City of Boulder 2B – Increase and Extend the Utility Occupation Tax

Ballot issue 2B is closely linked with 2C. Ballot issues involving increases in taxes and debt come before other ballot issues so 2B comes before 2C even though most of the attention has been paid to 2C.

If approved, ballot issue 2B would extend for two more years the utility occupation tax approved by voters in 2010. It would also increase the tax beginning January 1, 2012 from 3% to about 4½%. The purpose of this tax increase is to have funds for planning and setting up the utility discussed in 2C. Once a municipal utility begins operation or the Dec 31, 2017 deadline is reached or the city decides not to pursue a municipal utility, the tax would sunset. This request for money is sometimes likened to the pre-purchase costs of buying a house, e.g., getting a house inspection and an appraisal.

If 2B passes and 2C fails, which seems unlikely, then the city may use the funds to pursue a municipal utility and put a ballot measure similar to 2C on a future ballot. If 2B fails and 2C passes – also unlikely – the city would probably not be able to fund a municipalization effort.

The city has already spent $880,000 on studying the municipalization issue, and the proposed 2012 budget sets aside $260,000 more of general fund money for municipalization.

Recommendation: lean toward for

Most people will probably vote the same way on 2B as they will on 2C. See my arguments under 2C.

If this passes, it would be nice if the $260,000 in general fund money proposed in the 2012 budget to be set aside for municipalization could go toward other city needs.


Websites for the Yes side
(Citizens for Boulder’s Clean Energy Future)
http://www.renewablesyes.org/
(Boulder Clean Energy Business Coalition)
http://www.boulderdecides.com/

Websites for the No side
(Boulder Smart Energy Coalition)
http://bouldersec.com/
(Xcel Energy has registered an issue committee in opposition to 2B and 2C.)
http://xcelenergy.com/


CITY OF BOULDER BALLOT ISSUE NO. 2B (Approved Ballot Language)

INCREASE AND EXTEND THE UTILITY OCCUPATION TAX

SHALL CITY OF BOULDER TAXES BE INCREASED $1,900,000 ANNUALLY (IN THE FIRST YEAR) THROUGH AN INCREASE OF UP TO THAT AMOUNT IN THE CURRENT UTILITY OCCUPATION TAX WITH THE ANNUAL INCREASE BEING FOR THE PURPOSE OF FUNDING THE COSTS OF FURTHER EXPLORATION OF AND PLANNING FOR BOTH THE CREATION OF A MUNICIPAL ELECTRIC UTILITY AND ACQUIRING AN EXISTING ELECTRIC DISTRIBUTION SYSTEM, AND SHALL THE CITY’S UTILITY OCCUPATION TAX BE EXTENDED FROM ITS CURRENT EXPIRATION DATE OF DECEMBER 31, 2015 AND EXPIRE ON THE EARLIER OF: (1) DECEMBER 31, 2017, (2) WHEN THE CITY DECIDES NOT TO CREATE A MUNICIPAL UTILITY, OR (3) WHEN IT COMMENCES DELIVERY OF MUNICIPAL ELECTRIC UTILITY SERVICES; WITH THE EXTENSION OF THE EXISTING TAX BEING USED TO CONTINUE TO SUPPORT LOCAL GOVERNMENT SERVICES, AND SHALL THE REVENUE FROM SUCH TAX INCREASE AND EXTENSION AND ALL EARNINGS THEREON (REGARDLESS OF AMOUNT) CONSTITUTE A VOTER APPROVED REVENUE CHANGE, AND AN EXCEPTION TO THE REVENUE AND SPENDING LIMITS OF ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION?
‐ FOR THE MEASURE
‐ AGAINST THE MEASURE


See Ordinance No. 7808 to refer 2B to the voters.
http://www.bouldercolorado.gov/files/Elections/2011/Ordinances/7808.pdf