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.