Boulder County’s public services and programs are made possible through a diverse and balanced revenue stream reflecting the dedication of the organization to sound financial planning that reflects the values of the community.

The predominant revenue source for Boulder County is Property Tax. Growth in this revenue source is limited by the Colorado Constitution and other state laws to 5.5% in 2023. In computing the limit, the following are excluded: the increased valuation for assessment attributable to new construction and personal property for the preceding year, and the increased valuation for assessment attributable to annexation or inclusion of additional land.

The calculation of property tax is expressed as a “mill levy” amount. Components of the total county mill levy are categorized as either general use mill levies which are allocated to individual funds at the discretion of the Board of County Commissioners, or dedicated mill levies which are allocated to specific funds that are restricted by the voter-approved ballot initiatives that authorized the tax increase.

Another important source of tax revenue is Sales and Use Tax. This is significantly more volatile than property tax and is therefore conservatively budgeted. These revenues are generally limited to funding capital and onetime expenditures. The 2023 budget assumes 41% increase over the budgeted 2022 collections as calculated by six months of collected actuals and six months of forecast estimates.

Intergovernmental Revenues consist of fees and grants from other governmental entities, including the federal and state governments. Significant sources include block grants for programs such as Child Welfare and Colorado Works (formerly TANF) in the Social Services Fund, as well as Highway User Tax Fees (HUTF) and FASTER funds (Senate Bill 09-108 is known as the Funding Advancements for Surface Transportation and Economic Recovery Act of 2009) for the Road and Bridge Fund.

Revenues other than property tax and intergovernmental are categorized as Other Revenues. This category of revenues consists of other taxes, fees, fines, benefit contributions, sales of fixed assets, and many others. Three predominant revenue sources in this broad category are Specific Ownership Tax, Motor Vehicle Fees and the Sale of Recycled Materials.

2023 Boulder County total revenues are budgeted at $544.5 million, which reflects a $25.2 million increase over 2022 adopted revenue.

Revenue Assumptions

A fiscally conservative approach has been taken for 2023 revenue budgets. Data on prior year trends and assessed property values are the main drivers when determining available resources for the final adopted budget. Information on new legislation or new economic impacts is also considered when projecting revenues. At the time of this analysis, the state of the local economy showed continued signs of increased spending in sales and use tax, permit and licensing revenues, and other state revenue streams in the wake of COVID-19 restrictions and the pandemic's impact on the economy.

Revenue Projection Process

Office of Financial Management (OFM) staff is ultimately responsible for final revenue projections for both the current year and the coming budget year. Each county agency is required to submit to OFM its own revenue estimates and projections, along with its expenditure requests. Each revenue estimate is reviewed by OFM to determine its reliability. OFM regularly monitors revenue receipts and updates the year-end estimates as needed.

Assessment – Revenue budget preparation begins with the analysis of current revenue against projected estimates, and is conducted in June and July. Organizations across the county provide revenue estimates for the current year and budgets for the following year, providing details of changes to projections and planned revenues.

Revenues not entered by specific users are those which span multiple funds and/or organizations, such as property tax, sales tax, interest on investments and specific ownership tax. These revenues are entered by the OFM staff during the latter part of budget cycle.

First Estimate – OFM staff prepare analysis of revenues by fund and organization looking at a year-over-year comparison of budgeted revenue and variances between year-end estimate and original budget. OFM staff discuss the basis of revenue plans and changes with organization leadership. Once all outstanding questions are addressed, the revenue projection is then presented to the Board of County Commissioners for consideration in budget decision-making.

Second Estimate – Upon receipt of nine months current year revenue data, budgeted revenue projections are further refined. The result of this second analysis is presented to the board in late October, when changes to the bottom line are discussed and substantiated. This precedes the Budget Work Session in early November when funding decisions are made for the following year.

During the above two analyses, and prior to year-end closing of the accounting system, substantial work is done to reconcile revenue accounts and perform maintenance. Because postings to incorrect accounts are one reason that actual revenue may have deviated from the budget or estimate, the above process also serves as a periodic review of actual data and results in periodic corrections. Finally, after year-end closing of the accounting system and prior to the external audit, a comparative worksheet is compiled by department and forwarded to the relevant users.

Final Projections – A final revenue budget is presented by staff to the commissioners by early November. It provides estimates for revenues and expenditures for the current year and the amount of fund balance available. Along with final adjustments to the revenue outlook, this is the time when OFM staff recommends projected ending fund balances. The board makes its spending decisions based on the available revenues and fund balances presented.

Property tax revenues comprise approximately 42% of the total revenues for all appropriated funds. The amount of increase in property tax over the prior year is limited to 5.5% plus new construction growth, per state statute; or TABOR limitations, whichever is more restrictive. Total property taxes are budgeted at $227 million, which assumes 1% of the property tax levied will be uncollectible.

Property tax calculations and limitations are discussed in more detail later in this section.

Sales and use tax revenues comprise 20% of the total revenues and are budgeted at $112,050,286. The total dedicated sales and use tax rate for Boulder County is 1.185%.

Intergovernmental revenues comprise 17% of the total revenues for all appropriated funds, totaling $92,882,278 across all funds. The following are major sources in this category:

• Flood reimbursements for eligible emergency flood response and flood recovery expenditures from federal, state, and local governments.
• Highway Users Taxes are based on paved miles of road per county. The source is motor fuel excise tax as well as other motor vehicle related taxes collected by the state.
• Federal and state pass-through money for programs such as Child Care, Child Welfare, Youth and Family Services, the IMPACT program, and the Colorado Works program, formerly known as Temporary Assistance for Needy Families (TANF).
• The Dedicated Resources Fund receives revenues from federal and state agencies for major programs such as Workforce Boulder County (displaced and older worker training), Community Action Program, Head Start, Weatherization, and Community Corrections. In addition to the major programs, grants are received for many other smaller programs, such as Great Outdoors Colorado Program (GOCO).

All other revenues comprise approximately 21% of the total revenues, or $112,440,694, for all appropriated funds. This category consists of approximately two hundred individual sources of revenue. The following are major sources in this category:

• Specific Ownership Tax – Ownership tax is paid during motor vehicle registration in lieu of personal property tax. The ownership tax rate is assessed on the original taxable value and year of service. Original taxable value is 85% of manufacturer's suggested retail price (MSRP). The annual specific ownership tax is based on the year of service.
• Motor Vehicle Fees – These fees are related to volume and value of vehicles purchased and owned. They consist of the following revenues:
  1. Emission Inspection Fees – For each vehicle registration within the emission program.
  2. Certificates of Title – Revenue from the applications of titles.
  3. Temporary Permits – Charged to licensed Colorado auto dealers and individuals.
  4. Clerk Hire – From the collection of license plate fees.
  5. Filing Fees – Related to the filing of a lien by a lending institution against the financing of a vehicle.
• Treasurer Fees – Are charged to other taxing entities for the collection of their taxes by the county Treasurer. Cities pay 1% of the total tax collected by the Treasurer; schools pay 0.25%, while other districts (such as fire and water districts) pay 1.5%.
• Health and Dental Benefit Contributions – Voluntary employee and county contributions to health and dental insurance.
• Rents and Royalties – From the rental of county owned buildings by outside agencies such as Boulder County Public Health, non-profit groups, and Mental Health Partners. Also included are Open Space rentals, royalties and crop share revenue.
• Sale of Goods – This revenue item is from the sale of recycled material processed at the Boulder County Recycling Center.
• Budget Transfers – Budgeted internal transfers between funds.

There are many other sources of revenue that fit into the categories listed above. These revenues are generally immaterial and are therefore excluded. Detailed descriptions of all county revenues are available from the Office of Financial Management.

Property tax revenue for the coming budget year is calculated by using the current year assessed valuation multiplied by the certified mill levy. Property tax revenue for the 2023 budget is based on a total mill levy of 24.746 mills, which includes the TABOR capped mill levy of 24.645 mills, plus 0.101 mill for abatements.

The process to establish the county’s assessed valuation is a biennial one. A total re-appraisal of all taxable property is performed in odd years and used for levying taxes in the subsequent even numbered year. For the 2021 reassessment which was used for budgeting 2022 property tax revenues, property was appraised at the June 2020 level of actual value which resulted in an increase of 8% when compared to the 2020 valuation. Personal Property is revalued every year and the resulting 2022 assessed valuation as of November 21, 2022 is $9,270,242,017.

The assessed valuation multiplied by the total net mill levy generates $229,401,409 in total gross property tax revenue utilized for county services. For budget purposes, Boulder County has assumed that 1% of its gross property taxes will not be collected and the net property tax value is budgeted at $227,107,395, which is further allocated to the appropriate funds.

Boulder County collects and distributes taxes to all governmental entities within its boundaries. Each entity sets its own budget and determines its property tax requirements. The Treasurer provides the collection and distribution service to these other entities such as cities, school and fire districts, water and sanitation districts, special districts and the county. State statutes provide for a fee to the Treasurer for performing the service.

The county portion of a typical property tax bill is illustrated in the chart below. The 25% portion of the average property taxpayer’s bill that is county revenue is a major component of the total revenues that fund the county services, functions, and programs described throughout this book.

Mill Levy

In November 1992, Colorado voters passed an amendment to Article X, Section 20 of the State Constitution. Amendment One, or TABOR (Taxpayer Bill of Rights), limits the revenue raising and spending abilities of state and local governments. Among other provisions (further described below), it requires voter approval for any increase in the mill levy above that certified in 1992 of 22.245 mills. The amendment also requires voter approval for any increase in tax rates, new taxes, or creation of multi-year debt.

In 2002, voters authorized the increase of the mill levy dedicated to the Developmental Disabilities Fund of 1.0 mills, and an increase of 0.5 mills to be dedicated to a new fund that would backfill funding cuts from the State of Colorado. The total mill levy was raised by 1.5 to 23.745 mills.

In 2010, voters again authorized an increase in the mill levy of 0.9 mills for a 5-year period from 2011 through 2015. This increase is restricted to human services, and acts as a safety net for the increased demand for services following the recent recession and subsequent rise in the unemployment rate. These factors occurred at a time when state government resources for social services programs had decreased. This increase raised the TABOR mill levy cap to 24.645 mills for Boulder County. Subsequently in the November 2014 election, the voters extended this mill levy for another 15 years through the year 2030.

Property Tax Revenue

TABOR also includes tax and revenue limitation measures tied to the increase in the Consumer Price Index in the Denver/Boulder Metro area plus the increase in new construction. Although usually the most restrictive, this is not a factor in the Boulder County budget due to the exemption from the TABOR revenue limit approved by voters in 2005.

In November of 2005, the Boulder County voters approved an exemption from the TABOR Property Tax revenue limit, along with the other Revenue and Expenditure limits. The exemption limited any increase in property taxes to no more than a 0.6 mill increase annually for three years through 2008, not to exceed the county’s mill levy limit at that time of 23.745 mills.

Colorado Revised Statute 29-1-301 limits the property tax increase to an amount no greater than 5.5% above the previous year's property tax. In computing the limit, the following are excluded: the increased valuation for assessment attributable to new construction and personal property for the preceding year, and the increased valuation for assessment attributable to annexation or inclusion of additional land.

Colorado Revised Statue 39-10-114 also allows the county to adjust the amount of its tax levy by an additional amount which does not exceed the proportional share of the total amount of abatements and refunds made.