The city is asking the voters to renew through 2035 a sales and use tax dedicated to parks and recreation. In 1995 the voters approved the 0.25% (25¢ on $100) tax in order to secure bonds to buy land and make improvements in parks and recreational facilities. (Voters removed some of the limitations on land purchases in 1998.) That tax ends on January 1, 2016. Unlike the 1995 ballot issue, Ordinance 7862 in placing this issue on the ballot did not mention securing future bonds. The tax provides about $6.7 million or 27% of the Parks and Rec Department’s budget with a third of the funds (about $2.2 million) in 2012 budgeted for debt service.
Few dispute that residents value their parks and recreational facilities. The main bone of contention on city council has been whether this should be a dedicated tax or whether the revenues should go into the General Fund. The dedicated tax made it to the ballot.
Voters sometimes approve taxes without any earmarks. In 2009 voters permanently renewed a 0.15% sales and use tax with revenue going to the General Fund. The 0.15% tax was originally passed in 1992 also to pay for bonds for recreational improvements and facilities.
If 2B doesn’t pass, it will probably appear on the ballot next year, perhaps as an undedicated tax. In 2008 the Blue Ribbon Commission was concerned about the number of temporary, dedicated taxes upon which the city relies and recommended converting them to permanent, undedicated taxes.
Funding for the $24.6M Parks and Rec Dept 2012 budget comes from the following sources:
$9.6M Recreation Activity Fund
Revenue from rec, reservoir & golf course services
$6.7M .25 Cent Sales Tax Fund
$4.4M General Fund
$3.3M Permanent Parks and Rec Fund
Designated a Capital Project Fund in the city’s budget
$0.6M Lottery
The city has some leeway in funding the Parks and Rec Dept. For instance, the city decreased the budget since 2010 when it was $28.5M. The 2012 Permanent Parks and Rec Fund is less than half the 2010 amount.
The 1995 ordinance authorized the city to increase property taxes to meet debt obligations if the sales and use tax failed to generate enough revenue. In addition, purchases of land and capital improvements paid for using these funds had to be approved by the Parks and Recreation Advisory Board.
Recommendation: Against
In general, I’m not a proponent of dedicated taxes, and voters will no doubt get another chance to renew this tax before its expiration date if 2B doesn’t pass in 2012.
CITY OF BOULDER BALLOT ISSUE NO. 2B (Approved Ballot Language)
SALES AND USE TAX EXTENSION
WITHOUT RAISING ADDITIONAL TAXES, SHALL THE EXISTING 0.25 CENT CITY SALES AND USE TAX TO FUND PARKS AND RECREATIONAL SERVICES, DEVELOPMENT, RENOVATION AND REFURBISHMENT, AND PARKLAND ACQUISITION FOR PASSIVE AND ACTIVE RECREATIONAL USES, APPROVED BY THE VOTERS BY ORDINANCE NO. 5740, BE EXTENDED BEYOND THE CURRENT EXPIRATION DATE OF DECEMBER 31, 2015 UNTIL DECEMBER 31, 2035 AS A VOTER APPROVED REVENUE CHANGE?
‐FOR THE MEASURE
‐AGAINST THE MEASURE
See Ordinance No. 7862 to refer 2B to the voters .
http://www.bouldercolorado.gov/files/Elections/2012/7862%20-%20.25%20PR%20Sales%20Tax%20Issue.pdf
See Ordinance No. 5740 from 1995 (in Attachment C) which referred the original tax to fund parks and rec to the voters.
http://joomla.ci.boulder.co.us/files/Wildlife/5A.pdf
Few dispute that residents value their parks and recreational facilities. The main bone of contention on city council has been whether this should be a dedicated tax or whether the revenues should go into the General Fund. The dedicated tax made it to the ballot.
Voters sometimes approve taxes without any earmarks. In 2009 voters permanently renewed a 0.15% sales and use tax with revenue going to the General Fund. The 0.15% tax was originally passed in 1992 also to pay for bonds for recreational improvements and facilities.
If 2B doesn’t pass, it will probably appear on the ballot next year, perhaps as an undedicated tax. In 2008 the Blue Ribbon Commission was concerned about the number of temporary, dedicated taxes upon which the city relies and recommended converting them to permanent, undedicated taxes.
Funding for the $24.6M Parks and Rec Dept 2012 budget comes from the following sources:
$9.6M Recreation Activity Fund
Revenue from rec, reservoir & golf course services
$6.7M .25 Cent Sales Tax Fund
$4.4M General Fund
$3.3M Permanent Parks and Rec Fund
Designated a Capital Project Fund in the city’s budget
$0.6M Lottery
The city has some leeway in funding the Parks and Rec Dept. For instance, the city decreased the budget since 2010 when it was $28.5M. The 2012 Permanent Parks and Rec Fund is less than half the 2010 amount.
The 1995 ordinance authorized the city to increase property taxes to meet debt obligations if the sales and use tax failed to generate enough revenue. In addition, purchases of land and capital improvements paid for using these funds had to be approved by the Parks and Recreation Advisory Board.
Recommendation: Against
In general, I’m not a proponent of dedicated taxes, and voters will no doubt get another chance to renew this tax before its expiration date if 2B doesn’t pass in 2012.
CITY OF BOULDER BALLOT ISSUE NO. 2B (Approved Ballot Language)
SALES AND USE TAX EXTENSION
WITHOUT RAISING ADDITIONAL TAXES, SHALL THE EXISTING 0.25 CENT CITY SALES AND USE TAX TO FUND PARKS AND RECREATIONAL SERVICES, DEVELOPMENT, RENOVATION AND REFURBISHMENT, AND PARKLAND ACQUISITION FOR PASSIVE AND ACTIVE RECREATIONAL USES, APPROVED BY THE VOTERS BY ORDINANCE NO. 5740, BE EXTENDED BEYOND THE CURRENT EXPIRATION DATE OF DECEMBER 31, 2015 UNTIL DECEMBER 31, 2035 AS A VOTER APPROVED REVENUE CHANGE?
‐FOR THE MEASURE
‐AGAINST THE MEASURE
See Ordinance No. 7862 to refer 2B to the voters .
http://www.bouldercolorado.gov/files/Elections/2012/7862%20-%20.25%20PR%20Sales%20Tax%20Issue.pdf
See Ordinance No. 5740 from 1995 (in Attachment C) which referred the original tax to fund parks and rec to the voters.
http://joomla.ci.boulder.co.us/files/Wildlife/5A.pdf
Hi,
ReplyDeleteI am a journalism student at CU Boulder, and am writing an article for a reporting class about Issue 2b being on the ballot in the recent election. I found your blog to be very interesting and informative, and would like to interview you for my class project and get your stance on Issue 2b. Send me an email or we can conduct a phone interview.
Thank you very much!
Ryan Baker
email: ryan.baker@colorado.edu
phone: 949-680-5131