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)
Andrew Sawusch • February 14, 2020
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. 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, 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).
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?
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 .
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 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.
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 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.
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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"!