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4 - Capital Investment Stratey Study Session Follow-up Original Message Subject:Re: FW: Capital Investment Strategy Study Session Follow-up Date:Tue, 01 Mar 2011 13:18:07 -0700 From:Matt McMullen <mattm &ucar.edu> Reply-To:m attm(a),ucar.edu Organization:UCAR To:Brautigam Jane <Brauti2amJ(wbouldei•colorado.gov>, matt mcmullen <mattm(u)ucar.edu> Jane: Thanks for contacting the DMC. We have our next meeting on Monday night, 3/7/11 at 5:30PM in the Council Chambers. We'll include a discussion to respond to your request for input on potential participants in the stakeholder committee. Hope all is well with you! Matt On 3/1/2011 1:07 PM, Brautigam, Jane wrote: Dear Downtown Management Commission, On February 22, the Council study session focused on potential capital investment strategies and ballot issues. The study session material may be accessed through the following link: http://www.bouldercolorado.gov/files/City%20Council/Study%2 OSessions/2011/2011SS/02 22 2011 SS/Feb 22 SS memo.pdf During the discussion, City Council acknowledged the need to identify funding for investment in critical deficiencies of the city's existing assets, facilities and infrastructure. Council also supported utilizing potential revenue and/or bonding approaches for a November ballot. Council supported the concept of a stakeholder committee process to develop potential revenue and/or bonding approaches. This committee may include Board and Commission representation and is tentatively scheduled to begin in April 2011. 2 will be seeking volunteers for the stakeholder committee and appreciate your input on potential participants who understand the need for a capital bond initiative and who are able to represent citywide demographics and interests. Additional details about the stakeholder committee and formal solicitation for participants will be forthcoming in the near future. Regards, Jane S. Brautigam City Manager Boulder City Council STUDY SESSION February 22, 2011 6:30to9PM Capital Investment Strategy . and Potential Ballot Issue(s) Municipal Building City Council Chambers 1777 Broadway Submit Written Comments to City Council ATTN: Alisa Lewis, City Clerk 1777 Broadway, 2"d Floor P.O. Box 791 Boulder, CO 80306 or Fax to 303-441-4478 or E-mail: council@bouldercolorado.gov TO: Mayor and Members of City Council FROM: Jane Brautigam, City Manager Bob Eichem, Chief Financial Officer Tracy Winfree, Director of Public Works for Transportation Susan Richstone, Comprehensive Planning Manager Chris Meschuk, Planner II Abbie Poniatowski, Budget and Finance Manager for Parks and Recreation Scott Collins, Assistant to the City Manager DATE: February 15, 2011 SUBJECT: Capital Investment Strategy and Potential Ballot Issue(s) I.PURPOSE The purpose of this study session is to present and discuss the development of a capital investment strategy with existing revenues and potentially new revenues, both of which may require voter approval. Staff requests council feedback to continue to make progress on the city's capacity to invest in capital improvements. In the last decade, the city has made significant progress in stabilizing revenues, achieving expenditure efficiencies and prioritizing, reallocating and reducing services and programs. Given the foundation of ongoing efficiencies and reductions, staff is asking council if it is the appropriate time to consider devoting existing funds and/or pursuing new revenue to invest in community assets and enhancements. This consideration could involve developing potential new revenue and/or bonding package(s) for voter approval. The concept is to begin restoring the city's ability to proactively invest in community facilities and amenities, such as park development, library enhancements, multimodal connections, improved recreation centers and pools, and other city facilities. Council's consideration includes evaluating potential ballot timing and approach to increase the city's capacity to invest in existing critical deficiencies and to build and sustain new community investments. This study session is not all inclusive of potential ballot items for the 2011 and/or 2012 elections; however, several revenue-related ballot items are addressed at least in part. Future council meetings focusing on the full spectrum of potential ballot issues are scheduled for July and August, which will include Boulder's Energy Options. II. QUESTIONS FOR COUNCIL: 1. Does Council have any clarifying questions regarding the capital improvement needs and different approaches to funding such improvements? 2. Does Council endorse the idea of committing to a community capital investment strategy from ongoing, existing funding of approximately $5.OM in General Fund money? 3. Does Council endorse the policy of focusing on funding critical deficiencies for existing assets/facilities first and higher priority new facilities/assets second? 4. Does Council support the concept of a stakeholder committee process which would create potential revenue and/or bonding approaches to be taken to the voters in November 2012? III. BACKGROUND The provision of adequate urban facilities and services to support the community's quality of life is a core tenet of the Boulder Valley Comprehensive Plan. The Capital Improvements Program is a major tool to coordinate and target public capital expenditures within budget constraints. The goal is to maintain, and in some cases enhance, service levels and standards over time, and with new growth required to pay an equitable share of the costs. 1 The city has a rich history of investing in the community and its quality of life, and prior to the 2000's, the community consistently invested significant resources in capital facilities. Funding was provided through a combination of ballot measures for specific facilities and land purchases, federal funds, and the city's annual budget. Examples of investments include: • buying park lands and open space; • providing and upgrading public facilities such as libraries, recreation centers and sports fields; • building places for community business and services such as the municipal campus buildings and operations centers such as the "Yards"; and • building multimodal community connections such as the Greenways system, bikeways, and intersection improvements. The city also has invested to help create special places like the Pearl Street Mall and Chautauqua area. Today, community members and visitors continue to benefit from these many facilities and lands on a regular basis. The 2000's, by contrast, were difficult locally, regionally, nationally and even globally. The cost of delivering services and taking care of our systems has increased dramatically. Global demand has resulted in the cost of energy and construction costs far out-pacing the consumer price index. While there has been some relief in material costs recently, there is no sign that there will be a return to historic levels. At the same time, there have been two economic declines, increased regional competition and cultural change in shopping habits impacting the revenue side of the equation. The city's revenue in absolute dollars has not returned to where it was in 2000. Furthermore, the purchasing power of current funding is significantly less than 2000 as is illustrated in the "Impact of Inflation" chart. In previous budget discussions, council has discussed that this condition is not temporary and reflects a "new normal" for the city. Sales/Use Tax - Impact of Inflation $85,000 $80,787 $80,668 $80,850 $81.433 $80,000 $78,713 576,274 $80,933 $78,939 $75,000 572,982 $71,327 $70,000 $71,715 567,608 $68.289 $65,000 \ $63,510 $60,000 - 5591373 559,896 562.290 $61,957 S59,732 $64,692 $58,587 $55,000 $57,144 $50,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010 --H Actual Collected -9-- Adjusted for inflation Orig. Re v. The city began to evaluate structural issues related to its revenue portfolio and understanding the growing gap between expenditures and revenues. The following steps were taken during the 2000's to help understand and stabilize the city's financial position. External and Internal review of revenues and expenditures: • External review: Blue Ribbon Commission (BRC) I focused on revenue stabilization (2006 to 2008) and BRC II focused on expenditure efficiencies (2009 to 2010). A link to the BRC I and II work follows: htto:llwww.bouldercolorado.cov/index.php?oation=com content&view=article&id=5925&ltemi d=2421 2 • Internal review: Business Plan creation which transitioned to Priority-Based Budgeting (PBB), an ongoing disciplined approach to prioritizing investments (2006 to present). A link to PBB follows: htta://www.bouldercolorado.gov/index_r)hp?or)tion=com content&view=article&id=12883&lte mid=4403 Recent Expenditure Stabilization Steps: • Implemented ongoing budget reductions totaling $5 million in the 2010 Approved Budget and $1 million in the 2011 Approved Budget. • Updated employee compensation strategy to further focus on pay-for-performance and market competitiveness. • Moved to a single health care provider for city employee health care plans. • Renewed emphasis on a Wellness program designed to pro-actively encourage employees to identify any specific health risk factors eventually lowering healthcare costs. • Ongoing department-by-department and cross-departmental efficiency analyses and implementation. Revenue Stabilization Steps: • De-brucing property tax - November 2008 • Sales tax extensions - November 2008 and 2009 • Accommodations tax increase - November 2010 • Strengthening the Economic Vitality program - 2008 - 2011 Even with stabilization efforts, there have been significant cuts to programming, staffing, operations and maintenance and infrastructure investment. While some of these reductions can be associated with improved efficiency, most represent absolute reductions in service levels to the community. Prior to budget cuts, the city was able to keep up more consistently with industry standards in taking care of its assets whether it was roadway repair and reconstruction, building maintenance, parks and sports field maintenance, or replacement of business and software systems. Today, without additional levels of investment community assets will be in a steady state of decline. For example, street pavement condition will continue to decline without a sustainable increase in funding. As noted in an information packet from September 1, 2010, it would take an additional $1.6 million per year to maintain current average pavement condition. http:/IuAm, v.bouldercolorado.cov/files/Citv°fo20Council/WIPS/2010/IP 09 01 2010/2B.pdf In addition, there are neighborhood park lands that do not have park development dollars, there are multimodal transportation connections that need to be improved, and there are desires for enhanced and/or expanded purpose-built amenities such as library facilities. Even if those assets were built with one-time money, there are insufficient funds to operate and maintain them over time, putting ever increasing pressure on maintenance and operation funds for existing facilities. The city's ability to adequately maintain city facilities has also been impacted by available financial resources and rising costs. While the city has successfully leveraged funds through grants to enhance facilities or upgrade energy efficiency in buildings and facilities, these are one time opportunities which face greater competition and declining funds. The following sections of the memo outline capital improvement needs for the city and options funding those needs. This item is intended to be a high-level policy discussion for council to begin setting a future course in which the city once again invests proactively in community assets. 3 IV. Analysis The analysis provided for this study session includes: A. Capital Improvement Program (CIP) - Needs B. Ongoing and Maintenance Funds for Existing and New Facilities C. Capital Improvement Program - Revenue (Existing and New) D. Additional Capital Investment and Bonding Capacity Based on Incremental Revenue Increases E. Boulder's Regional Position Related to Sales and Use Tax F. Lessons Learned from Other Communities G. Potential Process Approaches and Timelines A. Capital Improvement Program (CIP) - Needs The CIP is the key implementation tool for our community infrastructure. As described above, the majority of the CIP is being implemented through the fiscally constrained plans of the departments. Currently, the CIP is funded at approximately $20-25 million dollars per year. The six-year CIP is developed annually, with the first year considered for approval along with the operating budget, and the remaining five years as a planning tool. In 2010, the city undertook significant efforts to make the CIP more accessible, understandable, and expanded to include all "capital expenses". These improvements will continue, with the most significant change being a more direct linkage and coordination with the budget development by the finance department. In addition, the guiding principles developed concurrently with last year's CIP will begin to be used for the development of the coming year CIP projects. See AttachmentA for the CIP Guiding Principles adopted as a part of the 2011 Budget. As departments develop their CIP lists for the city's fiscally constrained budget there are a number of projects that end up on "unfunded" project lists. These unfunded projects range from critical deficiencies in the city's existing infrastructure and facilities to high priority enhancements based on adopted master plans to desirable, but lower priority enhancements, also based on master plans. To help illustrate the order of magnitude of the costs of these types of unfunded projects, departments recently were asked to submit their best current estimate of projects by category as reflected in the table shown below: Capital Project Cate o Total Cost Funded Unfunded Cost Critical Deficiency $ 78,500,000 $13,100,000 $ 65,400,000 Higher Priority Action Plan $135,400.000 $10,800.000 $ 124.600,000 Lower Priority Action Plan $370,400,000 $ 900,000 $ 369,500,000 Vision Plan $142,000,000 $ 100,000 $ 141,900,000 Total $726,300,000 $24,900,000 $ 701,400,000 A summary of capital needs across the organization with examples of project types follows: A. 1 CIP - Critical Deficiencies Based on an initial evaluation by city departments, $65 million dollars will be required to fund all current "critical deficiencies" related to city infrastructure needs (transportation, parks and facilities). The term "critical deficiency" has been defined based on maintaining industry accepted standards, health and safety issues and/or legal/ballot requirements related to capital construction (e.g., Fire Training Center). 4 By prioritizing adequate maintenance of existing assets, the city will avoid the increased costs associated with deferred maintenance. Examples of critical deficiencies are provided to give council a sense of these types of investments: Bridge Replacement ($3,000,0_00) - Replacing bridges serves safety and mobility needs, the highest priorities in the Transportation Master Plan (TMP). As an example, the bridge on 63rd just north of Arapahoe is now the lowest rated bridge in the city's system, with a rating of structurally deficient. This bridge has very narrow lanes and no shoulders. There are also minor structures (less than 20' long) throughout the city that are in need of structural repair. Neighborhood, Pocket Parks & Community Park Renovations ($8.150.000) - Under funded park renovation and park facility projects will continue to impact the growing backlog of park renovation project needs and staff resources in the department. As the backlog of park renovation projects increase, the expectations of the community to meet required federal ADA compliance standards and address the number of unsafe and/or outdated play equipment areas throughout the city will continue. Reconstruct Damaged Streets ($7,000,000) - Staff estimates this level of investment is needed to reconstruct the roads in the community that are in the worst condition. These streets have deteriorated to a point at which resurfacing is no longer an option. This is in addition to the $1.6 million needed annually to maintain the entire system at a rating of 78 on a scale of 100. Police Technology Needs ($225,000) - The Police Department is currently well behind the trend in having in-car video systems for all patrol cars. This is the new industry standard and best practice, yet the city has just started to equip some of the patrol cars through limited grant funds. In order to equip all patrol cars, additional funding is required. A. 2 CIP - Action Plan Investments - Higher Priority The evaluation of CIP needs also includes action plan items reflected in departmental master and strategic plans. Action plan items generally require new or increased funding sources or the implementation of a significant reallocation. These types of investments would entail a new and / or expanded facility. Due to the magnitude of identified funding needs, Action Plan items have been classified as either higher or lower priority projects. The initial listing of unfunded higher priority action plan items total $125 million. Examples of these types of investments include: Facilities/Fire Station #3 Relocation ($6,000,000) - This 47-year-old building is located in the 100-year floodplain of Boulder Creek. Fire station 3 is the city's busiest station and is too small to accommodate current service demands. The city does not have the ability to renovate and expand this building due to its location. Information Technology (IT) Critical Software ($3,000,000) - More than any other IT investment area, business software directly and visibly supports the City's ability to perform daily operations. IT CIP projects implement software automation to streamline business processes, enhance city operations and mitigate risk. For example, BFS and Vista (the finance and human resources/payroll products, respectively) are heavily customized, more than 10 years old, and have uncertain product futures. As a result, the City risks the loss of vendor support for these critical systems and could potentially incur a major, unplanned replacement expense. Main Library improvements ($2,500,000) - Move children's area to second floor and combine with teen reading area; create adult reading areas. This upgrade is the top priority for the Boulder Library Commission. 5 Facilities and Asset Management (FAM) has several projects currently classified as "High Priority" which, in time will move to "Critical Deficiency" status due to increasingly expensive annual repair and maintenance costs. These include: Scott Carpenter Pool ($1.500,000) - Construct new pool. Current Pool is within the 100-year flood plain. Facilities Parking Lot Repair ($450.000) - repair asphalt parking lots at city facilities to correct tripping hazards (e.g., fire stations, main library: south parking lot, recreation centers). Public Safety Building ($200,000) - Replace 3 HVAC units. South Boulder Recreation Center ($100,000) - Replace water damaged wooden gym floor and racquetball floors. Public safety Building ($50,000) - Replace aging freight elevator. A. 3 CIP - Action and Vision Plan Investments - Lower Priority The evaluation of CIP needs also includes action plan items reflected in departmental master and strategic plans. Action plan items generally include enhanced or new city facilities and require new or increased funding sources or the implementation of a significant reallocation. Due to the magnitude of identified funding needs, Action Plan items have been classified as either higher or lower priority projects. The initial listing of unfunded lower priority action plan items total $370 million, These investments may not be time critical or may not be in an initial set of strategic investments. Examples include: • Park operations - Relocation / renovation / expansion of the Yards maintenance facilities • Park Development - Construct neighborhood and pocket parks (e.g., Mesa Memorial, Gunbarrel, Violet) • Fire Department - Renovate/replace fire stations • Foothills Community Park - Phase III Improvements • Transportation - Enhancements and connections associated with Northwest Rail (unless there are significant changes to FasTracks timing) • Library- Construct North Boulder Branch Library • Police - DNA Lab B. Ongoing Operating and Maintenance Funds for Existing and New Facilities An important consideration for any new investments is to assure that ongoing Operations and Maintenance funding is included to catch up on current deficiencies as well as to support new facilities. For example, a new library would need ongoing funds to support sufficient personnel for service delivery and operation of the building as well as building maintenance needs. Additions to the Transportation system would not require as much personnel, but likely would require greater ongoing non-personnel funds to assure that the new infrastructure could be well maintained. The City of Fort Collins learned this lesson when it passed tax increases for new investments that did not provide sufficiently for ongoing operations and maintenance. Ft. Collins was forced to make budget cuts to other areas to be able to fund new facility operations. New revenue sources would grow each year (except during recessions) and that growth in revenue could be used to help cover some portion of increased operating costs. However, given the ongoing need to catch up and stay current with existing capital renovation and operations and maintenance, more analysis is needed to determine the need and use of potential ongoing funding. C. Capital Improvement Program - Revenue (Existing and New) There are different approaches to investing in capital projects, capital renovations or major capital replacements/maintenance. Organizations can use pay-as-you go approaches or debt or lease- based financing with a commitment linked to particular revenue streams. Pay-as-you-go funding entails accumulating cash overtime and investing in specific projects once sufficient dollars are 6 set aside. The ongoing revenues can come from current or new revenues. While pay-as-you-go funding can be used for any type of project, it is often used for smaller capital projects that can be completed in a short period of time so they are not subject to major changes in cost due to inflation. Debt or lease financing consists of borrowing a lump sum dollar amount and paying it back over time with payments each year from either current revenues or new revenues authorized by the voters. This form of financing is often used for projects that are large, have a significant cost and have a life expectancy that is equal to or longer than the final maturity of the ongoing payments. Over recent years certain restricted funds have pursued bonding to build capital projects, renovations or purchase property, such as through Public Works Utilities or Open Space, since they have had more capacity in their funds and their investments meet the above guidelines. The General Fund and other restricted funds, such as the Transportation Fund, have not had the capacity in ongoing funding streams to pursue such investment approaches. The only capacity the Transportation Fund has for more significant capital improvements is through leveraging limited local dollars with federal and state grants, which are competitive and largely restricted to particular types of investments. Public - private partnerships are another tool that can be used in many different ways and for many different types of projects. The basic arrangement is based on the city entering into a contract with a private party. The private party would provide/build a capital project and the city would use that project or facility based on some type of financial arrangement with the private party. Some of these types of arrangements have been used very successfully by local governments and some have not been successful. Each proposal must be carefully analyzed and contemplated. Under the city's current fiscally constrained environment, the city has the opportunity to continue to pay-as-you-go with limited and gradual investments overtime to address critical deficiencies, or to pursue a limited bonding approach based on a modest amount of additional ongoing funding. The city could also expand its ongoing funding stream by taking a revenue increase to the voters which could be used for both ongoing operations and maintenance and major capital investments benefiting the community. Capital Investment Opportunities with Existing Funding Stream: The city has an opportunity to create a capital investment strategy by setting aside existing, uncommitted General Funding streams. Based on the Accommodations Tax increase, retired bonds, de-Bruced property tax and health care cost savings, the city could program investments for critical deficiencies and action plan investments based on adopted master plans. The capacity created by those funding sources is as follows: Proposed Capital Investment Strate Current Revenue Source 2011 2012 2013 2014 2015 2016 Accommodations Tax $480,000 $ 480,000 $ 480,000 $ 480,000 $ 480,000 $ 480,000 Reallocate Paid-off Bond Payment for Library Expansion $1,080,000 $1,080,000 $1,080,000 $1,080,000 $1,080,000 Reallocate Paid-off .15 Cent Bond Payment (General Facilities & Ballfieids) $ 550,000 $ 550,000 $ 550,000 $ 550,000 Reallocate Paid-off East Boulder Community Center Debt Payment $ 600,000 $ 600,000 $ 600,000 $ 600,000 De-Bruced Property Tax - 2012 $ 700,000 $ 700,000 $ 700,000 $ 700,000 $ 700,000 De-Bruced Property Tax - 2013 $ 700,000 $ 700,000 $ 700,000 $ 700,000 De-Bruced Property Tax - 2014 $ 400,000 $ 400,000 $ 400,000 Budget Savings resulting from health care changes $500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 Total $980,000 $2,760,000 $4,610,000 $5,010,000 $5,010,000 $5,010,000 7 While staff is pleased about health care savings, it would be prudent to be conservative regarding these savings as future health care costs are difficult to predict. Available funding associated with de-Bruced property taxes may change based on economic conditions. The city could pursue using these funds based on the following models: • Pay-as-you-go: Devote $4.5M to $5.OM annually to capital investment • Bonding based on revenue stream: Create upfront larger investment potential by issuing bonds to be repaid by a $4.5M to $5.OM annual revenue stream • Combined Approach: Devote a portion of the annual revenue stream to capital investments and issue bonds based on the remaining portion. Through the capacity created by these funds and depending on what type of bond is issued, the following table illustrates the estimated proceeds that could be realized for capital improvement program purposes. If a Certificate of Participation lease is used, the proceeds would be less: Example Scenarios for Bondin Capital Improvements Term & Bond T e* $2.5M per year MOM per year 10-vr General Obliaation Bond $19 million $38 million 10- r Revenue Bond $17 million $34 million 20- r General Obligation Bond $31 million $62 million 20- r Revenue Bond $28.5 million $57 million . Bonding authority requires voter approval. Regardless of the chosen approach staff proposes that capital improvements and critical deficiencies be considered across the organization rather than by department. A capital improvement program fund would be created and would be used for CIP projects across the organization. The projects would not be accounted for in individual funds. If a project comes in under budget, the dollars would go back to the CIP fund and would fund the next project on the priority list, which may be in a different department. 1. Does Council have any clarifying questions regarding the capital improvement needs and different approaches to funding such improvements? 2. Does Council endorse the idea of committing to a community capital investment strategy from ongoing, existing funding of approximately $5.OM in General Fund money? 3. Does Council endorse the policy of focusing on funding critical deficiencies for existing assets/facilities first and higher priority new facilities/assets second? Proposed Capital Investment Strategy with Current Revenues: • To begin repositioning Boulder to better invest in its physical and business infrastructure, staff recommends that current, unallocated revenues be targeted for a capital investment strategy. • Based upon the good business practices of taking adequate care of existing assets, staff recommends prioritizing critical deficiencies first and high priority action plan items second. D. Additional Capital Investment and Bonding Capacity Based on Incremental Revenue Increases Council may want to consider asking the voters to increase city revenues to address critical deficiencies, invest in community assets, and assure that sufficient ongoing operation and maintenance funding is available to support new/expanded facilities. To give Council a sense of magnitude for new dollars by increment, each 0.1 % increase in sales and use tax or 1 mill increase in property tax generates approximately $2.5 million per year. Similar to our fiscally constrained potential, the city could leverage this new funding stream by borrowing to complete up to $31 million of projects for each incremental increase of 0.1 % of sales and use tax or 1 mill 8 increase in property tax. The city could consider asking voters to approve an additional increment of increase to property and / or sales tax as well as bonding authority. The city could pursue different approaches for revenue and bonding capacity increases. One approach would be a citywide fund, as noted above, with projects identified and prioritized from across departments going through a single CIP fund. Another approach, used by the City and County of Denver, would be to associate each increment of increase to a specific department or project type. For example, voters could support individual increments for library expansions, transportation connections, park land development, etc, E. Boulder's Regional Position Related to Sales and Use Tax As the city evaluates potential new funding sources it will need to consider other possible local, regional and state ballot items (Attachment B - Summary of Potential Ballot Items for 2011 & 2012) and the city's competitive position in the region. For example, if new sales and use tax or mill levy increments are considered, the city will want to compare total sales and use tax and/or property tax levels to neighboring communities and regional competitors. The following table represents Boulder's current position among front-range communities as it related to sales and use tax rates. This table does not reflect the different types or values placed on investments, such as open space; however, there appears to be some capacity for Boulder to increase its rates and still remain comparable to other communities. SALES TAX RATES Total City/County city Count State Regional Rate Lakewood/J efferson,Creekside 4.5000 A 0.50 2.90 1.20 9.1000 Lakewood/Jefferson, Colorado Mills 4.4000 B 0.50 2.90 1.20 9.0000 Aurora/Douglas 3.7500 1.00 2.90 1.20 8.8500 Westminster/Adams 3.8500 0.75 2.90 1.20 8.7000 Aurora/Adams 3.7500 0.75 2.90 1.20 8.6000 Thornton/Adams 3.7500 0.75 2.90 1.20 8.6000 Westminster/Jefferson 3.8500 0.50 2.90 1.20 8.4500 City/County Broom field-Fiatirons 4.3500 C 2.90 1.20 8.4500 Lafayette/Boulder 3.5000 0.80 2.90 1.20 8.4000 Louisville/Boulder 3.5000 0.80 2.90 1.20 8.4000 Superior/Boulder 3.4600 0.80 2.90 1.20 8.3600 Boulder/Boulder 3.4100 0.80 2.90 1.20 8.3100 Arvada/Adams 3.4600 0.75 2.90 1.20 8.3100 City/County of Broomfield 4.1500 2.90 1.20 8.2500 Longmont/Boulder 3.2750 0.80 2.90 1.20 8.1750 Aurora/Arapahoe 3.7500 0.25 2.90 1.20 8.1000 Lakewood/Jefferson, Belmar 3.5000 D 0.50 2.90 1.20 8.1000 Arvada/Jefferson 3.4600 0.50 2.90 1.20 8.0600 City/County Denver 3.6200 2.90 1.20 7.7200 Lakewood/Jefferson (Other Areas) 3.0000 0.50 2.90 1.20 7.6000 Ft. Collins/Larimer 3.8500 0.80 2.90 7.5500 Average 3.7207 0.67 8.3374 A-Rate includes 3.0% City of Lakewood and 1.5% PIF (Public Improvement Fee) B-Rate includes 3.0% City of Lakewood and 1.4% PIF C-Includes 4.15% City/County of Broomfield and .2% Flatiron and Artista Improvement District D-Rate includes 1.0% (reduced rate) City of Lakewood and 2.5% PIF 9 F. Lessons Learned from Other Communities Staff has been researching efforts in neighboring local governments and has prepared a white paper from which much can be learned. The City and County of Denver was successful in passing the 2007 Better Denver Bond ballot initiatives ($550 million additional bonding authority) based upon their internal work in vetting projects and their public stakeholder process. By vetting projects internally for scope, costs, ongoing expenditures and shovel readiness, the city was able to narrow the project list down to a manageable size that addressed their true capital needs. The city then utilized an extensive public stakeholder process to prioritize projects and develop resonating themes, ensuring public support for the final project list. The City of Fort Collins' successfully extended two .25 sales and use taxes in 1997 and again in 2005 to fund a wide array of CIP projects. As with Denver, the City of Ft. Collins thoroughly vetted proposed projects internally, prior to engaging in multiple citizen outreach efforts to gauge and gain public support for the measures. Finally, Boulder County has incrementally increased its property and sales and use tax over the past 10 years to address both operating and CIP needs. Though each increase was specific to one department (i.e. Open Space, Transportation, Human Services), the lesson of conducting polling, surveys and outreach to the community's thought leaders can be useful for the City of Boulder in constructing a public engagement process. Key lessons derived from the research should be considered in determining the proper mix of projects and public process for the city: 1. Thorough vetting of needs and projects • Conduct a needs assessment that considers industry standards (ex: Pavement Condition Index for city roads) • Vet projects - scoping, costing, shovel readiness, and include ongoing operating & maintenance costs • External validation (consultant) of project elements, providing objectivity • Internal culling of projects through clear criteria, creating a reasonably sized and priced list of projects • Thorough vetting is critical prior to engaging in a public process 2. Public process to determine list/options • Recommend a committee approach for a large CIP ballot item, one that engages community leaders and has diverse community representation (in terms of socio- economic, geographic, age, etc.) • Set expectation early with public committee that it makes recommendations to city manager and city council with council making final decisions • Provide committee / subcommittees with thorough and well organized information such as notebooks with projects, staff presentations on projects and project types, and criteria to prioritize projects 3. Importance of including ongoing operations and maintenance in new funding and investment packages. Please see Attachment D for an overview of Denver, Fort Collins and Boulder County's recent tax ballot initiatives. G. Potential Process Approaches and Timelines A fiscally constrained approach using current revenues will occur through the regular CIP budget process, will employ the CIP Guiding Principles endorsed through the 2011 budget, and will be vetted through the city's regular CIP process. 10 Two options are outlined below for moving forward with a ballot measure for increased funding for a package of citywide capital improvement projects. The first option is an abbreviated process in order to place an item on the ballot this fall. The second option outlines a more deliberative process to place an item on the ballot in November 2012. There will need to be budget and staffing assigned to this project once direction is established. A project manager, external management and facilitation services, meeting support, polling and /or focus groups will need financial and staff support. It is possible if all elements are included that the project could cost up to $150,000 to $200,000. November 2011 Community Improvement vote This process would be similar to Boulder County's model of primarily relying on polling to assess public opinion and to formulate a ballot issue, using a limited public process. Feb 22: Council discussion March: Council direction Internal review of project list Initial Polling on public's priorities City Manager appoints task force April-May: Stakeholder process based on existing information on projects; 2-4 meetings Stakeholder group would discuss prioritization, package options, level of funding, Polling on options and funding in May prior to recommendation to Council Mid-June: Recommendation to Council July/August: 15t/2 "d Reading of Ballot Language 2012 Ballot Item Process This process would be more in line with the model used in Fort Collins and Denver, where significant time is devoted to vetting the list of projects and using a broadly comprised stakeholder group to develop the package of projects. If council chooses this timeline, staff would return with a more thorough process description and structure for council consideration. Feb 22: Council discussion March: Design process including: • Project workplan including schedule, tasks • Stakeholder group: scope, role, potential members • Project vetting process including external validation April-May: Council direction Internal project vetting City Manager appoints task force members Initial polling on public's priorities June-Dec 2011: Stakeholder Process: • Develop criteria and prioritize list of projects • Evaluate funding options Jan-May 2012: 1 • Design of potential packages • Polling on potential options • Council check-ins June 2012: Recommendation on final package July/August 2012 • I"/2rd Reading of Ballot Language • Final polling on proposed package to inform campaign 4. Does Council support the concept of a stakeholder committee process which would create potential revenue and/or bonding approaches to be taken to the voters in November 2012? Proposed Investment Strategy for New Revenue Based on the "lessons learned" from other communities, staff is recommending considering a ballot item in 2012 for new revenue for a citywide capital investment package. The 2012 timeframe would allow time to: 1. Thoroughly vet the projects 2. Engage community leaders and the public in a meaningful public process 3. Craft a package of improvements and message that resonates with the public V. Potential Next Steps, Council Questions and Staff Recommendations Depending on council direction next steps include the following: Existing Revenue: • Establish a more detailed capital improvement fund through refining revenue estimates and creating a capital improvement fund which can fund projects from across the organization. • Prioritize a set of citywide capital improvements and investments based on the CIP Guiding Principles adopted in the last budget document, which would be considered in the annual CIP budget process. Critical deficiencies would be considered first with higher priority action plan items considered second. • Schedule an earlier check-in with council for review and feedback creating the capital improvement program fund with initial proposed projects. Potential New Revenue: • Further analyze potential new revenue scenarios to establish a series of choices for funding packages including bonding. • Assemble and support a stakeholder panel which would advise staff and council regarding packages for voter approval. For a 2012 ballot, staff would design a more detailed stakeholder process during March 2011 and return to council in April for review and approval. • Develop a polling/focus group approach to understand voter opinions to help inform stakeholders, staff and council. VI. Questions for Council 1. Does Council have any clarifying questions regarding the capital improvement needs and different approaches to funding such improvements? 2. Does Council endorse the idea of committing to a community capital investment strategy from ongoing, existing funding of approximately $5.OM in General Fund money? 3. Does Council endorse the policy of focusing on funding critical deficiencies for existing assets/facilities first and higher priority new facilities/assets second? 12 4. Does Council support the concept of a stakeholder committee process which would create potential revenue and/or bonding approaches to be taken to the voters in November 2012? VII. Proposed Investment Strategy • To begin repositioning Boulder to better invest in its physical and business infrastructure, staff recommends that current, unallocated revenues be targeted for a capital investment strategy. • Based on good business practices of taking adequate care of existing assets, staff recommends prioritizing critical deficiencies first and high priority action plan items second. • Based on the "lessons learned" from other communities, staff is recommending considering a ballot item in 2012 in order to allow time to thoroughly vet the projects, engage community leaders and the public in a meaningful public process, and craft a package of improvements and message that resonates with the public Other items would continue to be under consideration for the 2011 ballot, such as potential Energy Future options and smaller and/or targeted items such as the University Hill Residential Services District and Transportation Maintenance Fee (Attachement C), among others. A running list of potential ballot items is in Attachment B. Council meetings are scheduled for ballot item consideration in July and August. VIII Attachments: A. Capital Improvement Program Guiding Principles B. Summary of Potential Ballot Items for 2011 and 2012 C. Potential Smaller Scale Ballot Items - University Hill Residential Services District and Transportation Maintenance Fee D. White Paper on Experience from Other Communities 13 Appendix A CAPITAL IMPROVEMENT PROGRAM (CIP) GUIDING PRINCIPLES The City of Boulder Capital Improvements Program (CIP) addresses the ongoing major business needs and maintenance and repair of city assets as well as enhancements and expansion called for in the Boulder Valley Comprehensive Plan. The CIP is a strategic document that assures that the municipal organization maintains a strong bond rating, implements community values, and has fiscal integrity. The City intends to prioritize its investments both across and within funds based on the following guiding principles: 1. Capital Improvement Programs should be consistent with and implement Council-accepted master plans and strategic plans. 2. Capital Improvements should achieve Community Sustainability Goals: • Environmental - sustainable materials, construction practices, renewable resources, etc. • Social - enhancements that improve accessibility to city services and resources provided to the community. • Economic - effective and efficient use of public funds across the community. 3. As potential capital investments are identified, the city must demonstrate in the CIP process that there are sufficient funds to operate and maintain the project or program. 4. Capital Improvement Programs should provide enough capacity and flexibility in our long-term planning to be able to respond to emerging, unanticipated needs. 5. Capital Improvement Programs should maintain and enhance the supporting city-wide "business systems", such as information and finance systems, for the city over the long-term. 6. Capital Improvement Programs should sustain or improve maintenance of existing assets before investing in new assets. 7. Capital improvements should: • Meet legal mandates from federal, state, or city levels • Maintain or improve public safety and security • Leverage external investments • Promote community partnerships • Reduce operating costs and improve efficiency 8. Capital programming should maximize efficiency of investments demonstrated by measurable cost/benefit analyses and coordination of projects across departments within and across funds. 9. The Capital Improvement Program should provide sufficient reserves to allow for a sound fiscal foundation with benefits that include: • A strong bond rating • The ability to address emergencies and natural disasters The Finance Subcommittee handed off the CIP "improvement" project to the CIP and Budget Teams to carry through the 2011 Budget process. The CIP Team also made progress on describing the CIP and its process more clearly and presenting the CIP in a more comprehensive and understandable way. 14 Appendix B Summary of potential ballot items for 2011 & 2012 Boulder's Energy November 2011 Covered in the narrative of the Options Dec. 21, 2010 study session memorandum and Jan 18, 2011 agenda memorandum. Climate Action Plan Tax March 2013 November 2012 If the utility or authority is not successful this tax could be requested for extension to continue with CAP ro rams. RTD sales tax increase November 2011 Media information indicates within a range of .1% to this will be placed on the ballot .4% with the most likely in 2011, While this is not a city to be .1% to .2%. tax if passed city residents would pay the tax and the amount will have an impact on the maximum tax capacity that may be accepted by the voters in Boulder. CIP financing and November 2011 or The city has not had a operational cost funding 2012 comprehensive citywide CIP for citywide items (not program and the general fund specifically one fund has not been able to meet new over another) needs since 2000. The possibilities for this ballot item range from individual capital items to various packages of items similar to the process used by Denver and Fort Collins. The funding sources for consideration could be from various taxes or fees, More information to be provided for Council in the first half of 2011. Transportation November 2011 or Transportation Maintenance Maintenance Fee 2012 Fee developed through Transportation Advisory Board process. Addresses operations and maintenance of multimodal transportations stem. Uni Hill Residential November 2011 or Uni Hill Residential Services Services District 2012 District developing thru Hill .Ownershi Group Mill levy increase due to Unknown at this Depending on a potential Gallagher Amendment time decline in non-residential property values, dynamics created b the Gallagher 15 Amendment may prompt communities, including Boulder, to adjust property tax rates to maintain the same amount of revenue, The Gallagher Amendment requires that a certain ratio in residential to non-residential property taxes not be exceeded. TABOR does not allow mill levy adjustments without voter a roval. Vacation Rental By TBD Under evaluation Owner .25% Parks and December November 2013 It is recommended that the tax Recreation Tax 31, 2015 be placed on the ballot at least two years before it expires to provide time to wind down programs if the tax is not renewed. Boulder County Unknown at this Unknown at this time time _ Boulder Valley School District Unknown at this Unknown at this time time State of Colorado Unknown at this Unknown at this time time Open Space Tax .33% December Unknown at this Unknown at this time 31 2018 time Open Space Tax .15% December Unknown at this Unknown at this time 31 2019 time 16 Appendix C Potential Smaller Scale Ballot Items Core operations and maintenance which catch up or improve on the city's ability to take care of existing infrastructure remains a significant challenge. There have been two discussions underway that could lead toward smaller scale or targeted initiatives to allow the city to more adequately maintain facilities. Depending on the time horizon and scope of a larger package focused on capital improvements, these targeted initiatives could move on an independent track. Transportation Maintenance Fee (TMF): The Transportation Advisory Board, working with stakeholders and staff, identified a TMF as a preferred, potential source of funding to meet the on-going operational and maintenance needs of the system. While a CIP ballot item could provide funding for enhancements to the system and for key capital maintenance projects, such as rebuilding major arterials, the on-going maintenance and operational needs of the system would not be addressed by such a measure, and cannot be met with existing revenues in the long-term. A TMF is a monthly fee that is collected (usually on utility bills) from residential and commercial properties, based on estimated use of the transportation infrastructure. TMFs are usually based on nationally accepted trip number estimates generated by various types of uses. TMFs provide a stable source of revenue that can be used to maintain city streets, sidewalks, pedestrian crossings, bike lanes, multi-use paths, and medians. A TMF could be implemented at a variety of levels. As an example, a basic level of accepted maintenance could be provided at about $15 per household per year. A TMF could be indexed to keep pace with inflation. TMFs have been ruled as a legal financing mechanism in the state of Colorado (Bloom v. City of Fort Collins, CO. 1989). The Colorado Supreme Court ruled that a "transportation utility fee" charged to owners or occupants of any developed lots or parcels of land for to fund maintenance of local streets was not a property tax, but rather was a special fee which was reasonably related to expenses incurred by the city in carrying out its legitimate goal of maintaining an effective transportation network. At a study session in November, 2010, Council suggested that staff continue work on developing a TMF. While a TMF can be implemented by Council without voter approval, several Council members expressed interest in putting the issue before voters. This could be presented as an advisory vote on whether Council should levy a fee, and could be prepared for the November, 2011 ballot. University Hill Residential Services District: Based on the success of other special districts within the city such as the Central Area General Improvement District (GID), the idea of creating a general improvement district, in the RH-5 high density residential area on the Hill, was conceived of as a strategy to address trash and inconsistent property maintenance, both of which have been long-standing problems in the area. A Hill Ownership Group subcommittee has been meeting since August 2010 to determine the scope of services that would be provided in the proposed district and the associated costs; identify key property owners within the proposed district to solicit feedback and support; and to understand the process and timeline for creating a general improvement district. Property owners are currently being contacted and costs for services researched. If appropriate support is received from property owners and residents to create the improvement district, the goal is to have an election of proposed district property owners in November 2011. The process to form the general improvement district would be similar to the recent formation of the Boulder Junction Access Districts, which includes City Council acceptance of the petitions and the scheduling of an election of the property owners to assess a mill levy. Both the University Hill Residential Services District and TMF could potentially move on a different track than a larger community-wide ballot since they are more targeted geographically and/or by application and could be considered as early as November 2011. 17 Staff recommends keeping these potential ballot items under consideration for November 2011 until more information is known about state, regional and local ballot items. Also, existing stakeholder processes may provide additional information to Council during the first half of 2011. 1$ Appendix D Lessons Learned: Analysis of Recent Local Government Ballot Initiatives As the City of Boulder considers potential ballot options to address Capital Improvement Plan (CIP) needs, key lessons and findings can be drawn from other local government experiences. With that in mind, this paper illuminates the critical elements required for a successful CIP tax initiative as learned through the recent experiences of City and County of Denver, the City of Ft. Collins and Boulder County. Each community also has differences to consider ranging from political structure to size to breadth of capital responsibilities. The paper begins with a brief overview of each jurisdiction's recent efforts. This is followed by a discussion of key findings and lessons learned drawn from the research. The paper concludes with case studies of each jurisdiction detailing their distinct approaches to CIP needs assessment, public process, and revenue sources among other important elements. OVERVIEW AND PURPOSE OF INITIATIVES City and County of Denver In 2004 and 2005, Denver city staff, working with consultants, conducted a thorough capital needs assessment, which identified a lengthy list of critical public infrastructure deficiencies. The city then convened a citizen committee in 2006 to help prioritize new capital project needs. The efforts culminated in the 2007 ballot initiative "A-I." Combined, the initiatives included more than $550 million in bond issuances (Better Denver Bond Program) for new projects and major renovations, and a permanent 2.5 mill levy increase to address identified critical deficiencies. Denver voters approved all measures, infusing an additional $25 million in property taxes each year into the annual CIP fund for critical maintenance needs, while providing bond financing to improve, preserve, renovate and build new roads, libraries, parks, hospitals, public safety facilities, and cultural facilities. In all, more than 290 projects are currently in the process of design and construction. City of Ft. Collins In 1997 voters approved two separate $.25 cent sales tax increases to address capital needs in the areas of roads, parks/open space and community priorities, with a 10-year sunset provision. The two tax measures were successfully renewed in 2005 with a 10- year sunset provision. In 2010 voters approved passage of an additional $.85 sales tax, with a 10-year sunset provision. The approved tax increase will mainly address operating needs, with some funding for on-going road maintenance. Boulder County Throughout the last decade Boulder County voters have extended or approved new taxes in the sum of 2.4 mills and .55 sales and use tax for capital and operating needs. Boulder County relied heavily upon polling and surveys to garner public input and stakeholder engagement to assess community and campaign support for tax increases. KEY FINDINGS The researched jurisdictions employed widely divergent methods to fund their capital project needs, any associated on-going operations and maintenance costs, and, in the case of Boulder County, on-going operating programs. Their efforts differed in terms of assessing need, prioritizing projects, public process, identified revenue source (e.g., sales tax, property tax), and the use of new funds among other key elements. While the methods employed differed for a host of reasons, best practices have emerged that explain their successes. Below are the key findings from the research: 1. Thorough vetting of needs and projects a. Conduct a needs assessment that considers industry standards (ex: Pavement Condition Index for city roads). b. Vet projects - scoping, costing, and shovel readiness, and includes on- going Operating and Maintenance costs. c. External validation of project elements, providing objectivity. d. Internal culling of projects through clear criteria, creating a reasonably sized and priced list of projects. e. Thorough vetting is critical prior to engaging in a public process. 2. Public process to determine list/options a. Recommend a committee approach for a large CIP ballot item, one that engages cornrnunity leaders and has diverse community representation (in terms of socio-economic, geographic, age, etc.). b. Set expectation early with public committee that delivers recommendations to the city manager and council, c. Organize projects by type (parks, roads, buildings, etc.) to be reviewed by stakeholders, potentially through subcommittees. d. Provide subcornrnittees with project notebooks, with staff presentations of proj ects. e. Provide clear review criteria for subcommittees to help prioritize projects. f. An executive committee should work to finalize project lists provided by subconunittees, again utilizing pre-established criteria. g. Boulder County has utilized polling and a targeted outreach process with success for specific, rather than broad, tax increases. Outreach types have ranged from multi-year stakeholder groups to targeted outreach to interest group "thought leaders." 3. Assure that sufficient ongoing funding streams are available to maintain and operate existing and new assets and facilities over time. 4. Revenue Source/Bonding a. Property tax is a more predictable revenue source compared to sales and use tax. b. Bonding allows for expediting project completion, taking advantage of lower construction costs, and publicly highlighting the capital improvements to the community in a timely manner. A pay-as-you-go strategy may take in excess of ten years to complete approved projects and, as a result, community priorities may change over time, costs likely increase, and construction impacts to the community are extended. c. Consider a sunset or partial sunset provision for any tax extension or increase. 5. Community Support/Selling the Measure a. Develop a theme that resonates with public, such as "Sustaining our Future." b. Develop a communication strategy that demonstrates need by appropriately using maintenance statistics and accepted industry norms, but also communicate that the city has made the necessary trims and tough cuts to the operating budget. c. In addition to the stakeholder process, conduct thorough public outreach effort - polling, surveys, attend neighborhood meetings, hold public forums, council meetings/study sessions, etc. d. City leadership must actively support the measure, e. Must have public champions. Success requires a concerted effort based on connnunicating need, community investment and impacts of continued deferred maintenance, 6. Ballot Language a. Ballot item(s) should be a mixture of critical maintenance and community desires/expansions, addressing obvious needs and funding new projects that appeal to civic pride and balance amenities citywide. b. Ballot language should be specific, but not too specific in listing projects. Use of the phrase "includes, but not limited to the following projects" to allow flexibility and priority adjustments CASE STUDIES City and County of Denver The City and County of Denver (CCD) has a strong mayor form of government as well as a city council in its decision-making process. The CCD (pop. 610,300) has a long history of addressing their capital needs through large bond initiatives, backed by property tax revenues. In the early stages of developing a ballot measure for 2007, CCD looked back to their 1998 ballot initiative for lessons learned. The 1998 ballot initiative, while successful in terms of gaining voter approval, largely addressed new capital projects at the expense of critical needs. As a result, major maintenance of city assets were deferred requiring issuance of "catch up" bonds. However, the volume of projects in recent years pushed this deferred funding into a longer timeframe. The new facilities passed in the 1998 ballot initiative added to the maintenance burden, along with the impact of increased use and wear of facilities brought on by increasing population and rising cost of maintenance construction. CCD conducted an internal review of need and developed a public stakeholder process. The process thoroughly vetted projects for their critical need in addition to meeting community desires and enhanced service levels. The effort culnunated in the approval of ballot initiatives "A- I" in 2007. Voters increased CCD's bonding capacity by $550 million, funded primarily through existing property tax revenue, to construct and/or renovate city buildings. Voters also approved an annual 2.5 mill levy increase, thereby adding $25 million annually to the maintenance budget for on-going maintenance needs. Needs Assessment In 2004, the Mayor convened an Infrastructure Task Force, consisting of department staff, council members and consultants to assess the issues, quantify the problem and make recommendations. The task force undertook a review of the condition of the city's assets and developed a set of minimuru standards for each criteria of need. The expectations of the public were also considered. Through their work, the task force detennined that the city had been under-funding capital maintenance by approximately $25 million annually. Mayor and Finance staff used information from the Infrastructure Task Force Report (2005) to develop a list of projects to address the identified critical needs. Key considerations were project scope, costs, shovel readiness (ready to break ground in five years) and on-going operation and maintenance costs. Staff spent almost four months developing and culling the list. Projects that were not thoroughly scoped, contained unrealistic cost estimates, were not shovel ready or failed to meet identified needs were dropped in priority. Simultaneously, staff worked to develop a list of projects that would make service levels equal across the city, enhance cultural offerings, and meet community priorities. Public Process In 2006, Mayor Rickenlooper formed the 115-member Infrastructure Priorities Task Force to develop an actionable response to the prior 2004 Infrastructure Task Force conclusions. The task force examined capital facility and infrastructure needs and helped to establish priorities and time frames. In a process that lasted more than a year and with input from more than 1,500 residents, the Priorities Task Force developed the eight bond proposals that subsequently appeared on the November 2007 ballot as Issues B through I - known as the "Better Denver Bonds" program. Issue A, which was also on the ballot, dealt with mill level funding that is separate from the bond program and funds critical deficiencies in addition to ongoing operations and maintenance. The Executive Committee of the Priorities Task Force, ultimately the final arbiter of the ballot items, consisted of pillars of the community business leaders, non-profit leaders, and neighborhood leaders. Eight subcommittees were created (Public Safety, Cultural, Buildings, Arts, Transportation, New facilities, General Public Facilities, and Critical Maintenance Needs) to select the list of projects in their respective areas. Each subcommittee leader had representation on the Executive Committee. Each subcommittee member was presented with a notebook of projects, each project had three pages of information provided (scoping, costs, fiscal note for ongoing costs). Staff provided presentations to the subcommittees, to provide members more in-depth knowledge of the proposed projects. Priority Task Force subcommittees then prioritized the list of projects using a clear set of criteria. However, subcommittees were not provided dollar targets, making it difficult for them to determine the proper project list size. The subcommittees provided their recommended list of projects to the Executive Committee. The Priority Task Force Executive Committee, in consultation with the mayor and finance department, narrowed the list to what the city could afford given its debt capacity and available revenues. The mayor then presented the final list to city council for approval. Council added a few projects based on their priorities to the list, including a new fire station in the Stapleton area and removed some lower priority projects. Ninety percent of the Priority Task Force recommended projects went forward to the 2007 ballot. Revenue Souree/Bondin Ballot Initiative IA added 2.5 mills on all taxable property within the city and county in perpetuity for the purpose of funding restoration, rehabilitation, refurbishment, or replacement of the city's capital infrastructure. Ballot Initiative lB-1H (Better Denver Bonds program) extended existing property tax to allow for more than $550 million in bond capacity to address, in general, new cultural, parks, public safety, library, transportation and general public office needs and desires. The bonding capacity was available to the city as older bonds and debts were paid off. The CCD used property taxes as the revenue source for two reasons. For one, the city had a long history of using property taxes for bonding. As previous bonds were paid off, property tax revenues became available to pay off new bonds. And two, property tax is a more stable, less volatile revenue source compared to sales and use tax. Flattening or decreasing revenue, which tends to happen to sales and use tax during downturns, especially compared to property tax, could imperil the cities ability to pay off bonds, requiring them to make significant cuts in operations in order to meet their bond obligations. With property tax revenue, there is greater certainty that appropriate levels of funding will be available to pay off the bonds as outlined in the ballot language. External Letidershin In large part Mayor Hickenlooper and key mayor staff led the project publicly. The mayor filled most of the committee seats, with council review and input. The mayor in concert with the Priority Task Force Executive Conunittee frnali-Ved the project list. The mayor held hearings with Council on the list created by the Priority Task Force and he personally took the list on the road to each council district to demonstrate the need for a ballot measure. Internal Leadership Internally, finance staff largely led the project. Finance staff worked with departments to create the list. They vetted the list for proper scopng, costing and on-going impacts. Finance staffed the initial task force and worked closely with the Priority Task Force sub- committees. Campaign and Themes As mentioned above, the mayor took the project list on the road in the Corm of' public meetings. He crafted a message that underscored the need for a ballot measure and explained the positive impacts the projects would have on the community. In addition, key members from the Priority Task Force helped fundraisc for support of the measure and garnered community support for the ballot measure. Lastly, the campaign utilized catchy 30-second TV spots to sell the measures, which were received well by the media and public. Outcomes 290 funded projects through the bond program. The permanent 2.5 mill levy increase annually funds approximately 30 maintenance projects. Keys to Denver's Success • In all, CCD spent four years developing the CIP tax measure. • Needs assessment and project vetting was based upon industry standards and a clear and objective scoring criteria. • The Public Task Force process generated solid recommendations and helped generate strong public support for the ballot measures. • The city developed a coherent, concise and effective theme and communication strategy. • Strong leadership and political capital. • Ballot language utilized the wording "includes, but not limited to" when describing projects, allowing flexibility if priorities changed. • Proposed projects addressed both critical deficiencies and community desires. Denver's Lessons Learned • Setting a dollar target for public stakeholder committees is difficult. • Need to consider council priorities in developing project lists, so that their projects are properly scoped, include accurate cost estimates, etc. prior to bringing council a final project list. • Assure that ongoing operations and maintenance are incorporated with investments packages. City of Ft. Collins The City of Ft. Collins (pop. 137,000) has a similar structure to Boulder with a city manager form of government. Ft. Collins historically has funded its C1P ballot measures through sales and use tax revenues. In 1997, Ft. Collins voters approved the extension of t-~vo sunsetting .25 sales and use tax measures to fund very specific road/transportation projects and new facilities (library and community center). Both measures were renewed in 2005. As opposed to bonding with the voter approved tax dollars, Ft. Collins used a "pay-as-you-go" methodology to finance the approved projects. Reserves of cash were built up over time, as requisite cash was available, projects could be initiated. In effect, the City of Ft. Collins took more time to complete projects compared to the CCD. Needs Assessment The city conducted a needs assessment throughout 2004 to focus on their true CIP needs and desires. Ft. Collins city manager led the effort with a team of department directors. The team considered critical deficiencies and community desires to determine their needs and the funding gap between needs and available resources. Ft. Collins staff concluded that the city required a significant increase in CIP funding to tackle the backlog of critical maintenance needs and meet unfunded community priorities. Public Process The city conducted a significant stakeholder process in a CIP tax ballot effort prior to the 1997 effort. At that time, the city convened a large community committee who worked with staff over the course of several months to develop a recoranended list of project for council consideration. Council rejected committee recommendations, instead carrying forward their own list of projects for voter approval. Naturally, committee members voiced disappointment that their time was wasted and their direction was ignored. To avoid the same undesirable situation, city management utilized a. survey process as opposed to a large stakeholder process for the 1997 effort. It should be mentioned, however, that City of Ft. Collins staff acknowledge the usefulness of stakeholder group. The city hired a third party consultant to conduct a series of citizen surveys. The various surveys monitored the public's willingness to support tax extension, as well as types and groups of projects they would support funding. Survey data pointed to community support for the extension of the tax measures, for projects that improved the transportation system and enhanced the city's cultural offerings. Projects lacking survey support were removed from the proposed ballot language. Finally, the city's communication strategy was formed through the analysis of survey data. City staff and council sought public input through forums, neighborhood meetings and council meetings and study sessions. Information garnered through survey and citizen outreach efforts informed council's decisions on what voters would see on the ballot measures. Through the public process and council considerations, the city narrowed the list of projects fiom $1 billion to $125 million. Revenue Source/BondinQ In 1997, Ft. Collins voters approved the extension of two separate 0.25 percent sales tax levies for a ten-year period. As an alternative to bonding, a pay-as-you-go approach was used to fund the capital improvement projects approved by voters. This strategy requires that sufficient funds be accumulated before projects can be completed. While this approach allows the city to avoid incurring interest payments, completion of projects are staggered over the life span of the sales tax. As a result, emerging or changing priorities may arise over time and previously identified high -priority projects may be less important to the community. In 2005, the two expiring sales taxes were extended by voters. A 2010 ballot initiative to increase sales and use tax by 0.85 percent to fund operating expenses and some capital road maintenance was approved by voters. External Leadership The mayor and city manager worked with community groups and stakeholders to coininunicate both capital maintenance and operating needs. A successful effort requires consistent support from city leadership throughout the process. Attention should be paid to ensuring that the organization has identified and implemented efficiencies prior to seeking approval for new revenue. Inlernal Leadership City Manager's Office, with a cross departmental team, felt CMO stewardship was required to maintain a neutral citywide perspective. An emphasis was placed on examining needs from a citywide basis rather than from an individual department's perspective. Campaign A broad coalition of citizens led the effort to build support for improving the city's programs, services and infrastructure. Outcomes The city completed more than 20 major projects, including road and transportation corridor improvements, and construction of a new library and community center. Both 0.25 percent sales and use tax measures were renewed by voters in 2005. A new 0.85 percent sales and use tax measure focused primarily on operations was approved by voters in 2010. Keys to Pt. Collins ' Success • Vetting process - a key component of building support for a new funding source to pay for key city improvements and/or operations requires that the city complete a thorough analysis of proposed needs. This process should scrutinize proposals to ensure that critically needed items are represented accurately and at accurate funding levels. Prioritized lists should clearly articulate why each item is important. • A prioritized list of projects should be available to support communicating with the public. This infonnation should be presented in a transparent and clear manner. This document should emphasize that the city has completed a comprehensive analysis of needs and should not contain items that appear to be "wish list items." • A successful approach for capital improvement ballot initiatives typically uses a sunset approach for the associated funding mechanism. Lessons I earned • The city did not build in ongoing costs and contingencies into the ballot items as the 90's were a time of rapid revenue growth. Ongoing operating and maintenance costs of the projects were assumed in the continued growth of sales and use tax receipts. Revenue growth flat lined within three years of approval of the projects. As a result, the city had to make operations cuts in other areas in order to fund the approved projects operations and maintenance. • Priorities can change drastically over a 10-year timeframe. It is important to balance project specificity with the need to be flexible in project listings on the ballot. • It is critical to set the groundwork early with public stakeholder groups. They must understand that council is the city's elected body and therefore has final input on proposed ballot language. As such, council may reject some or all of the committee recommendations. Boulder County Boulder County (pop. 303,200) has a county commissioner form of government with three elected commissioners. Boulder County utilizes polling and surveys to gauge citizen interest and support for tax ballot measures. Also, Boulder County has used outreach efforts tailored to particular investment areas. Examples include specific initiatives for transportation, open space, and human services. As noted above, Denver and Ft. Collins have demonstrated the value of stakeholder processes for large tax increases and extensions across departments and project types. Polling to Track Voter Opinions Every spring, typically in March, the county contracts with a consultant to do a public opinion survey. In recent years, Talmey-Drake has been the contractor who has implemented survey and analyzed its results. The public opinion survey is a telephone survey of registered voters. The county does not complete mail-in or internet-based surveying because of the self-select and multiple response biases that can occur. The telephone survey approach is a more scientific, representative sample to help the county understand voter opinions. There is a standard set of questions asked in every spring survey to track opinion trends over time. There are typically additional questions asked regarding priorities and / or changes in priorities about general topics in the county. If there is interest from the county, there may be one or two additional questions that may ask voters about potential ballot issues ideas. In mid-summer, the county typically does another public opinion survey using the same telephone survey methodology. This survey is focused on ballot issues and may ask voter opinions about very specific ballot items. The county cannot spend money on such surveying until a resolution is passed in support of placing an item on that year's ballot. Other Processes Creating Ballot Items The county has not used focus groups very much in the past although they are aware of and have benefited from others focus groups. For example, the BVSD developed and tested ballot concepts for the November 2010 election based on focus groups and BVSD allowed some related county issues to be addressed in those focus groups. Depending on the topic, the county has used a variety of'processes to shape ballot proposals and to understand the potential community support for such proposals. For example, for human services initiatives the county relies on the active and organized human services groups to provide insights and input as well as to fund and run any eventual campaigns. Early meetings with human services non-profits and community leaders typically occur. There also could be a couple of broader, publicized hearings that the general public is invited to attend to provide feedback on potential ballot items. For other topics, such as green building initiatives, the county reaches out to particular interest groups like environmental groups or green building contractors. In the case of transportation improvements, the county has either conducted outreach to staff and elected representatives of the cities to get input on projects in the county or has hosted a process through the Consortium of Cities. The county noted that every vote that has occurred in Boulder County in recent history has passed in the City of Boulder. Even those initiatives that failed in the county still passed in the City of Boulder with support rates ranging from about 60 to 70 percent. The county provided the following information regarding Boulder County's approach to Revenue SourcelBondin2 Boulder County has utilized both sales and use tax and property tax in their ballot initiatives. Similarly, the county has employed both pay-as-you-go and bonding authority to fund projects approved by voters. For the open space and transportation issues, Boulder County voters approved additional sales taxes; the Qualified Energy Conservation Bonds are based on existing general fund revenues; the 2010 human services issue was a property tax mill levy. The county is focused in each case on what will generate the most public support for, as opposed to focusing on any nexus between the type of tax and type of improvement. External leadership The commissioners provided direct and public support for the ballot initiatives, with support from departments and community members. Internal leadership The lead is taken by the office of the commissioners, with support from the relevant department. The county attorney's office also provides significant support. Outcomes Boulder County has had two recent transportation funding ballot initiatives a seven- year 0.1 percent sales tax passed in 2001, and a 15 year extension passed in 2007. The 2008 extension included a project list in the resolution approving the ballot issue. Open Space issues have also been primarily for capital purposes, the most recent issue includes authority for $40 million in bonding for land acquisition. In 2009, county voters also passed a bond issue for use of more than $6 million in Qualified Energy Conservation Bonds for energy efficiency improvements to four county facilities. Key's to Boulder County's Success The reasons for a successful ballot measure vary based on a number of issues and criteria. For the 2007 transportation issue, the county worked closely with each municipality in order to build broad buy-in to the project list and promote positive word of mouth from thought leaders in each community. This was a very different approach from the preceding failure on a 0.2 percent tax for transit and trails, which polled very well, but never got buy in from community leaders outside of Boulder. This issue ended up losing by a significant margin, due to a strong negative vote everywhere outside of Boulder. The 2010 open space issue was quite controversial, with strong opposition from the Longmont Times-Call and a portion of the Boulder open space recreation community. However, the ballot measure had very strong active support from the Boulder Mountainbike Alliance. Additionally, the county raised quite a bit of money for targeted direct mail in Longmont and south east regions of the county. The county also recruited substantial support from certain segments of the business community (especially high tech and outdoor businesses), although the chambers took no position. Ultimately, there were huge geographical disparities, with more than 65 percent support within the City of Boulder, 65 percent opposition in Longmont and about 50-50 everywhere else. City of Boulder residents have voted in favor of every county ballot issues for many years, even the ones that ended up losing countywide. Lessons Learned Boulder County's perspective, it is key to have enough thought leader support across the county in order to avoid a negative buzz in certain portions of the county, as well as to assure that there is enough excitement to turn out core supporters. ADDENDUM A - SAMPLE BALLOT LANGUAGE CITY AND COUNTY OF DENVER BALLOT QUESTIONS 2007 Referred Question 1A Capital Maintenance Mill Levy SHALL CITY AND COUNTY OF DENVER TAXES BE INCREASED BY $ 27.5 MILLION ANNUALLY BEGINNING IN 2008, AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER FROM AN AD VALOREM TAX ASSESSED AT THE RATE OF 2.5 MILLS ON ALL TAXABLE PROPERTY WITHIN THE CITY AND COUNTY FOR THE SOLE PURPOSE OF FUNDING THE RESTORATION, REHABILITATION, REFURBISHMENT, OR REPLACEMENT OF THE CITY'S CAPITAL INFRASTRUCTURE, INCLUDING PARKS, PUBLIC WORKS, BUILDINGS, AND OTHER PUBLIC FACILITIES AND IMPROVEMENTS, AND SHALL THE REVENUES FROM THESE INCREASED TAXES BE COLLECTED AND SPENT IN EACH FISCAL YEAR BY THE CITY AND COUNTY OF DENVER WITHOUT REGARD TO ANY EXPENDITURE, REVENUE-RAISING, OR OTHER LIMITATION CONTAINED WITHIN ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? YES NO Referred Question 1B Health and Human Services System Facilities Bonds SHALL CITY AND COUNTY OF DENVER DEBT BE INCREASED BY NOT MORE THAN $48,583,000 PRINCIPAL AMOUNT, WITH A REPAYMENT COST OF NOT MORE THAN $104,056,320 TOTAL PRINCIPAL AND INTEREST, BY THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR THE PURPOSE OF FINANCING THE COST OF HEALTH AND HUMAN SERVICES SYSTEM FACILITIES, INCLUDING, BUT NOT LIMITED TO: IMPROVEMENTS AND RENOVATIONS TO DENVER HEALTH AND HOSPITAL BUILDING; BUILDING IMPROVEMENTS AND RENOVATIONS TO CHILD CARE AND CHILD DEVELOPMENT CENTERS; REPLACING THE DENVER MUNICIPAL ANIMAL SHELTER; AND, REPLACING THE EASTSIDE HUMAN SERVICES FACILITY, AND ALL NECESSARY, INCIDENTAL OR APPURTENANT PROPERTIES, FACILITIES, EQUIPMENT AND COSTS, SUCH DEBT TO MATURE, BEAR INTEREST AND BE CALLABLE FOR REDEMPTION PRIOR TO MATURITY, WITH OR WITHOUT PAYMENT OF A PREMIUM NOT TO EXCEED THREE PERCENT, AND SHALL THE CITY BE AUTHORIZED TO ISSUE DEBT TO REFUND THE DEBT AUTHORIZED IN THIS QUESTION, PROVIDED THAT AFTER THE ISSUANCE OF SUCH REFUNDING DEBT THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF ALL DEBT ISSUED PURSUANT TO THIS QUESTION DOES NOT EXCEED THE MAXIMUM PRINCIPAL AMOUNT SET FORTH ABOVE, AND PROVIDED FURTHER THAT ALL DEBT ISSUED BY THE CITY PURSUANT TO THIS QUESTION IS ISSUED ON TERMS THAT DO NOT EXCEED THE REPAYMENT COSTS AUTHORIZED IN THIS QUESTION, AND SHALL CITY AND COUNTY OF DENVER PROPERTY TAXES BE INCREASED BY NOT MORE THAN A MAXIMUM PHASED IN ANNUAL AMOUNT OF $7,966,660 AND ANNUALLY WITHOUT LIMITATION AS TO RATE, IN AMOUNTS SUFFICIENT TO PAY PRINCIPAL, INTEREST AND PREMIUM, IF ANY, ON SUCH DEBT, AND IN CONNECTION THEREWITH, SHALL CITY AND COUNTY OF DENVER BE AUTHORIZED TO COLLECT, RETAIN AND EXPEND ALL SUCH PROPERTY TAXES, OTHER LEGALLY AVAILABLE FUNDS AND INVESTMENT EARNINGS ON THE PROCEEDS OF SUCH DEBT, PROPERTY TAXES AND OTHER LEGALLY AVAILABLE FUNDS FOR SUCH PURPOSE, AS A VOTER APPROVED REVENUE CHANGE UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? YES NO Referred Question 1C Library System Facilities Bonds SHALL CITY AND COUNTY OF DENVER DEBT BE INCREASED BY NOT MORE THAN $51,883,000 PRINCIPAL AMOUNT, WITH A REPAYMENT COST OF NOT MORE THAN $111,154,783 TOTAL PRINCIPAL AND INTEREST, BY THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR THE PURPOSE OF FINANCING THE COST OF LIBRARY SYSTEM FACILITIES, INCLUDING, BUT NOT LIMITED TO: PERFORMING DEFERRED MAINTENANCE ON EXISTING FACILITIES AND CONSTRUCTING NEW BRANCH FACILITIES AND ALL NECESSARY, INCIDENTAL OR APPURTENANT PROPERTIES, FACILITIES, EQUIPMENT AND COSTS, SUCH DEBT TO MATURE, BEAR INTEREST AND BE CALLABLE FOR REDEMPTION PRIOR TO MATURITY, WITH OR WITHOUT PAYMENT OF A PREMIUM NOT TO EXCEED THREE PERCENT, AND SHALL THE CITY BE AUTHORIZED TO ISSUE DEBT TO REFUND THE DEBT AUTHORIZED IN THIS QUESTION, PROVIDED THAT AFTER THE ISSUANCE OF SUCH REFUNDING DEBT THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF ALL DEBT ISSUED PURSUANT TO THIS QUESTION DOES NOT EXCEED THE MAXIMUM PRINCIPAL AMOUNT SET FORTH ABOVE, AND PROVIDED FURTHER THAT ALL DEBT ISSUED BY THE CITY PURSUANT TO THIS QUESTION IS ISSUED ON TERMS THAT DO NOT EXCEED THE REPAYMENT COSTS AUTHORIZED IN THIS QUESTION, AND SHALL CITY AND COUNTY OF DENVER PROPERTY TAXES BE INCREASED BY NOT MORE THAN A MAXIMUM PHASED IN ANNUAL AMOUNT OF $8,507,810 AND ANNUALLY WITHOUT LIMITATION AS TO RATE, IN AMOUNTS SUFFICIENT TO PAY PRINCIPAL, INTEREST AND PREMIUM, IF ANY, ON SUCH DEBT, AND IN CONNECTION THEREWITH, SHALL CITY AND COUNTY OF DENVER BE AUTHORIZED TO COLLECT, RETAIN AND EXPEND ALL SUCH PROPERTY TAXES, OTHER LEGALLY AVAILABLE FUNDS AND INVESTMENT EARNINGS ON THE PROCEEDS OF SUCH DEBT, PROPERTY TAXES AND OTHER LEGALLY AVAILABLE FUNDS FOR SUCH PURPOSE, AS VOTER APPROVED REVENUE CHANGES UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? YES_ NO Referred Question 1D Streets, Transportation, and Public Works System Facilities Bonds SHALL CITY AND COUNTY OF DENVER DEBT BE INCREASED BY NOT MORE THAN $149,786,000 PRINCIPAL AMOUNT, WITH A REPAYMENT COST OF NOT MORE THAN $320,819,497 TOTAL PRINCIPAL AND INTEREST, BY THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR THE PURPOSE OF FINANCING THE COST OF STREETS, TRANSPORTATION AND PUBLIC WORKS SYSTEM FACILITIES, INCLUDING, BUT NOT LIMITED TO: REPAIRING STREETS, STRUCTURES, AND/OR INCREASING ROAD CAPACITY; IMPROVING MULTIMODAL ACCESSIBILITY AND CONNECTIONS; REPLACING AND/OR REPAIRING SOUND WALLS; REPAIRING AND/OR INSTALLING NEW CURB AND GUTTER; IMPROVING TRANSIT STOP CONNECTIONS, STREETSCAPES AND UPGRADING STREET MEDIANS; AND, CONSTRUCTING AND EXPANDING THE CHERRY CREEK SOLID WASTE FACILITY, AND ALL NECESSARY, INCIDENTAL OR APPURTENANT PROPERTIES, FACILITIES, EQUIPMENT AND COSTS, SUCH DEBT TO MATURE, BEAR INTEREST AND BE CALLABLE FOR REDEMPTION PRIOR TO MATURITY, WITH OR WITHOUT PAYMENT OF A PREMIUM NOT TO EXCEED THREE PERCENT, AND SHALL THE CITY BE AUTHORIZED TO ISSUE DEBT TO REFUND THE DEBT AUTHORIZED IN THIS QUESTION, PROVIDED THAT AFTER THE ISSUANCE OF SUCH REFUNDING DEBT THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF ALL DEBT ISSUED PURSUANT TO THIS QUESTION DOES NOT EXCEED THE MAXIMUM PRINCIPAL AMOUNT SET FORTH ABOVE, AND PROVIDED FURTHER THAT ALL DEBT ISSUED BY THE CITY PURSUANT TO THIS QUESTION IS ISSUED ON TERMS THAT DO NOT EXCEED THE REPAYMENT COSTS AUTHORIZED IN THIS QUESTION, AND SHALL CITY AND COUNTY OF DENVER PROPERTY TAXES BE INCREASED BY NOT MORE THAN A MAXIMUM PHASED IN ANNUAL AMOUNT OF $24,559,840 AND ANNUALLY WITHOUT LIMITATION AS TO RATE, IN AMOUNTS SUFFICIENT TO PAY PRINCIPAL, INTEREST AND PREMIUM, IF ANY, ON SUCH DEBT, AND IN CONNECTION THEREWITH, SHALL CITY AND COUNTY OF DENVER BE AUTHORIZED TO COLLECT, RETAIN AND EXPEND ALL SUCH PROPERTY TAXES, OTHER LEGALLY AVAILABLE FUNDS AND INVESTMENT EARNINGS ON THE PROCEEDS OF SUCH DEBT, PROPERTY TAXES AND OTHER LEGALLY AVAILABLE FUNDS FOR SUCH PURPOSE, AS A VOTER APPROVED REVENUE CHANGE UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? YES NO Referred Question 1E Park System Facilities Bonds SHALL CITY AND COUNTY OF DENVER DEBT BE INCREASED BY NOT MORE THAN $93,387,000 PRINCIPAL AMOUNT, WITH A REPAYMENT COST OF NOT MORE THAN $200,128,692 TOTAL PRINCIPAL AND INTEREST, BY THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR THE PURPOSE OF FINANCING THE COST OF PARK SYSTEM FACILITIES, INCLUDING, BUT NOT LIMITED TO MAINTENANCE, REHABILITATION, RESTORATION REPAIR AND/OR REPLACEMENT OF: DRAINAGE AND IRRIGATION SYSTEMS; POOLS; HISTORIC STRUCTURES AND FEATURES, PLAYGROUND, AND BUILDING SYSTEMS; LANDSCAPES; TRAILS, ROADS AND PARKING LOTS; AND, TOGETHER WITH ACQUISITION, DESIGN AND DEVELOPMENT OF LAND, PARK AND RECREATION CENTERS, AND ALL NECESSARY, INCIDENTAL OR APPURTENANT PROPERTIES, FACILITIES, EQUIPMENT AND COSTS, SUCH DEBT TO MATURE, BEAR INTEREST AND BE CALLABLE FOR REDEMPTION PRIOR TO MATURITY, WITH OR WITHOUT PAYMENT OF A PREMIUM NOT TO EXCEED THREE PERCENT, AND SHALL THE CITY BE AUTHORIZED TO ISSUE DEBT TO REFUND THE DEBT AUTHORIZED IN THIS QUESTION, PROVIDED THAT AFTER THE ISSUANCE OF SUCH REFUNDING DEBT THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF ALL DEBT ISSUED PURSUANT TO THIS QUESTION DOES NOT EXCEED THE MAXIMUM PRINCIPAL AMOUNT SET FORTH ABOVE, AND PROVIDED FURTHER THAT ALL DEBT ISSUED BY THE CITY PURSUANT TO THIS QUESTION IS ISSUED ON TERMS THAT DO NOT EXCEED THE REPAYMENT COSTS AUTHORIZED IN THIS QUESTION, AND SHALL CITY AND COUNTY OF DENVER PROPERTY TAXES BE INCREASED BY NOT MORE THAN A MAXIMUM PHASED IN ANNUAL AMOUNT OF $15,313,045 AND ANNUALLY WITHOUT LIMITATION AS TO RATE, IN AMOUNTS SUFFICIENT TO PAY PRINCIPAL, INTEREST AND PREMIUM, IF ANY, ON SUCH DEBT, AND IN CONNECTION THEREWITH, SHALL CITY AND COUNTY OF DENVER BE AUTHORIZED TO COLLECT, RETAIN AND EXPEND ALL SUCH PROPERTY TAXES, OTHER LEGALLY AVAILABLE FUNDS AND INVESTMENT EARNINGS ON THE PROCEEDS OF SUCH DEBT, PROPERTY TAXES AND OTHER LEGALLY AVAILABLE FUNDS FOR SUCH PURPOSE, AS A VOTER APPROVED REVENUE CHANGE UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? YES NO Referred Question 1F Public Office Facilities Bonds SHALL CITY AND COUNTY OF DENVER DEBT BE INCREASED BY NOT MORE THAN $10,350,000 PRINCIPAL AMOUNT, WITH A REPAYMENT COST OF NOT MORE THAN $22,157,315 TOTAL PRINCIPAL AND INTEREST, BY THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR THE PURPOSE OF FINANCING THE COST OF DEFERRED MAINTENANCE FOR PUBLIC OFFICE FACILITIES, INCLUDING, BUT NOT LIMITED TO: THE CITY AND COUNTY BUILDING AND THE FORMER CITY PERMIT CENTER, AND ALL NECESSARY, INCIDENTAL OR APPURTENANT PROPERTIES, FACILITIES, EQUIPMENT AND COSTS, SUCH DEBT TO MATURE, BEAR INTEREST AND BE CALLABLE FOR REDEMPTION PRIOR TO MATURITY, WITH OR WITHOUT PAYMENT OF A PREMIUM NOT TO EXCEED THREE PERCENT, AND SHALL THE CITY BE AUTHORIZED TO ISSUE DEBT TO REFUND THE DEBT AUTHORIZED IN THIS QUESTION, PROVIDED THAT AFTER THE ISSUANCE OF SUCH REFUNDING DEBT THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF ALL DEBT ISSUED PURSUANT TO THIS QUESTION DOES NOT EXCEED THE MAXIMUM PRINCIPAL AMOUNT SET FORTH ABOVE, AND PROVIDED FURTHER THAT ALL DEBT ISSUED BY THE CITY PURSUANT TO THIS QUESTION IS ISSUED ON TERMS THAT DO NOT EXCEED THE REPAYMENT COSTS AUTHORIZED IN THIS QUESTION, AND SHALL CITY AND COUNTY OF DENVER PROPERTY TAXES BE INCREASED BY NOT MORE THAN A MAXIMUM PHASED IN ANNUAL AMOUNT OF $1,697,255 AND ANNUALLY WITHOUT LIMITATION AS TO RATE, IN AMOUNTS SUFFICIENT TO PAY PRINCIPAL, INTEREST AND PREMIUM, IF ANY, ON SUCH DEBT, AND IN CONNECTION THEREWITH, SHALL CITY AND COUNTY OF DENVER BE AUTHORIZED TO COLLECT, RETAIN AND EXPEND ALL SUCH PROPERTYTAXES, OTHER LEGALLY AVAILABLE FUNDS AND INVESTMENT EARNINGS ON THE PROCEEDS OF SUCH DEBT, PROPERTY TAXES AND OTHER LEGALLY AVAILABLE FUNDS FOR SUCH PURPOSE, AS A VOTER APPROVED REVENUE CHANGE UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? YES NO Referred Question 1G Deferred Maintenance for Cultural Facilities Bond SHALL CITY AND COUNTY OF DENVER DEBT BE INCREASED BY NOT MORE THAN $60,546,000 PRINCIPAL AMOUNT, WITH A REPAYMENT COST OF NOT MORE THAN $129,773,788 TOTAL PRINCIPAL AND INTEREST, BY THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR THE PURPOSE OF FINANCING THE COST OF DEFERRED MAINTENANCE FOR CULTURAL FACILITIES, INCLUDING, BUT NOT LIMITED TO THE RENOVATION, RECONSTRUCTION, REPLACEMENT AND/OR REPAIR OF: THE DENVER BOTANIC GARDENS BUILDINGS AND GROUNDS, THE CONSERVATORY AND GREENHOUSE; THE BOETTCHER CONCERT HALL; THE CHAMPA STREET SIDE OF THE QUIGG NEWTON DENVER MUNICIPAL AUDITORIUM AND THE TEMPLE HOYNE BUELL THEATRE REHEARSAL SPACE; AND THE DENVER MUSEUM OF NATURE AND SCIENCE, AND ALL NECESSARY, INCIDENTAL OR APPURTENANT PROPERTIES, FACILITIES, EQUIPMENT AND COSTS, SUCH DEBT TO MATURE, BEAR INTEREST AND BE CALLABLE FOR REDEMPTION PRIOR TO MATURITY, WITH OR WITHOUT PAYMENT OF A PREMIUM NOT TO EXCEED THREE PERCENT, AND SHALL THE CITY BE AUTHORIZED TO ISSUE DEBT TO REFUND THE DEBT AUTHORIZED IN THIS QUESTION, PROVIDED THAT AFTER THE ISSUANCE OF SUCH REFUNDING DEBT THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF ALL DEBT ISSUED PURSUANT TO THIS QUESTION DOES NOT EXCEED THE MAXIMUM PRINCIPAL AMOUNT SET FORTH ABOVE, AND PROVIDED FURTHER THAT ALL DEBT ISSUED BY THE CITY PURSUANT TO THIS QUESTION IS ISSUED ON TERMS THAT DO NOT EXCEED THE REPAYMENT COSTS AUTHORIZED IN THIS QUESTION, AND SHALL CITY AND COUNTY OF DENVER PROPERTY TAXES BE INCREASED BY NOT MORE THAN A MAXIMUM PHASED IN ANNUAL AMOUNT OF $9,928,285 AND ANNUALLY WITHOUT LIMITATION AS TO RATE, IN AMOUNTS SUFFICIENT TO PAY PRINCIPAL, INTEREST AND PREMIUM, IF ANY, ON SUCH DEBT, AND IN CONNECTION THEREWITH, SHALL CITY AND COUNTY OF DENVER BE AUTHORIZED TO COLLECT, RETAIN AND EXPEND ALL SUCH PROPERTY TAXES, OTHER LEGALLY AVAILABLE FUNDS AND INVESTMENT EARNINGS ON THE PROCEEDS OF SUCH DEBT, PROPERTY TAXES AND OTHER LEGALLY AVAILABLE FUNDS FOR SUCH PURPOSE, AS A VOTER APPROVED REVENUE CHANGE UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? YES NO Referred Question 1 H New Construction of Cultural Facilities Bonds SHALL CITY AND COUNTY OF DENVER DEBT BE INCREASED BY NOT MORE THAN $70,000,000 PRINCIPAL AMOUNT, WITH A REPAYMENT COST OF NOT MORE THAN $112,513,675 TOTAL PRINCIPAL AND INTEREST, BY THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR THE PURPOSE OF FINANCING THE COST OF NEW CONSTRUCTION OF CULTURAL SYSTEM FACILITIES, INCLUDING, BUT NOT LIMITED TO: CLASSROOMS, LABS, A TEACHER EDUCATION CENTER AND OTHER FACILITIES FOR THE DENVER MUSEUM OF NATURE AND SCIENCE AND, THE RECONSTRUCTION AND EXPANSION OF BOETTCHER CONCERT HALL, AND ALL NECESSARY, INCIDENTAL OR APPURTENANT PROPERTIES, FACILITIES, EQUIPMENT AND COSTS, SUCH DEBT TO MATURE, BEAR INTEREST AND BE CALLABLE FOR REDEMPTION PRIOR TO MATURITY, WITH OR WITHOUT PAYMENT OF A PREMIUM NOT TO EXCEED THREE PERCENT, AND SHALL THE CITY BE AUTHORIZED TO ISSUE DEBT TO REFUND THE DEBT AUTHORIZED IN THIS QUESTION, PROVIDED THAT AFTER THE ISSUANCE OF SUCH REFUNDING DEBT THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF ALL DEBT ISSUED PURSUANT TO THIS QUESTION DOES NOT EXCEED THE MAXIMUM PRINCIPAL AMOUNT SET FORTH ABOVE, AND PROVIDED FURTHER THAT ALL DEBT ISSUED BY THE CITY PURSUANT TO THIS QUESTION IS ISSUED ON TERMS THAT DO NOT EXCEED THE REPAYMENT COSTS AUTHORIZED IN THIS QUESTION, AND SHALL CITY AND COUNTY OF DENVER PROPERTY TAXES BE INCREASED BY NOT MORE THAN A MAXIMUM PHASED IN ANNUAL AMOUNT OF $7,507,788 AND ANNUALLY WITHOUT LIMITATION AS TO RATE, IN AMOUNTS SUFFICIENT TO PAY PRINCIPAL, INTEREST AND PREMIUM, IF ANY, ON SUCH DEBT, AND IN CONNECTION THEREWITH, SHALL CITY AND COUNTY OF DENVER BE AUTHORIZED TO COLLECT, RETAIN AND EXPEND ALL SUCH PROPERTY TAXES, OTHER LEGALLY AVAILABLE FUNDS AND INVESTMENT EARNINGS ON THE PROCEEDS OF SUCH DEBT, PROPERTY TAXES AND OTHER LEGALLY AVAILABLE FUNDS FOR SUCH PURPOSE, AS A VOTER APPROVED REVENUE CHANGE UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? YES NO Referred Question 11 Public Safety System Facilities Bonds SHALL CITY AND COUNTY OF DENVER DEBT BE INCREASED BY NOT MORE THAN $65,195,000 PRINCIPAL AMOUNT, WITH A REPAYMENT COST OF NOT MORE THAN $139,668,773 TOTAL PRINCIPAL AND INTEREST, BY THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR THE PURPOSE OF FINANCING THE COST OF PUBLIC SAFETY SYSTEM FACILITIES, INCLUDING, BUT NOT LIMITED TO: CONSTRUCTION, RENOVATION OR REPLACEMENT OF A POLICE CRIME LAB, FIRING RANGE, FIRE STATIONS AND POLICE TRAFFIC OPERATIONS FACILITY, AND ALL NECESSARY, INCIDENTAL OR APPURTENANT PROPERTIES, FACILITIES, EQUIPMENT AND COSTS, SUCH DEBT TO MATURE, BEAR INTEREST AND BE CALLABLE FOR REDEMPTION PRIOR TO MATURITY, WITH OR WITHOUT PAYMENT OF A PREMIUM NOT TO EXCEED THREE PERCENT, AND SHALL THE CITY BE AUTHORIZED TO ISSUE DEBT TO REFUND THE DEBT AUTHORIZED IN THIS QUESTION, PROVIDED THAT AFTER THE ISSUANCE OF SUCH REFUNDING DEBT THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF ALL DEBT ISSUED PURSUANT TO THIS QUESTION DOES NOT EXCEED THE MAXIMUM PRINCIPAL AMOUNT SET FORTH ABOVE, AND PROVIDED FURTHER THAT ALL DEBT ISSUED BY THE CITY PURSUANT TO THIS QUESTION IS ISSUED ON TERMS THAT DO NOT EXCEED THE REPAYMENT COSTS AUTHORIZED IN THIS QUESTION, AND SHALL CITY AND COUNTY OF DENVER PROPERTY TAXES BE INCREASED BY NOT MORE THAN A MAXIMUM PHASED IN ANNUAL AMOUNT OF $10,690,330 AND ANNUALLY WITHOUT LIMITATION AS TO RATE, IN AMOUNTS SUFFICIENT TO PAY PRINCIPAL, INTEREST AND PREMIUM, IF ANY, ON SUCH DEBT, AND IN CONNECTION THEREWITH, SHALL CITY AND COUNTY OF DENVER BE AUTHORIZED TO COLLECT, RETAIN AND EXPEND ALL SUCH PROPERTY TAXES, OTHER LEGALLY AVAILABLE FUNDS AND INVESTMENT EARNINGS ON THE PROCEEDS OF SUCH DEBT, PROPERTY TAXES AND OTHER LEGALLY AVAILABLE FUNDS FOR SUCH PURPOSE, AS A VOTER APPROVED REVENUE CHANGE UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? YES NO CITY OF FT. COLLINS BALLOT QUESTIONS 1997 Proposed Ordinance No. 29 AN ORDINANCE OF THE CITY OF FORT COLLINS EXTENDING, FOR A PERIOD OF EIGHT YEARS, THE EXISTING SALES AND USE TAX FOR NATURAL AREAS AND TRAILS AT THE RATE OF 0.25% (25¢ ON A $100 PURCHASE), WHICH TAX IS PRESENTLY SCHEDULED TO EXPIRE DECEMBER 31,1997; PROVIDING THAT THE REVENUES OF THE EXTENDED TAX SHALL BE USED, IF SUFFICIENT, FOR THE FOLLOWING CAPITAL PROJECTS, AS PART OF THE "BUILDING COMMUNITY CHOICES" CAPITAL IMPROVEMENT PROGRAM: • NATURAL AREAS, OPEN LANDS, AND TRAILS ACQUISITION, • CONSTRUCTION, ENHANCEMENT AND MAINTENANCE • COMMUNITY HORTICULTURAL CENTER • FOSSIL CREEK COMMUNITY PARK CONSTRUCTION • COMMUNITY PARK IMPROVEMENTS • REGIONAL TRAILS AND FURTHER PROVIDING THAT THE COST, DESIGN AND SCHEDULING OF THE PROJECTS SHALL BE DETERMINED BY THE CITY COUNCIL; THAT THE FULL AMOUNT OF REVENUE FROM THE TAX MAY BE RETAINED AND EXPENDED BY THE CITY NOTWITHSTANDING ANY STATE REVENUE OR EXPENDITURE LIMITATIONS, INCLUDING, WITHOUT LIMITATION, ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION; AND THAT ANY EXCESS REVENUES GENERATED BY THE TAX SHALL BE USED FOR NATURAL AREAS AND TRAILS. FOR THE ORDINANCE AGAINST THE ORDINANCE Proposed Ordinance No. 30 AN ORDINANCE OF THE CITY OF FORT COLLINS EXTENDING, FOR A PERIOD OF EIGHT YEARS, THE EXISTING SALES AND USE TAX FOR STREET MAINTENANCE AND OVERLAY AT THE RATE OF 0.25% (25¢ ON A $100 PURCHASE), WHICH TAX IS PRESENTLY SCHEDULED TO EXPIRE DECEMBER 31,1997-1 PROVIDING THAT THE REVENUES DERIVED FROM THE EXTENDED TAX WOULD BE USED, IF SUFFICIENT, FOR THE FOLLOWING PURPOSES, AS PART OF THE "BUILDING COMMUNITY CHOICES" CAPITAL IMPROVEMENT PROGRAM: • STREET MAINTENANCE AND OVERLAY • ANNUAL PEDESTRIAN IMPROVEMENTS • MASON STREET TRANSPORTATION CORRIDOR, PHASE 1 AND 2 • NORTH COLLEGE AVENUE CORRIDOR IMPROVEMENTS, PHASE 1 AND FURTHER PROVIDING THAT THE COST, DESIGN AND SCHEDULING OF THE PROJECTS SHALL BE DETERMINED BY THE CITY COUNCIL; THAT THE FULL AMOUNT OF REVENUES DERIVED FROM THE TAX MAY BE RETAINED AND EXPENDED BY THE CITY NOTWITHSTANDING ANY STATE REVENUE OR EXPENDITURE LIMITATIONS INCLUDING, WITHOUT LIMITATION, ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION; AND THAT ANY EXCESS REVENUES GENERATED BY THE TAX SHALL BE USED FOR THE PURPOSE OF STREET MAINTENANCE AND OVERLAY. FOR THE ORDINANCE AGAINST THE ORDINANCE Proposed Ordinance No. 31 AN ORDINANCE OF THE CITY OF FORT COLLINS EXTENDING, FOR A PERIOD OF EIGHT YEARS, THE EXISTING SALES AND USE TAX FOR CHOICES 95 CAPITAL PROJECTS, AT THE RATE OF 0.25% (25¢ ON A $100 PURCHASE), WHICH TAX IS PRESENTLY SCHEDULED TO EXPIRE DECEMBER 31, 1997; PROVIDING THAT THE REVENUES DERIVED FROM THE EXTENDED TAX WOULD BE USED, IF SUFFICIENT, FOR THE FOLLOWING CAPITAL PROJECTS, AS PART OF THE "BUILDING COMMUNITY CHOICES" CAPITAL IMPROVEMENT PROGRAM": 1. STREET/TRANSPORTATION PROJECTS: • PROSPECT ROAD IMPROVEMENTS, POUDRE RIVER TO SUMMITVIEW • NORTHEAST TRUCK ROUTE • TAFT HILL ROAD IMPROVEMENTS, DRAKE TO DERBY • SHIELDS STREET IMPROVEMENTS, HORSETOOTH TO TROUTMAN 2. OTHER CAPITAL PROJECTS: • NEW NORTHSIDE AZTLAN COMMUNITY CENTER • CITY/SCHOOL DISTRICT COMMUNITY PROJECTS • LAND ACQUISITION AND/OR INITIAL DESIGN FOR A NEW POLICE BUILDING • LIBRARY COMPUTERS AND INFORMATION ENHANCEMENTS • EPIC STUDIO ICE RINK • LAND ACQUISITION AND/OR INITIAL DESIGN FOR A NEW LIBRARY • LAND ACQUISITION AND/OR INITIAL DESIGN FOR A NEW PERFORMING ARTS CENTER AND FURTHER PROVIDING THAT THE COST, DESIGN, AND SCHEDULING OF THE PROJECTS WILL BE DETERMINED BY THE CITY COUNCIL; THAT THE FULL REVENUES DERIVED FROM THE TAX MAY BE RETAINED AND EXPENDED BY THE CITY FOR SUCH PURPOSES, NOT WITHSTANDING ANY STATE REVENUE OR EXPENDITURE LIMITATION INCLUDING, WITHOUT LIMITATION ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION; AND THAT ANY EXCESS REVENUES GENERATED BY THE TAX SHALL BE USED FOR SUCH CAPITAL PROJECTS AS MAY BE APPROVED BY THE CITY COUNCIL. FOR THE ORDINANCE AGAINST THE ORDINANCE BOULDER COUNTY BALLOT QUESTION 2010 HUMAN SERVICES SAFETY NET MILL LEVY INCREASE SHALL BOULDER COUNTY TAXES BE INCREASED $5.4 MILLION ANNUALLY (FIRST FULL FISCAL YEAR DOLLAR INCREASE IN 2011) THROUGH AN INCREASE IN BOULDER COUNTY'S AD VALOREM PROPERTY TAX MILL LEVY OF 0.9 MILL, FOR FIVE YEARS TO AND INCLUDING 2015, THE PROCEEDS OF WHICH SHALL BE USED TO BACKFILL DEFICIENCIES IN STATE FUNDING FOR COUNTY HUMAN SERVICES PROGRAMS AND FOR CONTRACTS WITH NON-PROFIT AGENCIES MAINTAINING A SAFETY NET FOR FAMILIES AND CHILDREN IN BOULDER COUNTY, SUCH INCREASE IN PROPERTY TAX REVENUES TO BE IN EXCESS OF THAT WHICH WOULD OTHERWISE BE PERMITTED UNDER SECTION 29-1-301, C.R.S., EACH YEAR WITHOUT SUCH INCREASE, AND A VOTER-APPROVED PROPERTY TAX REVENUE CHANGE AND A VOTER-APPROVED REVENUE CHANGE; AND SHALL THE BOARD OF COUNTY COMMISSIONERS, IN SETTING THE ANNUAL MILL LEVY AS AUTHORIZED BY THIS ISSUE, REDUCE THE EFFECTIVE TEMPORARY MILL LEVY FOR ANY SUBSEQUENT FISCAL YEAR IN WHICH STATE FUNDING HAS BEEN PARTIALLY OR FULLY RESTORED FOR COUNTY HUMAN SERVICES PROGRAMS, SUBJECT TO CERTAIN LIMITATIONS, ALL AS MORE PARTICULARLY SET FORTH IN BOARD OF COUNTY COMMISSIONERS' RESOLUTION NO. 2010-92?