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HomeMy WebLinkAbout08220 ORDINANCE NO. 8220 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF PUEBLO, COLORADO AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 2, 2010 A QUESTION AUTHORIZING THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO TO ISSUE REVENUE BONDS IN THE PRINCIPAL AMOUNT UP TO $10,000,000, HAVING SUCH TERMS AND CONDITIONS AS THE CITY COUNCIL MAY DETERMINE, FOR THE PURPOSE OF REMODELING, RESTORING AND MAINTAINING THE HISTORIC MEMORIAL HALL (THE "PROJECT"), AND IN CONJUNCTION THEREWITH, APPROVING ORDINANCE NO. 8196 AMENDING THE CITY OF PUEBLO'S SALES AND USE TAX ORDINANCES TO AUTHORIZE THE USE OF A PORTION OF THE THREE AND THREE-TENTHS (3.3%) OF SALES AND USE TAX REVENUES WHICH WAS PREVIOUSLY RETAINED BY THE RETAILERS WHO COLLECT SUCH TAX, TO FINANCE THE PROJECT INCLUDING, WITHOUT LIMITATION, PAYING THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON SUCH REVENUE BONDS, OR ANY BONDS ISSUED TO REFINANCE SUCH BONDS, AND PROVIDING OTHER MATTERS RELATING THERETO BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. At the special municipal election to be held on November 2, 2010, there shall be submitted to the vote of the registered electors of the City of Pueblo a question authorizing the Urban Renewal Authority of Pueblo, Colorado to issue revenue bonds in the principal amount up to $10,000,000, having such terms and conditions as the City Council may determine, for the purpose of remodeling, restoring and maintaining the historic Memorial Hall (the "Project"), and in conjunction therewith, approving Ordinance No. 8196 amending the City of Pueblo's sales and use tax ordinances to authorize the use of a portion of the three and three-tenths (3.3%) of sales and use tax revenues which was previously retained by the retailers who collect such tax, to finance the Project including, without limitation, paying the principal of, premium, if any, and interest on such revenue bonds, or any bonds issued to refinance such bonds, and providing other matters relating thereto. The ballot title (submission clause and title) therefor shall be as follows: QUESTION NO. ___ (RESTORATION OF HISTORIC MEMORIAL HALL) WITHOUT ANY INCREASE IN THE RATE OF EXISTING TAXES OR IMPOSING ANY NEW TAX, SHALL THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO BE AUTHORIZED TO ISSUE REVENUE BONDS IN THE PRINCIPAL AMOUNT UP TO $10,000,000, HAVING SUCH TERMS AND CONDITIONS AS THE CITY COUNCIL MAY DETERMINE, FOR THE PURPOSE OF REMODELING, RESTORING AND MAINTAINING THE HISTORIC MEMORIAL HALL (THE "PROJECT"), AND IN CONJUNCTION THEREWITH, SHOULD ORDINANCE NO. 8196 BE APPROVED AMENDING THE CITY OF PUEBLO'S SALES AND USE TAX ORDINANCES TO AUTHORIZE THE USE OF A PORTION OF THE THREE AND THREE-TENTHS (3.3%) OF SALES AND USE TAX REVENUES WHICH WAS PREVIOUSLY RETAINED BY THE RETAILERS WHO COLLECT SUCH TAX, TO FINANCE THE PROJECT INCLUDING, WITHOUT LIMITATION, PAYING THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON SUCH REVENUE BONDS, OR ANY BONDS ISSUED TO REFINANCE SUCH BONDS? YES _____ NO _____ SECTION 2. The officers 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 and approval. INTRODUCED: June 14, 2010 BY: Judy Weaver PASSED AND APPROVED: June 28, 2010 Background Paper for Proposed ORDINANCE DATE: AGENDA ITEM # R-3 June 14, 2010 DEPARTMENT: Law Department Thomas J. Florczak, City Attorney TITLE AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF PUEBLO, COLORADO AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 2, 2010 A QUESTION AUTHORIZING THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO TO ISSUE REVENUE BONDS IN THE PRINCIPAL AMOUNT UP TO $10,000,000, HAVING SUCH TERMS AND CONDITIONS AS THE CITY COUNCIL MAY DETERMINE, FOR THE PURPOSE OF REMODELING, RESTORING AND MAINTAINING THE HISTORIC MEMORIAL HALL (THE "PROJECT"), AND IN CONJUNCTION THEREWITH, APPROVING ORDINANCE NO. 8196 AMENDING THE CITY OF PUEBLO'S SALES AND USE TAX ORDINANCES TO AUTHORIZE THE USE OF A PORTION OF THE THREE AND THREE-TENTHS (3.3%) OF SALES AND USE TAX REVENUES WHICH WAS PREVIOUSLY RETAINED BY THE RETAILERS WHO COLLECT SUCH TAX, TO FINANCE THE PROJECT INCLUDING, WITHOUT LIMITATION, PAYING THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON SUCH REVENUE BONDS, OR ANY BONDS ISSUED TO REFINANCE SUCH BONDS, AND PROVIDING OTHER MATTERS RELATING THERETO ISSUE Should City Council submit to the voters at the Special Municipal Election to be held on November 2, 2010 a question allowing the so-called "Vendors Fee" to be used for renovating Memorial Hall, paying the principal and interest on bonds issued by the Urban Renewal Authority for such purpose, and authorizing the issuance of revenue bonds for such renovation? RECOMMENDATION Passage of the Ordinance is required in order to refer this question to the voters. BACKGROUND Under Pueblo's tax code, traditionally the vendors who collected and remitted sales tax to the City from the buyers of goods and services were allowed to retain 3.3% of the sales tax collected (i.e.: 0.1155% of the sales price). The concept behind this was compensation to the vendors for the costs and efforts in collection, remission and accounting for the sales tax. In 1993, with the support of the major types of businesses that collect such taxes (e.g., car dealers) the People amended this provision to divert the "Vendors Fee" to pay for operation and maintenance of a civic center and payment of principal and interest on bonds to finance a civic center, which allowed the construction of the Pueblo Convention Center. The amount of the Vendors Fee now exceeds the amount required for debt service on the Convention Center bonds and its operating deficiency. Additionally, the bonds on the Convention Center will be paid in full in 2019. Both of these circumstances would make the Vendors Fee available to finance the renovation of Memorial Hall, if the voters approve. FINANCIAL IMPACT If the ballot issue is approved, it will not increase the sales tax rate but merely allow the "Vendors Fee" to be used to fund the renovation of Memorial Hall.