City of Boulder Ballot Question 2F
Negotiated or Private Bond Sales
Vote Yes
The
primary motive behind this question is to give more flexibility to the
city when it comes to negotiating the issuance of its bonds,
particularly those that it hopes to be issuing soon for the purpose of
creating a city-owned electric utility.
Currently,
section 98 of the Boulder City Charter only allows for the
competitive, public sale of bonds with maximum interest rates fixed by
ordinance. Also, section 98 requires all bonds to be sold to the highest
bidder.
Most cities already allow for “negotiated” bonds and private sale of bonds.
In
some instances, such as floating bonds for a new utility that doesn’t
already have an established rating, a negotiated bond process can
produce bonds that ultimately cost taxpayers less and that have better
interest rates. The city would also like the option of making bonds such
as those on a city utility available for purchase by Boulder
residents.
At the end
of the day, Question 2F is about giving the city more flexibility to
keep its financial house in order by empowering it to make the best
deals possible when it comes to city debt. For that reason, we
encourage voters to say yes on Question 2F.
View all of Boulder Weekly’s endorsements here.
