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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