8542 - SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE SPECIAL MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, THE QUESTION OF WHETHER TO AMEND SECTION 5 OF THE BOULDER HOME RULE CHARTER TO PREVENT A CANDIDATE
ORDINANCE 8542
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AN ORDINANCE SUBMITTING TO THE REGISTERED
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ELECTORS OF THE CITY OF BOULDER AT THE SPECIAL
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MUNICIPAL COORDINATED ELECTION TO BE HELD ON
TUESDAY, NOVEMBER 8, 2022, THE QUESTIONS OF
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AUTHORIZING THE CITY COUNCIL TO REPLACE THE
EXISTING UTILITY OCCUPATION TAX AND CLIMATE
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ACTION PLAN EXCISE TAX WITH A NEW CLIMATE TAX
BEGINNING JANUARY 1, 2023, AND EXPIRING DECEMBER
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31, 2040, AND AUTHORIZING DEBT TO BE REPAID FROM
SUCH TAX UP TO A PRINCIPAL AMOUNT OF $52,900,000 TO
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; SPECIFYING THE
FORM OF THE BALLOT AND OTHER ELECTION
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PROCEDURES; AND SETTING FORTH RELATED DETAILS
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER,
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COLORADO:
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Section 1. A special municipal coordinated election is called to be held on Tuesday,
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November 8, 2022.
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Section 2. At that election, two measures shall be submitted to the electors of the City
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of Boulder entitled by law to vote. The first will allow electors to consider whether to replace the
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existing Utility Occupation Tax set to expire on December 31, 2025 and the Climate Action Plan
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Excise Tax set to expire March 31, 2023 with a Climate Tax commencing January 1, 2023 and
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expiring December 31, 2040. The second measure will allow electors to consider whether to
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approve new debt payable from such Climate Tax up to a maximum principal amount of
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$52,900,000. This new tax and the debt will maintain existing
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programs and services, and stabilize funding sources as well as leverage future opportunities to
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Section 3. The official ballot shall contain the following ballot titles, which shall also
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be the designation and submission clause for each issue:
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BALLOT ISSUE NO. ____
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SHALL CITY OF BOULDER TAXES BE INCREASED $6.5
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MILLION (FIRST, FULL FISCAL YEAR DOLLAR INCREASE)
ANNUALLY AND INCREASING ANNUALLY BY THE
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CONSUMER PRICE INDEX BY IMPOSING A CLIMATE TAX
ON THE DELIVERY OF ELECTRICITY AND NATURAL GAS
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AS PROVIDED IN ORDINANCE 8542; AND SHALL THE
EXISTING CLIMATE ACTION PLAN EXCISE TAX SET TO
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EXPIRE MARCH 31, 2023 AND THE UTILITY OCCUPATION
TAX SET TO EXPIRE DECEMBER 31, 2025 BE REPEALED;
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AND SHALL THE CLIMATE TAX BEGIN JANUARY 1, 2023,
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AND EXPIRE DECEMBER 31, 2040; WITH THE REVENUE
FROM THE CLIMATE TAX AND ALL EARNINGS THEREON
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TO BE USED TO MAINTAIN AND EXPAND CLIMATE
FOCUSED PROGRAMS AND SERVICES, FINANCE CERTAIN
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CAPITAL PROJECTS AND STABILIZE FUNDING FOR
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INCLUDING WITHOUT LIMITATION ITEMS SUCH AS
RESIDENTIAL AND BUSINESS INCENTIVES TO REDUCE
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ENERGY USE; ACCELERATE BUILDING
WEATHERIZATION AND ELECTRIFICATION; LOCAL
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RENEWABLE ENERGY GENERATION AND STORAGE;
MICROGRIDS AND DISTRICT SYSTEMS THAT LEAD TO
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INCREASED SYSTEM RELIABILITY AND RESILIENCE;
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HEALTHY BUILDINGS; SERVICES TO SUPPORT ZERO
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EMISSIONS; MOBILITY OPTIONS WITH AN EMPHASIS ON
SOLUTIONS FOR CURRENTLY UNDERSERVED SEGMENTS
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OF THE COMMUNITY; ZERO-WASTE EFFORTS INCLUDING
REUSE, REPAIR AND RECYCLING; NATURAL CLIMATE
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SOLUTIONS TO ENHANCE ECOSYSTEMS, IMPROVE AIR
QUALITY AND BUFFER EXTREME HEAT EVENTS;
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INCENTIVES FOR COMMUNITY-BASED CLIMATE AND
RESILIENCE ACTIONS; WILDFIRE RESILIENCE
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STRATEGIES SUCH AS WILDFIRE HOME RISK
ASSESSMENTS, WILDFIRE MITIGATION PLANNING AND
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IMPLEMENTATION; OUTREACH AND EDUCATION;
RESIDENTIAL AND BUSINESS INCENTIVES FOR THE
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ACCELERATION OF UNDERGROUNDING UTILITY LINES;
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FINANCIAL ASSISTANCE FOR LOW-INCOME UTILITY
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CUSTOMERS; MATCHING FUNDS OR OTHER LEVERAGE
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TO ACCESS PUBLIC OR PRIVATE FUNDING SOURCES AND
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COST-SHARING AGREEMENTS TO ACCELERATE
CLIMATE GOALS?
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YES/FOR ____ NO/AGAINST____
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BALLOT ISSUE NO. ____
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SHALL CITY OF BOULDER DEBT BE INCREASED UP TO
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$52.9 MILLION (PRINCIPAL AMOUNT) WITH A MAXIMUM
REPAYMENT COST NOT TO EXCEED $75 MILLION (SUCH
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AMOUNT BEING THE TOTAL PRINCIPAL AND INTEREST
THAT COULD BE PAYABLE OVER THE MAXIMUM LIFE OF
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THE DEBT) SUCH DEBT TO BE ISSUED ONLY IF THE
VOTERS APPROVE THE CLIMATE TAX IN BALLOT ISSUE
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___ AND PAYABLE FROM THE CLIMATE TAX AND FROM
OTHER LEGALLLY AVAILABLE REVENUES AS
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DETERMINED BY COUNCIL; WITH THE PROCEEDS OF
SUCH DEBT AND EARNINGS THEREON BEING USED FOR
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THE SAME PURPOSES AS THE CLIMATE TAX IN THE
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BALLOT ISSUE?
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YES/FOR ____ NO/AGAINST____
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Section 4. If a majority of all the votes cast at the election on the tax increase issue
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submitted are for the issue, the issue shall be deemed to have passed and the Boulder Revised Code
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shall be amended as follows:
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Chapter 12 - Climate Action Plan Excise Tax REPEAL
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3-12-1. Legislative Intent.
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It is the purpose of this chapter to raise revenue to implement the Citys Climate Action
Plan, including incentives, services and other assistance to Boulder residents and businesses to
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improve energy efficiency, expand the use of renewable energy, and take other necessary steps
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declares that the consumption of electricity within the City is the exercise of a taxable privilege.
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The city council further declares that the purpose of the levy of the taxes imposed by this chapter
is for the raising of funds for the payment of the expenses incurred to implement the Climate
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Action Plan; and in accordance with this purpose, all of the proceeds of this excise tax should be
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placed in and become a part of a separate special revenue fund of the City.
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3-12-2. Imposition of Climate Action Plan Excise Tax.
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(a) Any person consuming electricity shall pay a Climate Action Plan excise tax at the rate
prescribed by subsection (c) of this section, as applicable.
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(b) The Climate Action Plan excise tax shall expire on March 31, 2023.
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(c) The Climate Action Plan excise tax rates shall be:
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Category Tax
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Residential $0.0049 per
kWh
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Commercial 0.0009 per
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kWh
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Industrial 0.0003 per
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kWh
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3-12-3. Exemptions.
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The portion of electricity voluntarily purchased as utility provided wind power shall be
exempt.
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3-12-4. Payment of Tax.
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Any incumbent electricity provider operating within the City pursuant to a franchise or
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otherwise (Provider) shall bill and collect the Climate Action Plan excise tax and shall remit
said tax to the city manager in the manner required by section 3-12-5, Payment Schedule,
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Reporting and Inspection of Records, B.R.C. 1981. The tax may be expressly identified on any
consumer bills as the The City of Boulder Climate Action Plan Excise Tax or as the Climate
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Action Plan Tax.
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(a) For the Climate Action Plan excise tax amounts billed pursuant to this chapter, payment
shall be made by the Provider in monthly installments not more than thirty days following
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the close of the month for which payment is to be made. Initial and final payments shall be
prorated for the portions of the months at the beginning and end of the term of this excise
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tax.
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(b) In addition, the Provider shall also submit monthly reports to the city supporting the amount
of the Climate Action Plan excise tax remitted for that month including energy use and
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amounts remitted by sector and Windsource electricity purchases exempted by sector.
Electronic or paper reports are acceptable.
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(c) It shall be the duty of the Provider to keep and preserve, for a period of three years, suitable
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records and other such books or accounts, including, without limitation, original sales and
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purchase records, as may be necessary to determine the amount of the Climate Action Plan
excise tax for the collection of which the Provider is liable under this chapter. The city
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manager and agents and representatives thereof are entitled at any reasonable time, upon
adequate notice, to examine the books and records of the Provider and to make copies of the
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entries or contents thereof.
3-12-6, 3-12-7. Reserved.
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Chapter 13 - Climate Utility Occupation Tax
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3-13-1. Legislative Purpose, Findings, and Intent.
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(a) Purpose. It is the purpose of this chapter to implement the citys climate tax as a utility
occupation tax on the delivery of electricity and natural gas passed by the voters on
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November 8, 2022.
(1) Passed by the voters on November 2, 2010, as a replacement for a fee paid under
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franchise agreement with a utility provider.
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(2) Amended by the voters on November 1, 2011, to increase the amount of the tax and
extend the tax to December 31, 2017.
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(3) Further amended by the voters on November 3, 2015, to extend that portion of the
tax that was initially approved by the voters in 2010 until December 31, 2022.
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(4) Further amended by the voters on November 7, 2017, to extend that portion of the
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tax that was initially approved by the voters in 2011 until December 31, 2022 and
increased the amount of this portion of the tax for 2018 and 2019.
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(5) Further amended and repurposed by the voters on November 3, 2020, to extend that
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portion of the tax that was initially approved by the voters in 2011 until December
31, 2025 to pay all costs associated with the formation of a municipal electric utility
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and to be used to fund projects, pilots, initiatives, and research that support the citys
clean energy goals in the context of the citys racial equity goals and the communitys
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commitment to the Paris Climate Agreement and to extend that portion through
December 31, 2025.
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(b) Findings. The city council finds that:
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(1) The occupation of delivering electricity and natural gas within the city is the exercise
of a taxable privilege;
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(2) The city has levied a utility occupation tax on the delivery of electricity and natural
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gas since 2010; levy of the portion of the utility occupation tax approved by the voters
on November 2, 2010, and imposed by this chapter:
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(A) The tax is to replace a franchise fee and therefore should not be assessed
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against any public utility obligated to pay a franchise fee; and
(B) The revenue collected should be limited to amounts reasonably expected to
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be collected under a franchise.
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(3) The levy of the portion of the climate utility occupation tax approved by the voters
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on November 8, 20221, 2011, and imposed by this chapter is to provide funding to
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pay:
(A) All costs associated with municipalization;
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(AB) Costs of projects, pilots, initiatives, and research that support the citys clean
energy goals in the context of the citys racial equity goals; and
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(BC) Costs of programs and services that are part of the partnership with Xcel
Energy approved by the voters on November 3, 2020 as ballot issue 2D.;
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and
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(c) Intent. The city council intends to use the funds collected pursuant to this tax for general
fund purposes s. during the time when the city explores a
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clean energy future with more stable energy rates and to implement such plans, and for the
purpose of funding the costs of further exploration and planning for the creation of a
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municipal utility and acquisition of an existing electric distribution system. The city council
intends to give full effect to the ballot measures approved by the voters.
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(d) Usage of Funds. Funds shall be used as described in the ballot measures related to the
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Climate Tax, including but not limited to the following purposes:
(1) Maintaining and expanding climate-focused programs and services;
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(2) Financing capital projects and stabilizing the funding for initiatives to meet the city
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climate goals, including without limitation reduction of greenhouse gas emission,
increasing resilience to climate-driven events;
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(31) Providing energy-related assistance to disadvantaged members of the community,
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including support for utility bill payments and access to renewable energy;
(42) Improving system reliability and modernizing and supporting clean energy-related
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businesses, including, without limitation, new approaches in electrification of
buildings and transportation and enhancement of resilience;
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(53) Implementing a partnership agreement with Public Service Company of Colorado;
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and
(64) Increasing access to energy efficiency and renewable energy solutions.
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3-13-2. Imposition of Occupation Tax.
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(a) Payment of Tax Required. No utility delivering electricity and gas to residential,
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commercial, or industrial customers shall fail to pay to the city manager the utility
occupation tax imposed by this chapter.
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(b) Original Tax Effective Date and Expiration Date. The utility occupation tax of $4,100,000
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was effective January 1, 2011. For that portion of the tax approved by the voters in 2010 for
general fund purposes described Section 3-13-9(a), B.R.C. 1981, the tax shall expire on
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December 31, 2022 or earlier if the taxpayer is obligated to pay a comparable fee under a
franchise agreement or other license or permit agreement with the city.
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(c) Extension and Increase Dates. The increase in the amount of the utility occupation tax
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approved by the voters in 2011, extended and temporarily increased in 2017, and extended
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to December 31, 2025 and repurposed in 2020 for funding the costs of municipalization and
for projects, pilots, initiatives, and research that support the citys clean energy goals in the
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context of the citys racial equity goals.
(d) Tax Rate. The utility occupation tax shall be $6,500,000 in the following amounts, effective
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January 1, 2023. The rate of tax due on January 1 of 2024 and each year thereafter until
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December 31, 2040, shall be increased by the percentage change in the United State Bureau
of Labor Statistics Consumer Price Index for Denver-Boulder, all items.:
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Year Tax Rate without an effective Tax Rate with an effective
franchise with taxpayer franchise with taxpayer
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2021 $6,556,362 $2,071,985
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2022 $6,556,362 $2,071,985
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10 2023 $2,071,985
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2024 $2,071,985
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2025 $2,071,985
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The tax rate in each year shall be adjusted annually as provided in Section 3-13-3,
Adjustments, B.R.C. 1981.
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3-13-3. Adjustments.
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(a) Limitations on Tax Increases. Beginning January 1, 2012, the maximum annual tax rate
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increase shall be the lesser of three percent or the average amount of rate increases made by
public utility companies delivering natural gas or electricity in the city in the previous year
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as calculated pursuant to Subsections (b) through (d) of this section.
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(b) Annual Utility Rate Study. The city manager shall review the rate tariffs filed by all
investor-owned public utility companies delivering gas or electricity in the city.
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(1) The city manager shall list all electrical rates in the electrical tariff expressed in terms
of cents per kilowatt hour from lowest to highest and select from that list the median
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electric rate. If there is more than one investor-owned electric utility company
delivering electricity in the city, the city manager shall ascertain the median electrical
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rate for each such company and then produce an average median rate charge for
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(2) The city manager shall ascertain the standard rate per decatherm charged by each
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public utility company delivering gas in the city. If there is more than one investor-
owned gas utility company delivering gas in the city, the city manager will average
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the standard rate per decatherm for each such company to produce an average
standard rate per decatherm charged for delivering gas in the city.
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(c) Annually, the city manager shall calculate an average increase by comparing the rates
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determined in Subsection (b) of this section with comparable rates charged in the previous
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calendar year to produce a percentage average increase for each such rate. The city manager
shall then average those rate increases and compare that average to determine whether it is
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greater than or less than three percent. The utility occupation tax shall then be increased by
the lesser of the two percentages. The city manager will recommend any such tax increase,
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subject to the limitations of this section, to the city council concurrent with the annual
budget process.
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(d) Tax Increase Date. The effective amount of tax due shall be increased as of January 1 of
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each year.
(e) Credit if franchise fee paid. Any franchise fee paid by the taxpayer to the city in any year
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shall be credited to the portion of the utility occupation tax approved on November 2, 2010
due in that year. Such credit will not be applied to that portion of the utility occupation tax
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that was approved on November 3, 2020.
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3-13-4. Payment of Tax.
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Utility occupation tax payments shall be remitted to the city manager in equal monthly
installments not more than thirty days following the end of each month. The first payment
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following the November 8, 20223, 2020 election shall be due February 20, 20231. Initial and
final payments shall be prorated for the portions of the months at the beginning and end of the
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term of this utility occupation tax.
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3-13-5. Designation of Tax.
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Persons taxed under the provisions of this chapter are hereby authorized to reflect this tax
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under the title of Climate Utility Occupation Tax.
3-13-6, 3-13-7. Reserved.
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3-13-8. Tax not on Interstate Commerce; not a Franchise.
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The tax provided in this chapter is upon occupations and businesses in the performance of
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local functions and is not a tax upon functions relating to interstate commerce. None of the terms
of this chapter mean that the city has granted any provider a franchise.
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3-13-9. Dedicated Revenues.
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(a) General Fund Revenue. The amount of the occupation tax revenue attributable to the ballot
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measure passed by the voters in 2010 (Ord. No. 7751) and extended in time by the voters in
2011 (Ord. No. 7804) shall be used for general revenue needs of the city.
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(b) Revenue for Electric Utility Exploration and Planning for Creation. The amount of the
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increase in the occupation tax revenue attributable to the ballot measure passed by the
voters in 2011 shall be used for the purpose of funding the costs of further exploration of
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and planning for both the creation of a municipal electric utility and acquiring an existing
electric distribution system.
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(c) Revenue that Supports Citys Clean Energy Goals. The amount of the repurposing of the
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climate occupation tax revenue passed by the voters in 20220 that is not necessary for the
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costs of municipalization shall be used for the purpose of funding the costs of projects,
pilots, initiatives, and research that support the citys clean energy goals in the context of
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the citys racial equity goals.
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Section 5. If a majority of all the votes cast at the election on the tax increase issue and
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the debt authorization issue submitted are for the issues, the issue shall be deemed to have passed
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and any bonds issues shall be in compliance with the charter and as determined by City Council.
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Section 6. This ordinance is necessary to protect the public health, safety, and welfare
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of the residents of the city, and covers matters of local concern.
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Section 7. The City Council deems it appropriate that this ordinance be published by
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title only and orders that copies of this ordinance be made available in the office of the city clerk
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for public inspection and acquisition.
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INTRODUCED, READ ON FIRST READING, AND ORDERED PUBLISHED BY
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TITLE ONLY this 21stday of July2022.
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____________________________________
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Aaron Brockett,
Mayor
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Attest:
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___________________________________
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City Clerk
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READ ON SECOND READINGAND CONTINUED this11thday of August2022.
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___________________________________
Aaron Brockett,
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Mayor
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Attest:
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___________________________________
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City Clerk
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READ ONCONTINUEDSECOND READING, AMENDED AND PASSED,this18th
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day of August2022.
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___________________________________
Aaron Brockett,
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Mayor
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Attest:
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City Clerk
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READ ON THIRD READINGAND ADOPTEDthis1stday of September2022.
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___________________________________
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Aaron Brockett,
Mayor
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Attest:
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___________________________________
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City Clerk
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