Department of Local Affairs announces payments of more than $73 million to local governments
FOR IMMEDIATE RELEASE
Denise Stepto, 303-241-8364 c. email@example.com
DENVER - Tuesday, September 8, 2015 - The Colorado Department of Local Affairs (DOLA) today announced $73,284,655.50 in annual state Severance Tax and Federal Mineral Lease Direct Distribution payments has been made to 514 Colorado counties, municipalities, school districts, and federal mineral lease districts.
This year's distribution is based on State Severance Tax and Federal Mineral Lease revenues collected from July 2014 through June 2015. During this period, increased oil production offset the significant decrease in commodity prices over the latter part of the 12 month period resulting in the 2015 distribution nearly equaling 2014's distribution of $75 million.
"Energy impact funds are valuable to Colorado communities," said Irv Halter, executive director of DOLA. "These funds make public improvements and services possible. Communities rely on these dollars to bolster their capacity."
Expectations for next year's distribution are currently somewhat grim given existing and projected commodity prices. In late June, the Office of State Planning and Budgeting forecast a 61.4 percent drop in State Severance Tax receipts for Fiscal Year 2016.
"The direct distribution of Severance Tax and Federal Mineral lease dollars represents an important partnership between all levels of government, our communities, and the energy industry" Halter added. "Our department is proud to administer these funds and works with Colorado's communities to weather the market ups and downs of these resources."
DOLA distributes the annual payments, which are derived from energy and mineral extraction statewide. Direct distribution is based on the number of production employees living in the energy impacted communities, as well as permits, production, population and highway user miles (HUTF).
Visit https://www.colorado.gov/pacific/dola/direct-distribution-payments to view the reports listing distributions for each local government recipient.