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Home My WebLink About09147 ORDINANCE NO. 9147 AN ORDINANCE SUBMITTING TO THE ELIGIBLE ELECTORS OF THE CITY OF PUEBLO, COLORADO AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 7, 2017, A QUESTION ESTABLISHING AN ADDITIONAL ONE-FIFTH . PERCENT (2%) SALES AND USE TAX RATE FOR POLICE PERSONNEL AND OPERATING NEEDS AND THE ADOPTION OF ORDINANCE NO. 9141 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; and WHEREAS, the City Council of the City hereby finds and determines that establishing an . additional one-fifth percent (2%) sales and use tax rate, dedicated to police protection 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. 9141"), which is attached hereto and which if adopted by the voters of the City would establish an additional one-fifth percent sales and use tax rate; 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. 9141 . and thereby establish an additional one-fifth percent (2%) sales and use tax rate 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. 9141 and thereby establishing an additional . one-fifth percent (2%) sales and use tax rate dedicated to public safety shall be submitted to a vote of the eligible electors of the City at the City's general election to be held on November 7, 2017. The ballot question (submission clause and title) therefore shall be as follows: QUESTION NO. 2B - ONE-FIFTH CENT SALES TAX FOR POLICE PERSONNEL AND OPERATING NEEDS SHALL THE CITY OF PUEBLO'S TAXES BE INCREASED BY UP TO $3.6 MILLION ANNUALLY (FIRST FULL FISCAL YEAR INCREASE) AND BY WHATEVER AMOUNTS ARE RAISED ANNUALLY THEREAFTER, FOR FIVE YEARS FROM JANUARY 1, 2018 THROUGH DECEMBER 31, 2022, BY ADOPTING ORDINANCE . NO. 9141 IMPOSING AN ADDITIONAL ONE-FIFTH PERCENT (2%) 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 ? POLICE PERSONNEL AND OPERATING NEEDS FOR THE ORDINANCE _____ AGAINST THE ORDINANCE _____ SECTION 2. The officers and staff of the City are authorized and directed to take all action necessary, appropriate or required to implement the provisions of this Ordinance. SECTION 3. This Ordinance shall become effective upon final passage and approval. INTRODUCED July 10, 2017 _____ BY: Ed Brown _____ PASSED AND APPROVED: July 24, 2017 City Clerk’s Office Item # R-2 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: July 10, 2017 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 GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 7, 2017, A QUESTION ESTABLISHING AN ADDITIONAL ONE- . FIFTH PERCENT (2%) SALES AND USE TAX RATE FOR POLICE PERSONNEL AND OPERATING NEEDS AND THE ADOPTION OF ORDINANCE NO. 9141 TO IMPLEMENT THE TAX SUMMARY: Attached is a proposed Ordinance referring the creation of a .2 percent sales and use tax ballot question to the voters of the City of Pueblo at the November 7, 2017 general municipal election. PREVIOUS COUNCIL ACTION: Not applicable. BACKGROUND The City’s police department has personnel needs and operating expenses which currently are not being met due to fiscal constraints. To meet those needs, this Ordinance will establish a one- fifth percent sales and use tax rate for five (5) years beginning January 1, 2018 and ending on December 31, 2022. 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-fifth 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 .2 percent sales and use tax rate will generate up to approximately $3,600,000 in 2018 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 police personnel and operating needs. 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 one-fifth cent sales and use tax for public safety has been discussed at various public Council meetings and work sessions during the past year. ALTERNATIVES: If the Ordinance is not approved, the City will be unable to hire additional police officers which are needed to combat crime in the City of Pueblo. RECOMMENDATION: This Ordinance must be adopted in order to refer the ballot measure to the voters. Attachments: Proposed Referendum Ordinance Proposed Sales and Use Tax Ordinance