City of Boulder 2D - Extend and Repurpose the “Extra” Utility Occupation Tax

We’ve seen versions of this ballot issue before, namely 2010 (2B), 2011 (2B), 2015 (2O) and 2017 (2L). The 2011, 2017 and this year’s measures all specifically refer to the part of the Utility Occupation Tax (UOT) which does not replace the Xcel franchise fee, but rather is allocated for efforts to form a municipal electric utility.

Ballot question 2D is a companion measure to 2C and only takes effect if both measures pass. The $1.9M portion of the Utility Occupation Tax (UOT) would be extended for three more years to Dec 31, 2025 and could be used to repay the General Fund for costs associated with municipalization and to fund projects that support the city’s clean energy goals in the context of the city’s racial equity goals.

Recommendation: leaning yes/leaning for

Persuading voters in the midst of an economic downturn to extend a tax could be a tough sell – probably less so in high-cost-of-living Boulder where voters tend to support higher taxes. Let’s also hope that, by the time the extension would take effect on Jan 1, 2023, the pandemic is in the rearview mirror and the economy is strong again.

Although the city has suffered from the recession and still has bills to pay, the city’s climate and equity goals are not forgotten in this ballot issue. Some revenue would “provide energy-related assistance to disadvantaged members of the community, improve system reliability and modernization, and support clean energy-related business.” Those people who would otherwise be most adversely affected by the increased UOT could instead be helped by 2D.

Website for the Yes side
No known website – Info on a supporters’ website appreciated.

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


Approved Ballot Language (in the city of Boulder format)

City of Boulder Ballot Question 2D
Repurpose the Utility Occupation Tax

Without raising the tax rate shall the existing Utility Occupation Tax, which in 2021 and 2022 will be in the amount of $2,076,181, be extended from a current expiration date of December 31, 2022 to December 31, 2025 and be repurposed to pay all costs associated with the formation of a municipal electric utility and to be used to fund projects, pilots, initiatives and research that support the city's clean energy goals in the context of the city's racial equity goals and the community's commitment to the Paris Climate Agreement such as:
• Providing energy-related assistance to disadvantaged members of the community, including support for utility bill payments and access to renewable energy;
• Improving system reliability and modernizing, and supporting clean energy-related businesses, including, without limitation, new approaches in electrification of buildings and transportation, enhancement of resilience;
• Implementing a partnership agreement with Public Service Company of Colorado; and
• Increasing access to energy efficiency and renewable energy solutions

Only if a majority of registered electors approve a Franchise Agreement with Public Service Company of Colorado at the November 3, 2020 Election, And shall the increased and extended portion of the tax be subject to the same terms and conditions as the original tax 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?

YES/FOR ____
NO/AGAINST ____

Ordinance No. 8417 to put 2D to the voters
https://www-static.bouldercolorado.gov/docs/Ord_8417_Utility_Occupation_Tax-1-202008281155.pdf?_ga=2.256608975.518549467.1599345017-1345314453.1596765451