GID Meeting Notes March 2, 2010 Brownstein Hyatt Farber Schreck Offices, 410 Seventeenth Street Suite 2200

Denver, CO 80202-4432; 9:00 am 11:30 am. In attendance: Patti Bateman, Aurora Public Library; Martha F. Bauer, Brownstein Hyatt Farber Schreck for the City of Aurora; Frances Brown, Aurora Public Library, Robert T. Hoban, Hoban and Feola for Mission Viejo HOA; Michael J. Hyman, Assistant City Attorney; ?? Assistant City Manager, Irina Kaminer, Associate Attorney, Hoban and Feola for Mission Viejo HOA; Todd McMahon, Mission Viejo HOA; Tom Nicholas, Assistant City Manager; Charles Richardson, Aurora, City Attorney. Creation of the GID Mike Hyman started off by explaining that the City can not draft the GID, the City must remain neutral to this effort. Mr. Hyman explained that the State Law Governing the creation of a GID is found in C.R.S. 31.25.600 -. The initiative must first start with a petition, then there must be a public hearing on the matter and then City Council reserves the right to change the wording before it is adopted and placed on the ballot. Mr. Hyman showed the example of the last Library GID effort and explained that the wording was crafted to withstand TABOR and other legal challenges. For instance it needs to worded in such as way so as to withstand scrutiny of being two issues (one the creation of the district as well as the tax assessment). A public hearing needs to be held at City Hall. It is important to get as many supporters at these hearings as possible. The hearings can bring out some opposition and although the City does not expect this issue to be as controversial (unlike some Fence GIDs) they may need to hire a special mediator to chair the hearing. Two hundred electors are required for the petitions within the proposed district boundary. The petition must be signed by the owners that pay taxes within the district as well as renters. Todd McMahon said he would not have time to really do much campaigning for this and that he would make a few phone calls and try to attend a few meetings but he was looking to do a soft campaign for this GID. There must be a notice posted in the blue-book that is a TABOR requirement that has comment FOR and AGAINST the measure. This is where the HOA should be active in posting and composing the FOR arguments. City Council can take a position on the matter (although this will likely not happen in this case so as not to bias the grass-roots issue). The petition must be completed by the end of May of this year at the latest. Mr. Hyman suggested that we familiarize ourselves with the States Campaign Finance Laws and suggested that the HOA form a PAC (Political Action Committee). If two or more people get together and campaign for an issue and raise just $1 between them, then you need to form a political action committee.

Notice and Exclusions Once the Council accepts and makes a resolution for the referendum, then Notices must be sent to each of the electors in the proposed district (The City pays for this). After receiving notice, at that point someone (or possibly whole areas) can file for an exemption from the tax. Mr. Hyman asked if we were considering Heather Gardens in our boundary. Todd McMahon said yes the HOA was considering that area. Mr. Hyman said that sounded logical but and that the City regarding Heather Gardens as a key voter block in the City. They suggested we contact Councilman Bob Roth from that area and try to convince him and the Heather Gardens HOA to support the district.

GID Language Todd McMahon said the HOA Board was most comfortable with a set mill and as property values increased the amount collected would increase. Mr. Hyman said this would not happen as the tax rate for Mission would decrease over time, because of the Gallagher Amendment. Mr. Hyman explained that the GID should not be bound to a set mill rate since because of the Gallagher Amendment divides the states total property tax burden between residential and nonresidential (commercial) property such that 45% of the total amount of property tax collected must come from residential property and 55% must come from commercial property. The Gallagher Amendment also requires that the assessment rate for commercial property (or, the portion of commercial property subject to property taxes) be fixed at 29%. Because the commercial property rate is fixed, the residential rate is annually adjusted to hold the 45/55 split constant and as the City of Aurora expands the tax burden becomes less and less on the residential property holders. Mr. Hyman suggested that it would be better to go with a set dollar amount so that the mill would float to reach the desired dollar amount. Todd McMahon said that perhaps the objective would be to set it at the level it was before it was closed two years ago. Patty Battemen said this was around $680,000. Tom Nicholas said that if we did that it would run the risk of again not having enough funds to adequately serve the community. He said that figure included books, all library services, pay-roll, janitorial and security. Charlie Richardson said that he was already getting calls from Moodys a credit and bond holding rating agency that are questioning the Citys use of Risk Funds to keep Mission Viejo Library open now. He said to not quote him but that it would be highly unlikely that the Mission Viejo Library would be in the 2012 budget. Charlie said doing so would not help our GID cause either. Mr. Richardson said within the executive committee meeting of City Council the

whole agreement was highly contentious and named Bob Broom as helping to convince the Council to go along with the agreement. Arapahoe Library District Impact Todd McMahon brought up the issue of the Arapahoe Library District imposing their limitations on Aurora Citizens. Todd said he had been in contact with Eloise May already and asked if they would entertain the idea of dropping their limitations for the GID patrons if this passed. Tom Nicholas said to not be surprised that Arapahoe would be seeing some cuts this year too.

The Petition Would need to be drafted so it is clear what the electors are signing. Mr. Hayman would assist with this. Need minimum 200 signatures but really should try to get 600. The City would provide real-time validation of the petition. This will sped the process along.

The Boundaries It was suggested that the boundaries be contiguous but that they dont have to be. The City will try to get us the assessed property values to help formulate the district.

Later Arapahoe County Library District Discussion I spoke with Eloise May on March 4th and she said their staff did talk about it and that they would evaluate it more formally once they saw the proposal in written form but once they could determine that there was an equal level of reciprocity in terms of service then they would probably release their limitations on Aurora citizens in the GID.