Don’t you think you should have a voice in Golden’s decision to spend $65,000,000 on a new City Hall?

In Spring 2024, a group of non-partisan Golden residents (also known as “Golden Residents Count”), from all parts of our community, gathered with similar concerns related to the City’s plan to move forward with the design and construction of a new $65 million Municipal and Police facility using funding via the use of Certificates of Participation (COPs). GRC repeatedly appeared for public comment at City Council meetings. We also met individually with our City Councilors and City Staff to express our concerns and find ways to work together so that this proposed project would ultimately be put to the vote of the Golden people to decide. Unfortunately, the City and GRC could not come to common ground so on October 21, 2024, GRC officially submitted a petition to the City of Golden to amend the City of Golden Home Rule Charter, Chapter XII – MUNICIPAL BORROWING. This proposed amendment simply closes a loophole in our current City Charter that allows the City to borrow an unlimited amount of money without voter approval by using Certificates of Participation (COPs) or Lease-Revenue Bonds.

Going forward, GRC needs to collect 1,304 signatures from registered voters that reside within the City of Golden limits by January 29, 2025 in order to get the proposed City Charter amendment in a special election tentatively scheduled for May 13, 2025.

Below is the exact language of what was submitted to the City of Golden:

Pursuant to Section 15.11 of the Charter of the City of Golden (“Charter”) and C.R.S. §31-2-210, this Petition is being circulated to registered electors of the City of Golden, Colorado (“City”), to petition for the amendment of Chapter XII – MUNICIPAL BORROWING of the Charter by the addition of Section 12.8 at a special election to be held on or about April 22, 2025. The proposed change to Chapter XII – MUNICIPAL BORROWING of the Charter is set forth below, with new language in bold and underlined:

12.8 – Certificates of Participation (COPs) or Lease-Revenue Bonds

a. LIMIT ON DEBT ISSUANCE:
The City may not issue Certificates of Participation (COPs), Lease-Revenue Bonds, or similar financial tools (used for leaseback arrangements) greater than $20 million for a single project unless approved by voters. Approved by voters means that the question of issuing bonds was submitted to a vote of the taxpaying electors, at a special or general election, and approved by a majority of those voting on the question.

b. Starting on January 1, 2027, this $20 million limit will automatically adjust for inflation each year.

c. The City may not divide a project into smaller parts to avoid the need for voter approval.

d. Definitions:

• • • • City: Refers to the City Council or any entity controlled or managed by the City of Golden, Colorado.
      • Inflation: Refers to the Colorado Consumer Price Index (CPI) or a similar index that tracks inflation in the state or the Denver-Golden area.
      • Single Capital Project: Refers to a project with one clear objective, located in a specific area, and subject to one regulatory or environmental review process.

The original City of Golden Charter was designed to have voters approve large projects that would be funded by General Obligation or Revenue Bonds. Using COPs without voter approval is not meeting the spirit and intent of the original Charter.

This proposed amendment updates the Charter to require the City to ask voters to approve borrowing more than $20 million for a single project as originally intended. Setting the limit at $20 million allows the City to still move forward with fairly large projects without requiring a vote.

“A certificate of participation (COP) is a type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. The COP is an alternative to municipal bonds in which an investor buys a share in the improvements or infrastructure the government entity intends to fund.“ (Source: Investopedia: Certificate of Participation (COP): Definition, Uses, Taxation).

COPs are a valid financing option for the City to use but currently they do not have to be approved by voters.

The City has previously used COPs to fund projects. Examples include building the Golden Community Center (approved by voters), Fossil Trace Golf Club (approved by voters), the Splash Water Park (approved by voters), the new City of Golden Maintenance shop (not submitted for voter approval) and the 2019 purchase of the Coors office building and associated land (not submitted for voter approval).

The City can currently take on any amount of debt for any project using COPs or Lease-Revenue Bonds without voter approval. Obviously, the lenders will have to believe that the City will pay them back either through revenue generated by the project or offering other assets as a guarantee.

The original City of Golden Charter was approved by voters on November 7, 1967. Chapter 12 of the Charter describes how and when the City can borrow money. Details of the City Charter – Chapter 12 can be found here: https://library.municode.com/co/golden/codes/municipal_code?nodeId=CH_CHXIIMUBO.

The Charter specifically allows the City to take on debt for projects associated with our water, electric, gas, or sewer systems. If the income from billing, like our water bills, will cover paying back the debt, voters are not required to approve the debt. If the income from those systems will not cover the cost of the debt, voters are required to approve the debt. This allows the City to borrow for things like buying new water rights (making sure we don’t run out of water), a new water treatment plant (making the City water ready for drinking) or other water system improvements.

The City Charter specifically allows the City to take on debt for other projects with voter approval. As mentioned above, the City held elections in the 1990s to have voters decide whether to build Fossil Trace Golf Club, the Splash Water Park and the Golden Community Center. These are General Obligation or Revenue Bonds.

The City Charter already spells out how the City can borrow money for critical infrastructure, including water, electric, gas or sewer system, or other public utility or income-producing project. GRC reviewed previous uses of COPs by the City of Golden for other things, such as the Coors office building and property, and adjusted upward for recent inflation. The $20M borrowing limit, without voter approval, allows the City flexibility to cover similar immediate need projects.

Yes! The City’s current estimate for a Police-only headquarters is above $20M. The City of Windsor (population 38,510) just completed a 43,330 square foot building, larger than what Golden projected it needed, for $30M (See August 7, 2024 Loveland Herald Reporter Article here). The City could borrow $20M via COPs and use reserves and revenues to cover the remaining cost.

GRC was hoping to completely avoid pursuing any ballot measure by working with City Council to update this loophole our City Charter. However, unfortunately, after trying to work together with the City, they are adamant that they will proceed, as planned, with the proposed $65M city facility funding it with COPs and without the vote of the people. That said, with the timing of a special election, the ballot measure will tentatively be voted on in May 2025. If approved (i.e. Voters say “yes”), it will give the City enough time to put the proposed $65M City Hall on the ballot for our next general election in November 2025.

Voting “Yes” for this change ensures that voters will be able to choose whether the City should move forward with projects requiring large amounts of debt. It does not stop the City from doing anything the voters approve.

If residents choose to vote “NO,” current and future City Councils could approve taking on any amount of debt using COPS for any project. This could include projects such as a permanent performance venue in Parfet Park, a second golf course, a homeless shelter in the historic downtown, an additional water feature in Clear Creek, houses for city employees, or apartment buildings in all existing neighborhoods, to accommodate the high demand for housing in Golden.

You can help in THREE ways!

1. SIGN THE PETITION!

First, we need to obtain 1,304 signatures from registered electors that reside within the City of Golden limits by January 29, 2025. If you are in favor of supporting this Charter Amendment, we need your signature.

2. HELP CIRCULATE THE PETITION TO YOUR GOLDEN FRIENDS AND NEIGHBORS!

Second, acquiring over 1,304 signatures will be a “team” effort. If you are interested in helping get signatures from your friends and neighbors, we would love your help!

3. CAST YOUR VOTE IN THE SPECIAL ELECTION IN SPRING 2025!

Third, once we submit and get our our petition approved with the 1,300+ signatures, it will go to a special election in May 2025. Please vote…and please vote YES! A “YES” vote is in favor of adding this amendment to the City’s Charter. A “no” vote rejects the proposed amendment to the City’s Charter.