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