Monday, October 6, 2014

County of Boulder 1A - County-wide Flood Recovery Sales and Use Tax

The county estimates that the 2013 flood caused $217M in damage to public infrastructure including $128M (over half) in damage to county roads – an interesting note given the recent controversy over maintenance of unincorporated roads. Not surprisingly, funds in reserve were used to help pay for flood costs. The county estimates that $56M of flood recovery costs will not be reimbursed by state or federal sources. In the 2014 county budget 6% of the revenue comes from flood recovery reimbursements. The county is asking voters to approve a temporary sales and use tax, anticipated to generate almost $50M of the unreimbursed $56M.

For comparison sake, the city of Boulder estimated damages to its public infrastructure at $43M in a Dec 3, 2013 report to City Council, and Lyons estimated damages to its public infrastructure at between $47M and $50M in its 2014 budget.

The current county sales and use tax is 0.8% or 80 cents on a $100 purchase. With the city of Boulder portion (3.56%), the state portion (2.9%), RTD (1%) and the Scientific and Cultural Facilities District (0.1%), the total sales and use tax for purchases in the city of Boulder is 8.21%.

This ballot issue is proposing a 5-year sales and use tax increase from 0.8% to 0.985% with the total tax that you see at the register going to 8.395% (or 8.545% if 2A passes). The revenues from this county tax increase would be spent on 2013 flood recovery work and assistance to victims, as well as to reduce the risk of future flooding.

Recommendation: leaning toward no

I have two reservations about this ballot measure. One is that I would hope that we wouldn’t take through 2019 to pay for flood recovery. In 2010 we had the Fourmile Canyon Fire, the most costly wildfire to date in Colorado history. It seems likely that we could have more natural disasters in the near future. This ballot measure dedicates funds to dealing with the aftermath of the 2013 flood when we should perhaps be considering either more flexible revenue sources or tightening the county’s belt.

The second reservation is that the sales tax could bump over the 8.5% mark. At what point are we doing a serious disservice to the poor as we increase a regressive sales tax again and again? At least, various exceptions to the sales tax are detailed in Resolution 2014-66, including purchases made under the SNAP (food stamps) and WIC food programs.

The county originally considered asking for a 0.15% sales tax to fund sustainability programs, but that idea was nixed when polling showed that it wasn’t favored by the populace. Proponents have reason to hope that the sustainability tax idea will be revisited in the near future. Meanwhile, I am concerned about future increases in the sales tax.


Website for the Yes side (YES on Flood Recovery)
http://yesonfloodrecovery.org/

Website for the No side
No known website – Info on an opposition website appreciated.


Approved Ballot Language

BOULDER COUNTY BALLOT ISSUE 1A
(County-wide Flood Recovery Sales and Use Tax)
SHALL BOULDER COUNTY TAXES BE INCREASED $9.8 MILLION ANNUALLY (FIRST FULL FISCAL YEAR DOLLAR INCREASE STARTING IN 2015) AND BY SUCH AMOUNTS AS ARE RAISED ANNUALLY THEREAFTER THROUGH DECEMBER 31, 2019, FROM AN ADDITIONAL COUNTY-WIDE SALES AND USE TAX OF 18.5 HUNDREDTHS OF ONE PERCENT (0.185%), FOR THE PURPOSE OF PAYING FOR THE RECOVERY FROM THE 2013 FLOOD, INCLUDING: REPAIRING DAMAGED COUNTY ROADS AND BRIDGES IN A WAY THAT REDUCES THE RISK OF FUTURE FLOOD DAMAGE, RESTORING AREAS WASHED OUT BY THE FLOODING, RE-ROUTING THOSE RIVERS WHOSE COURSE WAS CHANGED BY THE FLOOD IN ORDER TO REDUCE THE RISK OF FUTURE FLOODING, ASSISTING PROGRAMS THAT REBUILD RESIDENTS’ HOMES AND BUSINESSES, REDUCING THE IMPACT ON LOW INCOME AND OTHER RESIDENTS ESPECIALLY IMPACTED BY THE FLOOD, AND OTHER FLOOD RECOVERY MEASURES; AND SHALL THE REVENUES AND EARNINGS ON INVESTMENT OF THE PROCEEDS OF SUCH TAX AUTHORIZED BY THIS BALLOT ISSUE, REGARDLESS OF AMOUNT, CONSTITUTE A VOTER-APPROVED REVENUE CHANGE; ALL AS MORE PARTICULARLY SET FORTH IN BOARD OF COUNTY COMMISSIONERS’ RESOLUTION NO. 2014-66?

YES ____
NO ____


Resolution 2014-66 describing ballot issue 1A
http://www.bouldercounty.org/doc/government/2014floodtax.pdf

Resolution 2014-77 certifying ballot titles for 1A and 1B
http://www.bouldercounty.org/doc/government/2014certifiedballottitles.pdf

No comments:

Post a Comment

Thanks for your comments. Please only make comments that add to a fruitful discussion.