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ORDINANCE NO. 9022
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 BALLOT QUESTION CONCERNING
THE ESTABLISHMENT AND OPERATION OF RETAIL
MARIJUANA STORES IN THE CITY OF PUEBLO
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The question of allowing the operation of retail marijuana stores within the City of
Pueblo shall be submitted to a vote of the eligible electors of the City at the City's special
municipal election to be held on November 8, 2016. The ballot question (submission
clause and title) therefore shall be as follows:
Question No. 2B (Retail Marijuana Stores)
SHALL THE ESTABLISHMENT AND OPERATION OF RETAIL
MARIJUANA STORES BE PERMITTED IN THE CITY OF PUEBLO
SUBJECT TO THE REQUIREMENTS OF THE COLORADO RETAIL
MARIJUANA CODE AND THE PUEBLO MUNICIPAL CODE AND
REGULATIONS TO BE ADOPTED BY THE CITY OF PUEBLO?
YES _____
NO _____
SECTION 2.
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.
SECTION 3.
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 Referendum
Ordinance.
SECTION 4.
This Referendum Ordinance shall become effective upon final passage and
approval.
INTRODUCED: July 25, 2016
BY: Ed Brown
COU► _ - ,►►
APPROVE r —
PRESIDENT OF CITY CO CIL
ATTESTED BY: . o.�1,��c Qnsr.X.
CITY CLERK
PASSED AND APPROVED: August 8. 2016
Special Municipal Election
November 8, 2016
PASSED BY VOTE OF THE PEOPLE
YES 24,330
NO 23,333
City Clerk’s Office Item # R-7
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: July 25, 2016
TO: President Stephen G. Nawrocki and Members of City Council
CC: Sam Azad, City Manager
VIA: Gina Dutcher, City Clerk
FROM: Daniel C. Kogovsek, City Attorney, Law Department
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 BALLOT QUESTION CONCERNING THE
ESTABLISHMENT AND OPERATION OF RETAIL MARIJUANA STORES IN THE
CITY OF PUEBLO
SUMMARY:
Attached is a proposed Ordinance referring the retail marijuana store ballot question to the voters
of the City of Pueblo at the November 8, 2016 special municipal election.
PREVIOUS COUNCIL ACTION:
On June 14, 2010, City Council referred a ballot measure to the electorate concerning a 4.3%
sales tax on medical marijuana and medical marijuana products. Pueblo voters approved said tax
on November 2, 2010.
On August 14, 2014, City Council referred a ballot measure to the electorate concerning an
increase in the sales tax and the imposition of an excise tax on retail marijuana and retail
marijuana products. Pueblo voters rejected said taxes on November 4, 2014.
On July 27, 2015, City Council referred a ballot measure to the electorate concerning an 8.0 %
excise tax when unprocessed retail marijuana is first sold or transferred by a marijuana cultivation
facility. Pueblo voters approved the excise tax on November 3, 2015.
BACKGROUND:
The establishment and operation of retail marijuana stores within the City of Pueblo has been
under consideration by the Pueblo City Council for many months. On May 11, 2015, a consensus
was reached that the issue should be resolved by a vote of the people in the 2016 election.
FINANCIAL IMPLICATIONS:
The amount of tax revenue that retail marijuana stores will generate (with or without a tax
increase) is subject to speculation. Similarly, it is unknown what additional costs (e.g. law
enforcement, etc.) that the City will incur if retail marijuana stores are allowed to operate in the
City.
By separate Ordinance, City Council is submitting for the voters’ consideration the establishment
of new sales and use taxes of 4.3 % when retail marijuana and retail marijuana products are sold
in retail marijuana stores. The proposed Ballot Question 2C further provides that the tax rate of
4.3% may be decreased or increased without further voter approval so long as the retail marijuana
sales and use tax rate does not exceed 15.0%.
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 allowing retail marijuana stores to operate in the City has been discussed at numerous
public Council meetings and work sessions since Amendment 64 was passed in November, 2012.
ALTERNATIVES:
If this Ordinance is not approved, the issue of allowing retail marijuana stores to operate in the
City will remain unresolved.
RECOMMENDATION:
This Ordinance must be adopted in order to refer the ballot measure to the voters.
Attachments:
None.