HomeMy WebLinkAbout09007As Amended July 11, 2016
ORDINANCE NO. 9007
AN ORDINANCE SUBMITTING TO THE ELIGIBLE ELECTORS OF
THE CITY OF PUEBLO, COLORADO AT THE SPECIAL MUNICIPAL
ELECTION TO BE HELD ON NOVEMBER 8, 2016, A QUESTION
ESTABLISHING A ONE-HALF PERCENT SALES AND USE TAX RATE
FOR FIVE YEARS FOR PUBLIC SAFETY, STREETS AND PARKS
WITHIN THE CITY AND THE ADOPTION OF ORDINANCE NO. 8997
TO IMPLEMENT THE TAX
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 2021 Sales and Use
Tax Capital Improvement Projects Fund"; and
WHEREAS, the City Council of the City hereby finds and determines that establishing an
additional one-half percent sales and use tax rate, for five years, dedicated to public safety, streets
and parks projects 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. 8997"), which
is attached hereto and which if adopted by the voters of the City would establish an additional
one-half percent sales and use tax rate for five years; 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. 8997
and thereby establish an additional one-half percent sales and use tax rate for 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. 8997 and thereby establishing an additional
one-half percent sales and use tax rate dedicated to public safety, streets and parks projects shall
be submitted to a vote of the eligible electors of the City at the City's special election to be held
on November 8, 2016. The ballot question (submission clause and title) therefore shall be as
follows:
QUESTION NO. 2A - ONE-HALF CENT SALES TAX FOR PUBLIC SAFETY, STREETS
AND PARKS
SHALL THE CITY OF PUEBLO'S TAXES BE INCREASED BY $7.9
MILLION ANNUALLY (FIRST FULL FISCAL YEAR INCREASE) AND BY
WHATEVER AMOUNTS ARE RAISED ANNUALLY THEREAFTER, FOR
A FIVE-YEAR PERIOD FROM JANUARY 1, 2017 THROUGH DECEMBER
31, 2021 BY ADOPTING ORDINANCE NO. 8997 IMPOSING A ONE-HALF
PERCENT CITY SALES AND USE TAX RATE AND SHALL ALL
REVENUES DERIVED FROM SUCH TAX BE COLLECTED, RETAINED
AND SPENT, NOTWITHSTANDING ANY LIMITATIONS PROVIDED BY
LAW, 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 ESTABLISHING A SPECIAL
FUND FOR THE DEPOSIT OF SUCH REVENUES TO BE SPENT ONLY
FOR PUBLIC SAFETY, STREETS AND PARKS PURPOSES?
FOR THE ORDINANCE _____
AGAINST THE ORDINANCE _____
The text of Ordinance No. 8997 is as follows:
BE IT ORDAINED BY THE PEOPLE OF THE CITY OF PUEBLO, that (brackets indicate
matter being deleted; underscoring indicates new matter being added):
SECTION 2.
Section 14-4-85 of Chapter 4, Title XIV of the Pueblo Municipal Code, as amended, (a
portion of Section 13 of Ordinance No. 2189 approved by a vote of the People on November 8,
1955, as amended by Ordinance Nos. 3160, 3474, 4235, 5170, 5314, 5668, 5810, 5978, 6683,
7464 and 8197) is hereby amended by the addition of the following new subsections (g) and (h):
Sec. 14-4-85. Schedule; tax added to price.
. . .
(g) Notwithstanding the three and one-half percent (3 ½ %) rate provision
of paragraph (e) of this Section 14-4-85, for the period January 1, 2017 through
December 31, 2021, the rate of tax imposed pursuant to Section 14-4-85(a) shall be
increased by an additional one-half percent (½ %) for a rate of four percent (4%).
(h) The revenues from the additional one-half percent (½ %) sales and
use tax rate imposed by Sections 14-4-63(3) and 14-4-85(g) of this Chapter,
including interest and penalties with respect thereof, shall upon collection and
receipt by the City, be deposited and placed in a special fund hereby created to be
known as the "2017 to 2021 Sales and Use Tax Public Safety, Streets and Parks
Fund" (the "Fund"). The moneys in the Fund shall be used solely for Public Safety,
Streets and Parks.
SECTION 3.
Section 14-4-63 of Chapter 4, Title XIV of the Pueblo Municipal Code (Section 20 of
Ordinance No. 2189 approved by a vote of the People on November 8, 1955, as amended by
Ordinance Nos. 3160, 3474, 4734, 5170, 5314, 5668, 5810, 5978, 6683, 7464 and 8197) is
hereby amended by the addition of the following new subsection (3):
Sec. 14-4-63. Storage, consumption and use tax schedule.
. . .
(3) Notwithstanding the three and one-half percent (3 ½ %) rate provision
of paragraph (2) of this Section 14-4-63, for the period January 1, 2017 through
December 31, 2021, the rate of tax imposed pursuant to this Section shall be
increased by an additional one-half percent (½ %) for a rate of four percent (4%).
SECTION 4.
The people of Pueblo do hereby find, determine and declare that the expenditure of
revenues from the additional one-half percent sales and use tax rate for public safety, streets and
parks will promote the public peace, health, safety and welfare. The people of Pueblo do further
find, determine and declare that the expenditure of such revenues for public safety, streets and
parks projects are public purposes and municipal functions.
SECTION 5.
All ordinances relating to sales and use taxes heretofore adopted, amended or
implemented shall remain in full force and effect except as the same have been previously
amended or repealed or as the same may be amended by this Ordinance.
SECTION 6.
All ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent of
such inconsistency. This repealer shall not be construed to revive any ordinance, or part thereof,
heretofore repealed.
SECTION 7.
If any section, subsection, paragraph, clause or other provision of this Ordinance for any
reason is invalid or unenforceable, the invalidity or unenforceability of such section, subsection,
paragraph, clause or other provision shall not affect any of the remaining provisions of this
Ordinance.
SECTION 8.
This Ordinance shall become effective upon the majority vote in favor thereof by the
registered electors of the City voting thereon at the Special Municipal Election to be held Tuesday,
November 8, 2016. The tax levies of this Ordinance shall take effect beginning January 1, 2017.
SECTION 9.
The officers and staff of the City are authorized and directed to take all action necessary,
appropriate or required to effectuate the provisions of this Ordinance.
SECTION 10.
Any revenues generated by the additional one-half percent sales and use tax imposed
pursuant to this Ordinance, together with all investment income thereon, may be collected,
retained and spent 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.
SECTION 11.
$1,000,000 from the “2017 to 2021 Sales and Use Tax Public Safety, Streets and Parks
Fund,” be designated to be paid to the Office of the District Attorney of the Tenth Judicial District,
in four annual installments of $250,00 each beginning in 2018 and ending in 2021 for the sole
purpose of hiring and retaining additional prosecutors. After approval of this Ordinance, as hereby
amended, by the electors of the City, City staff are directed to prepare an Intergovernmental
Agreement to be approved by City Council, which specifies that the District Attorney shall not
spend City tax revenue to increase the salaries or benefits of existing prosecutors or staff, but
shall spend such revenue for the sole purpose of hiring and retaining additional prosecutors.
INTRODUCED: June 27, 2016
BY: Ed Brown
PASSED AND APPROVED: July 11, 2016
City Clerk’s Office Item # R-7
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: June 27, 2016
TO: President Stephen G. Nawrocki and Members of City Council
VIA: Gina Dutcher, City Clerk
FROM: Sam Azad, City Manager
SUBJECT: AN ORDINANCE SUBMITTING TO THE ELIGIBLE ELECTORS OF THE CITY
OF PUEBLO, COLORADO AT THE SPECIAL MUNICIPAL ELECTION TO BE
HELD ON NOVEMBER 8, 2016, A QUESTION ESTABLISHING A ONE-HALF
PERCENT SALES AND USE TAX RATE FOR FIVE YEARS FOR PUBLIC
SAFETY, STREETS AND PARKS WITHIN THE CITY AND THE ADOPTION OF
ORDINANCE NO. 8997 TO IMPLEMENT THE TAX
SUMMARY:
Attached is a proposed Ordinance referring the creation of the one-half percent sales and use tax
ballot question to the voters of the City of Pueblo at the November 8, 2016 Special Municipal
Election.
PREVIOUS COUNCIL ACTION:
Not applicable.
BACKGROUND
The City’s police and fire departments have personnel and infrastructure needs which currently
are not being met due to fiscal constraints. In addition, certain City streets are in need of repair
and the Parks Department requires additional funding for upgrades and expansion. To meet those
needs, this Ordinance will establish a one-half percent sales and use tax rate for 5 years from
January 1, 2017 to December 31, 2021
Due to the requirements of the Taxpayers Bill of Rights ("TABOR"), Article X, §20 of the Colorado
Constitution, the establishment of a new tax must be approved by the voters. This measure would
refer the establishment of a one-half cent sales and use tax question to the voters and, if
approved, would also "De-Bruce" the revenue derived from the new tax (i.e., exempt it from the
revenue growth and spending limitations of TABOR).
FINANCIAL IMPLICATIONS:
It is anticipated that the one-half percent sales and use tax rate will generate approximately
$7,000,000 in 2017 and each subsequent year, subject to fluctuation in sales and use tax revenue
collected during those years. The City plans to spend those funds on public safety, streets and
parks projects, according to the attached spreadsheet.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Members of the public are the primary stakeholders affected by the proposed Ordinance. The
issue of establishing a five year one-half cent sales and use tax for public safety, streets and
parks projects, has been discussed at various public Council meetings and work sessions during
the past year.
ALTERNATIVES:
If the Ordinance is not approved, many public safety, streets and parks projects will remain
unfunded.
RECOMMENDATION:
This Ordinance must be adopted in order to refer the ballot measure to the voters.
Attachments:
Proposed Ordinance
Spreadsheet