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June 27, 2022 SB 22-046
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0643
Sen. Smallwood
Date:
Bill Status:
Fiscal Analyst:
June 27, 2022
Postponed Indefinitely
Will Clark | 303-866-4720
Will.Clark@state.co.us
Bill Topic: PARKER ELECTION INCLUSION OR EXCLUSION FROM RTD
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure (conditional)
☐ State Transfer
☐ TABOR Refund
☒ Local Government (conditional)
☒ Statutory Public Entity (conditional)
The bill would have allowed voters in the Town of Parker to decide whether to be fully
included in, or excluded from, the Regional Transportation District. The fiscal impact
for state and local government, and for RTD, a statutory public entity, was conditional
upon the occurrence and outcome of this election.
Appropriation
Summary:
No appropriation would have been required.
Fiscal Note
Status:
The fiscal note reflects the introduced bill. This bill was not enacted into law; therefore,
the impacts identified in this analysis do not take effect.
Summary of Legislation
Currently, a portion of the Town of Parker is included in the Regional Transportation District (RTD).
This bill would allow Parker voters to decide whether the town should be fully included in, or fully
excluded from, the boundaries of the RTD in an election. To be considered, both options must be
voted on in the same election, and the Town of Parker must pay election-related costs. The bill
specifies various processes and procedures for referring these ballot questions to voters and how the
question must be worded.
If voters choose to be excluded from RTD, the effective date is the earlier of December 31, 2050, or the
date that long-term RTD debt pledged from sales tax revenue for the RTD Base System and FasTracks
program is repaid. In this outcome, RTD may continue to receive sales and use tax revenue from the
areas of Parker within the RTD boundaries until the effective date of the exclusion, but it must
continue to provide services if it does.
State Expenditures
If voters in Parker decide to fully join RTD, the Department of Revenue will have additional workload
to modify sales tax calculations for the affected geographic area prior to their inclusion in RTD. If
voters choose for the town to be excluded from RTD, workload will increase in 2050 to make such Page 2
June 27, 2022 SB 22-046
adjustments in the areas being removed from the RTD sales tax area. No change in appropriations is
required for this work.
Local Government
The bill allows for a local election and requires the Town of Parker to pay for election-related costs.
These costs will only be incurred if voters or the city council refer questions concerning RTD
membership to voters as allowed under the bill.
Statutory Public Entity
RTD collects a 0.6 percent tax to support its Base System and another 0.4 percent to support the
FasTracks program. Impacts to sales tax revenue and costs for RTD will depend on whether an
election is held, and the result of the election.
Exclusion of Parker. In 2021, RTD collected approximately $15.1 million in sales and use tax revenue
from the portion of Parker that is within the RTD. If Parker voters choose to fully exclude the town
from RTD, the town's debt obligations to the Base System are estimated to be paid by 2024 and to
FasTracks by 2050. This would reduce annual RTD revenue by approximately $10.8 million beginning
in FY 2025-26, and by an additional $13.8 million beginning in FY 2051-52. This revenue estimate
assumes sales tax revenue grows by 2.8 percent per year from 2021 levels. In addition, RTD will have
cost to move facilities out and modify its service area.
Inclusion of Parker. If Parker voters choose to fully include the town in the RTD, annual revenue and
related expenditures to RTD will increase to provide expanded services. Expanding the RTD sales tax
area to all of Parker is estimated to increase sales tax revenue to RTD by approximately $525,000 per
year. Though a large portion of Parker would be incorporated, much of this area is likely residential
or industrial, and would not generate significant additional revenue from sales and use taxes.
Effective Date
This bill was postponed indefinitely by the Senate State, Veterans, and Military Affairs Committee on
February 1, 2022.
State and Local Government Contacts
Counties County Clerks Information Technology
Local Affairs Municipalities Regional Transportation District
Revenue Secretary of State Transportation
Treasury
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.