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HomeMy WebLinkAbout08331 ORDINANCE NO. 8331 AN ORDINANCE AMENDING CHAPTER 1 OF TITLE III OF THE PUEBLO MUNICIPAL CODE RELATING TO THE COMBINED SERVICE FEES IMPOSED ON DEVELOPED PROPERTY LOCATED IN THE PUEBLO MEMORIAL AIRPORT INDUSTRIAL PARK WHEREAS, the City of Pueblo provides services which benefit developed properties located in the Pueblo Memorial Airport Industrial Park and the property owners or occupants thereof should reimburse the City for the cost of those services; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1: Section 3-1-14(a)(1) of the Pueblo Municipal Code is hereby amended as follows (underlining indicates added text; brackets indicate deleted text): Sec. 3-1-14. Combined Service Fee (a) As used in this section, the following words shall have the following meaning: (1) “Developed property” means and includes all the land owned by a person [] or entity other than the Citywhich has been developed by constructing one or more buildings on any portion thereof. SECTION 2: This Ordinance shall become effective upon final passage and approval. INTRODUCED: March 28, 2011 BY: Leroy Garcia COUNCILPERSON PASSED AND APPROVED: April 11, 2011 Background Paper for Proposed ORDINANCE DATE: AGENDA ITEM # R-4 March 28, 2011 DEPARTMENT: FINANCE SAM AZAD, DIRECTOR TITLE AN ORDINANCE AMENDING CHAPTER 1 OF TITLE III OF THE PUEBLO MUNICIPAL CODE RELATING TO THE COMBINED SERVICE FEES IMPOSED ON DEVELOPED PROPERTY LOCATED IN THE PUEBLO MEMORIAL AIRPORT INDUSTRIAL PARK ISSUE Should the City Council amend Section 3-1-14(a)(1) of the Pueblo Municipal Code to allow for combined service fees to be charged on properties owned by the City? RECOMMENDATION Approval of the Ordinance BACKGROUND The Pueblo Memorial Airport Industrial Park (“Industrial Park”) is not within the city limits. As such, businesses within the Industrial Park do not pay property taxes or sales and use taxes to the City. However, the City of Pueblo provides services which benefit businesses and developed properties located in the Industrial Park. The most costly of these services is fire protection for all buildings in the Industrial Park which is paid for by the City’s general fund. The Combined Service Fee is a partial reimbursement to the City’s general fund for providing those services. The Combined Service Fee is imposed upon all developed property located in the Industrial Park that is owned by any person or entity other than the City. Currently, the City owns several vacant buildings located in the Industrial Park. These buildings have been constructed for use by future industrial prospects (shell buildings) or have been vacated by former tenants. The buildings are also receiving the benefit of fire protection and other services provided by the City. Since these buildings are for the sole purpose of attracting economic development prospects and job creation, all other costs of these buildings, including maintenance, utilities, and general upkeep, are paid for by the 1992-2016 Economic Development Capital Improvement Project Fund (the Half-Cent Sales Tax fund). However, the Combined Service Fees are not charged on the City owned buildings, to the direct detriment of the general fund. This Ordinance proposes striking the wording which precludes the City from the partial reimbursement of its costs relating to fire protection for these buildings. This small change will allow the City to charge the Combined Service Fee to all owners of developed property in the Industrial Park, including properties owned by the City. FINANCIAL IMPACT The combined service fee is currently $41.66 per acre per month for all developed property located within the Industrial Park. The proposed fees to be charged for all City-owned properties are $41.66 per acre per month. These fees will be paid from the 1992-2016 Economic Development Job Creating Capital Improvement Fund and a direct expense of building maintenance, and will reimburse the General Fund for its costs in providing fire protection and other services.