This public domain image isn’t from Boulder, but almost looks like it is! We’ll still need to cross rivers into the future unless climate change really dries everything up. Cities often can’t start large projects without financing, and Issue 2B would authorize the city to issue significant bonds to finance projects like bridges and other stuff.

At its simplest, passing this ballot measure would increase the City of Boulder’s allowable debt capacity from $110 million to $262 million for financing projects with funding from Boulder’s Community, Culture, Resilience and Safety (CCRS) 0.3% sales and use tax. The maximum repayment amount would be $350 million. However, it’s important to point out that the city would not have to take out the full allowable amount of debt or pay the entire maximum repayment amount if 2B passes.

Even if 2B passes, this ballot measure would not go into effect unless Issue 2A also passes, since it would depend on the revenue from the 0.3% 2A tax to pay down the debt.

Boulder City Council put this measure on the ballot, and it would pass with a simple majority.

What Would the Debt Be Used For?

New allowable debt would be used to fund projects to address the city’s backlog of maintenance, repairs, and new construction needs for items including roads, parks, civic buildings, and recreation centers. The write-up in this voter guide on 2A goes into greater detail on projects or appropriate types of projects, or readers could visit the CCRS webpage at https://bouldercolorado.gov/services/community-culture-resilience-and-safety-tax

According to the City Council agenda packet from Aug. 7 on the two 2025 City of Boulder ballot measures, passing the measures would “also allow longer debt schedules, from 10 years to 30 years, which would result in lower annual debt service payments.”

Again according to the Aug. 7 agenda packet, city staff estimates there is “an estimated $380 million in unfunded needs across the organization that require attention,” which is of course in excess of the $262 million allowable debt limit that would be established under 2B. So, the agenda packet also noted it could take a “multi-year ballot measure strategy” to fully address the backlog.

For perspective on the city’s facilities conditions, the city’s 100-plus-page Facilities Master Plan includes the following high-level statement:
“The City of Boulder currently has 1,870,326 gross square feet (GSF) spread across 76 buildings, with an average building age of 47 years. Seven of these buildings are over 95 years old and ten are over 60 years old. There are 41 buildings between 30 to 60 years old and the remaining 18 buildings are under 30 years old. Typically, the cost of owning, operating, and maintaining escalates significantly in buildings aged 25 – 30 years old.”

According to City of Boulder budget information, Boulder holds an Aa1 general obligation and revenue bond credit rating from Moody’s, and an AAA credit rating from Standard & Poor’s. The report went on to say that the strong rating levels is due to “the general strength and diversity of the Boulder economy anchored by a major university, above average income indicators, strong financial performance and reserve policies, and affordable debt levels.”

How Did We Get Here?

As also noted in the write-up in this voter guide on 2A, the 0.3% tax that would provide revenue to pay down 2B debt was approved first in 2014, under a slightly different name, and extended in 2017. It was then extended for 15 years in 2021.

In 2021, Boulder voters faced two ballot measures that were fairly similar to what they’ll be voting on in 2025. The 2021 Ballot Issue 2I extended the 0.3% sales and use tax, while Ballot Issue 2J allowed up to $110 million in debt with up to $158 million in repayment costs. The 2021 Ballot Issue 2I passed by about 86%-14%, while 2J passed by about 80%-20%

Ballot Measure Title

The following is the language voters will see on their ballots for 2B:

SHALL CITY OF BOULDER DEBT BE INCREASED UP TO $262,000,000 (PRINCIPAL AMOUNT) WITH A MAXIMUM REPAYMENT COST OF UP TO $350,000,000 (SUCH AMOUNT BEING THE TOTAL PRINCIPAL AND INTEREST THAT COULD BE PAYABLE OVER THE MAXIMUM LIFE OF THE DEBT) TO BE PAYABLE SOLELY FROM THE EXTENSION OF THE COMMUNITY, CULTURE, RESILIENCE AND SAFETY SALES AND USE TAX OF 0.3 CENTS, IF SEPARATELY APPROVED;

WITH SUCH DEBT TO BE SOLD AT SUCH TIME AND IN SUCH MANNER AND TO CONTAIN SUCH TERMS, NOT INCONSISTENT HEREWITH, AS THE CITY COUNCIL MAY DETERMINE, AND THE PROCEEDS OF SUCH DEBT AND EARNINGS THEREON BEING USED TO FUND CITY CAPITAL IMPROVEMENT PROJECTS AND NON-PROFIT PROJECTS THAT SERVE THE CITIZENS OF BOULDER PAYABLE FROM SUCH SALES AND USE TAX EXTENSION INCLUDING, AMONG OTHER THINGS:

ROADS, PATHS, BIKE LANES, TRAILS, AND SIDEWALK ENHANCEMENTS; RECREATION CENTER RENOVATIONS AND REPLACEMENTS; SNOW AND ICE RESPONSE; PARKS AND PLAYGROUND REFURBISHMENTS; FIRE AND POLICE STATION RENOVATIONS AND REPLACEMENTS; CRITICAL BRIDGE REPLACEMENTS; AND OPEN SPACE TRAIL AND TRAILHEAD IMPROVEMENTS;

AND IN CONNECTION THEREWITH, SHALL ANY EARNINGS FROM THE INVESTMENT OF THE PROCEEDS OF SUCH DEBTS CONSTITUTE A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE REVENUE AND SPENDING LIMITS OF ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION?

Issue 2B Pros:

  • Cities typically have to finance larger projects, unless somehow they can pay for them up-front. The increased debt authorization would allow Boulder to get important projects started sooner than if they didn’t have sufficient debt authorization.
  • Some of the uses envisioned are likely to contribute to better living conditions in Boulder – including public safety, recreation uses, nonprofit capital projects, and transportation.
  • Boulder has strong credit ratings and a large Finance department, meaning it should be able to find favorable rates or possibly refinance favorably into the future.
  • Construction generates economic activity and jobs within the community.

Issue 2B Cons:

  • Debt comes with some risk, and 2B authorizes quite a bit of debt as we enter a time of economic uncertainty.
  • The city could be on the hook for large amounts of repayment interest, on top of the original amount of bonding principal.
  • The amount of debt authorized might enable the city to commit spending without sufficient caution by approving or starting projects before they’re really needed.

Richard’s Take

I’ll vote for this measure, though I can’t deny I’m concerned about our economic future, and I know there can be problems if we get too far in debt and revenue collections decline. Voters should know that according to a 2024 financial report, Boulder’s true sales and use tax collections declined nearly one percent in 2024 compared to 2023, and sales taxes would fund repayments on the new debt authorized under 2B. Meanwhile, we might not have seen the true impact of our economic “new abnormal” quite yet in 2025, but there have been recent nationwide reports of GDP declines and substandard job creation numbers.

However, I’m not as worried about Boulder facing problems under this specific ballot measure as I could be, for a few reasons:

  • Despite the admittedly very large debt and repayment numbers in the ballot measure text, the city will be able to hold back on approving new projects if we fall into rough or rougher economic times. It will NOT need to take out the full amount of available financing identified in the ballot measure in one fell swoop.
  • The city has a large, experienced Finance Department staff to weigh in on the fiscal advisability of new projects.
  • I’ve been following city sales and use tax collection reports for decades, and these reports include identification of monthly or yearly trends. City officials, elected and non-elected, follow these trends much closer than I do!
  • I interviewed every City Council candidate this year, and they all seemed aware of some economic uncertainty and some need for fiscal restraint.
  • If 2B passes and the 0.3% tax from 2A is approved into perpetuity, it might be easier for the city to decide to wait some number of years before issuing bonds on its next project, because they will know that some revenue will still be coming in – as opposed to if the tax had a sunset date.

Risk of debt aside, high-quality and modern facilities are beneficial for the people who work in them and residents or visitors who depend on them. I’m notoriously frugal, but there’s a point at which nearly anyone ought to upgrade or replace structures or infrastructure, and availability of financing will allow these projects to get built before the old facilities move too far into decrepit status. So, voting yes on 2B won’t be tough for me, but city leaders and residents should keep their eyes open for economic trends into the future if it passes!