Tuesday, September 16, 2008

City of Boulder 202 -- Sales and Use Tax Extension

This measure would continue indefinitely the current 0.38% city sales and use tax for general fund services such as police, fire, library, parks and human services. This tax will generate nearly $10 million in revenue in 2008. The current expiration date is Dec 31, 2011. (This tax was originally approved by the voters in 1987 and designated for the library capital construction program with excess going to the general fund. The library debt will be paid off in 2011.)

Recommendation: FOR
In my opinion, too many of the city’s funds are earmarks. I would like to see fewer earmarks, reducing budgetary constraints on our elected officials and city staff. The money in the general fund is not earmarked and may be spent at the discretion of the city council. Yet the general fund goes to pay for the essential and desirable services listed above and needs a relatively reliable source of funding (although I’d prefer a source that doesn’t disproportionately affect the poor). If in the future the city wants to raise the tax rate, TABOR would require the city to come back to the voters for approval.

BALLOT ISSUE NO. 202 (Approved Ballot Language)

SALES AND USE TAX EXTENSION

WITHOUT RAISING ADDITIONAL TAXES, SHALL THE CITY OF BOULDER, PURSUANT TO ORDINANCE NO 7607, HAVE AUTHORITY TO EXTEND INDEFINITELY, BEYOND ITS CURRENT EXPIRATION DATE OF DECEMBER 31, 2011, THE EXISTING 0.38% CITY SALES AND USE TAX THAT IS DESCRIBED IN SECTION 3-2-5 OF THE BOULDER REVISED CODE, 1981. THESE REVENUES WILL CONTINUE TO FUND GENERAL FUND SERVICES SUCH AS POLICE, FIRE, LIBRARY, PARKS AND HUMAN SERVICES.

AND IN CONNECTION THEREWITH,

SHALL THE FULL PROCEEDS OF THE TAX AND ANY EARNINGS THEREFROM, BE COLLECTED AND SPENT WITHOUT LIMITATION OR CONDITION, AND WITHOUT LIMITING THE COLLECTION OR SPENDING OF ANY OTHER REVENUES OR FUNDS BY THE CITY OF BOULDER, UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW?

FOR THE MEASURE ____ AGAINST THE MEASURE ____

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