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HomeMy WebLinkAbout09773ORDINANCE NO. 9773 AN ORDINANCE SUBMITTING TO THE ELIGIBLE ELECTORS OF THE CITY OF PUEBLO, COLORADO AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 3, 2020, A QUESTION RELATING TO THE EXTENSION OF THE ONE-HALF PERCENT SALES AND USE TAX RATE FOR FIVE YEARS FOR PRIMARY JOB CREATING CAPITAL IMPROVEMENT PROJECTS WITHIN THE CITY AND THE PUEBLO MEMORIAL AIRPORT BOUNDARIES AND THE ADOPTION OF ORDINANCE NO. 9764 TO IMPLEMENT THE EXTENSION 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 3.7%; and WHEREAS, revenues from a one-half percent sales and use tax rate (of the 3.7% rate) are deposited in a special fund known as the "1992 to 2021 Sales and Use Tax Capital Improvement Projects Fund" (the "Fund"); and WHEREAS, monies in the Fund are used for job creating capital improvement projects within the City and the Pueblo Memorial Airport boundaries; and WHEREAS, the capital improvement projects funded by monies from the Fund have been successful in creating jobs and thereby promoting the public peace, health, safety and welfare of the City and its residents; and WHEREAS, the Act was initially enacted by the voters of the City, who also enacted ordinances creating and extending the one-half percent sales and use tax rate used to fund such job creating capital improvements projects; and WHEREAS, the provisions in the Act implementing the one-half percent sales and use tax rate presently expire on December 31, 2021; and WHEREAS, the City Council of the City has determined and hereby finds and determines that extending the one-half percent sales and use tax rate dedicated to primary job creating capital improvement projects within the City and the Pueblo Memorial Airport boundaries 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 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. 9764"), which is attached hereto and which if adopted by the voters of the City would extend the one-half percent sales and use tax rate for an additional five years; and WHEREAS, Article X, Section 20 of the Colorado Constitution as interpreted by the Colorado Supreme Court in Bruce v. City of Colorado Springs, 129 P.3d 988 (Colo. 2006) requires voter approval in advance for any extension of an expiring tax; 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. 9764 and thereby extend the one-half percent sales and use tax rate for another 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. 9764 and thereby extending the one-half percent sales and use tax rate dedicated to primary job creating capital improvement 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 3, 2020. The ballot question (submission clause and title) therefore shall be as follows: QUESTION NO. 2A - (EXTENSION OF THE ONE-HALF CENT SALES TAX FOR ECONOMIC DEVELOPMENT) WITHOUT RAISING ADDITIONAL TAXES, SHALL THE EXISTING ONE-HALF PERCENT CITY SALES AND USE TAX RATE FOR ECONOMIC DEVELOPMENT BE EXTENDED FOR A FIVE-YEAR PERIOD FROM ITS CURRENT EXPIRATION OF DECEMBER 31, 2021 THROUGH DECEMBER 31, 2026 BY ADOPTING ORDINANCE NO. 9764, THE REVENUES THEREFROM TO BE SPENT TOGETHER WITH ALL INVESTMENT INCOME THEREON 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 BY CONTINUING TO DEDICATE THE REVENUES FROM THE ONE-HALF PERCENT SALES AND USE TAX RATE FOR PRIMARY JOB CREATING CAPITAL IMPROVEMENT PROJECTS WITHIN THE CITY AND THE PUEBLO MEMORIAL AIRPORT BOUNDARIES, CREATING A SPECIAL FUND FOR THE DEPOSIT OF SUCH REVENUES, AND FINDING AND DETERMINING THAT THE EXPENDITURE OF SUCH REVENUES FOR PRIMARY JOB CREATING CAPITAL IMPROVEMENT PROJECTS ARE PUBLIC PURPOSES AND MUNICIPAL FUNCTIONS? FOR THE ORDINANCE _____ AGAINST THE ORDINANCE _____ SECTION 2. The officers and employees of the City are authorized and directed to take all action necessary, appropriate or required to effectuate the provisions of this Ordinance. SECTION 3. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on August 10, 2020 . Final adoption of Ordinance by City Council on August 24, 2020 . President of City Council Action by the Mayor: ☒ Approved on August 28, 2020 . □ Disapproved on based on the following objections: _ Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST City Clerk City Clerk’s Office Item # R-6 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: August 10, 2020 TO: President Dennis E. Flores and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Brenda Armijo, City Clerk FROM: Daniel C. Kogovsek, City Attorney SUBJECT: AN ORDINANCE SUBMITTING TO THE ELIGIBLE ELECTORS OF THE CITY OF PUEBLO, COLORADO AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 3, 2020, A QUESTION RELATING TO THE EXTENSION OF THE ONE-HALF PERCENT SALES AND USE TAX RATE FOR FIVE YEARS FOR PRIMARY JOB CREATING CAPITAL IMPROVEMENT PROJECTS WITHIN THE CITY AND THE PUEBLO MEMORIAL AIRPORT BOUNDARIES AND THE ADOPTION OF ORDINANCE NO. 9764 TO IMPLEMENT THE EXTENSION SUMMARY: Attached is a proposed Ordinance referring the extension of the one-half percent sales and use tax ballot question to the voters of the City of Pueblo at the November 3, 2020 special municipal election. PREVIOUS COUNCIL ACTION: City Council has previously referred ballot measures to the electorate for the extension of the one- half percent sales and use tax in 1995 by Ordinance No. 5978; in 2000 by Ordinance No. 6683; in 2006 by Ordinance No. 7464; in 2010 by Ordinance No.8197 and in 2015 by Ordinance No. 8904. BACKGROUND The City’s one-half percent sales and use tax rate for job creating capital improvement projects will expire December 31, 2021. The Ordinance will extend the one-half percent sales and use tax rate for 5 years from January 1, 2022 to December 31, 2026. Due to the requirements of the Taxpayers Bill of Rights ("TABOR"), Article X, §20 of the Colorado Constitution, any extension of an existing tax must be approved by the voters. This measure would refer the extension of the one-half cent sales and use tax question to the voters and, if approved, would also "De-Bruce" the revenue derived from the tax extension (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 $9.8 million in 2022 and each subsequent year, subject to fluctuation in sales and use tax revenue collected during those years. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If the Ordinance is not approved, the one-half cent sales and use tax will expire on December 31, 2021. RECOMMENDATION: This Ordinance must be adopted in order to refer the ballot measure to the voters. Attachments: Proposed Ordinance