Resources
I'm acutely aware of the challenges facing our community. The complexities of Home Rule, Downtown Development Authorities (DDA), Urban Renewal Authorities (URA), and Tax Increment Financing (TIF) can be daunting to navigate alone. That's where I come in. I am dedicated to providing you with the information and resources you need to make informed decisions about the future of Wellington.
Home Rule
Home Rule is a form of government that allows municipalities to determine the powers and
authorities that best meet the needs of the community rather than what is spelled out in Title
31 of the Colorado Revised Statutes for statutory towns. Home rule communities must still
follow Colorado statutes, but the town’s organization, form of government, and powers and
authorities, are spelled out in the town’s home rule charter rather than Title 31.
As a statutory town, Wellington must follow the guidelines listed in Title 31. However, the laws
for statutory towns were written for newly incorporated towns with a population of less than
2,000, and these powers are limited. When a town’s population exceeds 2,000, it can choose to
become a statutory city, which has greater powers and authorities under Title 31 than statutory
towns. Any statutory town or city can become home rule, and with Wellington’s population
pushing 12,000, we need greater flexibility to meet the needs of our community.
What can Wellington do as a home rule community? Here are some examples:
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Offer economic incentives to create new commercial growth and increase revenues to fund town services.
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Create a lodging tax which could fund affordable housing or communications and marketing, thus freeing up general fund dollars for other uses.
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Assess an excise tax on marijuana sales which could help fund a recreation center.
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Self-collect sales taxes, which increases town revenues by cutting out Denver as thee middleman.
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Customize our zoning to best meet growth demands.
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Change from a town to a city.
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Change elections to November.
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Establish term limits for elected officials.
More information on home rule can be found on the Colorado Municipal League website.
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https://www.cml.org/home/publications-news/resource-detail/Bullet-Point-Overview-of-Home-Rule
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Downtown Development Authorities (DDA), Urban Renewal Authorities (URA), and Tax Increment Financing (TIF)
DDAs and URAs are special districts under Title 32 of Colorado Revised Statutes. Both allow
towns and cities to establish TIF funding to fight blight and encourage new development. DDAs
are in a town’s core downtown region, and URAs can be extended to cover other areas of town.
Each district has its own powers and authorities, but the use of TIF remains the same.
First, TIF is not a tax. TIF captures the normal increase in property taxes within the district as
new development occurs or as existing building are remodeled. For example: a vacant lot in downtown Wellington has a small property tax bill because there are no improvements on the land. However, if a commercial building is erected on the lot, the value of the property increases, and the owner now pays property taxes on the new assessed value. TIF captures the property tax difference between the vacant lot and the improved lot. Not only that, TIF ALSO captures the property tax difference that would be paid to other taxing
bodies.
TIF revenues stay within the district and can be used in several ways, including:
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Purchase of vacant lots
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Demolition
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Infrastructure and streetscape improvements
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Incentives for new commercial growth
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Loans to small businesses for building improvements
More information on DDAs, URAs, and TIF can be found on the Colorado Downtown, Inc.
website.
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https://www.downtowncoloradoinc.org/ura-districts-resource-page/