps which Erie takes. The Comprehensive Plan , which is supposed to be the blueprint for Town Hall, was updated in 2015, became outdated just a couple of years later, and does not create the full “Master Plan” that should be used - specifically as it relates to the Town's growth, and the growth as it also relates to infrastructure. The purpose of a comprehensive plan is supposed to be the document "that outlines the community’s vision and goals for the future and provides guidance for elected and appointed officials in making choices regarding the long-range needs of the community."

When you look at the sections on “Growth Management” and "Public Facilities and Services", it is easy to see that they both fall flat, as they do not properly outline how the Town will actually manage their growth or infrastructure. In fact, some specific items which are outlined, were not even followed like the authors intended. The "Growth Management" section is just 4 pages long with only a single sentence included for the “Provision of Facilities and Services” policy section, while the "Public Services and Facilities" section is just over 1 page long.

The Town must start by creating a plan for the future, one that is actually comprehensive, not only providing the overarching goals for the here and now, but also provides the overarching goals for the future. The goals must be able to create actionable items which also indicate the internal Town Hall goals which provide accountability for departments and staff. This must include understanding where our capacity thresholds and limits are, and monitoring them constantly. Once these levels meet a certain threshold, this is when the plans that have already been made should be enacted.

From my calculations discussed in a previous article , since the comprehensive plan was updated just 5 years ago, based on a 16% forecasteded growth rate by the Town, and an actual 40% growth rate, the Town is approximately 7.5 years behind in terms of the Town's infrastructure. This is because Erie is ahead by 7.5 years in terms of the amount of growth we have received as compared to what they had originally projected. This has resulted in an increase in usage of utilities, which has created capacity issues, all while the funds to properly expand our infrastructure have been mismanaged and are not currently available. This means that the Town will be forced to extend debt to pay for these improvements.

The Town must become smarter as it relates to the development agreements which Erie enters into, as discussed in a previous article . The Town should work with developers, tell them our vision, define our needs, what we would like to have done, and be able to set a path forward which is equitable and positive for both parties. If they are building a new road specifically for their new community, and we also have needs to widen a road that the new road would be intersecting, the Town should work with them so we can "cross two 'Ts' with one stroke of the pen" by completing both at the same time. It becomes more efficient, and would save time and costs associated than it would if each project were done separately on their own.

Fiscal Responsibility and Financial Oversight

The Erie Pkwy bridge payment situation exemplifies the magnitude as to the lack of oversight that is currently being taken in regards to our Town's finances.

As I have stated in a previous article , and as it was illustrated above directly from Town Hall's own response - the Town has a cash flow issue. In a previous article , I noted that the Town is reliant on debt, water, and residential development to fund the Town's operations. The practice of "pooling funds" is without question extremely concerning. In fact, I am still finding out from specific individuals as to the extent of how deep it goes, to the point where it has been indicated that ALL FUNDS are being commingled together. These outside parties are actually saying that the Town's practices, as it relates to very specific revenue sources, are actually illegal and a violation of current state laws. They have said that this practice will not just potentially lead to, but will lead to litigation since these specific funds are required to be completely separate from all others, as they are only supposed to be used for specific activities.

Furthermore, there isn't any real transparency provided to residents illustrating how the funds are spent. We are now in the second week of March 2020, and the "most recent" monthly financial statement which has been provided by Town Hall is from September 2019. Just in comparison, out of all of the monthly financial statements currently available on the Town's website, 6 of the 8 were issued approximately 2 months after month's-end, one was provided 3 months after, and one was provided 4 months after. I would not at all be surprised if the monthly financial statement that we are all waiting with baited breath to see, that being October 2019 when the Erie Pkwy bridge scam occurred, is simply skipped over, just as the August 2019 monthly financial statement was.

The Town must ensure that the proper policies and procedures are in place for expenditure and payment requests. Town Hall must implement reporting systems to prevent situations like these from happening again. Residents must also be provided with full transparency as to how our Town is spending its citizens’ money. Finally, revenues must be stabilized, and the pooling of funds must be terminated immediately so that each account truly "stands on its own."

Economic Development and Intergovernmental Relations

Since the last Town of Erie election held in 2018, residents have watched the Town's population continue to steadily increase, while the estimated 2019 and projected 2020 sales tax revenues have actually flattened and become stagnant in comparison to 2018 actual revenues. The growth rate of the General Fund's revenues has as well decreased, because the current Town leaders have spent more, while not doing enough to assist business owners and developers to enter Erie. In fact, we have actually lost many opportunities, to the point where specific developers and business owners will not come to Erie in the foreseeable future. They have actually divested their portfolio of properties within the Town, because they are tired of the way that they have been treated, the delays that they have experienced due to Town Hall, and have instead resorted to doing business in municipalities that are just next-door to ours.

As noted in a previous article , after speaking with countless business owners and developers – both current and prospective – economic development in Erie has been restricted due to the barriers to entry that are prohibiting businesses and developers from entering the Town. These include the tap fees, impact fees, infrastructure fees, permit fees, the UDC municipal codes, the amount of time that it takes, the roadblocks from Town Hall staff, parking requirements, and the list goes on and on.

It isn’t that business owners and developers aren’t looking at Erie – they have already been trying to enter the Town! But once they start digging into how much it would costs – either from a lease standpoint, or the cost to build on a piece of vacant land – the costs outweighed the benefits. Then process from application to opening is being delayed, in some cases as much as over 2 years. Many of the business owners and developers have said that once they started the process of applying and pre-approval, the rules kept changing. As they worked with Town Staff from one department, another department wanted something different, and then another wanted something else. While the UDC municipal code said one thing, they were asked to provide items completely unrelated to what was seen in current code. This practice, of requiring items outside of the UDC, provides the path for potential litigation against the Town, which if the business owners and developers did choose to do, the Town would lose and be held liable.

In order to remove these barriers to entry, the Town must first become “business friendly.” They must make it more cost effective, easier to receive permits, expedite requests, adjust the UDC municipal code, and maintain a proper timeline. Town Hall only just recently started tracking the amount of time that it takes from application through acceptance. Starting with the Board of Trustees and moving through every staff member at Town Hall, the entire process from application through final occupancy must be outlined and addressed, with the intention of moving the process along in an expeditious fashion.

As well, the Town must restore relationships, whether that be with the developers who now refuse to work with Erie, or with surrounding municipalities and agencies. Our leaders must negotiate on our behalf to benefit the Town's residents - not so that many concessions are made in order to add one or two additional small-ticket items. In the case of the Lafayette/Erie global IGA, as discussed in a previous article , this is exactly what happened. I do not believe the Board majority understands how negotiations work, nor do I believe that the Board majority is capable of negotiating properly on our behalf. Yes, they did create a document which works to end the battles with Lafayette that extended many years - I will give them that. But as you see how the progression of this IGA went on, it is obvious to tell that it ended up being a "loss" for Erie. They let Lafayette once again take advantage of them, and it ended with an IGA which gave away too much at the cost of Erie residents.

Finally, just as developers and business owners have walked away from the Town, local agencies have also done the same. Weld County, which encompasses half of all of Erie's residents, used to be one of the Town's biggest partners, but now refuses to come back to the table on items that are of great interest to Erie. Similarly, Boulder County has taken some specific actions which appear to be done simply to spite Erie.

Erie must do a better job of restoring relationships with other local jurisdictions - including local agencies, municipalities, and counties. We are currently on a path with some municipalities where they will not even come to the table anymore because of the actions taken by our current and previous boards. We have had to end up litigating many disagreements which should have been properly negotiated in the first place. This has resulted in legal costs of approximately $2,000,000 since 2018, including the expenses appropriated within the 2020 Town budget.

Conclusion

Personally, as an Erie resident, I see our Town's future success being one which could be amazing. Ever since I moved here almost 4 years ago, I have believed that the Town has the potential to become the "Centennial/Highlands Ranch" of North Denver (just not as "over grown"). Not only does Erie have the potential to be an absolutely wonderful place to live and raise a family, but it also has the potential to be a place that is sought after for others to want to live. One that has great schools, amazing amenities, and great employment opportunities as businesses too wish to seek entering the community.

As a resident, you have the ultimate form of voicing your opinion, by electing who you want to serve on Erie's Board of Trustees. If elected, I would be sure to address all of the items that I have noted above, in addition to the many other items not noted, including two of the items detailed in my previous articles: home rule , and health and safety as it relates to oil and gas.

If given the opportunity to serve as Trustee, I would use the experience and understanding that I have gained over the years to provide positive change for the Town. As someone who is a natural problem solver and leader, I would utilize my skills in organizational operations to serve the town in the best way possible that leads to success for the Town and all of its residents. However, this can only be done from my remaining transparent and open to feedback, listening to the residents, and then determining the best way in which to support the community through action.

Real change happens when everyone comes together and works collaboratively. I want to bring people together and hear from all sides. In order to do this, I want to create an environment where people feel comfortable voicing their opinions. In this respect, my campaign is about positivity, without any negativity or calling out of others. In the past, there have been many individuals who have disrespected others, which is something I do not stand for. We should all respect varying views, regardless if we disagree with them or not.

I personally believe that opposing views are wonderful, because it allows for discussion of a topic to develop. I am always open to learning new ideas, different ways of doing things, as well as constantly learning from others' experiences to make better decisions. Listening, hearing, and understanding different perspectives is the only way that we can all grow and create positive change - by learning from others, and delivering ideas that push the needle.

Town Hall must do a better job of creating an open dialogue with community members. There must be a better line of communication, openness, and transparency provided to residents. Currently, there are very important items where we have been kept in the dark, and only told about these major issues months after the fact. This is not public service, but rather a public disservice.

I am running for Trustee because we, as residents of Erie, deserve and require more from our Town's leaders. We, as residents of Erie, deserve to see the Town's potential lived up to. We, as residents of Erie, deserve to have our optimism for a thriving Erie realized. We, as residents of Erie, deserve to have Town leaders who are Forward Thinking for Erie's Future!

Thank you for taking the time to read this article!

Please be sure to attend my Meet-and-Greet this upcoming Sunday, March 15th from 1:00pm-3:00pm ( more information available here )

If you like the topics and stances that I have been discussing, please be sure to support my campaign for Trustee by getting involved in a few different ways ( click here to see the ways to contribute )!

Oil & Gas: My Stance and the Plan to Address the Topic in Erie

Sat, 29 Feb 2020 20:32:30 GMT

The topic of oil and gas must be addressed, but Erie's leadership has not dealt with the subject head on. Their only response has been inaction, which is a complete disservice to Erie's residents. Action is required, and I address how the Town can institute a plan which does so for both our current and future needs, which is solely based from an understanding of what can and cannot be done, as it relates to the health and safety for our community.

Please be sure to support my campaign for trustee by getting involved in a few different ways ( click here to see how )!

Summary

While the topic of Oil and Gas is polarizing within the community, I believe that action must be taken to find a solution that resolves the issue. To date, the current Board of Trustees have only extended a moratorium and created a single paragraph "policy statement" on the topic. They have not provided an actual resolution or laws which addresses this item in its entirety, and they have not addressed the topic as they said they would.

I believe that a plan, one that thinks outside the box and is understanding of what can and cannot be done, should be instituted by the Town. The plan that I recommend is not based on "land use" or being as stringent as possible to preclude a specific industry. Rather, it is solely based on and related to the concern for the health and safety of residents, as well as for the areas which are environmentally sensitive. It is based on a laundry list of various studies and points of view, coming from an understanding of all sides to the argument. As well, it takes into account the possibility of continuously evolving and addressing the topic further in the future, instead of just addressing the issue at this very moment in its current form.

The Current Board's Actions on the Topic

To date, the current Board of Trustees has not made a decision on the topic of fracking, drilling, or oil and gas. Instead, their solution so far has been to place a moratorium on the issuance of new permits, as well as to issue a "Policy Statement on Oil and Gas Development." Although they have said that the health and safety of residents is important to them, they have simply been kicking the can down the road, without any action related to the topic.

The moratoriums that have been placed by the Town's Board of Trustees have solely been done as a waiting game. First, they said the moratorium was placed in order to develop and set the proper regulations needed. Then, they said it was because they were waiting on the Colorado General Assembly to make adjustments to the current state laws through SB-181. This was followed by the Board saying it was in order to figure out how to create the regulations based on the passage of SB-181. Then again, they said it was to figure out regulations based on SB-181. The moratorium was initiated in July 2018, still exists today, and has been issued a total of 4 times (July 2018, January 2019, June 2019, November 2019).

If the current board were serious about the health and safety of residents, they would have already pushed on some sort of action regarding the topic of oil and gas operations. Instead, they have been kicking the can down the road, playing the waiting game, and not taking the topic seriously. If the current board does in fact want to see some actionable results come related to this topic, there would have been some ordinances created or resolutions passed which directly address this topic. Personally, it is my opinion that if the current Board of Trustees were to somehow attempt to create any resolutions a month before most of their terms expired, it would solely be a bandaid and be entirely politically motivated, as if to say "I am serious about this topic, but not really." It would not be a comprehensive plan that looks to the future, nor would it be to the extent that is possible based on the powers granted to us by the state, but rather something to appease the residents right now, without addressing the subject as it should be.

During the almost 2 years now that these moratoriums have been in place, the current Board of Trustees has not provided one single actionable response on the health and safety of residents, as it relates to oil land gas operations. Although they had an over 3 hours long study session back in August where they addressed this item, they still have not passed anything to even place a dent into the matter. Again, they have simply dragged their feet on the topic, and played the waiting game. They have only provided a single ordinance or resolution, not including the 4 resolutions of a moratorium and extensions thereafter. This only ordinance which they passed was a single paragraph policy statement of what they say they will do, instead of creating something of actual substance:

Legality and Items to Consider Regarding Oil and Gas Regulations

Any time a governing body passes any laws or regulations, there are always many items to consider. Most importantly, the governing body must ensure that the laws do not impede on a citizen's constitution freedoms - both federally and at a state level - and that the laws do not create conflict with current provisions or preempting statutes.

Even before the passage of Colorado Senate Bill 19-181 in April 2019, which made adjustments and reforms to various state statutes including Title 34 of the Colorado Revised Statutes , there were already many powers granted to local municipalities that allowed for actions to be taken. Although the governing powers were provided and implied previously, the only difference now is that the statutes are expressly noted for local governments with jurisdictional powers, saying that they now 100% no questions asked provided and do not need any "interpretation". These laws allow local municipalities to regulate oil and gas operations in ways that are more stringent than current state laws. As long as the laws do not create conflict with current or preempting statutes, there are now two important considerations to remember when discussing the topic of regulating oil and gas - those being the potential challenges to any regulations made:

Substantive Due Process Challenge : the regulation bears no rationale relationship to the means that it is trying to accomplish, and to protect certain fundamental rights from government interference, even if procedural protections are present or the rights are not specifically mentioned elsewhere in the US Constitution
Regulatory Takings Doctrine : the regulation goes too far in restricting the owner's property rights, and creates a lost value of the owner's property right, or that the law is clearly arbitrary and unreasonable, having no substantial relation to the public health, safety, morals, or general welfare

My Stance on Oil and Gas

We all want to live in a community where health and safety are at the forefront of our decisions. We as a town have the responsibility of taking ownership for the health and safety of our fellow residents. My position on oil and gas is that I am not for, nor against oil and gas. I believe that we should not have oil and gas operations so close to our homes, schools, and population. I also believe that they are a business which should be regulated, and should be responsible for their actions, just like any other industry. I believe that if oil and gas operations are going to be done in our community, it should only be within an area where there currently is not, nor will there be in the future, a current or planned development, or any other environmentally sensitive area.

I acknowledge that there are many health and safety concerns related to oil and gas operations, as well as the operations from other various industries. While the scientific evidence has varied regarding the long-term health risks between distances of 500-2000 feet, I do acknowledge that there is a general consensus that there are in fact health risks within a distance of 500 feet. I do also acknowledge that almost every one of the studies has indicated that the results are not "definitive" and there is a certain amount of "inconclusiveness" associated with them. For that reason, I do agree that there should be further studies done to determine a finality to the discussion of distance.

As well, I also acknowledge that this topic is one which contains many different factors, relating to both surface land use and sub-surface land use. Surface land use can be regulated as allowed by State and Federal Laws, but sub-surface land use does not have as many of these same allowances for regulation. Due to the technology available today, oil and gas operations do not have to solely be on top of a mineral deposit, but can be done from a greater distance away, and over a mile below ground.

How to Design a Plan that Addresses the Topic

Personally, I believe a well-thought out plan is necessary to address any topic, especially the concerns related to oil and gas. I believe that there are many ways to develop a solution that addresses an issue, after collaborating and discussing the topic with others. I also believe that the leaders of any form of government should have an understanding of what they can and cannot do, in order to create solutions that address an item fully, sometimes doing so in creative or unique ways that have not been done before.

As a statutory municipality, and through their already enumerated powers granted by the State, Erie can in fact address any number of the following items, as it specifically addresses to the oil and gas operations within the Town's jurisdiction: counter-drainage, emissions, noise, environmental and wildlife impact, location and proximity, production limits, protection of surface owner's rights, spacing of wells, plugging and abandonment of wells, corrective measures, hydraulic fracturing chemicals and additives used, presence and disposition of waste, occurrence of pollution, protection of coal seams and water-bearing formations, signage for drilling operators, storage and containers, comprehensive drilling plans, geological surveying, installed facilities, equipment, flowlines and pipelines, access easements, setbacks from other wells, and many other items.

Currently, the Town has the authority to enact a plan, and then adopt ordinances and regulations, which preserve the health and safety of residents. Any plan made should be comprehensive in nature, and tackle the wide range of items included, instead of cherry-picking a few items and only creating a temporary solution. The plans created must acknowledge that variances can be made, and that the regulations should be able to be changed from time to time as more studies are conducted, or as state or federal laws change. This plan that I propose is a starting point, which would then have many additional items to address, but can be done by thinking outside the box, and creating solutions that are not just temporary or what other municipalities are doing.

Related to this, it is again important to remember that this issue includes both a surface land rights issue, as well as a sub-surface land rights issue. The topic as a whole can be addressed and regulated, except that an outright ban on all oil and gas operations is illegal. This has already been determined, as oil and gas operations are a "state matter", and the courts have already expressly said a ban is not permitted , nor is a long-term moratorium . A local municipality can create regulations that for the health and safety of residents, but these ordinances and provisions may not be done solely in a way which is detrimental to the rights held by land owners, nor to devalue the land held by owners. The plan must solely be based on the health and safety aspect for both current and future residents, as well related to the impacts made on any environmentally sensitive areas, and then can be in relation to specific industries that are applicable.

My Plan to Provide the Basis for Local Regulations

Based on the Town of Erie Comprehensive Plan Map , the Town of Erie Zoning Map , and using it in conjunction with the Town of Erie Residential Activity Map , we can see exactly where there is currently, or will be in the future, a planned development. Based on this information, we can create provisions where we mitigate potential risks to residents, and where residential or population areas, or other types of sensitive areas, are well beyond the reach from any harmful effects.

To do this, the Town could create an additional zoning map, one that starts out with a clean slate. This would not be based on "structural use", "industry", or "type of use", but rather specifically designed for the health and safety of residents, as it relates to the conditions created from any industry, regardless of what that specific industry is. The zones would be mapped out, and could be something to the effect of "Prone Areas", "Susceptible Areas", and "Non-Susceptible Areas".

"Prone Areas" could include areas such as native areas, rivers and creeks, environmentally sensitive land, wildlife or conservation areas, parks and recreation areas, as well as current residential developments as defined by the Residential Activity Map. "Susceptible Areas" could include future residential developments, as defined by the Residential Activity Map. "Non-Susceptible Areas" would be any other area that is not falling within a "Prone Area" or "Susceptible Area".

"Prone Areas" would disallow the inclusion of any industry that creates a health or safety risk for residents and the surrounding community. "Susceptible Areas" would allow for any industry, as long as the health or safety risks have been properly resolved prior to becoming a "Prone Area" at a later date. "Non-Prone Areas" would allow for any industry as there would be minimal to no effects on the community in terms of health and safety.

Since the Town currently already requires a setback or easement related to a development, residential structure, and many additional distance considerations, the plan would ensure that the amount of distance between the boundary of a development or piece of land within a "prone area" is at a minimum of 500 feet. From there, additional provisions can be made as it relates to specific industries and concerns, or in respect to the needs of the type of land and its use. The various setback distance provisions would need to be included based on the type of industry, and the distance measurements based on CDPHE and EPA limits, or until there are further studies which determine the appropriate and reasonable distance required.

The Town's Municipal Code would need to also indicate that it could provide variance to these zoning laws, as deemed fit on a case-by-case basis. As well, the Town would need to revise the current Municipal Code so that the current Town laws related to the types of “use” zones (ie. Industrial, Commercial, Planned Development, etc.) are overridden or supplemented by these zoning areas. Finally, there would as well need to be provisions instituted regarding, among others, pipeline safety, transportation and railway safety, as well taking into consideration aspects such as emergency preparedness and response.

Current Laws that Allow for This Type of Plan

There are many laws currently in place which affirm that regulations can be made based on the health and safety of local residents. As well, the current laws affirm that a local municipality can regulate the municipal zoning, ordinances, and codes in order to ensure that the health and safety of residents is in fact protected. This means that the Town of Erie currently has the right, among their many other enumerated powers, to affect the regulation of land use, structure type, and zoning as it relates to health and safety. The current state laws, among the numerous others, which actually provide the basis for a plan like mine are as follows:

"Nothing... shall prohibit or limit a municipality or county of this state, in the reasonable exercise of its police power, from adopting codes that maybe necessary for the protection of the inhabitants of the municipality or county." [C.R.S. 12-130-117 (2)]
"Nothing... shall prevent, prohibit, or limit any municipality or county of this state, home rule or otherwise, from adopting such building codes as may, in the reasonable exercise of the police power of said governmental unit, be necessary for the protection of the inhabitants of the municipality or county." [C.R.S. 12-120-403 (2)]
"T he powers ... are granted to all counties and municipalities... to provide a procedure which can relate the type, design, and layout of residential, commercial, and industrial development to the particular site" [C.R.S. 24-67-102 (1)]
"Towns... are hereby authorized to enact local air pollution resolutions or ordinances. Every such resolution or ordinance shall... include emission control regulations which are at least the same as, or may be more restrictive than, the emission control regulations adopted pursuant to this article" [C.R.S. 25-7-128 (1)]
"No local air pollution control authority shall institute any system or program that... Is more stringent than a corresponding state provision with respect to hazardous air pollutants; except that this... shall not limit local zoning powers and ordinances enacted; [C.R.S. 25-7-128 (7-c)]
"Each local government within its respective jurisdiction has the authority to plan for and regulate the use of land by:
(a) Regulating development and activities; (b) Protecting lands from activities; (c) Preserving areas; (e) Regulating the location of activities and developments; (g) Regulating the use of land on the basis of the impact of the use; (h) Regulating the surface impacts of oil and gas operations in a reasonable manner to protect and minimize adverse impacts to public health, safety, and welfare and the environment... (and) to regulate air quality" [C.R.S. 29-20-104 (1)]
"For the purpose of promoting health, safety, morals, or the general welfare of the community... the governing body of each municipality is empowered to regulate and restrict the... location and use of buildings, structures, and land for trade, industry, residence, or other purposes." [C.R.S. 31-23-301 (1) ]
"The governing body of any municipality... may condition any zoning regulation, any amendment to such regulation, or any variance of the application... or the exemption of any building or structure... upon the preservation, improvement, or construction of any storm or floodwater runoff channel" [C.R.S. 31-23-301 (3)]
"The governing body may divide the municipality into districts... as may be deemed best suited... (to) regulate and restrict the erection, construction, reconstruction, alteration, repair, or use of buildings, structures, or land... The regulations in one district may differ from those in other districts." [C.R.S. 31-23-302]
"Such regulations shall be made in accordance with a comprehensive plan and designed... to secure safety from fire, panic, floodwaters, and other dangers; to promote health and general welfare; to provide adequate light and air; to prevent the overcrowding of land; ...and to facilitate the adequate provision of transportation, water, sewerage, schools, parks, and other public requirements. Such regulations shall be made with reasonable consideration, among other things, as to the character of the district and its peculiar suitability for particular uses and with a view to conserving the value of buildings and encouraging the most appropriate use of land throughout such municipality." [C.R.S. 31-23-303 (1)]
"The governing body of such municipality shall provide for the manner in which such regulations and restrictions and the boundaries of such districts are determined, established, enforced, and, from time to time, amended, supplemented, or changed." [C.R.S. 31-23-304]
"Nothing... shall be construed to prohibit... a governing body of any... town... which has control over zoning from zoning or rezoning land to permit a certain use, if said use does not permit erection of permanent structures upon, or otherwise permanently preclude the extraction of commercial mineral deposits by an extractor from, land subject to said use. [C.R.S. 34-1-305 (3)]
"Local governments... have regulatory authority over oil and gas development. A local government's regulations may be more protective or stricter than state requirements." [C.R.S. 34-60-131]
"Nothing... prohibits a local government from granting a variance from its zoning rules, resolutions, or ordinances for such uses of the property." [C.R.S. 40-5-101 (3)]

Conclusion

I believe that leadership is about action. I do not believe true leaders sit on their hands and play the waiting game, or simply enact resolutions which are only made in order to kick the can down the road. I believe that true leaders understand the topic in its entirety, comprehend what it is that can and cannot be done, and then develop decisions which are in the best interests of all those that they represent. Currently, our Town is lacking the leadership required, as the current Board of Trustees have not created action on the items that they have said they would.

If given the opportunity to be Trustee, I would use the experience and understanding that I have gained over the years to provide positive change for the Town. As someone who is a natural problem solver and leader, I would utilize my skills in organizational operations to serve the town in the best way possible that leads to success for the Town and all of its residents. However, this can only be done from my remaining transparent and open to feedback, listening to the residents, and then determining the best way in which to support the community through action.

I believe that Town Hall must also do a better job of creating an open dialogue with community members. There must be a better line of communication, openness, and transparency provided to residents. Currently, there are very important items where we have been kept in the dark, and only told about these major issues months after the fact. This is not public service, but rather a public disservice.

Thank you for taking the time to read this article! If you like the topics and stances that I have been discussing, please be sure to support my campaign for trustee by getting involved in a few different ways ( click here to see the ways to contribute )!

Topic for Next Week: Candidate Q&A - Reader Submitted Questions ( submit your questions here )

*Just a side note to all of the items that I discuss: I am a solutions driven problem solver by nature. I wonder how things work, why they work the way they do, and how to make them better. This means seeking different, outside-the-box methods to figure out solutions to various issues. Accordingly, I am always open to learning new ideas, different ways of doing things, as well as constantly learning from others' experiences to make better decisions. When I see an issue, I view it in a holistic fashion, and then dive into specific areas to remove deficiencies and create efficiencies. If you, who are reading this, have some thoughts or ideas about any of the subjects I discuss, I would be more than happy to speak with you to hear your opinions. Please reach out to me here through my website. Listening, hearing, and understanding different perspectives is the only way that we can all grow and create positive change - by learning from others, and delivering ideas that push the needle to become Forward Thinking.

IGA's and Local Governments: Erie's Relationships and Negotiations (Including the Nine Mile Agreement)

Sat, 22 Feb 2020 04:14:45 GMT

This post addresses what an Intergovernmental Agreement is, the relationships that Erie has with other agencies through the years, the Nine Mile agreement, and why this agreement can be considered a loss due to poor negotiating

Be sure to stop by during my first meet and greet this weekend - Sunday, February 23, 2020 from 1:00 - 2:00 pm at the Erie Community Center, Lehigh Room (450 Powers St, Erie, CO 80516). More information is available here .

Summary:

An Intergovernmental Agreements (IGA) is a great tool when used properly. IGA's provide a clearly defined relationship between two or more agencies, specifically addressing a certain topic or a range of topics, and creating a legally bound "contract" between the parties. Erie has entered into many of these IGA's over the years for various reasons. However, typically these IGA's have been brought to Erie , instead of Erie bringing them to other agencies. And except for a handful of "major" or "large-scale" IGA's with larger entities, they have been either with a metro district, or on "small-scale" issue items.

One IGA in particular, that has ruffled a few feathers recently with members of the community- the "Global IGA" settlement agreement between Lafayette and Erie - was created to "bridge the divide" between the municipalities, and ensure that there was cooperation for the future. This agreement came about after more than 6 months of negotiations, resulting in a signed IGA on June 4, 2019. The agreement, while largely started due to the Nine Mile development litigation, cascaded into one that included items such as the "Parkdale" development, the "Tebo Project", the Lafayette wastewater facility expansion, and improvements to the intersections of both 119th/Hwy-7 and County Line/Hwy-7.

Personally, I understand why this agreement was eventually signed. It ended the lengthy legal battles with Lafayette, and worked to begin to build a new relationship for the future. With that said, what I do not understand is why we initially started negotiations with Lafayette in the first place, since there were never any publicly stated intentions to do so by the Board. The only item that I can find is a Board of Trustees executive session behind closed doors, where the board discussed an item which was regarding ongoing litigation. Nor do I understand how the agreement did not result in an outright "win" for Erie, since we had the upper hand, had won their legal battles, had proposed a new agreement with additional items for Erie - which were accepted. For some reason, there continued to be negotiations, where additional concessions were provided along the way, which only provided additional items to Lafayette.

For years, the Town has not fully attempted to resolve contentions with municipalities, but have instead used litigation to resolve them. The most recent battle with Lafayette all started with an IGA, and then ended with another IGA. At first, you would have thought, "wonderful, the Town of Erie is taking the first step to resolve things, instead of being the ones who are approached by another agency." But based on the timelines seen, the actions taken, and the differences between the executed IGA and the IGA which was approved by both the Town of Erie's Board of Trustees and Lafayette's City Council - the current Board and Town leaders do not know how to negotiate.

This is ultimately one of the many reasons why I am running for Trustee. Our Town needs the leadership that our residents deserve. Our Town needs a leader from the business world who understands negotiations and who understands the power of relationships. The current Board has not provided Erie's residents with the due-justice which we deserve. This can be seen through their actions, and it is especially shown through the Lafayette/Erie IGA, where they were willing to "sell the farm" in order to get one or two additional small-ticket items.

What is an IGA

An Intergovernmental Agreement (IGA) is a legal "contract" between two or more agencies where the parties have "overlapping", "adjoining", or mutual jurisdiction. IGA's can be made between any two more more agencies, whether it be between a State government, a County, a local municipality, a school district, a metro district, an agency of the state - basically any "agency" that has some form of a "jurisdictional power". The reasons for entering an IGA can be as simple as a mailbox for depositing election ballots, to as broad as a county-wide comprehensive plan. Among other reasons, IGA's can be drafted to determine water rights, provide security, decide water rights, provide election support, or even to determine jurisdictional power.

Erie has entered IGA's for decades with countless agencies, for many different reasons. It is possible that, if you who are reading this is a resident of Erie, the subdivision which you live in originally had an IGA formed between the Town and your metro district. Regardless if you are a resident of Boulder County or Weld County, Erie has also signed many IGA's with both of those counties as well. Whether IGA was an environmental sustainability matching grant program, the collection of Boulder County use taxes, an easement granted to BVSD between Star Meadows Park and Meadowlark PK-8, or the CDOT improvements on Hwy-7 with upwards of a dozen municipalities - each of these various agreements came to be because multiple agencies had jurisdictional power or "influence" over the area, in addition to Erie's own.

Erie's Relationships with Other Municipalities and Agencies

For decades, Erie has been viewed as if they were the youngest child out of a dozen siblings. The Town has been picked on, beaten up, and taken advantage of for years by other agencies and municipalities. Time and time again, Boulder County has had to intervene in the Town's relationships, setting rules and restrictions for the Town through IGA's, basically placing Erie in "timeout." On the other side of County Line, although Weld County has shown support for the Town, in recent years they have been taking a step back from Erie due to the Town's indecisiveness, or due to the actions taken by current and previous boards.

In terms of the local municipalities, Erie has taken a backseat to their interests. Whether that was Broomfield, Lafayette, Dacono, or Frederick, there have been many legal battles, failed negotiations, or simply refusal by the other municipalities to even come to the table for discussions. Being stuck in the middle of these other jurisdictions, Erie has continuously "acted small", therefore has been treated without the respect required for the Town. This has then cascaded up to State agencies, where they have sided with other municipalities because basically "they were there first" or because they "made a claim first."

The Frederick - Boulder County IGA

In terms of IGA's, on one hand, they can become a point of contention for municipalities. In 2008, Frederick and Boulder County signed the "Frederick Boulder Creek Planning Area Comprehensive Development Plan Intergovernmental Agreement." This IGA was intended to maintain a rural open space "buffer" along the Boulder Creek, just over the Boulder County line into Weld County. While this agreement was signed in 2008, it expired in 2018 due to Erie never developing an IGA with Frederick to supplement and agree to this one. The reason? Because this area was also contentious between Frederick and Erie, since Frederick annexed the "Yardley Wetlands" in January of 2007. Erie made a competing claim to the land, which then ensued in a legal battle , which Erie lost. (inadvertently, this 10 year mark was around the same time that Boulder County requested that FEMA readdress the flood maps related to Boulder Creek, which has effected a swath of land within Erie - both unincorporated and in the Town boundaries - to now being deemed in a flood way).

The First Lafayette-Erie IGA

On the other hand, IGA's can also be used to defuse tensions. In 1994, Lafayette and Erie signed the "East Central Boulder County Comprehensive Development Plan Intergovernmental Agreement" with Boulder County acting as the intermediary. This IGA was formed due to various legal battles that were occurring - similar to the Nine Mile litigation - between Lafayette and Erie, in addition to each municipality with Boulder County themselves. Basically, each municipality was looking to annex various plats of land, each municipality was looking to develop rural areas, and each indicated that they had a competing claim and right to these specific areas. So, "in the best interest of the citizens of each of the parties", Boulder County stepped in with the intention to "preclude increased development and urban sprawl which would obliterate the boundaries of Lafayette and Erie." This meant that both Lafayette and Erie had to drop any legal challenges to various tracts of land - including Erie's challenge to annexing the area of Leyner. What it did was quell tensions, and for a decade there continued to be peace.

The Boulder County Super IGA

In 2003, Boulder County again acted as the intermediary during the "Boulder County Countywide Coordinated Comprehensive Development Plan Intergovernmental Agreement", also known as the "Super IGA". Almost every municipality in Boulder County was a signing member of this agreement , including every major municipality within the County (Longmont, Superior, Nederland, Boulder, Lafayette, Erie, etc.). The idea behind this agreement was that it "specifically authorizes local governments to cooperate and contract with each other for the purpose of planning and regulating the development of land". This was done in order to supplement the already existing IGA's made by various municipalities and jurisdictional entities, as well as include unincorporated areas not covered by an IGA. Just like the '94 Lafayette-Erie agreement, it was "intended to preclude increased development and urban sprawl which would obliterate the boundaries" of the signatory municipalities. Essentially, it was designed to maintain open space and rural areas so that they did not become developed upon, and to limit the competing claims made by specific municipalities. Again, what it did was quell tensions, and for another decade there continued to be peace.

Erie and Lafayette Leave the Super IGA and East Central Boulder IGA

The East Central Boulder IGA had a term of 20 years, expiring at the end of 2014. As well, within the Boulder County Super IGA, there was a stipulation where up until 90 days of the agreements tenth anniversary, any municipality could provide written notice that they would be removing themselves from the IGA. Both Lafayette and Erie decided to exercise this right and exited both agreements. Specifically for Erie, this was in part due to the interference that Boulder County had within matters of Erie's "area of influence", and also in part due to Erie's need to continue expanding and growing. From there, the competing claims and lawsuits once again began - largely all related to land surrounding the stretch of US-287 near Arapahoe Road.

Since the "Tebo" property and the "Stonehenge" subdivision are both in unincorporated Boulder County, each municipality wanted to make their claim to them, similar to the way that events were occuring back in '94. Erie however, also had its sights on using the former reservoir at the Southeast corner of Arapahoe and US-287 for something better. They initially claimed blight on the land, and then moved to "revitalize" it for commercial development.

Lafayette saw this as an intrusion to their "influence area", so approached Erie about purchasing the land. When Erie rebuffed their offer, Lafayette made a play to lay claim to the area through annexing it into their City. So to do this, and in order to get what they wanted, Lafayette did the only thing that they could - they sued Erie.

They brought a claim for the rights to the Nine Mile area on the basis of "using the land as open space to act as a buffer between the two communities", similar to the intentions laid out in the previous Super IGA and the East Boulder County IGA. The Boulder County court case was dismissed , so they moved it up to the Colorado Court of Appeals, who also denied the claim , and when that didn't work, they moved it up to the Colorado Supreme Court, who refused to hear the case . In the end, the courts ruled that it was all about development - specifically about Lafayette potentially losing sales tax revenues because King Soopers intended to move locations to the Nine Mile development. They noted that the litigation was not about the "open space buffer" as they claimed, so sided with Erie.

Additionally, Erie was attempting to receive a permit from for a full-motion turn signal into the Nine Mile development. However, CDOT said that the local municipality is the "issuing authority" for an area of road which is within a municipality's jurisdiction. This meant that Lafayette was the local municipality first issuing the permit, and then CDOT could either approve or deny the permit. Erie challenged the denial , saying that Lafayette was trying to interfere once again with their development. CDOT came back saying that they too would have denied it if Lafayette had not, since it was not within their basic guidelines.

Also while this was going on, there were rumors that the Tebo property across US-287 had intentions of annexing into Erie. In this situation, Erie did something smart. They negotiated the rights to the oil well smack dab in the middle of the Tebo property, purchasing both the land and mineral rights. It was an old well that didn't produce much oil, but it basically acted as Erie planting its flag in the land for future use, as if to say "mine!"

The First Lafayette-Erie IGA

In December of 2018, after the ruling by the Colorado Court of Appeals in Erie's favor, and before the petition for writ of certiorari was denied by the Colorado Supreme Court, for some reason, Erie reached out to Lafayette. Erie's new Town Attorney contacted Lafayette's City Administrator to talk about the various points of conflict between the two towns. The Lafayette City Attorney sat down with Erie's Interim Town Administrator and Town Attorney for a period of 2 months to create a potential global settlement dealing with the issues between the two municipalities. They drafted a potential global IGA that they thought addressed all of the points of conflict, an agreement which met the needs of both communities.

The first IGA was not great, but it still could be considered a "win" for Erie. The agreement included a 250 easement buffer, a retaining wall - if necessary - no less than 45 feet to the southern boundary of the easement, a paved drive that could extend no more than 100 feet into the easement from the north, a 60/40 tax revenue split for the Tebo property when Lafayette eventually developed the land (Erie receives 40%), created an "influence area" boundary between the two municipalities, provided attorney's fees of $440,000 to Erie from Lafayette essentially as payment for the easement, plus a few additional items. Most importantly, it did not include a tax split of the Nine Mile property.

The Second Lafayette-Erie IGA

In the January 22, 2019 Town of Erie Board of Trustees Meeting, a resolution was proposed regarding the first IGA with Lafayette. When the resolution came up on the agenda, the Board went into an executive session for 1 hour and 28 minutes regarding the IGA. When they came back, the Town Attorney said that there were modifications made, and issued the revised IGA .

The modifications included adding provisions for a water storage tank on the Tebo property - not on the Nine Mile site, removed wording that said Erie had to relinquish its mineral rights from the well on the Tebo property, added that Erie would have final approval of the Tebo site development, as well as added a provision that said Lafayette "will not unreasonably withhold approval for access permits related to improvements to the intersection at State Highway 287 and Arapahoe Road." Basically, the board tried to throw in everything that they could think of at that moment, in an attempt to ask for more concessions from Lafayette for the lengthy legal battle that had transpired.

During the public comment portion, the managing partner for the Nine Mile developer pointed out some concerns to the Board, which could impact the property's future development. These included tenant concerns, easement and encroachment concerns, as well as concerns of attracting the tenants required. The developer said that they would prefer to delay the project further in a short-term nature if it allowed for these additional concerns to be addressed.

A motion to move deliberations of the IGA to a later date was rejected and failed (vote: 2-4). Instead, the board then motioned for a vote and approved the resolution (vote: 4-2).

Then, that very same night after the Board of Trustees meeting, the Town of Erie Urban Renewal Authority Board (TOEURA) met, which also includes the same members on the Board of Trustees, plus a few additional non-Board of Trustees members. Since the litigation was between Lafayette and both the Town of Erie and TOEURA since TOEURA owns a portion of the land at Nine Mile, there was once again a resolution on the TOEURA agenda for the same IGA. Once again, the TOEURA board went into an executive session for 58 minutes regarding the IGA with Lafayette. When they came back, they moved to continue talks regarding the resolution at a later date and not vote upon the resolution (vote: 7-1).

At the Lafayette City Council meeting on February 6th, the council was supportive of this revised and proposed IGA, looking to end the animosity, and to work together. The council wanted to be able to work with Erie to "take back the power" held by developers. The council passed the resolution to approve the IGA unanimously.

Then the Colorado Supreme Court came back on February 11, 2019, saying that they would not hear the case, again judging in Erie's favor. This is where Erie then started to squeeze Lafayette, ultimately losing their control of the situation.

The Third Lafayette-Erie IGA

At the TOEURA February 12, 2019 meeting, once again there was an agenda item for the IGA. The TOEURA went into an executive session for 1 hour and 10 minutes regarding the IGA with Lafayette, then came back after, deciding to again table discussions until a later date (vote: unanimous).

This also happened during the Board of Trustees meeting later that night. The board went into an executive session for 47 minutes to discuss litigation of Nine Mile. When they returned, the meeting was adjourned.

It then also occurred in this same fashion in almost every meeting after. In total, there were 8 hours and 33 minutes of "behind closed doors" executive session discussions relating to the IGA.

March 12th: TOEURA meeting (1 hour and 2 minute executive session, followed by adjournment)
March 26th: Board of Trustees meeting (a motion passed to move the discussion of the IGA to a later date, voted 4-1)
April 9th: Board of Trustees meeting (1 hour and 31 minute executive session, discussing "water rights" related to the IGA, followed by a resolution to add this to the IGA, followed by adjournment)
April 23rd: TOEURA meeting (33 minute executive session to discuss the IGA, followed by adjournment)

At the May 28th Board of Trustees meeting, the board went into an executive session for 25 minutes to discuss the IGA with Lafayette, came back out, and discussed a resolution related to the IGA. They then passed a motion to accept this IGA (vote: 5-2).

At the June 4th TOEURA meeting, the committee went into an executive session for 39 minutes regarding the IGA and one additional item. When they returned, a vote was accepted to approve and execute the 3rd and final IGA (vote: 8-1).

What the 3rd and Final IGA included

The final IGA that was executed by both Erie and Lafayette had many changes from the first and second agreements. There were items added on both sides, largely by Lafayette, changes in the "areas of influence" which gave Lafayette much more land, the easement buffer was changed from 250 ft to 150 ft, the "paved road" that could encroach into the easement was removed from the agreement completely, the retaining wall was pushed out 35 feet to the north - which both of these items essentially reduced the amount of land initially provided in the first agreement by a mere 20 feet to 230 ft - as well as attempted to address many additional items of contention. The final IGA which was executed included the following terms:

Annexation Provissions

Influence Areas

Any annexation or servicing of water, sewer, etc. will be made by the municipality that has influence over the area
Sets rules of future "annexations" into either Erie or Lafayette
Erie received the north-side of Arapahoe to the East of Hwy-287, the "Nine Mile" area, and the "Stonehenge" subdivision NW corner of Arapahoe and Hwy-287 (unincorporated Boulder County, currently Lafayette address)
Lafayette received influence over the south-side of Arapahoe to the East of Hwy-287, a portion at the Northwest corner and the triangular plat of land at the Northeast corner of County Line and Hwy-7 - from County Line to the Boulder/Weld county border - where Lafayette's solar panel array is currently located and where they plan to expand their Water Reclamation Plant, and also received Town of Erie property - "Price Lake No 1" - at the Southwest corner of Arapahoe and Hwy-287

Future Annexations

Any application or proposal for annexation or development of any parcel within 2,500 feet of the Erie or Lafayette Influence Areas will be reviewed by both municipalities.
No annexation or development will take place until both municipalities have had time to review the proposal, and any responses must be received within 21 days.

Nine Mile Parcel Provissions

Full and Final Settlement of Litigation

The agreement looks to settle all judicial proceedings once and for all. Within 30 days of execution, both parties will move for dismissal of the case
Both parties agreed to dismissal "with prejudice", each party being responsible for its respective costs and attorney fees (except for Erie's, which is provided as payment for the conservation easement)

Grant of Conservation Easement

150 feet on southernmost end of Nine Mile project granted to Lafayette for the purposes of a "buffer" between Lafayette residential properties and Nine Mile development
A retaining wall 8 feet high must be built no closer than 80 feet from easement (if necessary)
The easement must include trees, shrubs, and native grass - at least one tree per 600 square feet, one shrub per 90 square feet. The developer of Nine Mile or its successors are responsible for the maintenance of the easement area
Once the easement has been delivered, Lafayette will pay TOEURA $476,500 for attorney fees and costs associated with legal proceedings

Tax Revenue Sharing

From the first day that a certificate of occupancy is issued by Erie, Lafayette will receive a 50/50 tax split of any sales, use, lodging, admissions, amusement, excise, and any other sales or activity based taxes
Because Lafayette has 0.5% sales tax amount that is "restricted" from sharing, of Erie's 3.5% sales tax rate, 0.5% (ie. 1/7th) of Erie's tax rate will also be considered "restricted" from sharing. In total, of Erie's 3.5% sales tax rate, 1.5% will go to Lafayette, and 2.0% will go to Erie
Any future increases to Erie's sales tax rate will still result in the tax rate, less 0.5%, and a 50/50 split of the remainder
If there are any "economic development incentives" granted to owners or developers, this will be deducted from the "net unrestricted" tax rate before the 0.5% restricted and 50/50 split. Any additional "incentives" provided (including any contributions of real property), will be shared in the same 50/50 manner
Any expenses incurred previously or in the future, including infrastructure, will be shared 50/50. Any expenses previously or in the future paid by TOEURA or Erie, will be deducted from Lafayette's share of sales taxes
Erie must report sales tax receipts to Lafayette within 60 days of the last quarterly sales tax reporting period of the year

Tebo Property

Tax Revenue Sharing

Exactly like Nine Mile revenue sharing, 3.5% lafayette sales tax rate, split after the 0.5% "restricted for purchase and maintenance of open space" is removed. The r emaining 3.0% is split 50/50 between Lafayette and Erie
Any future sales tax increases will still be split 50/50
Any "economic development incentives" will be removed prior to "net unrestricted" 3.0% tax rate to be shared
Lafayette must consult with Erie prior to entering an economic incentive agreement related to Tebo property
Any additional development expenses, including infrastructure, will be split 50/50, and deducted from Erie's share
Lafayette must report sales tax receipts to Erie within 60 days of the last quarterly sales tax reporting period of the year

Water Storage Facility

Lafayette and Erie will work together to find a location for an above-ground water storage facility (fire flow, emergency water storage, drinking water supply for Erie water customers), but Lafayette will not incur any costs to assist Erie in the acquisition or construction
The water storage facility will not be located on Nine Mile, but may be located on or near the Tebo property, and within Lafayette City boundaries. If the facility is located on Tebo property, it will be negotiated by Erie and the owner of the property

Oil and Gas Wells

Erie must close and permanently abandon the oil and gas well on the Tebo property
Within 7 days of the Tebo property being annexed into Lafayette, this closure and abandonment must begin
This is contingent upon Erie receiving 3/4 access from Hwy-287 into Nine Mile

Economic Development Cooperation

Commitment to Cooperation

Erie and Lafayette will work together to foster development of both the Tebo property and Nine Mile
Erie will not offer economic incentives to find a 2nd anchor tenant for Nine Mile until Lafayette has acquired one on the Tebo property

State Highway 287 Access

Erie will apply to DCOT for a 3/4 intersection permit into Nine Mile from Hwy-287, Lafayette agrees to support the petition for the permit
To support Erie, Lafayette agrees to amend any existing IGAs with CDOT and/or Boulder County, and State Highway 287 Access Control Plan

State Highway 7 Access - 119th / Parkdale / County Line Road

If Erie issues a permit for a "full motion" intersection for the Parkdale development, Lafayette will approve the permit
If a new intersection is approved, Lafayette will still have access to their property at the NE corner of County Line and Hwy-7 for their wastewater facility
Any improvements to County Line and Hwy-7 will be at Erie's expense, excluding improvements required for Lafayette's wastewater plant, which will be at Lafayette's cost
Erie will be responsible for 25% of the total costs for the improvements to the intersection of North 119th and Hwy-7 (total project cost estimated between $10-12 million)

Lafayette Water Reclamation Plant

Erie will not provide unreasonable objections to the expansion
Lafayette will provide odor control equipment for the plant expansion, and install visual screening of the water plant at least 6 feet in height
Erie will retain any existing water rights

Lafayette Re-use Main

Erie will cooperate with Lafayette in their current re-use main traversing the future Parkdale development, extending to Lafayette's Goose Haven Reservoir, but Erie will not incur any expenses with the design or construction

Disconnection/Annexation of County Line Road

The triangular portion North of Hwy-7, between County Line Road and the Boulder/Weld county line is currently within Erie jurisdiction
This area will be disconnected from Erie, and annexed into Lafayette

General Items

Controlling Regulations / Term and Effective Date

Nothing in this agreement shall limit Erie's nor Lafayette's authority over land use decisions
Remains in effect for 10 years, may be terminated if any part of the agreement is unenforceable
The agreement automatically renews for an additional 10 years, unless between 90-180 days before end of term, either party decides to not-renew

What Happened to Get to this IGA

In the end, Erie's board majority became to greedy. They started asking for more and more concessions, which in turn emboldened Lafayette. Instead of taking the "win" as it was at the beginning of February, Erie continued to add additional items, dragged their feet in signing the agreement, resulting in what many could see as a "loss."

You may ask, "what did the Lafayette City Council do during this entire time?" After the February 6th meeting, there were almost no conversations regarding the item at the City Council meetings. They had had an executive session for 59 minutes on April 2nd, and then on June 4th brought the IGA up for a vote. During the meeting, the City Attorney made this comment:

"What is proposed is a 50/50 tax sharing revenue. This is a bold proposition, but what it does is it reduces competition and reduces the requirement to provide incentives. In essence, a 50/50... sharing creates a level playing field... It also drives a higher and better use for both communities within both of the areas, we feel. And will work to attract a diversified portfolio of developers and revenue generators. The 50/50 sharing was really a game changer during discussions with our respective communities, which really I think, got us to where we are today with favorable consideration, hopefully, of this agreement."

The City Attorney went on to say that two items within the agreement - Erie's abandonment of the oil well on the Tebo property, and the 3/4 turn access from US-287 for Nine Mile - were "particularly important in order to make sure that these two areas developed as needed. That really opens up a lot of doors." What this means is that as the conversations progressed, Lafayette used Erie's petition for access from US-287 into Nine Mile as a bargaining chip. While they are the "issuing party" for access permits, the first agreement that was accepted by Lafayette's City Council already indicated "Lafayette is prepared to formally intervene in the administrative proceedings" and that they would "not unreasonably withhold approval for access permits related to improvements to the intersection at State Highway 287 and Arapahoe Road", while also including provisions related to the access point for the Parkdale development. But again, since Erie started to ask for too much, in order for Lafayette to grant the permit, as well as to advocate to CDOT on Erie's behalf, they required that Erie abandon and cap the current oil well, which was in essence asking Erie to remove the flag that they planted in the middle of the Tebo property.

As the City Attorney then continued on, the water supply was noted, although this item was already included in the first agreement. They also then said that because the Colorado Supreme Court had refused to hear the case, the buffer easement was not going to happen initially, but it was negotiated as an inclusion into the IGA, in exchange for payment of the attorney fees provided of $476,500.

You might now ask, "how much is the land actually worth?" since it was never provided in any of the Town of Erie meetings, as Town staff did not know the answer since they had not looked into it. Based on the Boulder County Assessors "Actual Value", a 150 foot easement buffer along the approximately 1373 foot southernmost line of the Nine Mile development is worth approximately $215,696.98 (including land and structure), and $164,089.24 for just the land alone. When you add in the 8 foot tall retaining wall no closer than 80 feet away from the easement that now does not include a potential paved driveway, essentially creating a buffer of 230 feet, this land is worth approximately $330,735.36 (including land and structure), and $251,603.51 for just the land alone.

While Erie still technically owns the land, this means that Lafayette basically paid this amount for the easement buffer - which would have never been provided if this IGA wasn't negotiated - and Lafayette reimbursed Erie for attorney fees in the amount of $145,764.64‬ (land and structure) or $224,896.49 (land only). These amounts are below the $250,000 that Erie had originally petitioned to the courts for Lafayette to reimburse due to attorney fees, in addition to the additional fees which Erie could have also requested at a later date.

Finally, the City Attorney acknowledged that Erie agreed to support Lafayette's 2020 expansion efforts of their wastewater facility at the northeast corner of County Line and CO-7, which was originally within Erie's influence area.

Conclusion

In the end, the IGA first accepted started as a "win" for Erie, but over time, became what can be viewed as a "loss." Both the Lafayette City Council and the Erie Board of Trustees approved the revised agreement (noted earlier as the 2nd IGA). But then when items were pointed out which could potentially negatively effect Erie, the board majority kept asking for more, and then asking for more, and then continued to a point where they just basically threw their hands up and gave in to Lafayette. If you watch the June 4th Board of Trustees meeting, the board majority basically gave up. They did not want to negotiate anymore.

For any and all of Erie's future IGA's, it is important that negotiations must be completed so that they continue to benefit the Town's residents - not so that many concessions are made in order to add one or two additional items. In the case of the Lafayette/Erie global IGA, this is exactly what happened. I do not believe the Board majority understands how negotiations work, nor do I believe that the Board majority is capable of making negotiations properly. Yes, they did create a document which works to end the battles with Lafayette that extended many years - I will give them that. But as you see how the progression of this IGA went on, it is obvious to tell that it ended up being a "loss" for Erie. They let Lafayette once again take advantage of them, and it ended with an IGA which gave away too much at the cost of Erie residents.

Erie must do a better job of restoring relationships with other local jurisdictions - including local agencies, municipalities, and counties. We are currently on a path with some municipalities where they will not even come to the table anymore because of the actions taken by our current and previous boards. We have had to end up litigating many disagreements which should have been properly negotiated in the first place. This has resulted in legal costs of approximately $2,000,000 since 2018, including the expenses appropriated within the 2020 Town budget.

This is one of the many reasons I am running for Trustee. Erie needs a leader who is from the business world. A leader who has been part of negotiations before and who understands that negotiations, especially when started by the party who has "the power" or upper hand in the first place. Yes, there should be some concessions provided - this is what a negotiation is - but they should always end up in where the party who has the legal power backing them to be the prevailing party at the end. In negotiations, if you create an agreement, add additional items to it, and it is accepted, you should accept the agreement, then later add amendments if necessary. What the current board did was started in a position of strength, and then worked backwards - instead of the other way around.

Topic for Next Week: Candidate Q&A - Reader Submitted Questions ( submit your questions here )

Home Rule: Erie - What Is It, What Can It Do, What Can't It Do, Why Erie Shouldn't Do It (yet), and How Water is Involved (Again)

Fri, 14 Feb 2020 04:35:30 GMT

If Home Rule isn't currently on your mind, it will be soon. The Town's Board of Trustees are trying to fast track it, without understanding what it actually does. This article explains the process, what a home rule charter does and does not allow, why Erie isn't ready for it (yet), and how water is involved in the discussion yet again

Summary

I do not believe that the Town of Erie is ready for home rule. While I do in fact envision that it is something which should be completed within the next 3 years, I do not believe that the Town is currently in a position to properly initiate, create, or assert their governing power through a home rule charter.

Home rule is intended for municipalities which have outgrown their current municipal ordinances and town codes. It is meant to be a tool that is used to add to their already enumerated powers of local governance, only after the Town has fully extended and exacerbated their current abilities within their Town's ordinances and provisions. It is not meant to be used as a tool for a governing body to exert their authority over others within their jurisdiction on specific matters that are important only to those leaders.

I believe that the current Board of Trustees is misinformed and misguided as to the abilities that they currently have at their disposal, as well as to their understanding of what home rule really is. T he Town should first and foremost fully utilize their already existing abilities and powers of governance that are constitutionally provided to the Town as a statutory municipality.

This starts by first adding, amending, and repealing specific items within the Town's municipal code and Uniform Development Code, creating a comprehensive and fully outlined set of Town municipal laws that can later be added upon from a home rule charter. The Town does not currently have the resources at Town Hall to properly attend to the resulting effects that a home rule charter would bring. As well, the Town certainly does not have the proper oversight or leadership from the Board of Trustees necessary, and there is not enough trust with the current Town government to prove that this will be beneficial or in the best interests of the residents.

If the current Board of Trustees attempts to move forward on fast-tracking a home rule charter initiative - as they have already begun to - without addressing and completing the necessary steps prior for navigating this new direction for the Town, I believe that they will be providing a great injustice and immense disservice to the residents of Erie. I for one, do not support their actions, nor do I support this initiative in its current form. This is why I am running for Trustee - in order to provide the leadership and vision necessary that is Forward Thinking for Erie's Future!

What is Home Rule

"Home Rule" provides the method for municipalities to assert control over their local matters. This local control is provided by the state, and does not include items that are "state matters". A home rule charter creates both the functional and structural means for a local municipality to govern. This includes, among other items, laws on zoning, property, taxes, finances, utilities, elections, eminent domain, special districts, municipal courts, pollution, development, bonds, health, and safety.

The difference between our current "municipal code" and a "home rule charter" is that we currently have to follow state laws for everything. Within a charter, the Town would be able to create specific laws that deviate outside of state laws, either as more or less restrictive. The process to initiate, develop, and elect a home rule charter is long and arduous, and requires both the full involvement and support of the Town's residents along the way. The home rule charter is ultimately "the end-all, be-all" for the Town, and must be completely and comprehensively outlined, immediately at initial adoption.

The Process

From beginning to end, and depending on if the first charter submitted for a vote is rejected and then re-proposed, the entire process can take approximately 2 to 3 years.

The Initiative is Created

Board ordinance or Resident petition

The 1st Election - Two Items to Vote Upon

Form a charter commission
Vote for the commission members
If rejected, a new initiative on the same matter can not begin for at least a year

The 2nd Election - Voting on the Proposed Charter

The commission members develop the charter, which is then voted upon
If the first proposed charter is accepted, it becomes law
If rejected, the commission goes back to work to re-propose a new charter

The 3rd Election - Voting on the Re-Proposed Charter (if needed)

The re-proposed charter is voted upon
If rejected again, the commission ends
If rejected, a new initiative on the same matter can not begin for at least a year

Amending or Repealing the Charter

To amend the charter, it must be approved by over 50% of voters during an election
To repeal the charter, it must be approved by over 50% of voter during an election

What a Charter Can and Cannot Do

What a Charter Can Do

Set their own procedures for the initiative and referendum of measures
Recall of officers or special-appointments
Municipality can call itself either a “Town” or a “City”
How the governing body is formed, the type of body, how elections are scheduled
Expands ability to claim eminent domain, seizures, and condemnation of both public and private property
Set own campaign finance and reporting laws
Adopt provisions for local elections
Self-collection of taxes
Expands taxing abilities
Full control to govern and regulate public utilities
Greater control over the municipal court and municipal judges
Residency restrictions of municipal employees
Set their own debt limits
Set own bond practices and types of bonds issued
More protective or stricter drilling and fracking regulations (excluding outright bans)
...and much more

What a Charter Cannot Do

Still would need to request tax changes or increases through a ballot measure
Can not destroy any property rights, contract rights, or right of action (civil, criminal, vested)
Prior rights previously existing still remain
No influence over any property outside of its jurisdictional boundaries
Still unable to make its sales tax lien superior to the commercial lien of a private lender
Can not reduce or interfere with collection of state tax
Can not set rent control laws on private residential housing units
Still unable to place an outright ban on drilling and fracking activities
...and much more

Home Rule for Erie

Erie is currently the largest statutory municipality within Colorado with a population of 30,000 residents. During the 2019 Community Survey , residents were asked if home rule should be a priority, and it came in second to last among all of the topics that were listed.

The question asked "How much of a priority, if at all, should it be for the Town of Erie to do each of the following?", either noting it as "high priority", "medium priority", or "low priority", or "I don't know". The question listed "home rule" 2nd out of 6 items.

Only 60% of survey respondents even provided a "priority level" response for the question at all (529 responses with a "priority level" indicated, 851 in total who responded in any way to the question out of a total 896 surveyed). All of the other items that were listed for that question received between 821 and 856 responses which indicated a "priority level".

Of the 529 that responded to a priority level:

High Priority: 16% of the votes (86 out of a total 529)
Medium Priority: 44% of the votes (233 out of a total 529)
Not at all a Priority: 40% of the votes (210 out of a total 529)

Then, if you include the "I don't know" (a total of 851 responses for that question, out of 896 total respondents to the survey)

High Priority: 10% of the votes (86 out of a total 851)
Medium Priority: 27% of the votes (233 out of a total 851)
Not at all a Priority: 25% of the votes (210 out of a total 851)
I don't know: 38% of the votes (a total of 322 out of a total 851)

This is VERY telling to begin with. It means that 38% of residents do not understand what home rule actually is to begin with. In terms of "ballot voting", if someone does vote and provides a response to a ballot measure, but does not understand what the topic is, they are inclined to vote "no".

Then, it also means that 52% of residents do not believe it is a "high priority" at all. In terms of "ballot voting", if someone does vote and it is not a "high priority" to them, they are inclined to vote "no".

Recently, I distributed a survey asking residents about their thoughts on home rule. What I found is that either residents do not support it, or they simply do not know what it is (which is exactly what the community survey indicated).

Both of these lead me to believe that Erie is not ready to vote upon "home rule" this year. I believe that it should be placed on a ballot next year (or possibly even the year after) to initiate the formation of a home rule charter commission, but I think that the board is mistaken if they believe the Town will be ready this year.

Yet even still, the Board of Trustees have already begun to initiate the home rule process on their own, without the support or consent of the residents. So the question is: how did we get to the point where funding has already been appropriated for this initiative?

The home rule discussion first began as a Town staff report during the August 27, 2019 Board of Trustees meeting, and continued in the Board of Trustees "Study Session" held on September 17, 2019 . A staff presentation was made at the October 22, 2019 Board of Trustees meeting with an Action Plan . At the same meeting, the 2020 Budget was approved, which included appropriations for the 2020 Home Rule initiative. Finally, the Board of Trustees began the "Community Engagement" portion of the initiative, through a resolution which was submitted and approved by the Board of Trustees at the January, 28, 2020 meeting, hiring a consulting firm for $49,411. 85.

So a new question has to be asked: why are certain members at Town Hall pushing home rule so hard?

The answer is once again.... water. Under Article XX, section 6 of the Colorado Constitution, a home rule municipality is provided the right to "The consolidation and management of park or water districts in such cities or towns or within the jurisdiction." As the table below shows, based on the Comprehensive Annual Financial Reports from 2004 through 2018 , "Business Type Activities" (ie. "enterprise fund - water, wastewater, storm-drainage, et. al.) activities have resulted in $90.8 million more revenues for the Town than "Government Activities", and account for 61% of the Town's net position.

Just as I have noted before in my previous articles , the Town is very reliant on water. Based on the Statement of Activities reported above, and based on the amount of cash currently on hand from the September 2019 financial report ($149.9 million total held: $57.9 million by investment advisor, $92 million directly), this means that beyond the reserves the Town is legally mandated to maintain (reserves include 25% of annual enterprise fund operating and maintenance expenses, 2% of enterprise fund capital assets, 50% of general fund operating expenses, plus additional $7.5 million for general fund), the remainder of the funds currently held is essentially entirely from water, wastewater, and storm-drainage activities - and it can not be used except for those purposes .

Since the Town owns the water district, and is also the registered agent for the Town of Erie Financial Corporation, per the Secretary of State's website, this means that all activities - including bonds, finances, water districts, town operations, and all other items currently separated within the budget - are able to be consolidated, since this would be a "local matter."

Additionally, the charter could also allow the town to, as noted in the Town's staff report , "simplify or otherwise revise procedures for budget and appropriation adoption, amendment and transfer of funds", which would make it easier for them to move funds between accounts.

Conclusion

While home rule might sound like a great idea, there are too many unknowns, and there is too much distrust currently in those at Town Hall and with the Board. There are steps which should have been taken in the past, policies and procedures which should have been set, rules and regulations which should have been implemented, and they have not been. Once the Town is able to prove that we can govern ourselves within our current form, then we can have a conversation of a home rule charter. Now is not that time.

If you want to read more about home rule in detail, click here

Topic for Next Time: IGA / Local Government and Agency Relations

*Just a side note to all of the items that I discuss: I am a solutions driven problem solver by nature. I wonder how things work, why they work the way they do, and how to make them better. This means seeking different, outside-the-box methods to figure out solutions to various issues. Accordingly, I am always open to learning new ideas, different ways of doing things, as well as constantly learning from others' experiences to make better decisions. When I see an issue, I view it in a holistic fashion, and then dive into specific areas to remove deficiencies and create efficiencies. If you, who are reading this, have some thoughts or ideas about any of the subjects I discuss, I would be more than happy to speak with you to hear your opinions. Please reach out to me here through my website. Listening, hearing, and understanding different perspectives is the only way that we can all grow and create positive change - by learning from others, and delivering ideas that push the needle to become Forward Thinking.

Home Rule: All of the Information you would want to know about it (and more)

Fri, 14 Feb 2020 01:42:27 GMT

Home Rule is important, and deserves a discussion on all of the items related to it. This article goes in-dept, explaining the process, what it can and cant do, as well as the history behind it.

What is Home Rule

"Home Rule" is a constitutionally protected provision within the Colorado Constitution, providing the method and means for municipalities to assert any and all governance or control over their local and municipal matters. However, this local control is provided by the state, and is negated for specific items and activities that the state deems as a "state matter". If an item is specifically noted within the state constitution, a state statute, a state rule or regulation, or deemed to be a "state matter" through judicial proceedings taken on by the Colorado Court of Appeals or Colorado Supreme Court, the local municipality can not supersede state law, regardless if there are provisions or ordinances within the home rule charter.

The process to initiate, develop, and elect a home rule charter is long and arduous, requires the full involvement and support of the Town's residents at multiple steps along the way, and must be followed "by the book." Since the power of governance and control over these specific local or municipal matters are only conveyed if the home rule charter specifically includes these items, any and all items that should be in the charter must be initially adopted within the charter to begin with. While there are in fact a great number of areas and topics that a home rule charter can affect, if the items are are not specifically included upon the initial adoption of the charter, any amendment, addition, or repeal of any provision or ordinance must again be initiated and placed before the voting residents during an election. If a specific ordinance or provision is not included or added within the home rule charter, state law will still dictate, govern, and regulate the local municipalities actions as it relates to specific topics.

Furthermore, the home rule charter as well sets the methods, actions, and provisions related to the governing body, municipal courts, Town staff, taxing bodies, public utilities, and every other individual and organization in between where the municipality has the legal rights conveyed to them through the home rule charter. It is this living document that not only includes provisions as to how the new government will be initially formed, but as well dictates the progression and future for all of these members within the community. The home rule charter is ultimately "the end-all, be-all" for the Town, and must be completely and comprehensively outlined, pertaining to every seen and unforeseen activity, immediately at the inception and initial adoption.

History of Home Rule

Colorado is one of 30 states that are recognized as "home rule" states. Of the 271 total municipalities within Colorado, there are a total of 96 which are governed under the distinction as "home rule" municipalities (61 cities and 35 towns), including Broomfield, Brighton, Boulder, Dacono, Federal Heights, Lafayette, Longmont, Louisville, Northglenn, Thornton, and Westminster.

Home rule, at its core, only provides municipalities with the powers that are granted to them by the State ( Dillon's Rule ). Any items that are deemed "state matters", or items in the future decided to be "state matters" by the Colorado Supreme Court, would default back to State statutes. Federal and state laws that address matters beyond local concern still apply.

In 1912, Colorado began allowing towns and cities to become "home rule" municipalities" under Article XX Section 6 of the Colorado Constitution. This article grants municipalities with the full right of self-government in both local and municipal matters, and provides certain powers that provide the municipality and its residents the ability to exercise these rights. While the Colorado State statutes still apply to these municipalities, they are superseded by the charters or ordinance passed within the home rule charter. The charter allows for a municipality to retain the powers for administration and governance of the local municipality, including the power to legislate upon, provide, regulate, conduct and control the following:

Then, the Municipal Home Rule Act of 1971 ( C.R.S. 31-2-201 ) allowed any and all municipalities to decide on the option of home rule, providing the specific paths for adoption. It laid out exactly what the process was, the steps necessary to move forward with the initiative, as well as how the charter would be formed.

After the state began allowing municipalities to adopt home rule, statutes and court rulings began to reflect which activities were or were not within the state's purview. While the home rule charter allows for any local ordinance addressing a matter to supersede a conflicting state statute, this is only after the matter is determined to be of a local and municipal concern. If the state determines that it is a "state matter" and "in the interest of the state", then the charter can not supersede state law.

The charter allows a municipality to define their own local laws that could be more stringent or lax than State laws (depending on specific area/topic), to have the power to make relevant legislature and exercise control over issues of “local concern” with minimal state intervention, and to have more flexibility and control to address foreseeable changes and citizen desires. This is noted within many state laws, which include the disclaimer "within any limitations provided by the applicable provisions of the state constitution and, in the case of any home rule municipality, the applicable provisions of its home rule charter". There are a vast number of items and topics that a charter can do and can affect for a home rule municipality, yet there are also very specific activities that it cannot do because of State statutes, or specific items that have been deemed "state matters".

The Process

From beginning to end, and depending on if the first charter submitted for a vote is rejected and then re-proposed, the entire process can take as little as a year, or up to a maximum of 2 to 3 years. First begins the initiation of the home rule process, then a charter commission is elected. After the commission is formed, the commission members develop the charter, which is then voted upon. If the first proposed charter is accepted, it becomes law on the effective date noted within the charter. If the first proposed charter is rejected, the commission goes back to work to re-propose a new charter, which is then voted upon again. If this re-proposed charter is rejected, the commission ends and a new home rule initiative can not begin for at least a year.

Beginning the Initiative

Home Rule may be initiated for a municipality through one of two ways:

A petition signed by 5% of registered voters within the municipality § 31-2-204 (1-a)
The Board of Trustees adopt an ordinance to begin without a petition submitted by residents § 31-2-204 (1-b)

Within 30 days after initiation: Board of Trustees calls for an election to form a Charter Commission, and to elect members of the commission, in order to create a Home Rule charter § 31-2-204 (2)
Not less than 60 days prior to election: Board of Trustees issue a public notice for the election of Charter Commission § 31-2-204 (2)
Within 30 days after public notice of call for election: Nomination petition and candidate affidavits must be received by the Town Clerk. To be a nominated candidate, the petition requires the signatures of at least 25 registered voters. § 31-2-204 (3)
As soon as possible after nomination petitions received: The Town issues a second public notice, noting the names of candidates who are nominated and running for election to the Charter Commission § 31-2-204 (3)
Within 120 days after call for election: Election held for the charter commission and the individual members § 31-2-204 (2)

The 1st Election - Two Items to Vote Upon

Within the first election, there are two separate items which will be voted upon:

Voters are asked if the formation of a charter commission should be initiated, where a majority (over 50%) is required to initiate the formation § 31-2-205 (1)
Voters are asked to elect the individual members of the commission who will frame the Home Rule charter. The individual candidate(s) receiving the most number of votes wins election. § 31-2-205 (2)

In the event of a tie, the Town Clerk performs a lot draw to select who is elected

Forming the Charter Commission

The Charter Commission, and the eligible Candidates who will appear on the election ballot, are comprised of members who are registered voters and who reside within the municipality § 31-2-206 (3)
The Charter Commission is comprised of anywhere from 9-21 members (must be an odd number). The actual number of Commission members is specified by the initiating petition, or defined in the ordinance by the Board of Trustees § 31-2-206 (1-b)
The composition of the individual members for the Commission can be specified in one of three ways, and is determined within the petition or ordinance that initiated the process: § 31-2-206 (2)

Members selected “at-large” from the Town as a whole, regardless of where they live within Erie
Town split into districts of equal population, an equal number of members are elected from each district, and are voted on by residents of those specific districts
Combination of “district” and “at-large” members, voted on by residents of those specific districts, as well as voted on Town-wide as a whole for “at-large” candidates

Any vacancies that arise on the Charter Commission shall be filled through appointment by the Board of Trustees § 31-2-206 (3)
If the formation of a commission is rejected, a new initiative to begin the same process can not be started until at least 12 months after rejection, and the entire process would need to restarted from the beginning, starting again with a resident petition or Board of Trustees ordinance to initiate the process § 31-2-214

What the Charter Commission Does

The Board of Trustees sets a date and time when the elected Commission must first meet, no later than 21 days after being elected § 31-2-206 (4)

Select a Chairman, Secretary, and other officers as deemed necessary, from members of the Commission
Adopt rules of procedure for its operations and proceedings

A majority of the commission members in-attendance constitutes a quorum for transacting business § 31-2-206 (4)
All future meetings are open to the public, and are called upon by the chairman or a majority of the members § 31-2-206 (4)
In order to prepare the charter, the Commission can conduct interviews, make investigations, request help/information/assistance from the Board of Trustees and Town staff (which must be provided within reason) § 31-2-206 (8)

Funding and Expenses of the Commission

The Town’s “General Fund“ is used to pay expenses § 31-2-206 (7)

Reasonable expenses of the Commission paid after written verification made by the Chairman and Secretary
The Board of Trustees must provide supplemental appropriation ordinances, as deemed necessary,y to support the expenditures
Members of the Commission are not compensated, but are reimbursed for actual and necessary expenses incurred in performing their duties

The Board of Trustees may accept funds, grants, gifts, and services for the commission from the state of Colorado, or the United States government, or any agencies or departments thereof, or from any other public or private source. § 31-2-206 (6)
The Commission may employ a staff, consult and retain experts, and purchase, lease, or otherwise issue expenses for such things as supplies, materials, and equipment, as it deems necessary. § 31-2-206 (5)
Upon completion of its work, the commission shall be dissolved, and all property of the commission shall become the property of the municipality

The 2nd Election - Voting on the Proposed Charter

The Charter Commission must hold at least one public hearing in preparation of a proposed charter § 31-2-206 (9)
Within 180 of their election: the Charter Commission must submit the proposed charter to the Board of Trustees § 31-2-206 (10)
Within 30 days after submitting the proposed charter: The Board of Trustees provides public-notice of a charter election, voting on whether to approve the proposed charter § 31-2-207 (1)
Within 60 days after providing public notice of the charter election: The Board of Trustees must set the ballot title for the proposed Charter § 31-2-207 (1.5)
Within 60-185 days after providing public notice of the charter election: The election whether to approve and adopt the charter must take place § 31-2-207 (1)
Alternative provisions with the Charter may be submitted and voted upon as separate items by the Town’s voters. The alternative provision receiving the highest number of votes, if approved by a majority of the registered electors voting, is approved § 31-2-215 (1)

If there are conflicting provisions that are not submitted as alternatives, the one which receives the greatest number of votes is accepted § 31-2-215 (2)

If a majority (over 50%) of those who vote on the charter ballot item vote in-favor of it, the Charter is approved and it becomes effective on the date that is outlined and provided within the charter § 31-2-207 (2)

Within 21 days after its approval: A certified copy of the charter is filed with the Secretary of State and with the Clerk § 31-2-208 (1)

If a majority (over 50%) of those who vote on the Charter ballot item, vote to reject the Charter, the Charter Commission re-starts preparations for a revised proposed charter, and moves to a 3rd charter election § 31-2-207 (3)

The 3rd Election - Voting on the Re-Proposed Charter (if needed)

The process prior to this is exactly the same as “What the Charter Commission Does”
The election is exactly the same as “The 2nd Election”, however, this is the final opportunity to approve a charter
If a majority (over 50%) vote in-favor of it, the re-proposed Charter is approved and becomes effective on the date that is outlined and provided within the charter § 31-2-207 (3)
If a majority (over 50%) vote to reject it, the Charter Commission is dissolved § 31-2-207 (3)

If the re-proposed Charter is rejected in this 3rd Election, a new initiative to begin the process can not be started until at least 12 months after rejection, and the entire process would need to restarted from the beginning, starting again with a resident petition or Board of Trustees ordinance to initiate the process § 31-2-214

Amending or Repealing the Charter

After the Charter has been approved, in order to amend the charter: § 31-2-210 (1)

Must be started one of two ways:

Either a petition must be circulated by residents, with text stating the proposed change,

For a regularly election held every odd-year: signed by at least 5% of the registered voters within the municipality
For a special election: signed by at least 10% of the registered voters within the municipality

Or through an ordinance adopted by the new governing body, stating the proposed amendment and the proposed ballot title

Once voted upon, if a majority (over 50%) of the registered voters within the municipality vote in favor of amending the charter, it is approved, and goes into effect as outlined in the amendment § 31-2-210 (6)

After the Charter has been approved, in order to repeal the charter: § 31-2-210 (2)

Must be started one of two ways

Either a petition must be circulated by residents, with proper text stating to repeal or form a new charter commission,

For a regularly election held every odd-year: signed by at least 5% of the registered voters within the municipality, filed at least 90 days prior to regularly scheduled election
For a special election: signed by at least 10% of the registered voters within the municipality, filed at least 90 days prior to anticipated scheduled date of special election

Or through an ordinance adopted by 2/3 of the new governing body, stating the proposed repeal, or formation of a new charter commission that is again elected by the residents within the municipality

Once voted upon, if a majority (over 50%) of the registered voters within the municipality vote in favor of repealing the charter, the charter is repealed, and the town must begin to proceed with reorganization of the Town’s municipal code § 31-2-210 (6)

After receiving an amendment or repeal petition, the current governing body would certify that the petition is valid and sufficient of such a petition § 31-2-210 (3)

If the petition is deemed insufficient or invalid, the election on the question of amending or repealing the charter is cancelled

If an amendment or repeal of the charter is rejected, a new initiative to begin the same process can not be started until at least 12 months after rejection, and the entire process would need to restarted from the beginning, starting again with a resident petition or Board of Trustees ordinance to initiate the process § 31-2-214

What a Charter Can and Can Not Do

What a Charter Can Do

Allows the municipality to set their own procedures for the initiative and referendum of measures, and for the recall of officers § 31-2-212
Allows for the municipality to call itself either a “Town” or a “City” (Erie may reclassify itself as a “City”) § 31-2-216
Allows for the municipality to indicate exactly how the governing body is formed, the type of body, how elections are scheduled, how recall or special-appointments are completed, and other governing body related items. § 31-1-102
Allows the municipality to set their ordinances or provisions which increase their influence over property located within their jurisdictional boundaries, including their claims to eminent domain, seizures, and condemnation of both public and private property § 38-1-101, § 38-1-201
Allows for the municipality to set their own laws pertaining to campaign finances and reporting, or other campaign related items, which would supersede state statutes, rules, and regulations, whether they are or are not more stringent than state (this could potentially include ordinances or provisions that are more lax on items, as compared to state law - such as "the prohibition of corporations or labor organizations from making contributions to a candidate committee or political party, and from making expenditures expressly advocating the election or defeat of a candidate" as outlined in Section 3(4)(a) of Article XXVIII - which could remove these restrictions for candidates seeking office within the municipality) 8 CCR 1505-6 Rule 14 & No. 03-1 - AG Alpha No. ST EL AGBAS - January 13, 2003
Allows for the municipality to adopt provisions for local elections that are more stringent than any of the State provisions § 1-45-116
Allows for the municipality to self-collect taxes, where the municipality would administer, collect, and distribute taxes on their own, including, but not limited to sales, use, excise, and special taxes § 29-2-107
Allows the municipality to set ordinances or provisions that pertain to their taxing abilities (including types, rates, amounts, and any other specifics related to taxation) § 29-2-107
Allows for the municipality's use tax laws to take preeminence, where state statutes are deemed inapplicable when in conflict with a home rule municipalities laws, such as an excise tax constituting a one time use fee imposed on a privilege at the time the privilege is exercised § 29-2-109
Allows for the municipality to request that the Colorado Department of Revenue still administer, collect, and distribute sales tax for Erie (including reporting, filings, etc.). Taxation must still follow the States "Uniform Collection Procedures“ § 29-2-106
Allows for the municipality to create specific ordinances and provisions that give them the full control to govern and regulate all of the rates, charges, and tariffs of every public utility within its jurisdiction - almost entirely negating the jurisdictional powers of the state's Public Utilities Commission when the charter gives control to the municipality § 40-3-102
Allows for the municipality to provide qualifying retail utility providers the authority to condemn or exercise the power of eminent domain over any real estate, right-of-way, easement, or other rights, pursuant to their generation facilities of a renewable energy system used to meet the electric resource standards § 40-2-125
Allows for greater control over the municipal court and municipal judges, including the tenure, appointment, and removal, including specifics such as “removal at the will of the city council” § 13-10-103
Allows for ordinances or provisions regarding the residency restrictions of municipal employees, including the maximum distance away that they can live, or if they must live within the municipality’s boundaries (however, the charter must not contain inconsistent provisions or state law will preempt this) § 8-2-120
Allows for the municipality to set their own debt limits, bond practices, and types of bonds issued, including, but not limited to general obligation bonds, revenue bonds, special assessment bonds, and special obligation bonds, including for the issuance of bonds on behalf of their special authority bodies, such as the Urban Renewal Authority § 31-25-112
The charter still allows, just as a statutory municipality is currently able to, for more protective or stricter requirements related to local drilling, fracking, oil, and gas regulations (still excluding outright bans) § 34-60-131

What a Charter Cannot Do

In order to increase taxes, impose a new tax, increase mil levies, or any other tax policy change that would directly cause a net tax revenue, the municipality would still need to request tax changes or increases through a ballot measure on the next odd-year election, or through a special election § 1-41-103
Adopting a charter does not provide the right to destroy any property rights, contract rights, or right of action (civil, criminal, vested). Prior rights that were previously existing or were granted by the municipality before the adoption of a charter still remain, and the charter can not affect those rights existing beforehand between the municipality and any person § 31-2-217
The municipality would still be unable to claim eminent domain, seize, condemn, or have any influence over any property outside of its jurisdictional boundaries § 38-1-101
The municipality would still be unable to make its sales tax lien superior to the commercial lien of a private lender, except in regards to liens placed for unpaid sales taxes § 29-2-107 & TOWN OF AVON v. WESTSTAR BANK, 2002
The sale of construction and building materials, the sale of tangible personal property at retail or the furnishing of services, and the sale of any food for domestic home consumption (excluding prepared food or food for immediate consumption), would still be nontaxable, either in general or if previously paid to another entity § 29-2-105
A charter, amendment, or measure can not reduce the state tax rate, or interfere in any way with the collection of state taxes Colo. Const. Art. XX, Section 5
A charter does not allow for a municipality to set rent control laws on private residential housing units § 38-12-301
The municipality would still be unable to enact or impose upon commercial pesticide applicators any notification requirements which are more stringent than State law. However, the municipality would still be able to enact or impose notification requirements for private individuals, property owners, and the general public § 35-10-112
The municipality would still be unable to place an outright ban on oil and gas or fracking activities, or to totally exclude all drilling operations within city limits, since these activities have been deemed to be in the “state’s interest”, and the state specifically prevents a home-rule city from exercising its land-use authority. § 34-60-106

Home Rule for Erie

Erie is currently the largest statutory municipality within Colorado with a population of 30,000 residents. Within the 2019 Community Survey , residents were asked if home rule should be a priority, yet it came in second to last among all of the topics that were surveyed.

Of the 529 that responded to a priority level:

High priority: 16% of the votes (86 out of a total 529)
Medium priority: 44% of the votes (233 out of a total 529)
Not at all a priority: 40% of the votes (210 out of a total 529)

Then, if you include the "I don't know" (a total of 851 responses for that question, out of 896 total respondents to the survey)

High Priority: 10% of the votes (86 out of a total 851)
Medium Priority: 27% of the votes (233 out of a total 851)
Not at all a Priority: 25% of the votes (210 out of a total 851)
I don't know: 38% of the votes (a total of 322 out of a total 851)

Recently, I distributed a survey asking residents about their thoughts on home rule. What I found is that either residents do not support it, or they simply do not know what it is (which is exactly what the community survey indicated).

Yet even still, the Board of Trustees have already begun to initiate the home rule process on their own, without the support or consent of the residents. So the question is: how did we get to the point where funding has already been appropriated for this initiative?

The home rule discussion first began as a Town staff report during the August 27, 2019 Board of Trustees meeting. 19-398. The staff member specifically stated during the staff report that the item added to the agenda was "mostly just a heads up for (the board), we didn't want you to be surprised when (CIRSA came to present on the topic) and (have you) feel like oh, this is the first time that we're seeing this, we have to do something. It's a pretty tight schedule - if you're interested in pursuing home rule - so we wanted to give you a head up." Town Staff then proceeded to say that they had already scheduled a date in September for the Executive Director of CIRSA to present, specifically pertaining to the topic of home rule.

In the Board of Trustees "Study Session" held on September 17, 2019 , the same Town staff member who provided the staff report in August, said that "this was one of the issues that you had listed on your 2019 work plan as needing more information on. We brought a quick summary of the issue to you a few weeks ago, in your packet. The board had asked that we arrange for a representative from CIRSA to come talk about home rule - the pros and cos, and background, and procedures, and timelines for things, so we could have a more robust discussion about what it would take, why we might do that. So we engaged (CIRSA)."

First off, if you look at the 2019 Work Plan Priority List issued by the Board of Trustees, based on the "priority level" that the board made, the "Home Rule" topic was noted, according to its priority level, number 38 out of a possible 47 topics, with a "relative priority" level of 1 (the highest was 13, the lowest was -2), and a "community engagement level" of 1 (the highest was 5, the lowest was 1). However, the detailed plan , as outlined by the same Town staff member who I noted above from the August and September Board of Trustees meeting, noted this as a "Level 5: Empower interested parties" in terms of the "engagement score" that they believed this initiative should be.

Then, at the October 22, 2019 Board of Trustees meeting, the Action Plan was presented for the home rule initiative, as well as the 2020 Budget was approved, which included appropriations for the 2020 Home Rule initiative. Finally, the Board of Trustees began the "Community Engagement" portion of the initiative, through a resolution which was submitted and approved by the Board of Trustees at the January, 28, 2020 meeting, hiring a consulting firm for $49,411. 85.

So a new question has to be asked: why are certain members at Town Hall pushing home rule so hard?

The answer is once again.... water. Under Article XX, section 6 of the Colorado Constitution, a home rule municipality is provided the right to "The consolidation and management of park or water districts in such cities or towns or within the jurisdiction thereof; but no such consolidation shall be effective until approved by the vote of a majority, in each district to be consolidated, of the qualified electors voting therein upon the question." As the table below shows, based on the Comprehensive Annual Financial Reports from 2004 through 2018 , "Business Type Activities" (ie. "enterprise fund - water, wastewater, storm-drainage, et. al.) activities have resulted in $90.8 million more revenues for the Town than "Government Activities", and account for 61% of the Town's net position.

Just as I have noted before in my previous articles , the Town is very reliant on water. Based on the Statement of Activities reported above, and based on the amount of cash currently on hand, this means that beyond the reserves the Town is legally mandated to maintain for the general fund operations, the remainder is essentially entirely for water, wastewater, and storm-drainage activities - and it can not be used except for those purposes.

If the Town were to move to home rule, it would allow them to consolidate the parks and recreation and enterprise activities so that the water funds can move to the "government activities" side of the budget. This would allow the funds to be used directly in funding the Town's General Fund. After the consolidation, the Town can decide, through the charter, to then split the two items back out, retaining a portion of the funds on hand without any issues. Since the Town owns the water district, and is also the registered agent for the Town of Erie Financial Corporation, per the Secretary of State's website, this means that all activities - including bonds, finances, water districts, town operations, and all other items currently separated within the budget - are able to be consolidated, since this would be a "local matter." Additionally, the charter could also allow the town to, as noted in the Town's staff report , "simplify or otherwise revise procedures for budget and appropriation adoption, amendment and transfer of funds", which would make it easier for them to move funds between accounts.

Conclusion

While home rule might sound like a great idea, there are too many unknowns, and there is too much distrust currently towards those at Town Hall and with the Board. There are steps which should have been taken in the past, policies and procedures which should have been set, rules and regulations which should have been implemented, and they have not been. Once the Town is able to prove that we can govern ourselves within our current form, then we can have a conversation of a home rule charter. Now is not that time.

Topic for Next Time: IGA / Local Government and Agency Relations

Additional Resources Regarding Home Rule:

https://leg.colorado.gov/sites/default/files/images/olls/crs2019-title-29.pdf

http://leg.colorado.gov/sites/default/files/images/olls/crs2019-title-31.pdf

https://leg.colorado.gov/sites/default/files/images/olls/crs2019-title-38.pdf

https://leg.colorado.gov/sites/default/files/images/olls/crs2019-title-40.pdf

https://www.sos.state.co.us/pubs/info_center/laws/Title1/Title1Article45.html

https://leg.colorado.gov/sites/default/files/2018_local_government_handbook_with_cover_0.pdf

https://www.colorado.gov/pacific/sites/default/files/CML%20Municipal%20Candidates%20Guide.pdf

https://coag.gov/app/uploads/2019/07/no-03-01.pdf

https://www.courts.state.co.us/Courts/Court_of_Appeals/opinion/2006/2006q4/05CA0443.pdf

https://www.sos.state.co.us/pubs/elections/CampaignFinance/files/AdvisoryOpinionPitkinCountyHomeRuleCPF82011.pdf

https://www.millikenco.gov/Home%20Rule%20Forum%20Presentation.pdf

https://www.cml.org/docs/default-source/uploadedfiles/issues/home-rule/home-rule-forum-presentation.pdf?sfvrsn=c4a07177_0

https://scholar.law.colorado.edu/cgi/viewcontent.cgi?article=2154&context=articles

https://legislativematters.wordpress.com/tag/sales-tax/

http://salidacitizen.com/wp/media/History-of-Home-Rule.pdf

https://cityofsalida.com/wp-content/uploads/Introduction-into-Government.pdf

https://www.pueblowestmetro.com/AgendaCenter/ViewFile/Item/808?fileID=1301

https://www.townofeagle.org/756/Home-Rule-Governance

https://www.letstalkparker.org/4109/documents/5919

https://www.carbondalegov.org/departments/administration/home_rule_town.php

https://co.grand.co.us/972/Municipal-Governments

http://co-wheatridge2.civicplus.com/DocumentCenter/View/1364/CML-Municipal-Candidate-Guide?bidId=

https://www.broomfield.org/DocumentCenter/View/23235/Guide-to-Amending-the-Home-Rule-Charter-2017

*Just a side note to all of the items that I discuss: I am a solutions driven problem solver by nature. I wonder how things work, why they work the way they do, and how to make them better. This means seeking different, outside-the-box methods to figure out solutions to various issues. Accordingly, I am always open to learning new ideas, different ways of doing things, as well as constantly learning from others' experiences to make better decisions. When I see an issue, I view it in a holistic fashion, and then dive into specific areas to remove deficiencies and create efficiencies. If you, who are reading this, have some thoughts or ideas about any of the subjects I discuss, I would be more than happy to speak with you to hear your opinions. Please reach out to me here through my website. Listening, hearing, and understanding different perspectives is the only way that we can all grow and create positive change - by learning from others, and delivering ideas that push the needle to become Forward Thinking.

Home Rule: Erie Resident Feedback Survey

Sat, 08 Feb 2020 19:43:29 GMT

A survey designed to understand how the Town of Erie residents feel about Home Rule, and what are viewed as the most prevalent advantages and disadvantages, timelines, the Town's readiness, and other questions

This survey is designed to understand how the Town of Erie residents feel about Home Rule, and what are viewed as the most prevalent advantages and disadvantages, timelines, the Town's readiness, and other questions.

The information that you provide will remain ANONYMOUS. This is to ensure that the responses you provide within this survey are unable to specifically identify as to who they might have come from.

Also, previous, current, and prospective business owners: don't forget to tell me about the issues, concerns, and barriers to entry that you have experienced by completing the survey available here (the survey closes on Monday, February 17th).

Please complete the survey. Thank you for taking the time to provide your feedback!

Candidate Q&A: Reader Submitted Questions (Round 1)

Fri, 07 Feb 2020 23:28:36 GMT

3 questions asked by Erie residents on various topics: Service-oriented and non-taxable businesses, how to pay for the health and safety of residents when funding isn't available, how I envision Erie in two to five years

Thank you to all of those who submitted questions on the topics that you wanted me to answer! Round 2 of "Candidate Q&A: Reader Submitted Questions" is scheduled for the week of February 24th through the 28th. So if you have a question that you would like to ask, feel free to submit it here !

Previous, current, and prospective business owners: don't forget to tell me about the issues, concerns, and barriers to entry that you have experienced by completing the survey available here (the survey closes on Monday, February 17th).

Erie Residents: Please help me to understand how you feel about the topic of "Home Rule" by completing the survey available here (the survey closes on Thursday, February 13th).

Q1.) It seems that you are pushing for sales tax driven businesses. What about Erie businesses that want to expand within Erie that don’t generate sales tax? I’ve been met with much push-back and over the top fees that it has driven my search outside of the town.

In regards to my article from last week : yes, you could say that it was generally focused on “retail sales tax” driven businesses. However, that is not to say that service oriented businesses are not important – they are in fact just as important to the community as “products and goods oriented” businesses.

It is true that “products and goods oriented” businesses do have the largest impact on the Town’s finances, since “service oriented” businesses do not pay retail sales taxes. However, both share the same challenges, issues, and barriers to entry – there are very few already-built retail and office spaces within Town to open a business, while there is a lot of vacant land available to build a new establishment. This is largely due to the large up-front costs the Town charges for infrastructure and other fees, as well as due to the reluctance that developers have had to enter the Town.

When you look at the Erie Economic Development Council’s interactive map of available spaces , there are a total of 50 “available spaces” (49 spaces listed, plus one not listed on Cheeseman Street). However, when you look closer, most of these are vacant land spaces, spaces currently in-progress of being built, or spaces which will be built in the future:

Retail Spaces: 3 already built, 2 currently being built
Office Spaces: 4 already built, 0 being built
Industrial Spaces: 4 already built, 1 being built
Special Spaces: 1 already built, 0 being built
Currently Spaces that are Vacant Land: 35

In terms of the spaces that are currently available for lease for retail or office sites, the average cost per SqFt is $25.75 base, an average $12.35 triple-net (NNN), for a gross average total per SqFt of $38.11. This means that for a 1,000 SqFt space, tenants would have a cost of $3,175.83 per month just for the space alone. In comparison to the City of Lafayette which has many more sites available , the average cost per SqFt is $15.08 base, $7.76 NNN, and $22.84 gross ($1,903.33 monthly for a 1000 SqFt space).

While it is great that the Town is doing more to have commercial development occurring within the Town, they must also address the costs that are incurred by business owners and tenants after they sign a lease. If the costs remain too high, then small businesses will be unable to meet their expense obligations, and will not remain in the Town for too long since they could go out of business. The Economic Development Team must look at the total breadth of all items regarding business development, not just having them come to the Town, but also so that they can remain here. Retail sales tax revenues will increase for the Town, as they have already been doing so. But we must be able to maintain the growth, instead of having it all come at once ad then seeing tenants leave soon after due to the hardships that they face.

So, the issues aren’t exclusive to “products and goods oriented” businesses, but they are also issues shared with “service oriented” businesses too.

Q2.) Health and safety has to be paid for. If our town can’t handle financial aspects, how can health and safety be paid for?

Overseeing the public’s health and safety are the primary functions of a government. The Town’s health and safety activities are encompassed within the Town’s “General Fund”. The revenue sources that contribute to the “General Fund” are:

Taxes (70.1% of 2020 Budget): Retail sales, vehicle sales, property, use, intergovernmental, and other
Recreation fees (7.6%): Rec Center Passes, kids and adult league fees, and others
Landfill fees (8.3%): Disposal of waste from development activities, and others
Permits and related fees (9.2%): Building permits, inspection fees, liquor licenses, and others
Other sources (4.8%): Oil and gas royalties, sales of assets, donations and sponsorships, and others

Expenses for the General Fund include:

Personnel (47% of 2020 budget): Wages for Town staff, public safety officers, recreation instructors, and others
-Operational activities (28.6%): Public safety, public works, parks and operations, and others
Capital expenditures (19.6%): Maintenance to Town owned roads, buildings, vehicles, equipment, property, and others
Debt services (4.9%): Payments towards principal, interest, and other servicing of outstanding debt
Additional appropriations: Partially funding the accounts of other Town activities (Erie Urban Renewal Authority, the Trails and Natural Areas Fund, and others) with the assumption that these other accounts will eventually repay the General Fund

The specific activities that relate to the Town’s health and safety – including road snow removal and pothole repair, salaries for police officers, bridge maintenance, code enforcement, drug task force programs, municipal court activities, referees and lifeguards for recreational activities, community park maintenance, building inspectors, Town legislation, and all others – are solely included in this General Fund.

So, hypothetically, what would the Town of Erie do if they were running a deficit, meaning they did not have the cash flow to pay for items, and what would they do if this was a substantial deficit or for a prolonged period of time? As well, how would the Town fund all of the necessary improvements and maintenance related items needed, in addition to the health and safety requirements?

Health and safety activities would first and foremost be funded before any other Town activities. First, the Town would dip into their “reserves” up until the point in which the Town is legally obligated to maintain in the reserve fund (25% of the current year’s budgeted operating expenditures, plus an additional reserve of $7.5 million to provide a funding source for one-time or capital expenditures or for services in the event of severe economic conditions). If the Town expended their additional reserves, then they would be allowed to dip into these additional reserves, which are for situations just like this hypothetical inability to pay.

In conjunction, it would also require that the budget be reworked, moving funds from specific activities to instead fund the health and safety activities. The Town would then enact a “spending freeze” in order to maintain a lean budget, only issuing expenditures for essential services. To fund the essential services, the Town would impose budget cuts, reducing non-essential activities. This would mean that timelines for planned projects in the pipeline would be pushed out until the following year, recreational activities would be cut, and Town staff would experience layoffs and/or furloughs government-wide.

The Town would also begin to issue debt in the way of General Obligation bonds to pay for the most important capital expenditure projects that are of a “critical” nature. This would result in the Town raising their debt service expenditures, and it would take many years (possibly even decades) to fully repay the bonds. Then, since these bonded debts have been issued, it would entitle the Town to raise property taxes across the board in order to pay for the Town’s activities and these debts. The specific bond that the Town issues, the “Erie Unlimited General Obligation Bond”, is an unlimited bond, meaning the Town retains the right, if required, to potentially raise taxes to 100% of the taxable assessed value.

However, because Erie is a statutory municipality and not a home-rule municipality, they would be restricted by the " Annual Levy Law " (Section 29-1-301, et seq., C.R.S.). This law states that statutory municipalities are restricted in how much they can additionally levy on property taxes, and that it prohibits “the levying of a greater amount of revenue than was levied in the preceding year plus five and one-half percent”. So, the Town would only be able to raise the taxes incrementally each year, increasing them by 5.5% versus the previous year.

It is important to keep in mind that this is all separate from “Enterprise” related activities (water, sewer, storm-drainage). In terms of the Town paying for their improvements, and how they have done so in the past and are still currently doing so, are through “Special Assessments” effecting very specific subdivisions (ie. Metro District taxes), increasing the service charges that you pay with your water bill, as well as by issuing both water bonds and sewer bonds to pay for improvements.

Needless to say, there are many ways that the Town can pay for all of the other activities Town-wide, since their primary focus would still remain on residents’ health and safety first and foremost. However, there must be a focus on increasing the retail sales tax revenues in order to remove any chance that the above noted actions do not happen.

Q3.) How do you envision Erie in the next two to five years?

Ever since I moved to Erie, I have believed that the Town has the potential to become the "Centennial/Highlands Ranch" of North Denver. Not only does it have the potential to be an absolutely wonderful place to live and raise your family, but it also has the potential to be a place that is sought after for others to want to live. One that has great schools, amazing amenities, and great employment opportunities as businesses too wish to seek entering the community.

The next five years will be crucial for the Town of Erie, with the next 2 years being the most critical. If our current trajectory holds and we maintain an average growth rate as we have the past 5 years, we will be pushing almost 35,000 residents by 2022, and we will be well over 40,000 residents by the end of 2025. With the still increasing number of residential developments being constructed, in addition to the planned multi-family developments at both Nine-Mile and Town Center, it seems highly likely that we will eclipse these totals by the end of those years. Based on these projections, this would quickly make the Town the 3rd largest municipality in Boulder County, and the 6th largest municipality in Weld County. This of course means that I also see Erie becoming a home rule municipality, if not by the end of this year, within two years.

I also see a lot of commercial development coming to the Town. With the projects finally beginning at Nine Mile and Erie Commons, in addition to the continued development occurring along CO-7 near Vista Ridge, it gives me great home of a promising future for Erie. However, just because there is development occurring doesn’t guarantee that there will be a constant increase in retail sales tax revenue. As I had noted in the first question, the lease rates are substantially higher than surrounding municipalities. This is because the developers are incurring the up-front costs to build these locations, which are then passed onto the new renter, as well because of the high payments made through utilities and taxes.

Also, due to this ever-increasing and rapidly growing number of residential and commercial developments, it means that the Town will experience additional infrastructure strains beyond the levels that we are currently seeing. Every major road that has not already been widened will need to be, including Arapahoe, CO-7, Erie Pkwy, and County Line. The population increase alone noted above will result in an increase of at least 25% in terms of the number of drivers on the road. This will also mean at least a 25% increase in capacity usage for water, sewer, storm drainage, electricity, trash, recycling, and the list goes on.

Without questions, I see some hard-times coming for Erie if these issues are not addressed immediately and the proper planning necessary is not taken now. This also means working with the tri-counties, our neighboring municipalities, and state officials to prepare for the growth that is still yet to come, in addition to what we have already experienced.

Previous, current, and prospective business owners: don't forget to complete the survey available here (the survey closes on Monday, February 17th).

Erie Residents: Please help me to understand how you feel about the topic of "Home Rule" by completing the survey here (the survey closes on Thursday, February 13th).

Topic for Next Week: Home Rule

Erie Business Survey: Former, Current, Prospective Owners

Mon, 03 Feb 2020 21:37:42 GMT

A survey designed to identify the issues, concerns, and barriers to entry for businesses in the Town of Erie - experienced by current, former, and prospective business owners

The survey below is designed to be more comprehensive in nature than the previous one, in order to better understand the issues, concerns, and barriers to entry for current, former, and prospective business owners within the Town of Erie. The survey is to gauge exactly where the "pain points" are within Town, so that they can be addressed and resolved accordingly.

The information that you provide will remain ANONYMOUS. Except for the results attained as a whole from all responses by all respondents and any general non-identifiable responses, I will not provide to anyone the specific information that you might provide. This is to ensure that the responses you provide within this survey are unable to specifically identify as to who they might have come from.

The results WILL NOT be used for a future blog post, but will instead be provided to Erie residents as a "Market Survey". This is not intended to be "political" in nature - it is intended for the use of gaining a better understanding of how Erie's business owners view the Town's current economy.

The survey will be available for 2 weeks, starting today, Monday, February 3, 2020, and will close on Monday, February 17, 2020. Please be sure to complete the survey by that time so that your feedback is included.

Also, Erie Residents: Please help me to understand how you feel about the topic of "Home Rule" by completing the survey available here (the survey closes on Thursday, February 13th).

Please complete the survey below. I appreciate all of your feedback, and for taking the time to complete this survey. Thank you in advance!

Economic Development: Erie's Path to Stabilizing Revenues, Why Some Businesses and Developers Will Not Come To Erie, and Survey Results: Businesses Residents Want in Erie

Fri, 31 Jan 2020 03:36:57 GMT

A look into Erie's revenue source for the future, how the Town and residents view Erie's Economic Development progress, what business owners and developers see as Erie's barriers to entry, the specific reasons why some businesses and developers will not enter Erie, and results from the survey "The Businesses that Residents Want to See Come to Erie"

SUMMARY:

Erie's residents and the Town administration alike have admittedly viewed Erie's economy poor at best. Having a negative 72.1 retail leakage, a total of $14.25 million in potential annual sales tax revenues that consumers pay to other towns, and an economy that is below the national benchmark in almost every category surveyed, it's no wonder why the Town has become strictly reliant on residential development for the Town's economic growth. Coupled with a strained infrastructure system that is in need of more and more capital expenditures each year, the Town must find a constant revenue source that helps to pay for these financial needs - and fast! While the Town has begun to address these concerns related to their economy, they still must figure out how to reduce specific barriers to entry for businesses that are currently in place and set through the Town's Municipal Code and Unified Development Code.

The Town must place itself into a position of becoming more"business friendly", which can only be done by first resolving the previous and current issues that community members have experienced. Speaking with business owners and developers that are currently involved within the community, some have said that they have already begun reconsidering working with the Town on future projects, as they have instead begun working with neighboring Town's and beginning their endeavors there. To alleviate these issues, the Town must start by listening to and addressing the concerns of the Town's current/prospective business owners and development partners alike, in an effort to provide the Town's residents with the businesses and sustained economic growth that they deserve. This starts by providing the proper leadership that is required, while redeveloping and instituting very specific initiatives at Town Hall to address and alleviate these barriers to entry. Oh, and the results are also provided from your surveyed feedback: "What businesses residents want to see come to Erie."

(Survey Results at Bottom!)

Lots of Homes, Few Places to Shop

In years past, Erie's Town leaders have had to make a decision: does the Town try to attain Residential developers, or Commercial developers? Well needless to say, we can all answer this question just by driving up and down the roads of Erie, noticing the obvious very quickly: there are a lot of houses, but very few places to shop.

The Town's leaders made the decision to grow the community rapidly through residential development , forcing Erie to become reliant on new home builds for the Town's future growth. Their decisions meant that we have previously, currently, and will still be in the future trying to figure out ways to pay for additional capital improvements as the infrastructure system becomes strained - whether that be in the form of additions to infrastructure expansions, capital improvements, roads and bridges, water/sewer/storm-drainage operations, and the list goes on. Since this revenue source can be volatile and prone to economic factors, the question becomes: how does the town find a stable and reliable revenue source? The answer is through setting a proper Economic Development plan that addresses the barriers to entry for businesses, works to entice the right types of businesses, as well as works with developers that become the Town's partners in the community.

What Erie's Residents Think of the Town's Economy

Every 2 years, the Town sends out a Community Survey to a randomly sampled set of residents, asking them various questions related to their "Quality of Life" from living in Erie. These questions are a way for Town leaders to understand just how residents feel about the Town as it relates to the general categories of "Community Characteristics", "Governance", and "Town Participation". The questions then try to gauge respondents thoughts on specific areas, which among others include "Safety", "Mobility", "Recreation and Wellness", "Community Engagement", and the "Surrounding Environment". In the most recent 2019 Community Survey , one specific topic in particular, the Town's "Economy", falls lower than the "National Benchmark" in almost every single category .

The report indicates that out of the total number of questions respondents were asked related to the Town's economy, 7 out of the 9 questions came back with responses that said the town was "Lower" than the national benchmark, 2 of the 9 indicated "Similar" to the national benchmark, and a big ole goose egg for "Higher" than the national benchmark.

Just how low do residents think of the Town's economy? One question in particular stands out, which asked residents the following: "What are your main reasons for choosing Erie as your home? Please select all that apply: " A total of 20 individuals, not only out of the 896 total sampled residents, but out of the 4,295 actual selections made by these residents, said that the Town's "Quality of businesses and services" applied to them as a reason why they chose to live in Erie.

Why is this important? Because any Town that is successful and prosperous should not only have a wonderful community, ample recreational activities, great schools, be safe, etc., but it should also be able satisfy additional needs. Businesses provide, among others, the places where you shop for the items that you need, they add jobs for employment opportunities, they pay sales tax revenues to fund the Town's expenditures, and are members of the community who volunteer their time and resources to benefit others around them. All of these reasons, and more, provide additional benefits for residents, which increase the overall satisfaction and reasons to live within the Town. Currently, residents of Erie are not experiencing these benefits, and are therefore being let down by the Town.

What the Town Thinks of Erie's Economy

It doesn't just stop with the Town's residents believing Erie's business economy is bad. Each year, the Town revises the " Community Profile " for Erie to reflect specific demographics and changing trends. This publication is then provided to prospective residents and business owners who are looking to open a business or live within the Town. In the 2019 Community Profile , there is one graphic which should jump out at everyone who reviews it, explaining just how bad the Town believes Erie's economy really is.

The Town, through their own publication, admits that there is a negative 72.1% "Retail Leakage" occurring, with a "Notable Gap" of $407 million in lost sales revenue, based on a total sales potential of $485 million. The Town, through their own admission, says that Erie's residents are providing surrounding communities with their much needed tax revenues, instead of our own, simply because there aren't enough businesses in the Town to shop at.

Just how much is being lost to other towns? Based on the Town of Erie's sales tax rate of 3.5%, it equates to $14.25 million of lost annual sales tax revenue potential in 2019. This alone amounts to 32% of all revenues from all sources that the Town expects to receive in their 2020 Budget (excluding "Enterprise / Proprietary" funds received from water, sewer, storm-drainage, and airport activities). If the Town does not address this issue post-haste, based on the inflation forecasts issued by the Federal Reserve Bank of Philadelphia (yes, as in the US Federal Reserve), at a forecasted rate of 2.2% average annual inflation over the next 10 years, and not accounting for the additional residential growth that is still occurring, this would result in the Town losing out on a potential sales tax revenue stream of $28.8 million by the end of 2020, $43.7 million by the end of 2021, $106.5 million by the end of 2025, and $193.2 million by the end of 2030. Simply put: we must take the necessary steps now so that Erie can receive these revenues, instead of them being squandered away and instead of them assisting nearby municipalities.

What the Town has Done To-Date to Close This Gap

In 2016, the new King Soopers and the ensuing businesses around Vista Ridge opened on Co-7, which now provide the Town with a much needed boost to their total annual sales tax revenues. The following year, the Town hired their first ever Director of Economic Development, by the name of Ben Pratt. Now I have to admit, I like the ideas this guy is coming up with. He has been the one that has been working with and negotiating with businesses and developers to attract them to Erie, including on such projects as Nine Mile , Erie Town Center (Four Corners) , I25 Erie Gateway , and the Historic Old Town Erie Renewal Plan , just to name a few. Most recently, he discussed at the Town's twice-monthly Board of Trustees meeting his multi-step plan to grow the Town's economy, which includes his approved initiative for an Enhanced Sales Tax Incentive Program , as well as the agreement that was approved with CoSolve for Economic Development Services.

The CoSolve partnership provides various services for current and prospective business owners in Erie, among others including the opening of a shared work-space within Erie's Old Town (similar to a "WeWork"), Free WiFi for those within Erie's Old Town downtown district (yes, I said FREE WI-Fi) , as well as provides incubation services for new businesses that are just starting out. The Enhanced Sales Tax Incentive would provide businesses seeking to open within Erie an incremental sales tax incentive, as long as the business would be opening within a non-URA area (not Nine Mile, a portion of Town Center, or I25 Erie Gateway, among others). Among other caveats to this program, the businesses type must be one where the Town currently has a "gap", meaning the business would fill a specific market niche that currently does not exist or is currently underrepresented within the community. As well, the program is available to businesses with the assumption that they are "likely to generate enhanced sales tax of at least twenty thousand dollars ($20,000) in the first year of operation", that the amount of funds received from this incentive "shall not in any event exceed fifty percent (50%) of the enhanced sales taxes", and that the funds remitted back to the business in monthly installments are used solely for "public or public-related purposes."

Needless to say, these are both initiatives that will benefit business owners. The Town's Economic Development team seems to understand what needs to be done, and are taking the correct steps necessary in a very methodical nature, phasing in programs to create change instead of haphazardly unleashing them all at once. Based on the plan that the department has outlined, if the Board and Town's administration assist in seeing things through properly and allow the Economic Development department to move forward on the initiatives that need to be taken, things are going to be looking bright for the Town's businesses, instead of the bleakness that we have seen in years past.

The Steps that I will Take as Trustee

So now that we know what the Town, and specifically the Town's Economic Development team, are doing to move Erie forward, you might ask yourself, "What will Andrew Sawusch do to improve our Town's economic development plan, since they are already handling all of these things currently?" That is a GREAT question!

First and foremost, I am a business-minded individual. I look at the Town as an organization, and accordingly explore the many different activities in a holistic, in-depth fashion. From there, I move through each of the various issues, analyzing exactly what the root causes are, and then outline the path forward to resolve these problems. This is because I am a solutions-driven individual who likes to think outside-the-box, creating solutions that tackle these issues in new or different ways. Assisting the economic development team would become a priority, since it truly is the top priority for Erie. Working with the team, I would assist in sharing my ideas, hearing the ideas of the others involved, in order to create new and different ideas that evolve to become better than the original ones.

For instance, when I look at how the Town has been addressing economic development in years past, among the many concerns and questions that I have, there are two questions in particular that stand out in my mind:

What barriers to entry have there been which has stifled current/prospective business owners and developers from entering Erie?
What types of businesses do Erie residents feel are missing within the community?

Instead of just thinking these question and not doing anything about it, my personal opinion was that it would be best to ask these question directly to those who know these answers the best: members of our community.

For this next section, I must start by first saying this: I am going to address these questions, and the issues that have been described to me, in a way that does not throw any specific individuals, departments, or organizations under the bus. I am doing it this way because I am respectful and believe that it is poor form to do so publicly. The individuals who came forward, or whom I spoke with that are outside parties, did so under the condition of anonymity, and that I would not provide information as to who they were. Specifically related to the issues at Town Hall, I will have separate conversations with specific department heads for the Town, just as the other candidates will too, where I will address some very specific concerns that I have heard, as well as provide additional methods to resolve them that are not noted in this post later. If any of the current Board of Trustee members are reading this and would like to know more, please feel free to reach out as I am more than willing to be of assistance! I appreciate all of your understanding and respecting my decision to address these items in this fashion.

What barriers to entry have there been which has stifled current/prospective business owners and developers from entering Erie?

This question is intended to find out exactly what the barriers to entry have been for both developers and current/prospective business owners, designed to identify the items which have either impeded their progress to enter the Town, or have resulted in their reevaluation of their decision to even want to return to the Town for their endeavors. I initially intended to have these as two separate questions, assuming that there would be two separate "sets of responses", just as I had initially intended this to be "commercial developer" instead of "developers" (as opposed to "commercial" vs "residential" developer). What I have come to learn is that both residential and commercial developers, as well as current or prospective owners, all came back to me with having the same exact concerns, for the same exact reasons. In fact, the issues have reached such a point that it has resulted in some of these individuals and organizations to simply walk away from their endeavors within the Town of Erie, only to do business in a directly neighboring municipality.

Commercial developers are the driving force behind large-scale projects, and they are those who give rise to the shopping complexes and strip-malls that you see in other towns (as well as the development at Vista Ridge on CO-7 that includes "King Soopers" and other businesses). They work directly with the large corporations and businesses, in efforts to attract them to specific developments that they are working on. Relationships that are formed with these organizations should not only be beneficial to the, but most importantly they should be beneficial to the Town and Erie's residents. In some municipalities, these organizations become the Town's largest supporters and advocates, assisting the Town by working hand-in-hand with them. Likewise, business owners are pillars within our community as they own, manage, and operate the small businesses, mom-and-pop's, or independent stores that are around Erie. They give back their time and financial resources, in order to make our community a better place to live. Both developers and business owners opinions should be respected and taken into consideration when moving forward on the Town's Economic Development plan.

These two questions, and the information that I received, are of the greatest importance in understanding why the Town's economic development has been stunted. In order to understand their concerns, I took the time to speak with some specific developers and business owners who have previously, or are currently actively working on projects within the community. I did this in order to hear their feedback directly, so that I could better understand exactly what their challenges have been previously, currently, and in the foreseen future. What I have found may surprise you, but explains the reason as to why Erie does not currently have much economic development.

The Barriers to Entry

First, the single largest issues that were expressed to me from all of the individuals who provided me with their feedback, was the lack of planning, preparation, urgency, forethought, and leadership that has been exhibited by the Town. Issues of concern expressed to me included the Town exhibiting a nature of either not knowing information, to having to wait for approval from others before addressing an item, even some describing it simply as sheer ineptitude. While these issues have been more apparent in recent years because of the high-turnover that has been occurring with Town staff, the individuals said that it has been, and is still currently an issue. Although the recommendation that was provided to me from many of the individuals was to empower Town staff so that they could be allowed to make the decisions needed as necessary, it is my personal belief that this has been a systemic problem that has existed at Town Hall for many years.

I believe that there has not been the proper leadership necessary to run the Town's operations - starting from the top of the food-chain with the Board of Trustees, and then working its way down. The proper policies, procedures, planning, and vision for the future has not been properly set for the Town. As Erie has grown to a population of nearly 30,000, these issues have simply been amplified to the point where business owners and developers are considering walking away from Erie all together. This is EXTREMELY concerning to hear, since we 100% absolutely need these individuals and organizations to improve our Town's economic vitality. It has reached a pinnacle to the point where some developers will not come to Erie, and as others share their experiences with more developers, it could potentially come to a point where the Town becomes "blacklisted" with specific developers, where they specifically refrain from even entertaining the thought of having any negotiations with the Town. This is completely unacceptable and must be addressed immediately for the Town's economic development needs.

Next, I have found that there are a number of ordinances and Town-mandated items which are creating barriers to entry for businesses and developers. The ways to address these roadblocks are to review the current policies or laws that the Town mandates, and determine if they could or should be adjusted, or if some are simply antiquated. While it is very true that most of the items set and in place within the Town's Municipal Code or Unified Development Code are in fact there to protect the health, safety, and well being of the Town's residents, there are some specific items which need to be addressed because they do in fact place a large financial burden on potential businesses from even opening the doors. While I understand that the Town has been and is still currently planning on adjusting some of these items, we will continue to lose out on prospective businesses and developers until there is a full understanding of the full list of barriers to entry which are preventing others from doing businesses within our community.

Finally, I have come to learn that the cost to even develop or build within the Town - including costs to access the Town's water, sewer, and storm-drainage, infrastructure costs, tap fees, connection fees, permits, impact study fees, etc. - place a very significant upfront financial burden on these individuals. I am not talking about the high water bills which we as residents hate to receive, which business owners hate too. I am saying that for a new residential or commercial building to be built, the cost has begun to outpace other communities. While some developers take these costs and subsidize them within your metro district tax, independent businesses however, do not have this luxury. This item was also expressed to me by every developer that I spoke with, since they are the ones on the hook to pay for these items up-front, explaining that the Town has been simply been taking their sizable checks without even as something as simple as a "thank you for your contribution to our community!" For business owners, this means that leases are more expensive than neighboring communities, and that there aren't many lease-able areas to rent for their business needs.

You might be saying, "well developers make enough money as it is, so boo hoo." These developers and business owners are the lifeblood for the future of our Town - they are the ones who will bring business and economic development to Erie. These developers not only have an initially significant up-front financial risk, including paying consultants and 3rd parties for renderings, engineering services, surveying, etc. - it adds up quickly. Since these funds are backed by investors with an initial forecast of their return on investment, and since in business "time is money", if they are behind schedule at all from impediments placed due to Town Hall dragging their feet, it means it reduces their profitability, and places a bad taste in their mouth for future considerations.

When I hear that some business owners and developers are loosing sleep due to the Town's actions, or submitting resignation letters in anticipation of the Town not accepting their multiple years-long work on new development items, this is a major red flag for me. In order for the Town to become self-sufficient and pay for the Town's future needs, our town must be able to count on reliable, consistent, everyday revenue contributions that are currently being delivered to other municipalities around us. We have to work to change our Town's practices, from the top-down. We have to be able to be "business friendly", but at the same time maintain our own interests, instead of catering solely to the interest of others.

How to Address These Barriers to Entry

First, I would recommend that the Town implement a survey, which is provided to businesses after they submit their applications for permits, after final inspection, and other key stages, as well as recommend sending a survey out to current business owners to receive their insight. The Town would benefit from the sheer number of respondents that they would be able to receive, so that all of the existing and known issues by current/prospective business can be listed out and addressed accordingly. From there, the main items that come up the most can be reviewed in order to resolve them - whether in the Town code or UDC. These changes must be completed so that the same unnecessary barriers do not limit others when they come to our Town in the future, reducing the potential for them to experience these same exact problems.

In terms of the water, sewer, and storm-drainage charges, well, you already know where I stand on that . Simply put, it needs to be addressed, and must be resolved ASAP. Not only are residents mad about the high payments, but it is effecting our local economy and inhibiting the Town's economic viability for the future.

Finally, the Town should take a page from the business world's playbook and start to monitor and disclose Key Performance Indicators (KPIs). The city next door to us, Louisville, does an EXCEPTIONAL way of doing this within their budgets and through their Administration and Support Services Key Indicators report. Not only does the City outline their budgeted revenues, expenditures, etc., they also outline exactly what their key indicators are, what they have been in years past, what they anticipate it will be this current year, what they forecast it to be next year, as well as what their departmental goals and objectives are. This should be instituted by Erie so as to help understand where pinch points are in the various processes, which departments at Town Hall are over or under-performing, as well as exactly what the Town defines as their "measurements of success" for each of the various departments and how they will attain them. Also, this provides transparency for us, as the residents, and accountability for those working within Town Hall. While Louisville does this for each and every one of their budgeted line-items/departments, I have included an example below, which is specifically pertaining to their "Development Review Sub-Program":

What business types do Erie residents feel are missing within the community?

This question is important to ask in order to understand what the Town's residents feel is missing within the community, and is a very important step when creating a successful economic development plan. This process allows the Town to prioritize the types of businesses that are most crucial to quality of life for residents, which would provide the most return and addition to sales taxes revenues in the long-run, as well as allows the Town to focus on attracting and attaining these critical types of businesses.

With this and other information in-hand, the Town would then be able to approach businesses during discussions or negotiations, proving that the Town's residents are not only economically viable based on the Town's demographics, but also by showing that there is an unmet need currently within the community for their type of business, as dictated by the residents themselves. Ultimately, when all is said and done, businesses open in an area when they know that the local population has the following: a propensity to purchase the goods offered, that there is a noted need which is currently unmet within the local market, that the population has the financial ability to purchase the goods or services, and that the location is proven to be one that is economically viable for them to open. Understanding all of this allows both the Town and the businesses to then work with developers on various projects, in order to build specific locations that are properly suited for these types of businesses.

I recommend that the Town complete a Town-wide survey of residents, similar to the one that I completed, in order to identify the exact critical "gaps" that the residents see. A commissioned survey made by the Town with a very large sample size would do wonders to attract businesses, as it would identify the "business types" (NOT brands) that residents want to see and need to have within the community, providing leverage for negotiations with specific businesses. Just like my survey, it is key to note that "business types" should be the main focus. The specific business names or brands can potentially be a write in option, but it should not be the primary focus - the Town should not and can not make a promise like that until that specific brand is under a contractual obligation - although it doesn't hurt in trying to attract them!

Final Thoughts

After hearing, listening, and understanding what it is that business owners and developers have said, it has become quite clear that there is a great need for leadership to make the changes necessary. The proper planning, adjustments to the way things are done, and a multitude of other items must be made. It has become evident that someone with knowledge of running a business, like myself, is needed now more than ever. This of course, is one of the many reasons why I am running for Trustee, so that the Town can become Forward Thinking for Erie's Future, and why I have reached out to all of you to ask for your assistance. Thank you to all for reading this, for your feedback, and for your continued support!

Please remember to send me your questions which I will answer for next weeks post. Questions can be sent to me through the form available here.

(Also, don't forget to checkout the results below from the survey of what businesses the residents want to see come into Erie!)

Topic for Next Time: "Q&A - Reader Submitted Questions" ( submit your questions here )

Responses from Survey - What Residents Want in Erie

Thank you all for your feedback, I greatly appreciate each and every one of you that took the time to complete my survey!

While I am providing you with all of the results, I can in no way, shape, or form promise or guarantee that I would be able to attain any one of the business types or brands listed below. I can however, if elected as Trustee, work with our Economic Development team to ensure we make the necessary moves in trying to attain them!

So now, without much further adieu, I present to you the results from the survey!

Topic for Next Time: Q&A - Reader Submitted Questions ( submit your questions here )

*Just a side note to all of the items that I discuss: I am a solutions driven problem solver by nature. I wonder how things work, why they work the way they do, and how to make them better. This means seeking different, outside-the-box methods to figure out solutions to various issues. Accordingly, I am always open to learning new ideas, different ways of doing things, as well as constantly learning from others' experiences to make better decisions. When I see an issue, I view it in a holistic fashion, and then dive into specific areas to remove deficiencies and create efficiencies. If you, who are reading this, have some thoughts or ideas about any of the subjects I discuss, I would be more than happy to speak with you to hear your opinions. Please reach out to me here through my website. Listening, hearing, and understanding different perspectives is the only way that we can all grow and create positive change - by learning from others, and delivering ideas that push the needle to become Forward Thinking.

Erie's Debt: How Water Funds the Town's Operations and Why the Town's Debt Practices Matter to All Erie Residents

Thu, 23 Jan 2020 07:23:48 GMT

Addressing the many questions received regarding the my original "Town's Finances" blog post, how your water bill funds the Town's operations, and why both "Total Debt" and "Debt Per Capita" should matter to all of Erie's residents

This is a continuation and provides additional details for my original article on "Town Finances" , which analyzes the Town's financial practices, namely how it has been incurring vast amounts of debt, using water revenues, and residential development to pay for the Town's operations. I have been receiving many questions regarding the topic, and wanted to address them in an appropriate forum, since social media, in my opinion, is not the proper setting to do so.

How Your Water Bill Actually Funds the Town's Operations

I was asked a question as to how exactly the Town is able to use your (minimum $45-$75) water bill payment and the funds from "Enterprise" (water/sewer/storm-drainage) revenues to fund the town-wide operations, since they are supposed to be "independent" from other accounts.

I am going to go through this all in a different way to allow everyone an opprtunity to understand what I have come to learn. I will as well answer each of these questions directly at the end.

The Town issues “budgets” and “financial reports.” Both are very different, and almost never result in the same figures/totals.

“Budgets” are issued by the Town’s Finance Department . They are “assumptions”, “estimates”, and “forecasts” based on a full year’s activities, accounting for the estimated revenues and expenses that will be incurred/received by December 31st of that specific year. Each year, ,there are even "supplemental appropriations" budgets to reflect changes in revenues, or new expenditure requests.

“Financial Reports” are reported by the Town’s Finance Department to the best of their abilities, reflecting the actual totals for the given period of time. There are some discrepancies that will occur any given month or year as the finance department receives or defers certain revenues and expenses, which are noted as “adjustments” in future reports.

“Comprehensive Annual Financial Reports” (CAFR) are issued by the Town in May or June of every year, reflecting the actual amounts of all activities from January 1st through December 31st, and they are audited by an outside 3rd party (except for the statistical sections and disclosures for the “Enterprise funds”, and a few other items). These reports indicate the actual revenues and expenses of all Town-wide activities, including both liquid (cash and investments) and non-liquid (capital improvements, machinery, buildings, etc.) revenues and expenses. These are actual totals, but again, “adjustments” do occur frequently and are reported in the next year’s report.

“Monthly Financial Reports” are issued by the Town a few months after the month’s-end of that specific reported month, and are not audited by a 3rd party. These reports indicate the actual revenues and expenses of all Town-wide activities of both liquid and non-liquid revenues and expenses for that given month. Again, there are adjustments that occur between the full CAFR and the month’s-end report issued for the last month in a calendar year.

I am contending that the Town has a cash-flow problem up until June, meaning they do not have the necessary funds on-hand specifically for funding the Town’s operations. I am contending that they are using the Town’s water bill payments to fund the Town’s operations. This means that we have to look at financial reports, not budgets. Specifically, we have to look at the “liquid” assets, meaning actual cash transferred to or from the town, since we ONLY want to view the actual amounts of cash received and expended, not the estimated. Budgets will include all funds expected to be received, both liquid and non-liquid, but they do not show exactly when the funds are in fact received.

Since “liquid” assets are all that I am looking at, this means the cash and investments “Held Directly” is all that matters. The Town directly holds “liquid” funds in two forms – cash and investments.

For investments, an extremely large majority of these funds can only be used towards the funding of very specific expenses – they can’t be used for just anything they want, and are restricted from being used in that way. The Town’s policy described in the CAFR is to allow the funds to remain in the investment portfolios “so that investments mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity.” The “pooled investments” as reported (and indicated in the graphic I present below) are for “ColoTrust, CSIP, Blackrock”, which are the “short-term” or “fixed-term” investments that “are not immediately required to be disbursed.” This means that these investments remain in this account until they are absolutely needed for disbursement.

For “liquid” cash, the Town’s revenues are volatile in terms of the actual month they are received or expended. The Town receives “liquid” cash funds throughout the year in many different forms to fund the Town’s “General Fund” (ie. the account that funds all of the Town’s operations, except water/sewer/etc.). 82% of these funds are received in a monthly fashion (as in 1/12th of all expected funds are expected to be received each month), 13% from property taxes received within the months of April-June since this is when property taxes are due, and 5% received at various times of the year for various other reasons.

So, to best show the Town’s “cash flow” in the best method possible, the graphic seen below shows the complete amount of total “liquid” funds reported and “Held Directly” by the Town. These amounts are “as reported” by the Town, based on the Town’s 2018 CAFR, as well as each following month’s Monthly Financial Report (except January 2019, since a Monthly Financial Report was not provided by the Town). This graphic represents all “liquid” funds controlled by the Town, from December 31, 2018 through July 31, 2019, showing exactly how and where these funds were either received or expended.

The Town started the 2019 year with a “Total Held Directly: All Pooled Cash and Investments” balance of $65.4 million, which represent the total “liquid” funds at their disposal. Of this amount, there was $3 million either in the Town’s bank or “on-hand” in the form of cash. This means that $62.4 million was tied up in investments, with approximately $3 million actually available for the Town’s immediate day-to-day activities to pay bills.

Since the Town has a “pooled funds” policy, this allows them to deposit ALL revenues from ALL sources into one account, and then pay their bills for ALL activities from this same account. This means, that the total funds “Held Directly” will increase as revenues received from the various sources outweigh the expended funds, or will decrease if the opposite is true.

As you look through each of the months, the “Water, Wastewater, Storm-Drainage” revenues always outweigh the expenses, except for June, due to capital expenditures/improvements. The “All Other Accounts & Other Sources” have very limited revenues received, up until June when property taxes are paid by the Town’s residents. For the months of April, May, and July, the expenses outweigh the revenues.

So the question becomes how did the Town pay the bills for the Town’s operations, especially since they did not physically receive the necessary revenues to do so (specifically April, May, and July), the investments “Held Directly” always went up (except for July), and the “bank account” was never funded from their investments?

As I have contended, since the town pools ALL funds together in the same account, there becomes no differentiation between “water bill payment” funds, “tax bill payment” funds, or any other revenue funds received. The Town, up until property taxes are received in April-June, RELIES on the water bills to fund the Town’s operations, so that they do not have to pull funds from their investments (which they actually add to, since the “Total Held” goes up EVERY month except for July).

Since the Town would never come to the residents and say that they are using this practice, there will not a document or some official report which says that they are. However, when you actually go through the financials methodically, as explained above, the information that I provided proves that they are in fact, relying on and using the funds from water bill payments. They do this through “pooling of funds” by simply mixing those funds with other funds. While this practice may be considered “kiting”, they are really “floating” funds, but as long as they show where expenses and revenues came from or went on their year end financials which are audited, they have and will continue to get away with it. This does not at all mean it is right though.

The Town’s expenses have increased almost every year as seen in the financial reports that are available from the town. As the Town becomes larger, there are more expenses incurred to operate. In similar fashion, the water/sewer/storm-drainage base rates increase every year, and these rates are provided as a recommendation from the Town’s Finance Department, which are then approved by the Board of Trustees. The way it has come to be, it basically means our water bill payments are a tax, with rates that increase every year (which “Enterprise Funds” are NOT supposed to be a form of a tax).

Transparency is the single most and largest concern regarding this topic. I would want to adjust some of the accounting and financial practices and reporting that our Town currently uses. I would separate the two accounts out so that there are two separate and distinct funded bank accounts. I would only “pool” the funds that are “enterprise fund” activities into one single account, and then have another for all other operations. For reporting, I would like to see the transparency needed. I would like to see the two separate accounts reported independently of each other in terms of “cash on hand”. I understand that the financial statements do have similar statements reflecting this, but I want to see, as in the bank accounts and the actual investments made, which has how much funds depending on the activity. Instead of simply showing “pooled funds”, show “Enterprise pooled funds” and “general town operations pooled funds”. This would truly make it so that each of the accounts stand on their own, so that each is completely independent and self-reliant on only itself.

The Town's debt practices, and how much it has added up to

I also issued an infographic which showed just how much debt the Town has incurred. The information I presented highlights the fact, that relative to all of the largest municipalities within Boulder County, the Town of Erie has more "Total Primary Government and Overlapping Debt per Capita" than any other municipality , and also has more revenues and debt than any other town, except for the largest 2 cities of Boulder and Longmont (which is expected from municipalities of their size, since they do also have very specific bonds which are repaid solely from sales taxes, and are able to repay the bonds in a fairly short amount of time due to their large revenue base).

I have presented this information, and presented my article on Town Finances, to shed light on how the Town has incurred a very large amount of debt ($209.6 million) to ultimately fund the Town’s operations. While debt and bond issuance is used by a large percentage of other municipalities in Colorado and nationwide, in Erie's case, this is being done in a very methodical, multi-step, and complicated fashion, which has then been amplified by the decisions made of current and former Town administrations. Previous administrations have made the decisions to both garner vast amounts of residential development, as well as to deploy a water, sewer, and storm water "Enterprise fund" in order to attain this residents, and then grow the Town's operations through these efforts.

The graphic above illustrates just how much “Total Debt per Capita” that, we the residents, have each had placed upon us ($8,092.43), and have unknowingly been paying for along the way. We the residents , have been paying this in our water/sewer/storm-drainage bills, and through our ever increasing taxes. We have not only been paying for the principal on the debt issued by the Town, but also for the interest too - since the bond holders also receive an additional percentage of the amount they originally paid for the bond - in addition to the above and beyond mandated amount outlined by the Town's agreements when issuing the debts.

Why the Town has relied on Residential Development

As the article that I wrote discusses, this debt has required and depended on the Town's ability to increase residential development, in order to:

Increase the total tax revenues, by increasing the total number of taxable properties, which increases the “total taxable value” (ie. the taxable amount of all properties in Erie, including your own);
Increase the water/sewer/storm-drainage revenues received, which is reliant on increased usage, how much residents pay for services, and the tap/connection fees paid by developers;
Allow for more debt to be extended through the Town's issuance of bonds, in order to fund additional future expenditures for capital projects.

As my article discussed, the Town has used the debt mechanism of bond issuance, and other instruments, which allow for them to avoid attributing these debts to their "General Obligation", which would normally be capped by a “legal debt limit” as set by state law. "This “legal debt limit” is also dependent on “total taxable value”, since it is a straight percentage of this aggregated total. (It is also important to note, that these bonded debts effect the "proprietary funds" aka. "Enterprise funds" account, which follows a non-GAAP modified accrual budgetary basis, meaning the "financial reporting" is not always reported "as transparently", nor is it even audited in the same manner as the standard Town financials are).

Why the Town has relied on residential development, revenues from water, and demand for water for their Bond ratings

The Town too has required residential development specifically to issue their 3 bonds:

Erie GOULT Bond: This is the Town’s general obligations UNLIMITED tax bond. It is reliant on taxes and residential developer fees. It is secured by the Town's “total taxable value”, and the fact that the bond potentially allows for, if required, the Town to tax 100% OF THE "TAXABLE ASSESSED VALUE" . The bond's rating could be improved by specific investor services when there is a larger “total taxable value” for Erie to tax.
Erie Water Enterprise Bond: This is the Town’s water “Enterprise fund” bond. It is reliant on the residential service fees and tap/connection fees. It is secured by the revenues that the Town receives from residents, and from the payments we make for water services. The bond's rating could be improved by specific investor services when there is more demand for water services, or when the system's size and service revenues increase.
Erie Sewer Enterprise Bond: This is the Town’s sewer “Enterprise fund” bond. It is reliant on the residential service fees and tap/connection fees. It is secured by the revenues that the Town receives from residents, and from the payments we make for sewer services. The bond's rating could be improved by specific investor services when there is more demand for sewer services, or when the system's size and service revenues increase.

How the Town's overlapping debt is actually debt for all residents

In addition to the bonded debts that we have incurred directly resulting from the Town’s practices, the Town’s residents also have a share of debt placed on them from the "overlapping debts" incurred by other governmental bodies within the region. As they issue specific bonds that pertain to projects within Erie's jurisdiction, so too does the Town. Even though the bonds are say issued for “St. Vrain School District” and you might live in “Boulder Valley School District’s” boundaries, the Town could potentially become financially liable, where all of the Town's residents are held responsible for the share of their debt obligations, due to specific "Intergovernmental Agency (IGA)" agreements that were made years prior (I will go further into IGAs and the Town's Relationships with local municipalities/agencies at a later date, but this is just one of the many reasons why they are important).

Let's take for instance the Meadowlark K-8 school completed and opened in the Fall of 2017, which is within the Flatiron Meadows community, and services residents within the Boulder Valley School District's (BVSD) boundary. An IGA was agreed upon in 2001 , then re-agreed upon in 2011, between the Town of Erie and BVSD. This agreement included, among other things, financial assistance for BVSD projects related to projects effecting Erie residents.

This specific IGA, which is similar and not unlike many of the other IGAs that the Town has agreed to additionally with various local agencies, means that the Town of Erie has their own respective share of the debt, which they too are financially obligated to cover. This means that we , the residents of Erie, are financially obligated as well.

The Town's debt practices - the past, present, and immediate future

As I stated in my original article, "While debt is fine in certain situations, the way that the Town has been using it for over the past decade is becoming reckless." For instance, the upcoming expansion necessary to increase capacity for the North Water Treatment facility should use a portion of debt to finance the operations. Why? Because at this moment, we do not have the funds necessary to do so otherwise, because the funds have not been reserved properly for future needs. Instead, it has been a very cyclical process where we have a population that grows quickly, our infrastructure becomes strained, it requires large capital expenditures, we pay for them with bonded debt, it increases our Town's revenues at the cost of the residents, and then restart the process over again when our population grows rapidly once again.

For illustration purposes, let's take a look at 2 different models of cycles, the first being the "Even Keel Model" cycle:

The Town first issues debt for a smaller "Enterprise" facility that can withstand the capacity of up to 12 years of stable growth, "Enterprise" usage is limited, but so too is the size of the Town's government, the number of homes, the total taxable value, the number of employees necessary for the Town, etc. The debt was issued before the revenues to pay for the facility, before the water usage fees, etc. were fully in-hand, but it was assumed that the Town would grow at a pace that was manageable. For arguments sake, say every 4 years, the Town would grow, and so too would the number of employees, and all of the other aspects described earlier, but at a proportional pace. The taxes and revenues received would increase, just as would the bond rating because of the increased demand. Say after 10 years, they saw that there was a need for more infrastructure, so they incurred some debt, but the demand was large enough, and the revenues received for services also warranted it. Then say after the 10th year of incurring the Original debt, they paid it off from the taxes and service fees associated with their Enterprise activities, because they planned for it well, and were actually ahead of schedule. Then the new facility was built after 12 years, but it could take on 50% more capacity, so it would withstand at least another cycle. And so on, and so on. Hint, this is the model that Erie originally "planned".

Now, let's look at the "Asleep at the Wheel Model" cycle:

The Town did the same thing as the "Even Keel Model", to a "T". But then, after 4 years, the Town administration changes, and they decide "hey, let's quickly ramp up the number of residential communities that we have! It will make it so we receive more water revenues, meaning quicker infrastructure projects, that are bigger, badder, and bolder. And it will mean more taxable revenue, since we have more homes! Also, it will mean that our bond ratings will increase meaning we can receive debt easier and issue more of it to pay for things!"

So they do that, and it works - residential development is booming! They decide that they want to start issuing debt to fund more projects, because again - it's booming and they are receiving fabulous rates with a great bond rating! Well, no one is paying attention to just how quickly it's booming. And they only increase the number of employees like they had originally planned under the "Even Keel", which doesn't keep up with the pace properly. And yet still, they keep packing houses in, more and more, until - oops! We "planned" for 12 years capacity for our "Enterprise" usage, but its only been 7, and we are maxed out. So they issue debt to pay for this, in addition to the debt that they have already been issuing for the other projects. Well, now they are at a point, where yes, their taxable revenues are higher, and yes, they have these wonderful facilities which receive lots of revenues, at the residents expense. But it still doesn't pay for the amount of expenditures to expand the facilities, except they are at the point where they have to expand because they were sleeping at the wheel.
Hint: this was the model that Erie actually took

How to end this cycle

We need to break this cycle by outlining a path which is Forward Thinking . If the Town continues on their current path, using debt too quickly and too often (as I predict will continue to be the current track, since we are already seeing various infrastructure systems become strained as we speak), or if residential construction slows, this would not only downgrade our bond ratings, but we would be held responsible for the Town's debt obligations. Let's face it, the Town would never provide us with a refund if they had more cash-on-hand then necessary, (since after all, the voters did approve a measure in 1994 which essentially eliminated all TABOR restrictions for the Town), but they have no problem continuously increasing our rates in order to pay their financial obligations. Which means that we, the residents of Erie, are the ones truly guaranteeing these bonds - not the Town, or the water department.

Now that this issue has been addressed, it allows for solutions to be brought forth that allow the Town to self-fund the projects and operations. Which as mentioned in my previous article, will be “Economic Development”.

Click here to read blog post, "Town Finances: Part 1", explaining exactly how all of this is true

Topic for Next Time: Economic Development

Erie’s Town Finances: $4 Billion Valuation, and How Each One Of Us Are in Debt Because of It

Tue, 21 Jan 2020 00:19:50 GMT

While the Town's population has grown, so too has the debt. Over the years, the town has found ways to avoid attributing debt to their legal limit, including using the properties of Erie residents as their assets of value, which ultimately increases your monthly water bill

Reader beware! The analysis below on the Town's finance is regarding a super complicated subject: the Town's debt. I had to get very nerdy for it, but it's an extremely important topic. I created a "Quick Read" section of the bullet points if you don't want to read the full analysis. For the full analysis, keep reading below, or click here for the full analysis.

(Begin - Quick Read)

Click here for the full analysis

Summary:

Your water bill is high because of the debt practices that the Town uses ($45 if you don't use a single drop)
Your water bill includes a substantial amount of debt payments buried within it
All of the Town's major revenue centers revolve around debt associated with water, sewer, and storm water drainage
The Town's current debt is reported as ~$15 million, but is actually over $200 million
The Town's largest revenue sources are debt, water/sewer/storm water, taxes, and residential development.
The Town's debt limit is set based on the total of all property within Erie, including the property of Erie residents
The Town's residents each have a debt of ~$3,233 (or more) per person because of the Town's debt practices
The Town's debt limit has increased ~79% in the past 10 years alone
The Town has found 2 different ways to avoid their debt limit, and does not have to report all of their debt towards it
The Town's management is "of the opinion that its Water, Wastewater, Storm Drainage, and Airport operations qualify for this exclusion" to not be limited by the Town's debt limit
The Town's 2020 budget is a net deficit due to more expenses than revenues, because of large infrastructure items
The Town funds these projects through bonded debt, increasing the Town's overall debt
The Town requires residential development in order to increase their debt limit
The Town requires residential development in order to increase their debt for water, sewer, etc.
The Town requires residential development to increase their tax revenues

My Stance:

The Town must stop relying on debt to fund every single one of their infrastructure needs
The Town must stop relying on water revenues to fund almost every one of their budget items
The Town must stop relying on residential developments to fund almost every one of their budget items
Ensure equitable relationships with developers, assisting with the Town's needs, and within the vision set by the Town
When possible, the Town must work with the developers to use their resources to build our infrastructure, and then provide them with reimbursements for doing so - work with them so we can "cross two 'Ts' with one stroke of the pen."
The Town should not use a "moratorium" or "ban on all future developments": Boulder tried it, now it has become too expensive to live in Boulder
I am in no way, shape, or form saying to build as many houses as possible. I am saying responsible development, equitable development for the developer and the town, and working with responsible developers in a responsible way that is Forward Thinking

Click here for my full stance on Town Finances (below)

Click here to see how the Town uses your water bill payments to fund the Town's Operations, and why the Town's debt practices is important (next blog post)

Topic for Next Time: Click here for next topic (below)

(End of Quick Read)

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(Begin - Full Analysis)

If you continued to this point, thanks! I do want to warn you in advance - this is extremely complicated, and it might take a moment to sink in as to how the Town is bonding out their current debt. If you have any questions at all or would like to discuss this, feel free to reach out. Thanks again!

During the middle of every year, the Town of Erie provides their Comprehensive Annual Financial Report (CAFR), which provides an in-depth analysis of the Town’s financial strength as it relates to the previous year’s activities. Currently, the Town provides on their website the CAFRs from 2004 through 2018. Each of these reports are audited by a 3rd party for correctness and completeness prior to being made publicly available. The information that the CAFR discloses is a complete overview of all Town activities, based on the records provided from the Town’s Finance Department and the other various Town departments.

From the report, it appears that the Town is financially strong, healthy, and in a great position for the future! Well, yes, and no.

When reviewing the "Changes in Fund Balances/Working Capital" section of the 2020 Budget , there is a line item for over $92 million of expenses for the “Enterprise fund”, relating to Water, Waste Water, Storm Drainage, and the Airport. A large majority of the budgeted request, over 61%, is related to capital expenditures for the Windy Gap Firming Project ($36.6 million) and the North Water Reclamation Facility expansion ($20 million). Due to these and other projects noted, the "Enterprise Funds" are budgeted to have just over $13 million more in expenditures than revenues, delivering 96.6% of the overall deficit estimated in the approved 2020 budget.

You might ask, "How is that possible, why is there a deficit? How will the Town pay for these projects and the other Town activities?" Well, further down in the budget, there is a line item for “Debt Services” of approximately $1.5 million. You might initially think that this is something to the effect of principal and interest payments towards the current and future planned debt of the Town. Sorry, you would be wrong - that is only a portion of the Town's debt, relating only to the current "General Obligation" debt.

But you did raise a good question: how is the town paying for these projects? The answer: It’s tricky, not at all simple, amazingly ingenious, but terribly deceptive.

The Town’s Debt Limit, and Issuance of Debt

As noted in the 2018 CAFR, “State statutes limit the amount of general obligation debt that the Town may issue to 3% of estimated actual valuation.” At the end of 2018 this limit was a “Legal Debt Margin” of ~$104 million. When you do the math on this, it means that the valuation is near almost $4 billion. Below is a graph which visually shows just how much this debt limit has climbed between 2004 and 2018 alone:

You might ask, "Wait, are you telling me that the town has an actual valuation of almost $4 BILLION?!?! How is that possible?" Well, no, but technically, yes. (and here’s where things become scary) We the residents of Erie - our collective properties are the assets. Based on an aggregated total of the value of properties within Erie, the 2018 estimated "Actual Taxable Value" was $3.7 billion, and the "Total Primary Government Outstanding Debt per Capita" is $3,233. That’s right! We, the residents of Erie, each have a share of the debt placed on each one of us to the tune of $3,233 per person.

But wait? The Town only says in the CAFR that they have an “Outstanding General Bonded Debt” amount totaling

~$15 million? Well, no, not really. The Town's actual “Total Direct and Overlapping General Bonded Debt” is $1.34 billion, with the Town’s share being ~$141 million, in addition to the debt from the "Total Primary Government Outstanding Debt", which includes the issuance of bonds for the Town's “Enterprise” activities.

What is an “Enterprise fund” you ask? This is the fund for activities as it relates to the expansions, improvements, and other activities related to water, waste water, storm drainage, and the airport. Hypothetically, say that the town wants to build an expansion to the North Water Treatment Facility (*wink, wink*). The Town would pay for this project by issuing additional debt by way of bonds.

As the Town’s CAFR states, Article X, Section 20 of the C.R.S. "provides for exceptions related to "enterprises", defined as government-owned businesses authorized to issue revenue bonds and receiving less than 10% of its annual revenue in grants from all state and local governments combined. The Town's management is of the opinion that its Water, Wastewater, Storm Drainage, and Airport operations qualify for this exclusion."

What does this mean? It means the "Town management is of the opinion" that they can legally incur debt by issuing bonds, without applying it to the Town's debt limit, which our properties are the assets being valued . The yearly CAFRs began including this statement and section back in June of 2012, when the 2011 CAFR was released, which was also the first CAFR released by the then new Town Administrator, as well as the then new Finance Director. Although they would have been the first “Management" individuals which publicly disclosed that they deemed this action by the Town as warranted, this same practice, but without this specific statement, was ongoing since before the 2004 CAFR . This means that the Town has taken the stance of not including Enterprise fund debt in their general obligation debt since before 2004, and every year forward, as it relates to their debt limit.

The Town's Debt and its Relation to Your Water Bill

You might be thinking now, "Time out. Is this why my water bill is so high?" Yes, this is exactly why your water bill is so high!

Up until the 2011, the same year that the "Tax, Spending, and Debt Limitations" section appeared for the first time, there was a "Compliance Section" within each CAFR which noted for each debt bond, “The town is required by certain debt covenants to maintain rates and charges for the Water water system for each calendar year in an amount sufficient to:

Pay Operating Expenses
Pay any amount required by a debt service reserve
Pay at least {% listed below} of debt services due to {name of bond listed below} loans and revenue bonds"

Here are just a handful of the bonded debts, and the disclosures provided within the pre-2011 CAFRs, as well as the percentage that is mandated to be covered within each water bill paid by residents:

Waterwater Colorado Water Resources and Power Development Authority (CWRPDA) = 110%
1997 Wastewater Revenue Bond = 125%
1998 Water Refunding Bond = 125%
Water CWRPDA 2004 Loan = 120%

This means that a percentage of your Town water bill isn't just paying for costs and expenses to operate the water department, or for water rights, but also for the interest, as well as the above and beyond mandated and contractually obligated percentages set when the bonds were issued.

But wait, I’m not done!

Starting in 2005, when the town purchased Colorado-Big Thompson water shares , the CAFR included the following statement: “Through the Erie Finance Corporation (EFC), the Town issues Certificates of Participation (COPs) for the acquisition and construction of major capital facilities and improvements. The COPs are secured by the constructed facilities and improvements. The debt service payments are made from the rents collected by the EFC based upon a lease purchase agreement between the Town and the EFC. The improvements and outstanding COPs are recorded on the Town's financial statements as capital assets and capital leases, respectively.”

Some of the previous years statements have further gone on to say, “The COPs are secured by the underlying capital assets. Payments are subject to annual appropriation and do not constitute a general obligation or other indebtedness or multiple fiscal year financial obligation of the Town within the meaning of any constitutional or statutory debt limitation.”

Basically, the town issued COPs in 2005, which are a fancy way of saying "debt", for the acquisition of water that cost just over $32 million. This means that not only does the Town have one mechanism to skirt their debt limit through the "Enterprise Funds" account, they have two , also through the EFC. I kid you not, I couldn't even make this stuff up if I tried!

What Does Water and The Town's Debt Have to Do with Each Other

Ok, so what does this all mean? This is where it becomes even more complicated.

When more people use the water, waste water, and sewer facilities, and when our infrastructure reaches the point where they are in need of an expansion, the Town must be able to come calling to financiers, and offer the Town’s AA1 Moody’s rated bonds or the Water Department’s AA3 Moody’s rated bonds. Because the “Town management is of the opinion” that these debts do not have to be counted towards the debt limit, that means they will simply continue issuing debt to pay for facilities. Then, they will be mandated to increase water rates incrementally every year, essentially through new assessments, which would include the new financing that they secured through bonds. The rates are set based on a "Utility Study Report" rate analysis every 5 years, which are completed by contracting an outside firm, and then submitted for approval by the Town's Finance Director.

While residents pay their ever increasing water bills, the bonds, which are paid off many years down the line, are allowing the Town to make money hand over fist along the way. Meanwhile, the EFC, which is owned by the Town, and uses the facilities as collateral, in turn rents the infrastructure facilities back to the town, which are also owned and operated by the Town. The town then only accounts the leased facility expenses back to the budget, rather than the entire funded amount. Since, the town does not account the "Enterprise funds" towards the debt limit, they are first required to show that there are enough customers warranting the project (ie. consumption and use of the systems and facilities), and that the rates set pay for the project plus additional fees above and beyond. The Town can choose to first add the bonded debt to their "General Obligations" to secure the funding and then transfer it to the "Enterprise Funds" account to avoid the debt limit, or they can simply take on the new debt directly to the "Enterprise Fund" account and avoid the debt limit all together.

Concurrently, when the “Actual Taxable Value” for properties within the Town increase, meaning the land and our structures increase in their appraised values, or improvements are completed to increase the value of the land, or as more homes are incorporated into the Town, the debt limit can be increased due to the increased aggregated total. In simultaneous fashion, the tax revenues increase because there are more properties that are taxable, and the previous properties that are now improved increase in the taxable amount too.

Get all that? In lay man's terms: The Town has not only needed residential development, it has required residential development simply for their three largest revenue sources: taxes, water/sewer/waste water, and developer contributions.

Residential Development Agreements: What the Developers Pay

Now that we understand how and why the Town has become dependent on residential development for their future debt needs, as well as their needs for revenues related to their “Enterprise fund" activities, it is important to look at exactly how this relates to the current residential development agreements that the Town enters into for each new development.

When it comes down to the developer agreements, there are specific items which the developer pays for and is on the hook for to improve and develop their land for their uses. Those types of improvements are categorized into "Public Improvements" which include the following:

Infrastructure costs: Water infrastructure, tap and connection fees, sanitary sewer and storm drainage infrastructure, sediment and erosion control infrastructure, drainage infrastructure, on-site and off-site utilities (electric, natural gas, telephone, cable, etc.)
Common facilities, common area landscaping, and parks: trees, grass, fencing, native areas, and other like-kind items, as well as the landscaping maintenance which includes weed control and mowing of vacant lots
Streets fees as it relates to their immediate development: Streets and concrete drives, sidewalks, signs and striping, street lights and street signs

There are as well additional fees that the developer incurs, which include the following:

Permits: Building Permits, Public Improvement Permit, US Corps of Engineers, Colorado Dept of Health and Environment General Permit for Storm water Discharges Associated with Construction Activity, Town Grading and Storm water Quality Permit, Air Quality Permit
Reimbursed to Town: Developer reimburses the town for any expenses incurred by the town for consultant review of applications/documents
Developer Expenses: Testing and Inspection fees, supervision and professional licensed engineer services

Typically, the Town will provide a concession for the following types of improvements, through the form of reimbursements, after the Town has accepted the developer’s improvements: actual incremental costs for the over-sizing of large non-potable and potable water lines, extensions of already existing streets.

Before any grading of the land begins for a new development, the Town will hold a set of funds from the developer, generally 115% of the total actual cost of construction and installation of improvements, which will then be held by the Town until the time that the Town has accepted the improvements as complete. These funds can be used by the Town if the developer does not make the improvements as deemed adequate by the Town. When the improvements are completed, the Town will reduce (ie. give back a large portion of the funds) so that the amount held is reduced to 25% of the original improvements total, which is then set aside as a 2-year warranty period for use as an “Improvement Guarantee”.

As well, the town might require that specific tracts, or plots of land, be transferred to the Town through conveyance of special warrant deeds for use as “Open Space”, or so that the land can be used as a Town park within the community. Typically, this will also include the requirement of an additional specified dollar amount provided from the developer for the Town, in order to build improvements to the park.

The Developer's Contribution to Our Town's Revenues

When all is said and done, and the land becomes improved, the Town records as revenues all of these public improvements in public areas or future Town owned right-of-ways that the developer makes. Additionally, the town then receives increased tax revenues from the new homeowners due to the taxable improvements made to the land:

Capital Grants and Contributions: Includes the contribution of infrastructure built by the developer from improvements
Charges for Services: Includes the developer's building permit fees, water use fees, and tap/connection fees
Taxes: The developer still pays for the taxes on the individual parcels of land during construction, and then the new homeowner pays for the "taxable improved value" once they purchase the home and it is transferred to them

As mentioned previously, the Town relies heavily on revenues being contributed from "Enterprise fund" accounts, as well as from taxes. But more importantly, the Town has been much more reliant on residential development. When it comes down to the financials, the Town has hung onto residential developments as the way to pay our Town's bills. The graph below shows just how many permits have been issued by the Town between 2004 and 2018:

When you review just how much developers contributed to our Town's "financial health", it becomes shocking. The graph below shows just how much of the Town's revenues and expenses have been effected by residential development:

My Stance: The Changes Necessary to Stabilize Town Revenues

The Town, must first stop relying on debt for every one of their capital expenditure needs. We must become independent for ourselves, and must begin to find ways to self-fund our projects. While debt is fine in certain situations, the way that the Town has been using it for over the past decade is becoming reckless. We, the residents of Erie, are on the hook for it. We, the residents, are the ones who must pay for it through fees packed into the various Town activities.

Second, the town must stop relying on water to fund almost every piece of the Town's expenses. We the residents of Erie, are the ones paying for it monthly through our water, storm drainage, and sewer utility bills. Even if we do not use a single drop of water for a month, resulting in not a single drop of sewer usage, we would still pay $45.68 for the month, with a large portion of that being used just to pay for the debt that has been financed by the town.

Finally, the town must stop relying on residential developers to pay for our infrastructure and, as is the same with water, almost every piece of the Town's expenses. Yes, developers should be paying for the improvements that they make on the land that they develop. But we should not be to the point, as we are, where our financial stability is determined by them. The new developments have increased our population faster than our current infrastructure can handle, resulting in expansions and new infrastructure needs that the Town looks immediately to financing through bonded debt. This method is not sustainable, and if there were to be an event causing a situation like 2007 - 2014, we would all bear the burden through future assessments and tax hikes to cover any possible long-term downturns in the economy.

The answer should not be a "moratorium" or "ban all future requests". Boulder (the city) did this, and look what happened - no one can afford to live there! The answer is to make sure that the Town's resources can accommodate the requests, and in very specific cases, work with the developer to add additional infrastructure pieces that are needed before they break ground or concurrently as they break ground, in terms of building the developments very first homes. If it means that the town can outsource specific infrastructure needs to them, instead of having to do every project on our own with the limited resources available - cool, I'm game! As long as it meets our quality standards, is adequately improved to the level that we deem fit as provided in our Town's UDC and by State codes, and is most importantly within the cost and time-frame that the we as the Town define, it's a win-win for us both.

Yes, it might take them just a little longer than the developer would like in breaking ground, but you know what, it means that we have the infrastructure in place to support the growing population before those new homes are built, and we can invest our limited resources into other areas which we are simply unable to receive assistance in from outside parties. Because let's face it - the developers are also the ones adding to our growth problem, it isn't just us accepting all of these development agreements. Instead of creating ill-will with them and responding negatively towards them, let's work with them, tell them our vision, define our needs, what we would like to have done, and be able to set a path forward which is equitable and profitable for both parties. If they are building a new road specifically for their new community, and we also have needs to widen a road that the new road would be intersecting, work with them so we can "cross two 'Ts' with one stroke of the pen." It becomes more efficient, and would save time and costs associated than it would if each project were done separately on their own. It would be the exact same situation as the Town currently does for items such as when a developer is reimbursed by the Town the actual incremental costs for having to install larger water lines than are pre-existing in order to fit the increasing needs added by their newly added community.

I am in no way, shape, or form saying to build as many houses as possible. I am saying responsible development, equitable development for the developer and the town, and working with responsible developers in a responsible way that is Future Thinking.

Click here to see how the Town uses your water bill payments to fund the Town's Operations, and why the Town's debt practices is important (next blog post)

Topic for Next Time: Economic Development

Since I have been asked about my stance on a wide range of topics, I will be releasing a calendar this week, which will have the specific release dates and topics which I will be addressing in my future articles. There are many topics that I have received questions about, which I will be addressing in the same method just as I have this topic and those topics discussed in my previous posts.

If there is a specific issue item that you would like me to address, please fill out the form on my website, available here . There will be some articles where I will be doing a "Q&A", so I might just answer your question directly! The most requested topic already of "Oil & Gas / Fracking" will be a future article, which I will fully address in its entirety just as I have this and other topics. I will as well be addressing in future articles the topics of "Home Rule" and "IGA/Relationships with Local Municipalities/Agencies" as those are also "Hot Button Topics" which I have been asked to address.

I greatly appreciate you taking the time to read this article on Town Finances and look forward to hearing your comments and feedback relating to it. Since some Facebook groups are beginning to shutdown the comments sections, please free to leave a comment below. Thanks again!

*Just a side note to all of the items that I discuss: I am a solutions driven problem solver by nature. I wonder how things work, why they work the way they do, and how to make them better. This means seeking different, outside-the-box methods to figure out solutions to various issues. Accordingly, I am always open to learning new ideas, different ways of doing things, as well as constantly learning from others' experiences to make better decisions. When I see an issue, I view it in a holistic fashion, and then dive into specific areas to remove deficiencies and create efficiencies. If you, who are reading this, have some thoughts or ideas about any of the subjects I discuss, I would be more than happy to speak with you to hear your opinions. Listening, hearing, and understanding different perspectives is the only way that we can all grow and create positive change - by learning from others, and delivering ideas that push the needle to become Forward Thinking.

Erie's Future: The Fork in the Road, and the Path To Lead

183:787856552 (Andrew Sawusch) — Sat, 18 Jan 2020 22:27:28 GMT

In order to catch up to the current 40% growth rate in the past 5 years alone, the Town must take specific actions to forge their own path, rather than sitting at the fork in the road and deciding which path to follow

Now that we have a better understanding of the position that the Town is faced with, which is that the town has been unable to keep up with a 40% growth rate in the past 5 years , a new question arises: how does the Town catch up to Erie's rapid growth and expansion?

First and foremost, I must say that the current Board of Trustees are not solely to blame for where we currently stand as a Town, but they are just as culpable. The blame also lies on the board before them, and before them, and so on. These collective decisions of previous boards have now put Erie into a position where the population has outpaced the threshold at which the Town can facilitate it properly. This is due to previous boards that have looked to growing Erie as quickly as possible, essentially signing as many residential development agreements as they could, so that they could eventually attract commercial developments for sales tax revenues. As was reported in a DailyCamera article back in 2015 , Erie stood at a fork in the road, specifically relating to one singular decision, the water department: “It’s that chicken-and-the-egg argument: Do you get the water to be able to have the growth? Or do you grow and then scramble to find the water?” As the saying goes, “be careful what you wish for!” Erie selected the "grow and scramble" path, just as it has for all of their other infrastructure elements, which in turn, resulted in them last year requiring an immediate need to expand their waster water facility due to their capacity thresholds becoming met.

Now, the Town has come to this new fork in the road, and the question between growth or infrastructure arises yet again: which path do we follow? This time, however, the decision isn't as simple. The path of "growth" is still moving before our eyes, and very rapidly at that. If the town does not make a decision quickly, we will be stuck at a fork in the road which leads to dead ends on whichever path we take. The answer? Forge our own path which converges where the two paths meet!

Let's face it - the current and previous boards have made tentative or hard agreements which will lead to a population of 60,000 to 75,000 residents in the next 25 years. While there is the potential for certain agreements to be renegotiated, others can not, else we open Pandora's box of lawsuits and litigation for breach of contract. Certain and specific agreements may be soft and would have room for new negotiations, but what do we do about new or future development agreements? Some have mentioned that a way to resolve this is to place a moratorium on new developments . I do not believe that this is immediately necessary, but at the same time, it isn’t to say that it can’t be a tool which could be potentially used in the future for an immediate and temporary “freeze”. I believe that a development moratorium would only be an immediate band-aid, effecting one singular symptom – the number of residential developments – and would ultimately hurt the Town more than help it, since there would be a very large chain reaction of events which would occur if that decision were made. Among others, a development moratorium would greatly effect various partners within our community – financial institutions, developers, home builders, etc. – as well as the Town itself in the way of current and future Town Budgets or forecasts of revenues, which the Town needs to be able to count on for additional projects Town-wide. This could also erode these relationships, which the town greatly needs. This would then potentially lead to unforeseen negative outcomes, such as developers refusing to work with our Town again in the future, which is something that actually has already been occurring with specific developers.

So how do we forge our own path then, without placing actions into motion which would prove detrimental for the Town's future success? Well, it's simple: the Town, specifically the Board of Trustees, has to become smarter, as it relates to the development agreements which it signs. Specifically relating to residential developments: current development agreements include “milestone” clauses where infrastructure improvements only occur after X% of dwellings have become finished within a development. While this might be great, when you have the sheer volume of developments occurring at or around the same time, as is currently the case, the Town basically creates a "one step forward, two steps back" situation. While the developments, might have milestone clauses individually, collectively the infrastructure becomes strained before these thresholds are in-fact met. Instead, the Town should take a proactive step, rather than solely relying on developers to be “contractually obligated” to improve our own infrastructure.

Regarding road and intersection widening, there are certain areas which are within Erie's purview, which can be addressed immediately. Specifically pertaining to US-287 and Hwy-7: this is not just an issue for Erie to address as the projects must also be taken on in conjunction with other jurisdictions: Weld County, Boulder County, the City and County of Broomfield, the City of Lafayette, and more importantly at a State level with CDOT. Since CDOT actually "controls" and has final say on any state highways (including CO-7, US-287, I-25, etc.), they are the ones who would actually need to make the call on when, how, and the costs associated with these projects. Now, with that said, Erie must do a better job of working with their local, regional, and state partners to plan for the future better. There are some very specific issues which must be addressed, and they absolutely require these partners in order to resolve them. Some of the Town’s relationships with our partners and largest allies have become corroded, and quite frankly need to be restored. Unless this occurs with the next board, Erie will continue to be stuck in limbo, handcuffed by the interests of surrounding agencies and municipalities.

Ultimately, the solution first starts by analyzing all town activities, and then to create the next-steps forward, while at the same time and in conjunction with a plan-of-action for the future: where have we been, where are we now, where will be in the future, where do we want to be in the future. This means that the Board, Town employees, Town departments, and Erie residents – from the very top to the very bottom – need to be on the same page. There needs to be a common and singular path for the community, which lays out exactly what we have done, what is currently being done, what needs to be done next, while also planning what will need to be done in the future. In the business world, this is called a “business plan”, which is constantly monitored and updated, and from which develops the vision, goals, objectives, strategies, and action items for future and day-to-day planning.

Since the priority regarding the Town’s growth is not to necessarily curtail it, it rather becomes to ensure that the supporting infrastructure becomes sustainable in order to always stay one step ahead of the increasing growth rate. To do this, the following questions must be answered: What is our current population? What will our population be based on the number of development agreements in place? What is the capacity for our infrastructure and resources? When, and more specifically where, will our capacity levels be met based on these agreements? If we know that there are going to be areas where large communities will be built, or multiple communities will be in-progress and occurring at the same time, we must become forward thinking and have the infrastructure in place before the population from these becomes too large to handle.

For starters, every piece of infrastructure within the Town should be monitored based on active levels and capacity thresholds or limits. For example, in the situation of Erie's North Water facility expansion mentioned earlier, town staff should have been actively monitoring the capacity limits better, identifying precisely when the capacity levels were necessary to being their exploratory and planning phase. The State mandates that at 80% capacity, expansion planning must begin, and that expansion construction must begin at 95%. However, to be proactive, the town should set better threshold limits and reporting practices (ex: at 75%, begin planning, not state mandated 80%), in order to stave off any potential maximum capacity issues. One basic determinant that could be used (although does not account for commercial growth) would be based on something similar to the "Number of Residential Dwellings", and graphing out exactly when current activity levels initiate specific planning and expansion responses.

Our current Town Comprehensive Plan is already outdated, and in all honesty, falls short of the totality needed in setting the future blueprint from which to lead Erie. If the next Board of Trustees does not take the necessary steps and action needed to set the Town's forward thinking vision, and if we simply wait for thresholds to be met by developers, the total of all developments town-wide will soon create additional needs, as is the case right now, and still aggregating as a whole.

In a future post that will come next, I will outline and discuss specifically how the town can become Forward Thinking in terms of their finances, specifically relating as to how the Town would be able to pay for these infrastructure improvements, while at the same time maintaining the proper reserve levels necessary and/or required by State laws.

*Just a side note to all of the items that I discuss: I am a solutions driven problem solver by nature. I wonder how things work, why they work the way they do, and how to make them better. This means seeking different, outside-the-box methods to figure out solutions to various issues. Accordingly, I am always open to learning new ideas, different ways of doing things, as well as constantly learning from others' experiences to make better decisions. When I see an issue, I view it in a holistic fashion, and then dive into specific areas to remove deficiencies and create efficiencies. If you, who are reading this, have some thoughts or ideas about any of the subjects I discuss, I would be more than happy to speak with you to hear your opinions. Listening, hearing, and understanding different perspectives is the only way that we can all grow and create positive change - by learning from others, and delivering ideas that push the needle to become Forward Thinking.

Town of Erie Grows 40%, Town Infrastructure 7.5 Years Behind Forecast of 16% - 2015 to 2020

Fri, 17 Jan 2020 20:52:19 GMT

With a 40% actual population growth rate, compared to the Town's 16% forecast, the Town of Erie's infrastructure will be 7.5 years behind its current growth, and have received by the end of 2020 what it believed to be 12.5 years of population growth in just 5 years - straining the Town's infrastructure and leading to capacity concerns by major utility providers

Every 5 years, the Town of Erie updates their Comprehensive Plan to reflect changes within the town. Within the report, they will forecast the population trends, which are then used by the Town to predict where resources are needed in the future, as well as the projects that will need to be undertaken. Having been previously updated in 2015, and expected to undergo a revision this year in 2020, there was one item that stood out to me more than anything. Now, I know that the town should be constantly monitoring this information yearly, but I have not seen anything to the effect.

Way down in the report, almost at the very end, in Appendix A, page A-7, Table 3, it shows the "Household and Population Projections - 2015-2035":

Reviewing this table, it appears that the town estimates that there are approximately 2.878 residents per dwelling unit, which results in the "Total Population" column seen. As well, the average estimated growth rate was forecast to be approximately 15.93% within each 5 year period. However, the total number of dwellings appears to be very low compared to actual totals previously reported.

Evaluating the yearly "Comprehensive Annual Financial Reports" for the years 2015 through 2018 available on the Town's website, the total "# of Dwellings" can be updated to reflect the actual number of residential construction permits issued by the town in those given years. Since the 2019 annual report has not been issued, the "2019 Budget 2nd Supplemental Appropriation" can be used, and for 2020, the "2020 Budget" adopted by the Trustees on October 22nd of this previous year. The "projected number of permits" to be issued for both of these years provide the best estimates in terms of coming up with the actual number of dwellings for these years. For the 2020 year, the amount is the total of single-family dwellings estimated, which does not include the 150 additional estimated multi-family or high-occupancy residential dwelling units that will be part of the Nine Mile project. For the subsequent years after 2020, the same estimated growth rate of approximately 15.93% can be maintained that was used in the Comprehensive Plan's forecasting. The totals are staggering:

The results, as seen in the above table, indicate that by the end of this year, the Town will have greatly exceeded the estimated growth rate that they predicted for 2015 to 2020, with an actual growth rate or 37.52%. Adding in the additional 150 dwelling units from the Nine Mile project's multi-family high-occupancy residential dwellings, this number further increases to a growth rate of just under 40% in 5 years time.

Here is what this means: the growth rate of 39.47% is not only 2.5x their original forecast projections of 15.93%. It means that the town will have received what it forecast to be a 12.5 year population increase in just 5 years. Since this comprehensive plan is the blueprint for the Town's future endeavors, this means that the town is currently 7.5 years behind where they need to be.

This quick, rapid-paced growth strains our infrastructure. The first sign are choke points that begin to occur at key defined "Community Gateways" listed on the Town's Zoning Map . Because roads are not widened or redesigned in time, this leads to a larger volume of vehicles on the road, more traffic and congestion, and increased wait times at traffic lights. This then leads to a decreased life expectancy in terms of the roadways themselves, since more vehicles are traveling on them than initially expected. All of this can be seen on a daily basis by residents, as we have to sit sometimes up to 15 minutes at traffic lights, sometimes through 3 complete cycles, just to enter CO-7 and US-287.

Next, there becomes longer than needed wait times for essential services, such as police, fire and rescue, and other Town services. Due to the larger than anticipated volume of residents, as well as the ever-increasing development applications within the Town, Town staff become inundated with requests, slowing the amount of time from application to acceptance. These types of events have already occurred, as noted in the Town's News Flash regarding the home invasion back in September. Although the police were contacted due to some suspicious activity just blocks away from where the armed robbery and kidnapping occurred, officers were unable to respond in a timely manner simply because there weren't any officers available due to their smaller than needed staff.

After this, there begins to be further depletion of our water and sewer infrastructure. Due to the increased demand, the life expectancy decreases for specific elements within our water supply distribution system, as well as our water treatment facility, creating the need for large capital expenditures to repair or replace the components. This was noted as occurring in an April 2019 Times-Call article , which noted that in 2017, Erie's North Water Reclamation Facility (wastewater) "hit about 81% capacity... By 2020, that number is expected to hit 95%." While the current expansion project is scheduled to take a few years, the article goes further on to say that "the facility's liquid capacity would be exceeded by 2021", meaning there is the potential that the project will not be completed in time prior to reaching the system's maximum capacity limit. Additionally, the 2020 Budget has a line item for the request of a new "Turbine at Water Treatment Facility - $1.8 million." This is surprising, considering most of the large components of a water treatment facility have an expected lifespan of approximately 25 years, but the Town now needs to replace the current turbine only after 15 years from when the facility was expanded between 2005 and 2007.

Finally, it leads to other major public utility providers being near or at capacity. Xcel has been the first provider to note this problem, specifically within Old Town. They have said that the capacity issue has reached a point where if something is not done within the next 12-18 months, businesses and residents here will have lower-than-necessary pressure levels for such things as hot water and heating. Only because Xcel came to the town with this issue did the Town of Erie decide to start the process of moving forward, as indicated by the "Infrastructure Improvement Study for Old Town" approved by the Board of Trustees during the January 14th Board Meeting (resolution 20-014) .

These reasons, and the information presented earlier, indicate why Forward Thinking is needed now on the Board of Trustees, and why my largest single campaign Issue Item of concern is Manageable Growth and Sustainable Infrastructure .

*Just a side note to all of the items that I discuss: I am a solutions driven problem solver by nature. I wonder how things work, why they work the way they do, and how to make them better. This means seeking different, outside-the-box methods to figure out solutions to various issues. Accordingly, I am always open to learning new ideas, different ways of doing things, as well as constantly learning from others' experiences to make better decisions. When I see an issue, I view it in a holistic fashion, and then dive into specific areas to remove deficiencies and create efficiencies. If you, who are reading this, have some thoughts or ideas about any of the subjects I discuss, I would be more than happy to speak with you to hear your opinions. Listening, hearing, and understanding different perspectives is the only way that we can all grow and create positive change - by learning from others, and delivering ideas that push the needle to become Forward Thinking.