Boulder County election: Issue 1B

ClimateSmart (CEOLID) $85 million bond authorization

What the question asks: Shall Boulder County debt (for Clean Energy Options Local Improvement District and similarly situated local improvement districts in other Colorado Counties) be increased by up to $85,000,000, with no increase in any county tax or tax rate, provided that at least $45,000,000 of such debt and at least $95,000,000 of such maximum repayment cost shall be payable from special assessments on properties in such other counties and other amounts payable by such other counties, resulting in a net of $40,000,000 of debt and $85,000,000 of maximum repayment cost payable from special assessments in Boulder County, for the purpose of financing the costs of constructing, acquiring and installing solar and other renewable energy systems or energy-efficiency improvements for property owners that consent to be included in such districts by entering into a contract or agreement for inclusion therein, and any costs necessary or incidental thereto, including without limitation the cost of establishing reserves to secure the payment of such debt, by the issuance of special assessment bonds payable from special assessments imposed against benefited properties for which the owners thereof have consented to be included within such districts by entering into such a contract or agreement for inclusion, and from other funds of Boulder County and such other counties that may be lawfully pledged to the payment of such bonds, which bonds shall bear interest at a maximum net effective interest rate not to exceed 10%, shall be subject to redemption, with or without premium, shall be issued, dated, and sold at such time or times, at such prices (at, above or below par) and in such manner, in one or more series, and shall contain such term, not inconsistent herewith, as the Boulder County Board of County Commissioners may determine; shall Boulder County be authorized to enter into a mutiple-fiscal year obligation to advance amounts for payment of a portion of unpaid assessments as provided in section 30-20-619(2), Colorado Revised Statutes, as amended; and shall the revenues from such special assessments and any earnings thereon and from the investment of the proceeds of such bonds constitute a voter-approved revenue change; all in accordance with the Boulder County Board of County Commissioners’ Resolution No. 2009-101?

What it means: Boulder County wants to extend the capacity of its ClimateSmart loan program, doubling the amount of money available to $80 million. The program provides low-interest loans to Boulder County property owners who want to add renewable energy or make energy-efficient upgrades to their homes or businesses. The loans are paid back as a property assessment, meaning that the loan responsibility stays with the property, even if the owner sells.

If approved, this issue would allow Boulder County to join with other local governments in Colorado launching similar programs to get a better bond rate. Of the $85 million in bonds requested, only $40 million would go to Boulder County’s program. The other $45 million would go to other counties that are thinking about creating a similar loan program. If voters from other counties do not approve a loan program, the bonds will not be sold.

What supporters say: The ClimateSmart loan program has been a success, pumping more than $10 million into the local economy and keeping local solar companies and contractors afloat. Nearly 650 homeowners have so far received money from the ClimateSmart loans, and later this fall, the county will open the loans up to local businesses for the first time.

Extending the program will keep invigorating the local economy and reduce greenhouse gases. Residents not participating in the program will see no change in their taxes, and people who do participate will pay the loans back as part of their property taxes. Boulder County has a track record of collecting 99.9 percent of property taxes, making the county confident that the bonds will be paid back on time.

What opponents say: Local governments should not be lending money because it creates competition for banks.