Boulder Valley School District 3A – Property Tax Increase

This year the General Assembly passed HB 16-1354, the Debt-Free Schools Act. It allows school districts to exceed the current cap on revenue raised from mill levy overrides if they set up a supplemental fund for capital construction, maintenance and/or technology. The earmarked money may not be used to repay debt.

After TABOR passed in 1992, the Public School Finance Act of 1994 attempted to equalize funding among school districts across the state. However, the recent trend in the General Assembly to allow individual districts to ask their voters for more money by increasing the revenue caps or allowing exceptions to the caps puts the statewide equalization principle in jeopardy. Districts with many generous donors such as BVSD are fortunate that they can bring in more revenue.

In 2010 the General Assembly allowed a new funding formula, which BVSD voters approved, permitting the district to adjust the property tax mill levy as needed to collect the maximum allowed – 25% of total program funding. BVSD is not required to collect the maximum, but it seems doubtful that they would be asking for another property tax increase if they hadn’t already maxed out on the previous permanent tax increase.

This in-perpetuity property tax would start at about 1.7 mills and could increase by up to 1 mill each year until it reaches the cap of 4 mills. The school board vote for Resolution 16-28B was 5-2 in favor of putting this property tax on the ballot.

Recommendation: no/against

The Debt-Free Schools Act provides a tool for districts to plan for and fund maintenance, an area which BVSD has not been funding adequately based on the amount of deferred maintenance in the 2014 voter-approved capital construction bond. Generally, I would support an ongoing fund for maintenance, but I’m not ready to endorse it so soon after the huge 2014 bond and the 2010 maximum mill levy override. In 2010 I wrote that passing the mill levy override would mean that voters “would never vote on another override in the future (unless the state legislature increases the ceiling again…)”

The pro-3A campaign points out that the new revenue will free up money from the regular budget for instructional purposes, but opponents wonder how much will go to hire more Ed Center administrators with big salaries. Some would say that BVSD saw a new opportunity to ask for more money and is counting on generous voters to reflexively approve the request without determining that recent property tax increases have been spent wisely.

Website for the Yes Side (Protect Excellence, Foster Innovation)
http://www.voteyeson3a.org/
BVSD ballot measure webpage
http://bvsd.org/boe/Pages/BallotMeasure.aspx

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


Approved Ballot Language

BOULDER VALLEY SCHOOL DISTRICT BALLOT ISSUE 3A:

Shall Boulder Valley School District RE-2 taxes be increased by $10,000,000 in 2016 for collection in 2017 and by whatever amounts in any year thereafter as are raised from a mill levy which shall not exceed four (4) mills, provided that no mill levy increase from year to year shall exceed one (1) mill, for the purpose of providing ongoing cash funding for capital construction, new technology, existing technology upgrade, and maintenance needs of the district; and shall such tax revenues be deposited into the supplemental capital construction, technology and maintenance fund to be created by the district and shall such taxes and the earnings from the investment of such tax revenues be collected, retained and spent as a voter approved revenue change and an exception to the limits which would otherwise apply under Article X, Section 20 of the Colorado Constitution or any other law?

YES/FOR _______
NO/AGAINST _________

See Resolution 16-28-B to put 3A on the ballot.
http://www.boarddocs.com/co/bvsd/Board.nsf/files/AD5PLP652AB3/$file/Resolution%2016-28B%20authorizing%20mill%20levy%20ballotQ%20for%20110816%20election.pdf

Debt-Free Schools Act:
http://www.leg.state.co.us/clics/clics2016a/csl.nsf/fsbillcont3/3B1CBA7554F0A0C587257F240064FE0E?open&file=1354_enr.pdf

Denver Metropolitan Scientific and Cultural Facilities District 4B – Sales and Use Tax Extension

A 1-cent tax on a $10 purchase for the Science and Cultural Facilities District was first approved in 1988 and then extended by voters in 1994 and again in 2004. Ballot issue 4B is requesting an extension for 12 more years from 2018 to 2030.

Voters in 7 counties – Denver, Adams, Arapahoe, Douglas, Jefferson, Broomfield and Boulder – vote on this tax which supports the arts, sciences and history. About 300 organizations receive funding from the tax revenue, much of it going toward GOS or General Operating Support.

SCFD distributes about $54M in funds according to 3 tiers:
Tier 1 gets 65.5%
Tier 2 gets 21%
Tier 3 gets 13.5%

Under this year's proposal, the allocations would change as follows:
Tier 1 --> 64% for the first $38M then 57% above $38M
Tier 2 --> 22% for the first $38M then 26% above $38M
Tier 3 --> 14% for the first $38M then 17% above $38M

Tier 1 consists of the Denver Art Museum, Denver Botanic Gardens, Denver Center for the Performing Arts, Denver Museum of Nature & Science, and the Denver Zoo. Tier 2 funds go to about 30 mid-size organizations according to revenue and attendance. Tier 3 funds go to about 270 organizations. These smaller organizations apply to County Cultural Councils for funding.

Recommendation: yes/for

Sales taxes are regressive taxes, but supporting science, history and the arts is a worthy goal. The tax does fund free (sometimes crowded) days at museums and the zoo. This year the SCFD board also created special grants to be funded starting in 2018 for organizations that target underserved communities.

Website for the Yes Side (Citizens for Arts to Zoo)
http://www.yesonscfd.com/

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


Approved Ballot Language

The Denver Metropolitan Scientific and Cultural Facilities District ("SCFD") Ballot Issue 4B

Shall there be an extension until June 30, 2030, of the aggregate 0.1 percent sales and use taxes currently levied and collected by the Denver Metropolitan Scientific and Cultural Facilities District that are scheduled to expire on June 30, 2018, for assisting scientific and cultural facilities within the district, while authorizing the district to continue to collect, retain, and spend all revenue generated by such tax in excess of the limitation provided in Article X of Section 20 of the Colorado constitution and while modifying the rates of the three individual sales and use taxes collected by the district as follows: for total annual revenues collected by the district up to thirty-eight million dollars, decreasing the .0655 percent sales and use tax to .064 percent; increasing the .021 percent sales and use tax to .022 percent; and increasing the .0135 percent sales and use tax to .014 percent; and, for total annual revenues collected by the district that exceed thirty-eight million dollars, decreasing the .064 percent sales and use tax to .057 percent; increasing the .022 percent sales and use tax to .026 percent; and increasing the .014 percent sales and use tax to .017 percent?

YES/FOR _______
NO/AGAINST _________

The 2015 Elections and the 2016 Petition Season

In 2015 Colorado voters allowed the state to keep “excess” marijuana tax revenue while the city of Boulder’s electorate approved a short-term rental tax and two tax extensions. Voters approved updating the city charter’s provisions on the library commission but not for increasing compensation for city council members (45% in favor vs 55% against). The two city citizen initiatives regarding land use changes and development costs were each defeated about 62% to 38%. The BVSD questions to lease excess capacity easily passed.

The margin of victory didn’t matter in the 2015 election, but if a proposed statewide citizen initiative gets enough signatures to get on the ballot and is passed by voters, then future citizen initiatives to amend the state constitution would require a 55% approval to change the constitution.

Since this is petition season for citizen initiatives, it’s a good time to remind you to “Think Before You Ink” (aka sign a petition -- no, this isn’t about tattoos). The LWV of Colorado points out that “signing petitions is not necessarily a civic duty” and encourages you to ask 4 questions:
1) Is the ballot issue complex?
2) Whose idea is it? (And is the signature gatherer identified as a paid or volunteer circulator?)
3) How will it be funded?
4) Does it belong in the constitution?
For the complete LWV of Colorado “Think Before You Ink” remarks, go to http://lwvcolorado.org/lwv/ballot-issues/

Vote on the Ballot Issues!

Marijuana revenue is the only issue on the statewide ballot this year. Locally, the school district has a measure similar to last year’s 2C to provide broadband for non-district uses, and then there are a slew of city ballot issues: 5 referred by City Council and 2 citizens’ initiatives.

The government is only required to mail to registered electors information about ballot issues which increate taxes or debt – in this year, the state measure and Boulder’s 2N Short-Term Rental Tax. However, there is plenty of talk about economic benefit or harm from other ballot issues, specifically initiatives 300 and 301. In addition, 2O and 2P are tax extensions.

Each ballot issue has its own blog entry if you would like more information or you would like to make comments about the ballot issue. Please limit comments on this blog entry to general comments about the process or the election.

Please research the issues and candidates and vote the entire ballot. Then tell your friends, neighbors, colleagues and anyone else eligible to vote to do likewise. We would like to avoid scenarios such as the school board recall elections in Jeffco.

In general, the further down the ballot you go, the more your vote counts! At the bottom of this blog entry are other ballot issue websites as well as a link to the Boulder County Clerk’s website.

Remember that in Colorado you can register as late as Election Day, November 3rd. If you are already registered, you should receive your ballot in the mail in mid-October. Contact your County Clerk for more information.


STATE OF COLORADO

VOCABULARY

Amendment = Constitutional change
These can only be changed by a voter-approved constitutional amendment. No amendments on the 2015 ballot.

Proposition = Statutory change
These can be modified by the Colorado General Assembly.


Initiatives - denoted by numbers
Electors signed petitions to put these on the ballot.

Referenda - denoted by letters
The General Assembly put these on the ballot with a 2/3 supermajority vote.


Proposition BB
Retain Revenue in Excess of Blue Book Estimate
Allows the state to keep marijuana tax revenue despite underestimating FY 2014-15 state revenue for Proposition AA in 2013.
YES/FOR


CITY OF BOULDER

Ballot Issues --> New taxes -- listed first on ballot
Ballot Questions --> Everything else -- tax extensions listed before other ballot questions

Referenda - denoted by a number and letter
City Council put these on the ballot with a majority vote.

Initiatives - denoted by numbers
Electors signed petitions to put these on the ballot.


2N (Ballot Issue)
Short-Term Rental Tax
Legalizes, begins a regulation process for and taxes at 7.5% under-30-day rentals of dwelling units in an operator’s principal residence.
FOR

2O (Ballot Question)
Utility Occupation Tax Extension
Extends for 5 more years a tax first imposed to replace an Xcel Energy franchise fee by 2010 ballot issue 2B and extended by 2011's 2B.
for

2P (Ballot Question)
Climate Action Plan Tax Extension
Extends for 5 more years a tax first imposed by 2006 ballot issue 202 and extended by 2012's 2A to fund programs to reduce greenhouse gas emissions.
for

2Q (Ballot Question)
Amending Charter Provisions Regarding Library Commission
Cleans up obsolete language in the City Charter.
FOR

2R (Ballot Question)
Amending Charter Provisions Regarding Compensation for Council Members
Increases annual compensation by $10,000 and provides subsidized health insurance.
for

300 (Ballot Question)
Neighborhood Right to Vote on Land Use Regulation Changes
Provides for neighborhoods to petition for a vote on land use code changes in their neighborhoods.
leaning against

301 (Ballot Question)
New Development Shall Pay Its Own Way
Requires new development with possible exception of affordable housing to pay development costs based on standards that Boulder has not yet adopted.
against


BOULDER VALLEY SCHOOL DISTRICT RE-2

3A
Lease Excess Capacity on Fiber Optic Networks
Permits BVSD to lease excess capacity on fiber optic networks with proceeds going to the General Fund.
yes


GOVERNMENT SITES

Boulder County Clerk and Recorder – Elections Division
http://www.bouldercounty.org/elections/pages/default.aspx
See a sample ballot, check your voter and ballot status, find a ballot drop-off location and more. You may also contact the Elections Division at 303 413 7740. You can register in person and vote a ballot through Election Day, November 3rd.

Blue Book Online (Colorado Legislative Council)
https://www.colorado.gov/pacific/cga-legislativecouncil/ballotblue-book
The real name of the Blue Book is the 2015 State Ballot Information Booklet – available in English and Spanish.
This site also has the link below to a page listing all the state ballot issues since 1908.
http://www.leg.state.co.us/lcs/ballothistory.nsf/

City of Boulder 2015 Election Webpage
https://bouldercolorado.gov/elections

City of Boulder Central Records Webpage
https://documents.bouldercolorado.gov/weblink8/Browse.aspx?startid=121434&row=1&&&dbid=0


MEDIA SITES

Boulder Weekly Election Guide 2015
http://www.boulderweekly.com/article-15071-election-2015.html

Daily Camera Election Page including 2015 Voter Guide
http://www.dailycamera.com/local-election-news


NON-PARTISAN SITES

Ballotpedia
http://ballotpedia.org/Colorado_2015_ballot_measures

League of Women Voters
LWV of Boulder County http://lwvbc.org/2015election.html
LWV of Colorado (English and Spanish) http://lwvcolorado.org/ballot-issues.html
This LWV of Colorado web page also contains a great “Think Before You Ink” statement to help voters decide whether or not to sign initiative petitions.


COMMUNITY ORGANIZATION SITES

Boulder Chamber of Commerce
http://boulderchamber.com/business-advocacy/eye-ballot-2015/2015-boulder-ballot-issues/

PLAN-Boulder County
http://planboulder.org/page-1787972

Proposition BB – Retain Revenue in Excess of Blue Book Estimate

In 2013 Colorado voters approved taxation of marijuana sales. The 2013 State Ballot Information Booklet (aka Blue Book) provided an estimate of first-year revenue from the new marijuana taxes. That estimate of $67 million was high by $0.9 million, meaning that pot sales were not as high as anticipated and wouldn’t trigger a taxpayer refund under TABOR (Article X, Section 20 of the Colorado Constitution) ….. except that the Blue Book also provided an estimate of total expected state spending subject to TABOR with and without the new revenue. The economy has improved, and state revenues exceeded that estimate by $270 million.

The refund due to taxpayers is not the $270 million, but rather the $66.1 million of actual marijuana tax revenue. In the event that the Colorado electorate passes Prop BB and the state can retain the $66.1 million, House Bill 15-1367 provides for $40 million for school construction and $12 million for state youth, education and drug abuse prevention programs. The remaining $14.1 million is unallocated.

If this measure does not pass, the refund would be disbursed in 3 buckets:
1) $25 million to individual taxpayers, averaging about $8 per taxpayer,
2) $24 million to retail marijuana cultivators, and
3) $17.1 million to retail marijuana sales businesses via a temporary sales tax rate reduction.

Also if BB does not pass, local governments which received a total of $6.3 million in retail marijuana sales taxes would have their sales tax rate cut until their revenue is reduced by the $6.3 million. Boulder seems to have a marijuana business on every third commercial city block.

Recommendation: YES/FOR

TABOR’s stranglehold on our state’s finances continues. We need a real, constitutional fix for TABOR. Meanwhile, vote Yes on Prop BB to provide some relief.

Colorado should be celebrating because the economy has done better than predicted. Rather, we are discussing how to handle excess revenue. We see plenty of requests to increase taxes. Here we have an opportunity to keep money that we have already raised. I especially like having $14.1 million that is unallocated, providing for more flexibility – everything TABOR is not.

Website for the Yes side
http://www.voteyesonbb.org/

Editorial for the No side (No Excess Government)
http://pagosadailypost.com/2015/10/09/opinion-vote-no-on-proposition-bb/


Approved Ballot Language

Proposition BB (STATUTORY)

May the state retain and spend state revenues that otherwise would be refunded for exceeding an estimate included in the ballot information booklet for Proposition AA and use these revenues to provide forty million dollars for public school building construction and for other needs, such as law enforcement, youth programs, and marijuana education and prevention programs, instead of refunding these revenues to retail marijuana cultivation facilities, retail marijuana purchasers, and other taxpayers?

- YES/FOR
- NO/AGAINST

City of Boulder 2N - Short-Term Rental Tax

When visitors come to Boulder, they may stay with friends or in a business such as a hotel whose main purpose is housing visitors. A third option, short-term rentals, primarily through Airbnb, VRBO or InvitedHome, is currently illegal but widely available. Last year there were 1,800 Boulder listings with Airbnb. The city wants to tax those rentals at 7.5% and begin regulating them.

The business community claims that short-term rentals (STRs) under 30 days unfairly compete with hotels that have to pay accommodations taxes and are subject to inspections and other regulations. Some owners of short-term rentals claim that they need the option of renting rooms in order to be able to afford to live in Boulder and that the proposed regulations such as requiring a rental license are unduly burdensome.

We can all appreciate the value of tourist dollars for our community, and there are times such as CU graduation when Boulder hotels are full so we probably want more short-term tourist beds available, not fewer. Some CO resort towns such as Breckenridge, Vail and Aspen currently regulate STRs.

There are two ordinances associated with this ballot measure. Ordinance 8065 has the actual ballot language and specifies the STR tax details. If 2N passes, then certain STRs will be allowed. Regulations outlined in Ordinance 8050 include requiring the STR to be the operator’s principal residence, respecting occupancy limits, not allowing STRs in affordable housing units, and limiting the number of days an accessory unit such as a converted garage may be rented. If 2N does not pass, then Ordinance 8050 prohibits all STRs, but STRs will probably continue unless the city makes a serious effort at enforcement which seems unlikely and would no doubt lead to some feelings of ill will.

Boulder’s STRs have been flying under the radar which makes one wonder if the rental income has been reported on individual’s income tax forms. In terms of logistics, Airbnb collects taxes on rentals in some big cities and pays the government directly. Ordinance 8065 specifies that the taxes collected pay for the administration and enforcement expenses of the STR regulatory program. Excess money would go to Boulder’s affordable housing fund.

Recommendation: FOR

Although this is a labeled a tax increase and the entire electorate votes for it, the tax only affects a segment of the population profiting from short-term rentals. It would bring in new money for the city perhaps avoiding a future request for a tax increase from the general populace except that excess revenue from this tax goes to affordable housing and not the city’s more flexible General Fund.

If 2N passes, the City Council can tweak the Boulder Revised Code as needed (except that it may not increase the tax rate without voter approval) to facilitate implementation of legal, short-term rentals. For instance, one argument against 2N is that allowing STRs could change neighborhoods adversely. Some neighborhoods could become like Grand Central Station and lose a long-term, residential sense of community while at the same time property prices go up even faster as house sellers account for potential rental income in the asking price, despite the regulation that the rental license wouldn’t transfer when ownership changes.

Website for the Yes side
http://www.fairdealboulder.com/

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


Approved Ballot Language

City of Boulder Ballot Issue 2N

Short-Term Rental Tax

Shall City of Boulder taxes be increased by up to $400,000.00 annually (in the first full fiscal year) and by whatever amounts as may be collected annually thereafter by the imposition of a short-term rental tax on each lease or rental of any dwelling unit, not already taxed as a hotel, motel or other public accommodation in the amount of seven and one-half percent, to fund administration, enforcement and all other reasonable expenses associated with administering the short-term rental program with any additional funds going to create affordable housing from January 1, 2016;

And in connection therewith,

Shall the full proceeds of such taxes at such rates and any earnings thereon be collected, retained, and spent, as a voter-approved revenue change without limitation or condition, and without limiting the collection, retention, or spending of any other revenues or funds by the City of Boulder under Article X Section 20 of the Colorado Constitution or any other law?

- For the measure____
- Against the measure____

Ordinance 8065 to refer 2N to the voters and to add Chapter 15 to Title 3 “Revenue and Taxation” of the Boulder Revised Code
https://documents.bouldercolorado.gov/weblink8/0/doc/130115/Page1.aspx

Ordinance 8050 to amend Title 10 “Structures” of the Boulder Revised Code to include and define short-term rentals
https://documents.bouldercolorado.gov/weblink8/0/doc/130418/Page1.aspx

City of Boulder 2O - Utility Occupation Tax Extension

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