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HomeMy WebLinkAbout08219ORDINANCE NO. 8219 AN ORDINANCE SUBMITTING TO THE ELIGIBLE ELECTORS OF THE CITY OF PUEBLO, COLORADO AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 2, 2010, A QUESTION RELATING TO THE EXTENSION OF THE ONE-HALF PERCENT SALES AND USE TAX RATE FOR FIVE YEARS FOR PRIMARY JOB CREATING CAPITAL IMPROVEMENT PROJECTS WITHIN THE CITY AND THE PUEBLO MEMORIAL AIRPORT BOUNDARIES AND INCIDENTALLY, NOT MORE THAN TWO PERCENT OF REVENUES THEREFROM FOR PRIMARY JOB TRAINING PROGRAMS OF NOT MORE THAN $800.00 FOR EACH QUALIFIED EMPLOYEE AND THE ADOPTION OF ORDINANCE NO. 8197 TO EFFECT THE EXTENSION WHEREAS, the City of Pueblo, Colorado (the "City") presently imposes, pursuant to Chapter 4, Title XIV of the Pueblo Municipal Code (the "Act"), a sales and use tax rate of three and one-half percent; and WHEREAS, revenues from a one-half percent sales and use tax rate (of the three and one-half percent rate) are deposited in a special fund known as the "1992 to 2011 Sales and Use Tax Capital Improvement Projects Fund" (the "Fund"); and WHEREAS, moneys in the Fund are used for job creating capital improvement projects within the City and the Pueblo Memorial Airport boundaries; and WHEREAS, the capital improvement projects funded by moneys from the Fund have been successful in creating jobs and thereby promoting the public peace, health, safety and welfare of the City and its residents; and WHEREAS, the Act was initially enacted by the voters of the City, who also enacted ordinances creating and extending the one-half percent sales and use tax rate used to fund such job creating capital improvements projects; and WHEREAS, the provisions in the Act effecting the one-half percent sales and use tax rate presently expire on December 31, 2011; and WHEREAS, the City Council of the City has determined and hereby finds and determines that extending the one-half percent sales and use tax rate dedicated to primary job creating capital improvement projects within the City and the Pueblo Memorial Airport boundaries and, incidentally, not more than two percent (2%) of such revenues for primary job training programs would promote the public peace, health, safety and welfare of the residents of the City; and WHEREAS, Section 18-5 of the Charter of the City requires that ordinances such as the Act, which have been adopted by an affirmative vote of the electorate, be amended only upon a vote of the electorate adopting the amending ordinance; and WHEREAS, the City Council has proposed an ordinance ("Ordinance No. 8197"), which is attached hereto and which if adopted by the voters of the City would extend the one-half percent sales and use tax rate for an additional five years; and WHEREAS, Article X, Section 20 of the Colorado Constitution as interpreted by the Colorado Supreme Court in Bruce v. City of Colorado Springs, 129 P.3d 988 (Colo. 2006) requires voter approval in advance for any extension of an expiring tax; and WHEREAS, the City desires to ask the electors of the City, pursuant to Article X, Section 20 of the Colorado Constitution and Section 18-5 of the Charter, to approve Ordinance No. 8197 and thereby extend the one-half percent sales and use tax rate for another five years for the purposes stated above; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that SECTION 1. The question of adopting Ordinance No. 8197 and thereby extending the one-half percent sales and use tax rate dedicated to primary job creating capital improvement projects and, incidentally, not more than two percent of the revenues therefrom for primary job training program shall be submitted to a vote of the eligible electors of the City at the City's special election to be held on November 2, 2010. The ballot question (submission clause and title) therefor shall be as follows: QUESTION NO. __ - (EXTENSION OF THE ONE-HALF CENT SALES TAX) WITHOUT RAISING ADDITIONAL TAXES, SHALL THE EXISTING ONE- HALF PERCENT CITY SALES AND USE TAX RATE BE EXTENDED FOR A FIVE-YEAR PERIOD FROM ITS CURRENT EXPIRATION OF DECEMBER 31, 2011 THROUGH DECEMBER 31, 2016 BY ADOPTING ORDINANCE NO. 8197, THE REVENUES THEREFROM TO BE SPENT TOGETHER WITH ALL INVESTMENT INCOME THEREON AS A VOTER-APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY PURSUANT TO ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW, AND BY CONTINUING TO DEDICATE THE REVENUES FROM THE ONE-HALF PERCENT SALES AND USE TAX RATE FOR PRIMARY JOB CREATING CAPITAL IMPROVEMENT PROJECTS WITHIN THE CITY AND THE PUEBLO MEMORIAL AIRPORT BOUNDARIES AND, INCIDENTALLY, NOT MORE THAN TWO PERCENT OF SUCH REVENUES FOR PRIMARY JOB TRAINING PROGRAMS OF NOT MORE THAN $800.00 FOR EACH QUALIFIED EMPLOYEE, CREATING A SPECIAL FUND FOR THE DEPOSIT OF SUCH REVENUES, AND FINDING AND DETERMINING THAT THE EXPENDITURE OF SUCH REVENUES FOR PRIMARY JOB CREATING CAPITAL IMPROVEMENT PROJECTS AND PRIMARY JOB TRAINING PROGRAMS ARE PUBLIC PURPOSES AND MUNICIPAL FUNCTIONS? FOR THE ORDINANCE _____ AGAINST THE ORDINANCE _____ SECTION 2. The officers and employees of the City are authorized and directed to take all action necessary, appropriate or required to effectuate the provisions of this Ordinance. SECTION 3. This Ordinance shall become effective upon final passage. INTRODUCED: June 14, 2010 BY: Judy Weaver PASSED AND APPROVED: June 28, 2010 Background Paper for Proposed ORDINANCE DATE:AGENDA ITEM # R-2 June 14, 2010 DEPARTMENT: Law Department Thomas J. Florczak, City Attorney TITLE AN ORDINANCE SUBMITTING TO THE ELIGIBLE ELECTORS OF THE CITY OF PUEBLO, COLORADO AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 2, 2010, A QUESTION RELATING TO THE EXTENSION OF THE ONE-HALF PERCENT SALES AND USE TAX RATE FOR FIVE YEARS FOR PRIMARY JOB CREATING CAPITAL IMPROVEMENT PROJECTS WITHIN THE CITY AND THE PUEBLO MEMORIAL AIRPORT BOUNDARIES AND INCIDENTALLY, NOT MORE THAN TWO PERCENT OF REVENUES THEREFROM FOR PRIMARY JOB TRAINING PROGRAMS OF NOT MORE THAN $800.00 FOR EACH QUALIFIED EMPLOYEE AND THE ADOPTION OF ORDINANCE NO. 8197 TO EFFECT THE EXTENSION ISSUE Should the City Council approve an ordinance submitting to the eligible electors at the special municipal election to be held on November 2, 2010 a question extending the one-half percent sales and use tax rate for five (5) years from January 1, 2012 to December 31, 2016. RECOMMENDATION Approve the Ordinance. BACKGROUND The City’s one-half percent sales and use tax rate for job creating capital improvement projects will expire December 31, 2011. The Ordinance will extend the one-half percent sales and use tax rate for 5 years from January 1, 2012 to December 31, 2016 with up to 2% of the revenues therefrom to be made available for primary job training programs of not more than $800 for each qualified employee. It is anticipated that the one-half percent sales and use tax rate will generate approximately $7,000,000 in 2011 and each subsequent year, subject to fluctuation in sales and use tax revenue collected during those years. FINANCIAL IMPACT See Background.