A winding path brings us to this tax extension ballot issue.
2010 – Boulder’s franchise agreement with Xcel Energy is terminated. Voters approve 2B replacing Xcel’s franchise fee with an equivalent 5-year utility occupation tax (UOT) providing General Fund revenue of over $4 million annually.
2011 – Voters approve 2B to extend the UOT for 2 more years and increase the tax at the beginning of 2012 to bring in an extra $1.9 million to be used for “exploring clean energy” – mostly planning for and setting up a municipal electric utility. The tax will expire the earlier of 1) Dec 31, 2017, or 2) when a municipal electric utility begins providing services, or 3) when the city decides not to create a municipal electric utility.
2015 – This 5-year tax extension is only for the original approximately $4 million of General Fund revenue, not the later increase.
Ordinance 8056 doesn’t note that this proposed tax extension will expire early if the city succeeds in or gives up on creating a municipal electric utility, but the thought is that if the city succeeds, this UOT would be replaced by part of the local utility’s rates. If the city gives up and goes back to a franchise agreement with Xcel or another provider, then a franchise fee would replace the UOT, if not immediately, then upon expiration of the UOT.
The city is asking for this extension 2 years before the expiration date because getting approval now will help with long-term planning. There are probably also political considerations – the further from 2010 that the city waits to ask for an extension, the more the city voters will be reminded that the city has not yet succeeded in its pursuit of municipalization. The previous Xcel franchise agreement was for 20 years. With this extension, Boulder is asking the voters to give the city up to 12 years to create a municipal electric utility.
The city website’s summary of this ballot issue notes that consideration of the $1.9 million portion of the current UOT as a possible ballot issue may happen next year once the city has moved further along the municipalization process.
Recommendation: for
The city definitely wants to continue this General Fund revenue stream whether it is doing business with Xcel or has its own electric utility. I would prefer that the city ask voters to extend the tax until the city achieves or gives up on municipalization, but that may have been seen as a referendum on municipalization which probably isn’t what the city wants right now.
Website for the Yes side (Renew the Utility General Fund [sic] Occupation Tax Committee)
http://www.yeson2pand2o.com/
Website for the No side
No known website – Info on an opposition website appreciated.
Approved Ballot Language
City of Boulder Ballot Question 2O
Utility Occupation Tax Extension
Without raising additional taxes, shall that portion of the city’s utility occupation tax on public utility companies that deliver electricity and natural gas to customers in the city that replaced the franchise fee paid by Public Service Company and supports general revenue needs of the city be extended from its current expiration date of December 31, 2017 and expire on December 31, 2022 with the revenues of the existing tax as extended being used to continue to support local government services, and shall the revenue from such tax 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 ____
Ordinance 8056 to refer 2O to the voters
https://documents.bouldercolorado.gov/weblink8/0/doc/130117/Page1.aspx
Boulder Energy Future – Status of the Municipalization Process
https://bouldercolorado.gov/energy-future
2010 – Boulder’s franchise agreement with Xcel Energy is terminated. Voters approve 2B replacing Xcel’s franchise fee with an equivalent 5-year utility occupation tax (UOT) providing General Fund revenue of over $4 million annually.
2011 – Voters approve 2B to extend the UOT for 2 more years and increase the tax at the beginning of 2012 to bring in an extra $1.9 million to be used for “exploring clean energy” – mostly planning for and setting up a municipal electric utility. The tax will expire the earlier of 1) Dec 31, 2017, or 2) when a municipal electric utility begins providing services, or 3) when the city decides not to create a municipal electric utility.
2015 – This 5-year tax extension is only for the original approximately $4 million of General Fund revenue, not the later increase.
Ordinance 8056 doesn’t note that this proposed tax extension will expire early if the city succeeds in or gives up on creating a municipal electric utility, but the thought is that if the city succeeds, this UOT would be replaced by part of the local utility’s rates. If the city gives up and goes back to a franchise agreement with Xcel or another provider, then a franchise fee would replace the UOT, if not immediately, then upon expiration of the UOT.
The city is asking for this extension 2 years before the expiration date because getting approval now will help with long-term planning. There are probably also political considerations – the further from 2010 that the city waits to ask for an extension, the more the city voters will be reminded that the city has not yet succeeded in its pursuit of municipalization. The previous Xcel franchise agreement was for 20 years. With this extension, Boulder is asking the voters to give the city up to 12 years to create a municipal electric utility.
The city website’s summary of this ballot issue notes that consideration of the $1.9 million portion of the current UOT as a possible ballot issue may happen next year once the city has moved further along the municipalization process.
Recommendation: for
The city definitely wants to continue this General Fund revenue stream whether it is doing business with Xcel or has its own electric utility. I would prefer that the city ask voters to extend the tax until the city achieves or gives up on municipalization, but that may have been seen as a referendum on municipalization which probably isn’t what the city wants right now.
Website for the Yes side (Renew the Utility General Fund [sic] Occupation Tax Committee)
http://www.yeson2pand2o.com/
Website for the No side
No known website – Info on an opposition website appreciated.
Approved Ballot Language
City of Boulder Ballot Question 2O
Utility Occupation Tax Extension
Without raising additional taxes, shall that portion of the city’s utility occupation tax on public utility companies that deliver electricity and natural gas to customers in the city that replaced the franchise fee paid by Public Service Company and supports general revenue needs of the city be extended from its current expiration date of December 31, 2017 and expire on December 31, 2022 with the revenues of the existing tax as extended being used to continue to support local government services, and shall the revenue from such tax 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 ____
Ordinance 8056 to refer 2O to the voters
https://documents.bouldercolorado.gov/weblink8/0/doc/130117/Page1.aspx
Boulder Energy Future – Status of the Municipalization Process
https://bouldercolorado.gov/energy-future
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