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2009 General Election - PRO/CON STATEMENTS CITY OF BOULDER Office of the City Clerk 1777 BROADWAY P.O. BOX 791 BOULDER, CO 80306 (303) 441-3011 NOTICE OF ELECTION TO INCREASE TAXES AND DEBT AND FOR REVENUE CHANGES (i) Ballot title and text for Ballot Issue 2A: ORDINANCE NO. 7672 AN ORDINANCE SUBMITTING A BALLOT ISSUE TO THE VOTERS AT THE TUESDAY, NOVEMBER 3, 2009 ELECTION TO AUTHORIZE AN EXISTING 0.15% SALES AND USE TAX CURRENTLY SET TO EXPIRE ON DECEMBER 31, 2012, TO BE EXTENDED INDEFINITELY AND WITHOUT RESTRICTION, AND GIVING APPROVAL FOR THE COLLECTION, RETENTION AND EXPENDITURE OFTHE FULLTAX PROCEEDS; AND SETTING FORTH RELATED DETAILS. The City Council finds that: A. The existing 0.15% sales and use tax (the "0.15% Sales and Use Tax") was approved by voters on November 3, 1992, with an expiration date of December 31, 2012, which 0.15% Sales and Use Tax funds general city services; B. The electorate should consider authorizing the City Council to continue indefinitely the collection of the 0.15% Sales and Use Tax from its present expiration date of December 31, 2012 to fund, without limitation, fire, police, library, parks, human services and other general fund purposes; C. It is appropriate for voters to approve the continued collection, retention and expenditure of the full tax proceeds and any related earnings from the 0.15% Sales and Use Tax; and D. The purposes that will be served by the continued collection of the tax are critical for the continued provision of essential general fund city services; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO: Section 1. A general municipal coordinated election will be held in the city of Boulder, county of Boulder and state of Colorado, on Tuesday, November 3, 2009, between the hours of 7 a.m. and 7 p.m. Section 2. At that election, there shall be submitted to the electors of the city of Boulder entitled by law to vote a ballot issue to amend that portion of section 3-2-5, "Rate of Tax," B.R.C. 1981, that pertains to the 0.15% Sales and Use Tax that is currently set to expire at 12:00 midnight on December 31, 2012 by extending the tax indefinitely and without restriction beyond its current sunset date. The official ballot shall contain the following ballot title, which shall also be the designation and submission clause for the measure: BALLOT ISSUE NO. 2A SALES AND USE TAX EXTENSION WITHOUT RAISING ADDITIONAL TAXES, SHALL THE EXISTING 0.15% CITY OF BOULDER SALES AND USE TAX CURRENTLY SET TO EXPIRE ON DECEMBER 31, 2012 BE EXTENDED INDEFINITELY AND WITHOUT RESTRICTION TO CONTINUE TO FUND GENERAL FUND SERVICES SUCH AS, WITHOUT LIMITATION, POLICE, FIRE, LIBRARY, PARKS AND HUMAN SERVICES, PURSUANT TO AND BY ADOPTION OF ORDINANCE NO. 7672; AND IN CONNECTION THEREWITH, SHALL THE FULL PROCEEDS OF THE TAX AND ANY EARNINGS THEREFROM, BE COLLECTED, RETAINED AND SPENT AS A VOTER APPROVED REVENUE CHANGE WITHOUT LIMITATION OR CONDITION AND WITHOUT LIMITING THE COLLECTION, RETENTION OR SPENDING OF ANY REVENUES OR FUNDS BY THE CITY OF BOULDER, UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? FOR THE MEASURE AGAINST THE MEASURE Section 3. Effective January 1, 2010, subsection 3-2-5(c), B.R.C. 1981, is amended to read (Note - the language which has been lined out would be omitted from the section if this ordinance is approved by the electors.): 3-2-5 Rate of Tax. (c) Of said amount, 0.25 percent shall be deemed a parks and recreation tax, which tax shall expire at 12:00 midnight on December 31, 2015; 0.33 percent shall be deemed an open space tax, which tax shall expire at 12:00 midnight on December 31, 2018; 0. 15 percent shall be deemed a general sales and use tax ; 0.15 percent shall be deemed an open space tax, which tax shall expire at 12:00 midnight on December 31, 2019; and, beginning on January 1, 2005, 0.15 percent shall be deemed a general sales and use tax, which tax shall expire at 12:00 midnight on December 31, 2024. As each tax expires, the aggregate tax shall be reduced accordingly. Section 4. If a majority of all the votes cast at the election on the measure submitted shall be for the measure, the measure shall be deemed to have passed, and the tax code amended as provided herein. Section 5. The electors of the city of Boulder hereby authorize the City Council to adopt such other amendments to this Ordinance No. 7672 and to Chapter 3-2, "Sales and Use Tax," B.R.C. 1981, including, but not limited to, imposing a lesser amount than the 0.15% Sales and Use Tax, and to adopt such other ordinances as may be necessary to implement the intent and purpose of this ordinance. Section 6. The election shall be conducted under the provisions of the Colorado Constitution, the Charter and ordinances of the city, the Boulder Revised Code, 1981, and this ordinance, and all contrary provisions of the statutes of the state of Colorado are hereby superseded. Section 7. The officers of the city are authorized to take all action necessary or appropriate to effectuate the provisions of this ordinance and to contract with the county clerk to conduct the election for the city. Section 8. If any section, paragraph, clause, or provision of this ordinance shall for any reason be held to be invalid or unenforceable, such decision shall not affect any of the remaining provisions of this ordinance. Section 9. This ordinance is necessary to protect the public health, safety and welfare of the residents of the city, and covers matters of local concern. Section 10. The council deems it appropriate that this ordinance be published by title only and orders that copies of this ordinance be made available in the office of the city clerk for public inspection and acquisition. INTRODUCED, READ ON FIRST READING AND ORDERED PUBLISHED BY TITLE ONLY this 7th day of July, 2009. Matthew Appelbaum, Mayor Attest: Alisa D. Lewis, City Clerk READ ON SECOND READING, PASSED, ADOPTED, AND ORDERED PUBLISHED BY TITLE ONLY this 21 st day of July, 2009. Matthew Appelbaum, Mayor Attest; Alisa D. Lewis, City Clerk Fiscal Information for Ballot Issue 2A - NIA as there is no increase in revenue The following summaries were prepared from materials filed by persons in favor of or opposed to the ballot issue: Those in favor say: • From 2001-2003, the City experienced a significant economic downturn which led to major budget reductions ($13.2 million) and the elimination or downsizing of many services and programs. • As competition from surrounding cities continued to impact the City's revenues, the City Council appointed a Blue Ribbon Commission to study the City's financial health and to recommend how to create a long-term, balanced and stable revenue stream for the City. • The Commission recommended the renewal of existing sales taxes as the top priority for revenue stabilization in Boulder. City Ballot Item 2A seeks to extend the .15 sales tax which is due to expire in 2012. This tax was approved in 1993 to fund debt payments on bonds for many recreational improvements and facilities. The funds not needed for the bonds supported a myriad of city services with a large proportion of the tax funding basic human service programs such as the Center for People with Disabilities and Boulder Day Nursery. • At present, this tax generates almost $3.7 million annually. • The facilities debt will be retired in 2012 as promised but if this tax expires, the City will face a major budget shortfall that cannot be mitigated by eliminating a few programs. The City's ability to be a good steward of public property and to meet the basic needs of its residents depends upon reliable, ongoing sources of revenue. • Given the current economic downturn, the City has had to cut roughly $5 million from the 2010 budget and approximately 26 full time equivalent positions. Without a significant improvement in the economy, the City will be facing additional cuts next year. • At present, only 1.38% of the City's 3.41% sales and use tax is available permanently for basic general fund services, By extending the .15 tax, that number will grow to 1.53% and Boulder's voters will signal their commitment to ongoing funding for core services such as facility maintenance and human services • A YES vote on City Ballot Item 2A is a vote for a financially healthy future for the City of Boulder. Those opposed say: The title reads WITHOUT RAISING ADDITIONAL TAXES, SHALL THE EXISTING 0.15% CITY OF BOULDER SALES AND USE TAX CURRENTLY SET TO EXPIRE ON DECEMBER 31, 2012 BE EXTENDED INDEFINITELY AND WITHOUT RESTRICTION TO CONTINUE TO FUND GENERAL FUND SERVICES SUCH AS, WITHOUT LIMITATION, POLICE, FIRE... So let's pick this apart. First the lie that starts this off: "Without raising additional taxes". Hmm, let's see if the tax expires then less money will be taken out of your pocket. If the tax extension is approved then more money is taken out of your pocket. Second, the Council is asking for an extension forever. Why? Why can't we vote on this in, say, ten years again? Third, note the psychological ploy: The money will be used for stuff that everyone agrees on: police and fire, etc. Of course, these services are already well-covered. What the council wants this money for is its pet projects. (i) Ballot title and text for Ballot Issue 2B: ORDINANCE NO. 7673 AN ORDINANCE SUBMITTING A BALLOT ISSUE TO THE VOTERS AT THE TUESDAY, NOVEMBER 3, 2009 ELECTION, TO AUTHORIZE ADDITIONAL DEBT TO CONTINUE THE ACQUISITION OF V INTERESTS IN OPEN SPACE REAL PROPERTY, TO BE PAID FROM THE EXISTING SALES AND USE TAX DESIGNATED FOR THE ACQUISITION OF OPEN SPACE; AND INCREASING THE CITY'S PROPERTY TAX TO SERVE AS A "BACK-UP" PLEDGE FOR SUCH DEBT; AND SETTING FORTH RELATED DETAILS. The City Council finds that: A. The voters of the city have earmarked sales and use taxes for the acquisition of interests in real property for open space purposes by approval of two separate sales and use taxes in the amounts of 0.33% and 0.15%, which taxes expire at the end of 2018 and 2019, respectively. B. In 1994 the voters authorized the issuance of approximately $35 million of revenue bonds payable from the open space sales and use tax. The ballot question approved by the voters in 1993 was intended to allow the bonds to be issued as general obligation bonds rather than revenue bonds to pay lower interest rates and obtain more favorable terms on the bonds. However, the Colorado Supreme Court determined that the ballot issue in 1994 approved only revenue bonds, but not the general obligation pledge for such bonds. The general obligation pledge provides backing from city property taxes in the event the designated sales and use tax revenues are not sufficient for bond payments. C. Authorizing a general obligation pledge for bonds to be paid from the open space sales and use tax revenues will assure bondholders that the repayment of the bonds will not be affected by the expiration of such taxes, and additional property taxes will be levied if necessary to pay bondholders, thereby reducing the cost of such bonds, by obtaining more favorable terms. D. Authorizing the issuance of general obligation bonds will allow the city to obtain more favorable interest rates and terms for bonds approved by the voters in 1993 by issuing general obligation bonds. E. It is appropriate for voters to consider approving the continued collection, retention and expenditure of the full bond proceeds and any related earnings from the bond funds or revenues therefrom, F. The purposes that will be served by the ability to fund acquisition of interests in real property for opens space are consistent with the goals of the city. G. If a majority of the votes cast at the election shall be against the measure, the authorization granted by the voters in 1994 for sales and use tax revenue bonds will not be affected. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO: Section 1. A general municipal coordinated election will be held in the city of Boulder, county of Boulder and state of Colorado, on Tuesday, November 3, 2009, between the hours of 7 a,m. and 7 p.m. Section 2. At that election, there shall be submitted to the electors of the city of Boulder entitled by law to vote, the question of authorizing the city to issue general obligation debt backed by the full faith and credit of the city. The proceeds of the bonds are to be used to fund acquisition of real property interests for open space from existing sales and use taxes earmarked for open space purposes. As general obligation bonds, any other revenues of the city in addition to the earmarked sales and use tax, including an increase in property taxes, will be used to repay the bonds. The bond issue also authorizes any earnings from bond proceeds as a voter approved revenue change. The official ballot shall contain the following ballot title, which shall also be the designation and submission clause for the measure: BALLOT ISSUE NO. 213 OPEN SPACE GENERAL OBLIGATION BONDS SHALL CITY OF BOULDER DEBT BE INCREASED UP TO $33,450,000 WITH A REPAYMENT COST OF UP TO $80,863,800, AND SHALL CITY TAXES BE INCREASED UP TO $3,200,000 ANNUALLY, (TAXES TO BE INCREASED ONLY IF EXISTING DEDICATED OPEN SPACE SALES AND USE TAXES ARE INSUFFICIENT TO REPAY THE DEBT); AND SHALL THE PURPOSE OF THIS MEASURE BE TO ALLOW THE CITY TO OBTAIN MORE FAVORABLE INTEREST RATES AND TERMS FOR BONDS APPROVED BY THE VOTERS IN 1993 BY ISSUING GENERAL OBLIGATION BONDS; AND SHALL THE BOND PROCEEDS BE USED TO CONTINUE THE PURCHASE OF OPEN SPACE REAL PROPERTY INTERESTS AS WAS PREVIOUSLY AUTHORIZED BY A VOTE OF THE PEOPLE IN 1971; AND SHALL THIS PURPOSE BE ACCOMPLISHED BY THE ISSUANCE AND PAYMENT OF CITY BONDS AT A NET EFFECTIVE INTEREST RATE NOT TO EXCEED 7% PER YEAR AND WITH A MATURITY DATE NOT TO EXCEED 30 YEARS FROM THE RESPECTIVE DATES OF ISSUANCE; AND SHALL SUCH BONDS BE ISSUED, DATED, AND SOLD AT SUCH TIME(S) AND IN SUCH MANNER AND CONTAIN SUCH TERMS, NOT INCONSISTENT WITH THIS MEASURE, AS THE CITY COUNCIL MAY DETERMINE; AND SHALL SUCH BONDS BE PAYABLE FROM REVENUE DERIVED FROM EXISTING SALES AND USE TAXES, WITHOUT ANY INCREASE IN RATE, EARMARKED AND COMMITTED FOR SUCH PURPOSES BY VOTE OF THE CITY'S ELECTORS AND BY A PLEDGE OF THE FULL FAITH AND CREDIT OF THE CITY AS AUTHORIZED IN THE CITY'S CHARTER AND PURSUANT TO THE ADOPTION OF ORDINANCE N0.7673; AND SHALL AD VALOREM PROPERTY TAXES BE LEVIED IN ANY YEAR WITHOUT LIMITATION AS TO RATE AND IN AN AMOUNT SUFFICIENT, TOGETHER WITH OTHER AVAILABLE REVENUES, TO PAY THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON SUCH BONDS WHEN DUE; AND SHALL ANY EARNINGS FROM THE INVESTMENT OF THE PROCEEDS OF SUCH TAXES AND BONDS (REGARDLESS OF THE AMOUNT) CONSTITUTE A VOTER APPROVED REVENUE CHANGE WITHOUT REGARD TO THE REVENUE AND SPENDING LIMITS OF ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION? FOR THE MEASURE AGAINST THE MEASURE Section 3, The electors of the city of Boulder hereby authorize the City Council to adopt such amendments to this Ordinance No. 7673 as may be necessary to implement the intent and purpose of this ordinance. Section 4. If a majority of all the votes cast at the election on the measure submitted shall be for the measure, the measure shall be deemed to have passed and shall be effective upon passage. Section 5. The election shall be conducted under the provisions of the Colorado Constitution, the Charter and ordinances of the city, of the Boulder Revised Code, 1981, and this ordinance, and all contrary provisions of the statutes of the state of Colorado are hereby superseded. Section 6. The officers of the city are authorized to take all action necessary or appropriate to effectuate the provisions of this ordinance and to contract with the county clerk to conduct the election for the city. Section 7. If any section, paragraph, clause, or provision of this ordinance shall for any reason be held to be invalid or unenforceable, such decision shall not affect any of the remaining provisions of this ordinance. Section 8. This ordinance is necessary to protect the public health, safety and welfare of the residents of the city, and covers matters of local concern. Section 9. The council deems it appropriate that this ordinance be published by title only and orders that copies of this ordinance be made available in the office of the city clerk for public inspection and acquisition. INTRODUCED, READ ON FIRST READING, AMENDED, AND ORDERED PUBLISHED BY TITLE ONLY this 7th day of July 2009. Matthew Appelbaum, Mayor Attest: Alisa D. Lewis, City Clerk READ ON SECOND READING, AMENDED, AND ORDERED PUBLISHED BY TITLE ONLY this 21 st day of July 2009. Matthew Appelbaum, Mayor Attest: Alisa D. Lewis, City Clerk READ ON THIRD READING, AMENDED AND ORDERED PUBLISHED BY TITLE ONLY this 4th day of August 2009. Matthew Appelbaum, Mayor Attest: Alisa D. Lewis, City Clerk READ ON FOURTH READING, PASSED, ADOPTED, AND ORDERED PUBLISHED BY TITLE ONLY thisl8th day of August 2009. Matthew Appelbaum, Mayor Attest: Alisa D. Lewis, City Clerk Fiscal Information for Ballot Issue 213 - (Request to convert the currently authorized Open Space Sales Tax Revenue Bonds to Sales Revenue Bonds backed with a general obligation pledge-ORD - 7673) (ii) N/A (iii) N/A (iv) For proposed City bonded debt described in Ballot Issue 2B, its principal amount and maximum annual and total City repayment cost, and the principal balance of total current City bonded debt and its maximum annual and remaining total City repayment cost Proposed City Bonded Debt to Current City General convert from revenue to Obligation Debt Outstanding* General Obligation Debt Principal Amount $33,450,000 Principal Amount $60,215,000 Max Annual Payment Cost $ 2,698,050 Max Annual Payment Cost $11,801,883 Total Max Repayment Cost $80,863,800 Remaining Repayment Cost $69,842,427 *As of September 1, 2009 and excluded from debt are enterprise and annual appropriation obligations. The following summaries were prepared from materials filed by persons in favor of or opposed to the ballot issue: Those in favor say: • The purpose of this measure is to reduce the interest the City must pay on its bonds by adding the financial backing of the City's general revenues to the Open Space Sales and Use Tax revenues to pay off existing Open Space bonds used to purchase Open Space property. The use of City general funds would occur only in the very unlikely case that Open Space tax revenues should be insufficient for repayment. ■ This issue would reduce the interest cost for issuing Open Space Bonds and would therefore result in savings of between $2.7 million to $4.1 million over the life of the bonds. ■ This $2.7 to $4.1 million in savings would be used to support the Open Space uses approved by taxpayers in prior measures, rather than to be lost to the City as interest paid to bondholders. • This is not an increase in the rate or term of any existing approved Open Space Sales and Use Tax. ■ This does not increase the amount of debt that the voters have authorized through their approval of Open Space Sales and Use Taxes. The debt referred to in the ballot title is the remaining un-issued, but already authorized Open Space bonds in the amount of $33,450,000. ■ Over the past 40 years, the Open Space Sales and Use Tax revenues have been adequate to make the payments for outstanding bonds even in major economic downturns, and Boulder's scores from bond rating agencies have remained high. The Open Space Fund has always maintained conservative and sizeable reserves to ensure that debt obligations can always be met. • The issue would improve the marketability of Boulder's Open Space Bonds, resulting in lower interest rates and lower payments on these bonds, which were first authorized by Boulder voters in 1994. ■ This does not introduce any new bond authorizations. Those opposed say: Once you cut through all of the gobbledygook, what this comes down to is a possible and probable increase in property taxes. What this ordinance tells us, and it is buried in the language of the ordinance, is that Council wants to buy more open space, but it wants to do it so that it has two sources of revenue to pay it back. The two revenue streams are sales taxes (the normal way to fund Open Space) and now, if sales taxes are insufficient, to hit up the property owners for more money. In other words, the Council and the bond holders know that the city's sales tax revenues are likely not to be enough to pay for all this Open Space. We should be holding Council's feet to the fire to make Boulder a good place to do business so that sales tax revenues keep pace with Council's never-ending demands to buy Open Space; land that is then taken off of the tax roles. The City buys Open Space. The county buys Open Space. Thus city dwellers are hit up twice for the same purpose. And now, property owners, many of whom are on fixed incomes, will be hit up for extra taxes if the sales taxes aren't enough to pay off the bonds. If you think that you, as a renter, will be immune to this tax increase, your landlord will pass the increase on to you in increased rents. Hold the Council's feet to the fire. Vote no on this tax increase. (i) Ballot title and text for Ballot Issue 2C: ORDINANCE NO.7674 AN ORDINANCE SUBMITTING A BALLOT ISSUE TO THE VOTERS AT THE TUESDAY, NOVEMBER 3, 2009 ELECTION TO INCREASE THE DEBT WHICH MAY BE ISSUED BY THE CITY TO FUND ONGOING OLD HIRE PENSION OBLIGATIONS OF THE CITY FOR POLICE OFFICERS AND FIRE FIGHTERS HIRED BEFORE APRIL 8,1978; AND SETTING FORTH RELATED DETAILS. The City Council finds that: E. The city has ongoing contractual obligations to fund pensions for its employees. F. The city's pension plans for Old Hire Fire and Police (those hired before April 8, 1978) were significantly impacted with the large declines in the financial investment markets in 2008. G. There are circumstances by which the city could meet these pension obligations for police officers and firefighters hired before April 8, 1978 in a more stable and cost-effective manner by issuing bonds to cover the annual pension obligation payments and it is therefore appropriate for the voters to authorize increased debt of the city in order to allow meeting the obligations by issuing bonds without an increase in taxes. H. It is appropriate for voters to approve the continued collection, retention and expenditure of the full bond proceeds and any related earnings from the bond funds or revenues therefrom. 1. The purposes that will be served by the ability to fund pension obligations through debt of the city are critical for the continued responsible management of funds of the city. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO: Section 1. A general municipal coordinated election will be held in the city of Boulder, county of Boulder and state of Colorado, on Tuesday, November 3, 2009, between the hours of 7 a.m. and 7 p.m. Section 2. At that election, there shall be submitted to the electors of the city of Boulder entitled by law to vote, the question of authorizing the city to issue additional debt to fund ongoing old hire pension obligations of the city. The debt will be paid from general fund revenues without any increase in taxes and any earnings from bond proceeds will be a voter approved revenue change. The official ballot shall contain the following ballot title, which shall also be the designation and submission clause for the measure: BALLOT ISSUE NO. 2C PENSION BOND FUNDING SHALL CITY OF BOULDER DEBT BE INCREASED UP TO $11,320,000 WITH A REPAYMENT COST OF UP TO $26,597,000 WITH NO INCREASE IN ANY CITY TAX TO FUND ONGOING REQUIRED PENSION OBLIGATIONS OF THE CITY FOR POLICE OFFICERS AND FIRE FIGHTERS HIRED BEFORE APRIL 8,1978; AND SHALL THE PURPOSE OF THIS MEASURE BE TO ALLOW THE CITY TO ESTABLISH A MORE PREDICTABLE PAYMENT SCHEDULE FOR ONGOING OLD HIRE FIRE AND POLICE PENSION OBLIGATIONS; AND SHALL THIS BE DONE BY THE ISSUANCE OF BONDS OF THE CITY, AT A NET EFFECTIVE INTEREST RATE NOT TO EXCEED 10% PER YEAR AND WITH A MATURITY DATE NOT TO EXCEED 20 YEARS FROM ISSUANCE; AND SHALL SUCH BONDS BE ISSUED, DATED, AND SOLD AT SUCH TIME(S) AND IN A MANNER WITH TERMS CONSISTENT HEREWITH, AS THE CITY COUNCIL MAY DETERMINE, SUCH BONDS TO BE PAYABLE FROM THE CITY'S GENERAL FUND; AND SHALL ANY EARNINGS FROM THE INVESTMENT OF THE PROCEEDS OF SUCH REVENUES AND BONDS CONSTITUTE A VOTER APPROVED REVENUE CHANGE WITHOUT REGARD TO THE REVENUE AND SPENDING LIMITS OF ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION? FOR THE MEASURE AGAINST THE MEASURE Section 3. The electors of the city of Boulder hereby authorize the City Council to adopt such other amendments to this Ordinance No.7674 as may be necessary to implement the intent and purpose of this ordinance. Section 4. If a majority of all the votes cast at the election on the measure submitted shall be for the measure, the measure shall be deemed to have passed and shall be effective upon passage. Section 5. The election shall be conducted under the provisions of the Colorado Constitution, the Charter and ordinances of the city in the Boulder Revised Code, 1981, and this ordinance, and all contrary provisions of the statutes of the state of Colorado are hereby superseded. Section 6. The officers of the city are authorized to take all action necessary or appropriate to effectuate the provisions of this ordinance and to contract with the county clerk to conduct the election for the city. Section 7. If any section, paragraph, clause, or provision of this ordinance shall for any reason be held to be invalid or unenforceable, such decision shall not affect any of the remaining provisions of this ordinance. Section 8. This ordinance is necessary to protect the public health, safety and welfare of the residents of the city, and covers matters of local concern. Section 9. The council deems it appropriate that this ordinance be published by title only and orders that copies of this ordinance be made available in the office of the city clerk for public inspection and acquisition. INTRODUCED, READ ON FIRST READING AND ORDERED PUBLISHED BY TITLE ONLY this 7th day of July 2009. Matthew Appelbaum, Mayor Attest: Alisa D. Lewis, City Clerk READ ON THIRD READING, AMENDED AND ORDERED PUBLISHED BY TITLE ONLY this 4th day of August 2009. Matthew Appelbaum, Mayor Attest: Alisa D. Lewis, City Clerk READ ON FOURTH READING, PASSED, ADOPTED, AND ORDERED PUBLISHED BY TITLE ONLY thisl8th day of August 2009. Matthew Appelbaum, Mayor Attest: Alisa D. Lewis, City Clerk Fiscal Information for Ballot Issue 2C - (Increase debt for the purpose of funding ongoing pension obligations of the City for police officers and firefighters hired before April 8, 1978 without a tax increase-ORD 7674) (ii) N/A (iii) N/A (iv) For proposed City bonded debt described in Ballot Issue 2C, its principal amount and maximum annual and total City repayment cost, and the principal balance of total current City bonded debt and its maximum annual and remaining total City repayment cost Proposed City Bonded Debt Current City General Obligation Debt Outstanding* Principal Amount $11,320,000 Principal Amount $60,215,000 Max Annual Payment Cost $ 1,332,000 Max Annual Payment Cost $11,801,883 Total Max Repayment Cost $26,597,000 Remaining Repayment Cost $69,842,427 *As of September 1, 2009 and excluded from debt are enterprise and annual appropriation obligations. The following summaries were prepared from materials filed by persons in favor of or opposed to the ballot issue: Those in favor say: The ballot request is to issue pension obligation bonds to provide a method to level out annual pension contributions that the City of Boulder is currently required to make to a finite number of retired police officers. This retirement program has been closed and no new retirees are being added to the program, At the current time the City of Boulder contributions fluctuate depending on investment market conditions. No tax increase is requested as the contributions are already made by the City of Boulder. To issue this type of bond, authorization must be provided by the voters due to the multi-year obligation of bond payments. This proposal will level out payments by the City of Boulder and will only be issued if financial conditions are appropriate for issuance. Those opposed say: The Council does not have enough money to pay off its pension obligations. It now wants to take the insane measure of going into debt to pay off a current expense. The credit rating of this City will be further diminished by poor financial policy. Old Councils should never have authorized this level of pension obligation; but, hey, old Councils are not personally liable for the promises they made. This Council should be told by the voters that there is no way that we will let them continue to repeat the mistakes of the past. We, and this Council, must stop burdening our future by borrowing like crazy. (i) Ballot title and text for Ballot Issue 2D: ORDINANCE NO. 7679 AN ORDINANCE SUBMITTING A BALLOT ISSUE TO THE VOTERS AT THE TUESDAY, NOVEMBER 3, 2009 ELECTION, INCREASING THE HOUSING EXCISE TAX ON NEW DEVELOPMENT, OTHER THAN ON RESIDENTIAL DWELLING UNIT DEVELOPMENT, TO PROVIDE AFFORDABLE HOUSING FOR PEOPLE WITH LOW INCOMES; REPEALING PORTIONS OF THE EXISTING HOUSING EXCISE TAX ON RESIDENTIAL DEVELOPMENT; AND SETTING FORTH RELATED DETAILS. The City Council finds and recites that: In 1998 the voters approved a Housing Excise Tax to raise money for the provision of affordable housing for people who live and work in the city. A diverse housing stock is necessary in this community in order to serve people of all income levels and to provide the opportunity for working people to have better access to jobs and upgrade their economic status. A housing shortage for persons of very low-, low- and moderate-income is detrimental to the public health, safety and welfare. The inability of such persons to reside within the city negatively affects the community's jobs/housing balance and has serious and detrimental transportation and environmental consequences. The Housing Excise Tax has historically been levied on development of new residential dwelling units. The city's inclusionary zoning regulations, reflected in chapter 9-13 of the Boulder Revised Code, also apply to that development. Imposing the Housing Excise Tax on development other than residential dwelling unit development is appropriate because both residential and non-residential development generate jobs and the need for very low- , low-, and moderate-income housing in the city. However, residential dwelling unit development already contributes to the provision of affordable housing through the inclusionary zoning regulations. If the voters approve this ordinance, the tax rates set forth herein will become the maximum Housing Excise Tax rates for new development other than residential dwelling unit development, and the current Housing Excise Tax on new residential dwelling units will be eliminated. The purpose of this ordinance is to shift the tax burden from new residential dwelling units to other categories of new development. If the voters approve this ballot measure, the City Council will be authorized to adopt such laws as are necessary to further the purposes of this ordinance. It is appropriate for voters to approve collection, retention and expenditure of the full amount collected from the Housing Excise Tax. The increased revenue that will be generated for affordable housing is necessary for the continued provision of critically important housing within the city. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO: Section 1. A general municipal coordinated election will be held in the city of Boulder, county of Boulder and state of Colorado, on Tuesday, November 3, 2009, between the hours of 7 a.m. and 7 p.m. Section 2. At that election, there shall be submitted to the electors of the city of Boulder entitled by law to vote the question of whether to authorize an increase in the Housing Excise Tax; repeal a portion of the existing Housing Excise Tax; and collect, retain and spend the revenues generated from such tax notwithstanding any state revenue or expenditure limitations, pursuant to an ordinance consistent with the ballot question to be adopted by City Council. The official ballot shall contain the following ballot title, which shall also be the designation and submission clause for the measure: BALLOT ISSUE NO. 2D CHANGES TO HOUSING EXCISE TAX SHALL CITY OF BOULDER HOUSING EXCISE TAXES BE INCREASED FOR NEW DEVELOPMENT TO PRODUCE APPROXIMATELY $1,250,000 (IN THE FIRST YEAR) ANNUALLY; AND PURSUANT TO ORDINANCE NUMBER 7679 AND FUTURE CITY COUNCIL ACTION: SHALL THE PURPOSE OF THIS MEASURE BE TO SHIFT THE TAX BURDEN FROM NEW RESIDENTIAL DWELLING UNITS TO OTHER CATEGORIES OF NEW DEVELOPMENT; AND SHALL THE EXISTING HOUSING EXCISE TAX BE ELIMINATED ON RESIDENTIAL DWELLING UNITS; AND SHALL THE HOUSING EXCISE TAX ON NEW DEVELOPMENT OTHER THAN RESIDENTIAL DWELLING UNITS BE RAISED TO BETWEEN $3.00 AND $7.00 PER SQUARE FOOT BASED UPON THE FOLLOWING LAND USE CLASSIFICATIONS: COMMERCIAL USES INDUSTRIAL AND GENERAL NON RESIDENTIAL USES INSTITUTIONAL USES; AND SHALL THE CITY COUNCIL BE AUTHORIZED TO PHASE IN THE NEW TAX RATES OVER FIVE YEARS OR MORE AND MAKE THE TAX SUBJECT TO AN ANNUAL INCREASE BEGINNING IN 2015 BASED UPON AN INDEX RELATED TO THE COST OF PRODUCING HOUSING IN THE AREA; AND SHALL THE CITY COUNCIL BE AUTHORIZED TO REDUCE OR WAIVE ANY PORTION OF THE HOUSING EXCISE TAX WHEN DETERMINED TO BE IN THE PUBLIC INTEREST; AND SHALL APPROVAL BE GRANTED FOR THE COLLECTION, RETENTION AND EXPENDITURE OF ALL REVENUES RECEIVED FROM SUCH TAX NOTWITHSTANDING ANY STATE REVENUE OR EXPENDITURE LIMITATION? FOR THE MEASURE AGAINST THE MEASURE Section 3. The City Council will amend chapter 3-9 "Housing Excise Tax," B.R.C. 1981, as soon as practical after the passage of this measure to include the following elements: 1. The existing Housing Excise Tax on residential development shall be eliminated; 2. The Housing Excise Tax as approved by the voters may be imposed on all new development other than residential dwelling unit development; 3. The tax rates shall be phased in between January 1, 2010 and December 31, 2014, up to the amounts listed, or in such lesser amount or over such longer period as may be determined by the City Council; 4. The Housing Excise Tax rates may be increased by application of an index related to the cost of producing housing in the area applied to the maximum rate each year commencing in 2015; 5. The procedures by which the taxes will be assessed and collected; 6. Definitions of the taxation categories and other terms will be provided; 7. The Housing Excise Tax may be reduced or waived by City Council when determined to be in the public interest; 8. Credit offsets may be provided for uses in place prior to the assessment of the new Housing Excise Tax provisions. Section 4, The maximum tax rate for 2010-2014 for new development other than residential dwelling unit development shall be the following amounts for the following categories assessed on a per square foot of floor area basis: Commercial $7.00 Industrial and General Non-Residential $5.00 Institutional $3,00 Section 5. If a majority of all the votes cast at the election on the measure submitted shall be for the measure, the City Council shall be authorized to amend the Boulder Revised Code and to adopt such other ordinances as may be necessary to implement the intent and purpose of this ordinance. Section 6. The officers of the city are authorized to take all action necessary or appropriate to effectuate the provisions of this ordinance and to contract with the county clerk to conduct the election for the city. Section 7. If any section, paragraph, clause, or provision of this ordinance shall for any reason be held to be invalid or unenforceable, such decision shall not affect any of the remaining provisions of this ordinance. Section 8. This ordinance is necessary to protect the public health, safety and welfare of the residents of the city, and covers matters of local concern. Section 9. The City Council deems it appropriate that this ordinance be published by title only and orders that copies of this ordinance be made available in the office of the city clerk for public inspection and acquisition. INTRODUCED, READ ON FIRST READING, AMENDED, AND ORDERED PUBLISHED BY TITLE ONLY this 21st day of July 2009. Matthew Appelbaum, Mayor Attest: Alisa D. Lewis, City Clerk READ ON SECOND READING, AMENDED AND ORDERED PUBLISHED BY TITLE ONLY this 4th day of August 2009. Matthew Appelbaum, Mayor Attest: Alisa D. Lewis, City Clerk READ ON THIRD READING, PASSED, ADOPTED, AND ORDERED PUBLISHED BY TITLE ONLY this 18th day of August 2009. Matthew Appelbaum, Mayor Attest: Alisa D. Lewis, City Clerk Fiscal Information for BALLOT ISSUE 2D - (Increase City of Boulder Housing Excise tax for new development and eliminate the existing Housing Excise Tax on existing residential units-ORD 7679) (ii) Estimated total City fiscal year spending for the current year and actuals for each of the past four years, and the overall percentage and dollar change. Fiscal Year Dollar Spending 2005 Actual 140,171,000 2006 Actual 153,300,000 2007 Actual 167,912,000 2008 Actual 172,035,000 2009 Adopted 171,020,000 Overall Percentage Change from 2005 to 2008 22.73% Overall Dollar Change from 2005 to 2008 $ 31,864,000 For the first full fiscal year of this proposed City tax increase (2010), the City estimates that the maximum dollar amount of the increase in the excise tax will be $1,250,000 and that the City fiscal year spending without the increase is recommended to be $166,170,000. The following summaries were prepared from materials filed by persons in favor of or opposed to the ballot issue: Those in favor say: No comments were received Those opposed say: The sum and substance of this legislation is to raise taxes about $1.25 million. And it wants to do this by sticking it to developers of commercial and industrial properties. So this ordinance would again increase the hostility of Boulder's City Council to new jobs and a good business climate that would generate new tax revenues. No wonder the Council wants us to pass all those other taxes.