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3 - Local Improvement District and Street Improvement District (LID/SID) Finance Memo - - ATTACHMENTB = ~ • - Board o~ County Commissioners ~I:~or Shaun :McGrath City c,f'r3uutder 1'~11J~.1 r9I 13~~ulder, CC) $t730E, RE: C©'[.'TtTY-VIDE FINANCING 3'ROGR:LVIS UNDER IiOl1SF BILL ~t3-i3SU: l2:Ei+iEWt1.I3LE ENERGY AJ~IU E?~iERGY E~FFICIE'V~Y CAPITAL I13PRU~'F,lYTS F012 PRIVATE P12Uf ARTY' Utti`~3ERS Dear titayor tileCirath and~Icmbers Oi the C:it4' Council' I•Ir>uze Gill 08-13:1) creats;s state la;~ utrthority fpr c:uuntic> and ~~iltzr la.:al governments lu pru;'ids bclu;v- markct finar~:inc; and favorable repayment ternts anti methadoJ,u~ie; to rnablr residzrtts and business ,.~•;nCls t~: in,ta,I retfaw'ab1C etr,:rgy systems aftd/of infpru;cd ztt~gy c1ti.:ienc}' capital itnprav~mc;nra il:t their pn~pfrtfrs. liollltiGr CO!]T11v IS CUfTi:ntl~' t~'~~fl: alp t0 i1~:° :fdti vantage of-this rlev~• ;tutist>rity. and to ir:~Judr cxt the ballatin tiaYembrr the nc:ccssan• authorizatiau in inlplrfnent a (.'Jeffn I:ncr;~,y t:lpti,tn; t. ;~t al Irnpro; eaten[ Uistr in count}-++ ide.. !1 13. 1 i~(1 aih,;~•s for the 1~7Jlowittg cc~mlx';nents~ J. L~~::al In~ro+entcnt i_)istricl and Street lmncr,;•~m~nt J)i~trict (1.IIJ.'~llai I=inartcittg~ ~.l fte nev.~ Izzislatian ~r~vicl~ atetllarity fur ct)utuic:w, :;iiic5 aftd tc>ti.c?s to utili°c;. local imprtJVeln,rrlt districts f"stmt ilnpre~vrelent disfrict; ` fttr cities: tovvnsl as a nteans u! fiinancirtg ~pti.1 impr~~vetnents try residences and c«:trtntcrcial stn:ctures Ct:r eitlrt;r renr++al~le c;nergy y}°sterns ttnil;'nrrnen~}' ut ~citntiv installations. in addition, the la;v provided [trot the benefited propei'tic~ n°,edt~'t be contigtuxts to reach othzr- A si~mificsurt difCert:nce in the local improverfzent district structtue tv}tc;rt utitizerf far this purpose is that this crater a vc>Jcuttary'`cpt-in" t}•pe of district, 4tihcrcby :~ntt' th,~>e prapcriv ovvnen c~-ho choose to utilize I.JGtSI)-3 tinancing to F"anti these ilnprn; ements or; t}[sir properties ;.ifl be responsible for the st3ccia! assea;mettt; necessary ttt repay the Fitton;: ing. [iaulder County is moving fc~rvvard with tht steps necessary to establish a ltxal iirt}~rc~vemenl tiistrict, titled the Cls:an Fnrry~ Opti,tl~s Lttcal Improventent I}istrict, tcl include all praperti~s in L'oultter Count} . fax E~enaptl'ituanc~: $idc;ral !s;~ . urri:ud; peen+it;,tags ,fn.t lvcai t;u4en;tneuts to issue tax- cxernpt bonds to provittc (.~r Ic;++er-errs[ financing Fur capita) ilnpre>vements to n:sidertcr> :fncl cotnntrrcial stru;aurrs fiur rene+;;tb1e cnere} ~ysten?s ~tnd,oren~rgy cPfioiency installations. 5tatc ;au has novy bent :nn~nded to exrressly adapt that pru+•i:i~n of ti:drral Jaw. Choy, local r:i:vrntmerits pmt rlotti ulilizu ',un:r or all ~~i their P~deralt.• autll~tirized state "pass-tftrou~h" ku~~, ITEM i~_r~~E 7 selume cap alk>cation to issue bundK to create a fund fcx pravidins; leans for prix a*.e renewable y .:;ti;s ,s _ rein: and eners~v e1h::rLnc~ uulallativns. < icnerally~. The caunq~, or city or t~~~sn, may utiGzc LII~ band ~inattcang atttl~~~nty• to i,sur bonds t.~r the l?Itrp(1S~ OfCfCaIIISk Iltt'. fund iteC:5~3ty to pay far the pasts of th~st: irTrt,roseniet;ts up- tt~~ttr. l;te Ccsunty- intends tc> pnt a bailor i,~u~ befGrr The +c`iCrs Tens \++sctt:h.r ro cstahfish such i district In order to obtain this LID Ctnancins:. the prt~pc:rty owner must :tree ro lr apart of the ~ii~trict and to repay via special asst;ssrnents the costs of the improvements veer a period of years (generrll}~ ! ~ to 20 years.) Tltc ;rcaf advantage of this financing for Fxc>lxrt}~ oss~rs is that the Tsses>ntznts arc paid via the artnuaf propcrty~ ta.Y l~iil, rind The repsymcnt ~hlrgnt;un rcntains with the prc~Ix;; ty, es'en if the property is sold tv new ;n~ ners_ Fhe renat•mrnt htrrdcn remains ~vtth ~e pnipery that is r~cis•ing tlTC energy s<n~ings advantage. The hope is that this still encourage 11to prupc:rty usurer to pursue those improvements and this t?n;utcing even it the a~sner svil! aot cru7t the prrperty fur the remainder of the: financing term. .fit this time, «r rsee~l Lv obtain a re~uilutian er vr,.!irtdnct, s+~hielTr•<er is sppr~npri~tc under }•our local regulati~~ns, _iving the consent of the City' of Boutdzr to authorize these irnpros enr~nts upon prapertic~s foc;atc.d svidtirt I3ouider County and within the city limits of Boulder. Sample 1tTnguage t'ar a resolution ar ordinance i~ incfud~:d with this letter. ti~~e svonlri likL to hate an approv~.d resotution ur ordinance na later than. St:ptemEx:r 2Ut?8 of at all possible. tt'iih This municipal audt:~rity to be: inciu.led in the Clean F:ter~~: C~ption~ I_ctal lrnprovement [listri:t, and county'-tividc approval tai the \uv~rnhcr batf~~t maaztuc. {~ropem ~>~.~n~-r in your jt,risdiction s~-ould then lie eli~iblr fc?r this fin~.ncing !~rcrnm. tdcliti~~nalt~,. fT+~tttder Ct?unh~ has $3.i?5 miltian in ?tlt)$ volume cap allu.:ation. and presumat>ly a Si:iltlar.lin+~?1^t Ti?r ~'UCI~ that it is s~•itling to :;~c: t+)r l"+7ndi t() l~rat'tcle finan:lni; ts)r itn~~\ i.~+lc t:tl.r~ti' ~t:r:s .u:d e:tc-r4} ef3:cicncy capital itnpn~vetr~e:;ts f.+r ~•}uatifkil pr,~pi:rrics either. st•itltin a* .:ut;ide in<~rp:~r:ttcd !rniits. 1Ve also watald asE: that sou assi~rn all arsc~rnc of •,otv asaiiab!r 5 ~~lume cap allocation fir use trt this program. ~t'e may des isle t:> Lam• fons•ard the 'OQR altr~catirm(s) to ;:ombine with the ~OIt9 al!ocatiau(s) for a larger, mnr-e cast-effective band issue in early ~@~9. su please consider tI}at as svctl In additian To tha sample opt-in lar_gua3e inelud~d with this 1eir~r, a farm for a resolution ro assi,.;n ~U03 vi+lum~ cap P:'1$ allocation i; also anaehed. L;ndoubtedly there silt bc: detail, to ss~orl: out in the adtTtinistnatiotr of dris prrgrnm. 1Vith voter appros-al +~i this haNr~t initiative and your as;istan~e. Boulder Cottr~rv will ~ leadin~• the .tat~~ in pravidinl; propem c~ivners Stith F !t'~ss~ cost mechanism to increase the energy rt3icirncy~ of their pmpanies. S i nc~-ety, l3cn t'catlman, t:hair 1L il! i c~~r, Vice C hair l3ottt r Counts '+~mtnissiont:rs Guarder Caunt}' Commissioner nu wc,~..r/ C'indy' UutneRS v Boulder ('nu: ('untmissiuner Stepltsnie i rangier, lntcritn t:'in it.tn;tzer EncloiuT~s S:unlt(e K~uhrtiun and ~'zrluntt is ;gyp 11,>ignmrat kflEF~ ITEM # 1 '~'!E-___~__