Loading...
HomeMy WebLinkAbout10837RESOLUTION NO. 10837 A RESOLUTION SUPPORTING THE PASSAGE AND APPROVAL OF CITY BALLOT ISSUE 2A, EXTENDING THE ONE -HALF PERCENT SALES AND USE TAX RATE FOR FIVE YEARS FOR THE PURPOSE OF PRIMARY JOB CREATING CAPITAL IMPROVEMENT PROJECTS WHEREAS, a sales and use tax rate of three and one -half percent is levied in the City of Pueblo pursuant of Chapter 4, Title XIV of the Pueblo Municipal Code; and WHEREAS, the City of Pueblo has a special fund known as the "1992 to 2006 Sales and Use Tax Capital Improvement Projects Fund" (the Fund) for the purpose of job creating capital improvement projects and derives its revenues from the City of Pueblo sales and use tax rate of three and one -half percent; and WHEREAS, monies deposited in the Fund are dedicated to and made available by the City Council for capital equipment and capital construction in conjunction with a primary job capital improvement project, and in addition, not more than 2% of such monies shall be allocated for primary job training programs in order to enhance the economic well -being and general welfare of the citizens of Pueblo; and WHEREAS, the revenues deposited into the Fund have created 14,000 jobs for the Pueblo community with entry level annual salaries of $19,600 to $31,000 not including benefits, average production worker jobs of $31,700, and professional positions averaging $58,000 with both job classifications including benefits; and WHEREAS, the extension of the one -half percent sales and use tax rate is necessary and imperative for the continued economic growth and primary job creating ventures that have been realized since Sales and Use Tax Capital Improvement Projects Fund was created in March 1984. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that SECTION 1 The City Council strongly supports the passage of Ballot issue 2A, extension of the one -half sales and use tax, to continue the momentum of current success and provide enhanced opportunities for the citizens of Pueblo. SECTION 2 The City Council is also committed to engage the citizens of Pueblo in a comprehensive economic development planning process to guide and enhance Pueblo's future workforce. SECTION 3. This Resolution shall become effective upon final passage and approval. INTRODUCED October 10, 2006 BY Ray Aquilera Cou APPROVED: % %�" President of City Council ATTESTED BY: \ � A CITY CLERK Background Paper for Proposed RESOLUTION Ma � AGENDA ITEM # A- DATE: October 10, 2006 DEPARTMENT: OFFICE OF THE CITY MANAGER DAVE GALLI, CITY MANAGER DOUG FITZGERALD, ASSISTANT CITY MANAGER TITLE A RESOLUTION SUPPORTING THE PASSAGE AND APPROVAL OF CITY BALLOT ISSUE 2A, EXTENDING THE ONE -HALF PERCENT SALES AND USE TAX RATE FOR FIVE YEARS FOR THE PURPOSE OF PRIMARY JOB CREATING CAPITAL IMPROVEMENT PROJECTS ISSUE The City's one -half percent sales and use tax rate is due to expire on December 31, 2006. In order to keep the momentum of economic development and expansion of primary job creating capital improvement projects in the community of Pueblo, it is necessary for the registered electors of the City of Pueblo to extend the one -half percent sales and use tax for another five years. On November 6, 2006, a special municipal election will be held to allow the citizens of Pueblo an opportunity to extend the tax until December 31, 2011. Since the inception of the one -half percent sales and use tax rate for job creating capital improvement projects in 1984, a total of 14,000 jobs have been created to the benefit and economic advantage of the Pueblo community. These jobs have had an annual salary range of $19,000 to $58,000. This Resolution will affirm the Council's strong desire to see this ballot issue passed at the November 6 election. Approval of this Resolution. FINANCIAL IMPACT It is projected that $6 million will be collected annually from the one -half percent sales and use tax rate for a total of $30 million over the 5 -year period of January 1, 2007, to December 31, 2011. These monies will be placed in a special fund under the control of the City Council for primary job creating capital improvement projects.