[BoulderCouncilHotline] Re: Proposed 20-year extension of OSMP 0.15 tax

[Brautigam, Jane]

Dear Lisa and council members,


Thanks for your questions.


The City of Boulder first imposed a Sales & Use Tax in 1964 at the rate of 1%for general operating purposes. An additional 1% was approved by the voters in November 1967.  The stated purposes for this increase were 0.4% for the acquisition of open space real property; and 0.6% for the acquisition, construction or reconstruction of streets and highways. These funds were placed in the General Fund and used for the purposes indicated.  In 1974 the city created the Open Space Fund and the Transportation Fund, expanding the transportation purposes for which that fund could be used, and  these increments were moved from the General Fund to those funds at that time.



Since then, several other tax increments have been added but have not transferred purposes until the 2013 ballot (explained below). In 1999 a  0.15% public safety tax was approved.  This "shifted" to the General Fund in 2005 along with associated expenses. It was not a net addition to the General Fund since public safety is a General Fund purpose. Similarly, the 0.15 cent fund, approved in 1993 for human services, parks and recreation, environmental, youth opportunity, and arts and cultural services was a separate fund until 2010 when it was again approved by the voters and folded into the General Fund along with associated expenses. Since these are also General Fund purposes, it was not a net addition to the General Fund.



In 2013, the voters approved a proposal in which a portion of Open Space tax shifted to the General Fund in 2019 (as mentioned in your email) and to Transportation in 2020. The General Fund portion in 2019 was an additional .11% (roughly $3.8M/year).  At the same time a 0.15% temporary tax was approved for Transportation.  This temporary tax expires at the end of 2019 when an equal amount of Open Space tax (0.15%) shifts to Transportation. It is important to note that the Transportation portion is not a net add of money to that fund since it is replacing the expiring .15% in 2020.



The 2019 General Fund increase has been largely used to compensate for the flattening of sales and use tax. If you recall, the 2019 budget included ongoing reductions to most general fund departments, even with the additional tax increment so it is unlikely that this increment will allow for funding increases or for unfunded needs in the future.


I hope this information is helpful


Enjoy your long weekend!

Jane




Jane S. Brautigam

City Manager

ICMA - CM



[cid:17374419-b601-43cd-931b-df70f85d1929]

O: 303-441-3090

brautigamj at bouldercolorado.gov<mailto:brautigamj at bouldercolorado.gov>



City Manager’s Office

1777 Broadway

Boulder, CO 80302

Bouldercolorado.gov<http://www.bouldercolorado.gov/>







________________________________
From: Morzel, Lisa <MorzelL at bouldercolorado.gov>
Sent: Friday, August 30, 2019 7:26 PM
To: Council <council at bouldercolorado.gov>; Brautigam, Jane <BrautigamJ at bouldercolorado.gov>; HOTLINE <HOTLINE at bouldercolorado.gov>
Subject: Proposed 20-year extension of OSMP 0.15 tax

Colleagues and Jane,

A few comments regarding item 3C and the proposed 20-year extension of the OSMP 0.15 tax:

1.  We already know that OSMP needs ~$100 million over the next 20 years [$5 million/year] to address the “top tier” #1 needs in the OSMP master plan – i.e

* reduce trail maintenance backlog
* increase soil health and resilience
* Preserve and restore important habitat for native plants and animals
* address conflicts between agriculture and prairie dogs, and
* meet needs presented by substantially increasing visitation levels and the management challenges that entails.
So, why would we not pass a tax increment to fund these known needs (as opposed to funding half of them)?

2.Questions about the General Fund:

At least one (to become two at the end of 2019, not to mention the loss of the general fund $1MM transfer from the general fund to OSMP in 2020?) of the OSMP tax increments that have been lost/repurposed in the last year have gone to the general fund – so, doesn’t the general fund have enough money to pick up ~$24 million in costs listed in Mary’s Hotline post?

Jane, please send a list of all the sales tax increments that have been re-purposed (from OSMP, the Library or other city departments) to the general fund over the last 2 to 3 decades and how those funds have been spent (or to what department they have been re-purposed)?  I would appreciate that list being sent to us before Tuesday night’s meeting and a copy placed at our seats on the dais.

Where have those tax dollars gone?  Have they been put toward various budget increases, into the reserve, or have they gone to address needs in the departments as itemized by Mary?  Couldn’t those tax dollars be used to cover the needs listed in Mary’s Hotline post?  [There’s approximately $10 million/year that’s going somewhere OTHER THAN TO OSMP  by Jan 2020 – i.e. OSMP’s tax that expired in Jan. 2019 + OSMP’s tax that expires Dec 31, 2019 + the $1 million/year that has been transferred from the general fund to OSMP each year to compensate for Mtn Parks costs absorbed by OSMP following the merger.

I know that some of it goes to transportation for a few years before going to the general fund.  I think the rest goes directly to the general fund. So couldn’t some of the money to cover the needs in Mary’s list come from General fund sources?

Thank you.

Lisa

Lisa Morzel
Member, Boulder City Council
303-815-6723 c
303-938-8520 h


How far we humans as stewards of the Earth have fallen.


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