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HomeMy WebLinkAbout07639ORDINANCE NO. 7639 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF PUEBLO, COLORADO AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 6, 2007 QUESTIONS RELATING TO AN AMENDMENT TO THE CITY'S SALES AND USE TAX ORDINANCE AND THE USE OF THREE AND THREE - TENTHS PERCENT (3.30 %) OF THE CITY'S SALES AND USE TAX REVENUE BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 Questions of amending the City's sales and use tax ordinance and the use of three and three - tenths percent (3.30 %) of the City's sales and use tax revenue shall be submitted to a vote of the registered electors of the City of Pueblo at the general municipal election to be held November 6, 2007. The ballot titles (submission clauses and titles) therefor shall be as follows: Question No. Shall Ordinance No. 7628 (a copy of which is on file in the office of the City Clerk) of the City of Pueblo, Colorado be approved, which ordinance amends Chapter 4 of Title XIV of the Pueblo Municipal Code and authorizes the City to use three and three - tenths percent (3.30 %) of the City's sales and use tax revenue, which was previously being retained by the retailers who collect such tax, for one or more of the following purposes, in such amounts and proportions as the City Council shall determine (1) to pay the principal of, premium, if any, and interest on the Urban Renewal Authority of Pueblo, Colorado ( "Authority ") Refunding Revenue Bonds, Series 2005 in the aggregate principal amount of $7,310,000.00, or any bonds issued to refinance such bonds, (2) to pay the net operating and maintenance expenses of the Pueblo Convention Center, including a reserve for replacement fund, (3) to finance in an amount not to exceed $3,000,000.00 the acquisition and construction of parking facilities and other improvements related to the Pueblo Convention Center, (4) to pay the principal of, premium, if any, and interest on the Authority's revenue bonds, if issued, in a principal amount not to exceed $8,000,000.00 to finance an expansion of the Pueblo Convention Center and the construction of related parking facilities and other improvements, or any bonds issued to refinance such bonds, and /or (5) to reimburse retailers for their costs incurred in collecting and remitting the sales and use tax revenues to the City, authorizing the City Council to pledge irrevocably all or any part of the three and three - tenths percent (3.30 %) of the City's sales and use tax revenue for any and all of the foregoing purposes and payment thereof, and shall the revenues derived from such three and three - tenths percent (3.30 %) of the City's sales and use tax and the earnings from the investment thereof be collected and spent, without limitation or condition, as a voter approved revenue change and an exception to the limits which would otherwise apply under Article X, Section 20 of the Colorado Constitution or any other law? For the Ordinance Against the Ordinance Question No. Shall the City Council of the City of Pueblo, Colorado, be authorized to pledge three and three - tenths percent (3.30 %) of the City's existing sales and use tax revenue toward the payment of bonds to be issued by the Urban Renewal Authority of Pueblo, Colorado ( "Authority ") in a principal amount of up to $8,000,000.00 with a repayment cost not to exceed $15,500,000.00 to finance an expansion of the Pueblo Convention Center and the construction of related parking facilities and other improvements? Yes No SECTION 2 The officers 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 upon final passage and approval. INTRODUCED Auqust 13, 2007 APPROVED: a ESID NTof City Council ATTESTED BY: CITY CLERK BY Randy Thurston Councilperson PASSED AND APPROVED: August 27, 2007 Ord . T03q Background Paper for Proposed ORDINANCE AGENDA ITEM # I q DATE: August 13, 2007 DEPARTMENT: Law Department TITLE AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF PUEBLO, COLORADO AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 6, 2007 QUESTIONS RELATING TO AN AMENDMENT TO THE CITY'S SALES AND USE TAX ORDINANCE AND THE USE OF THREE AND THREE - TENTHS PERCENT (3.30°/x) OF THE CITY'S SALES AND USE TAX REVENUE ISSUE Should the City Council atthe request of the Urban Renewal Authority of Pueblo, Colorado submit to a vote of the registered electors at the general municipal election to be held November 6, 2007 the two questions set forth in the attached Ordinance and described under Background? None BACKGROUND The Urban Renewal Authority of Pueblo, Colorado ( "Authority ") is requesting the City Council to refer to the vote of the registered electors at the November 6, 2007 general municipal election two ballot questions, as follows: A. Amending the City's sales and use tax ordinances to authorize the City Council as a voter approved revenue change under TABOR to use the 3.3% of City's sales and use tax revenues, which were previously retained by the retailers who collect the taxes ( "Vendor Fee "), for one or more of the following purposes: (1) pay the debt service on the Authority's Refunding Revenue Bonds, Series 2005 in the amount of $7,310,000, or any bonds issued to finance such bonds, (2) to pay the net operating and maintenance expenses of the Pueblo Convention Center, including a reserve for replacement fund, (3) to finance in an amount not to exceed $3,000,000 the acquisition and construction of a parking facility and other improvements related to the Pueblo Convention Center, (4) pay the debt services on Authority's revenue bonds, if issued, in a principal amount not to exceed $8,000,000 to finance an expansion of the Pueblo Convention Center and the construction of related parking facilities and other improvements, or any bonds issued to refinance such bonds, and /or(5) reimburse retailers fortheircost in collecting and remitting City's sales and use tax revenues. B. Specifically authorize the City Council to pledge the Vendor Fee toward the payment of Authority's bonds, if issued, in a principal amount up to $8,000,000 with a repayment cost not to exceed $15,500,000 to finance an expansion of the Pueblo Convention Center and the construction of related parking facilities and other improvements. FINANCIAL IMPACT (The following are estimates based upon financial information furnished by the Authority.) Vendor Fee generates annual revenue of $1,600,000 currently allocated as follows: (1) $700,000 for debt service on existing bonds, (2) $500,000 annual deficit in operating the Convention Center including management fee, and (3) $400,000 excess Vendor Fee. Vendor Fee will increase in the same percentage as City's sales and use tax revenue increases. The Authority estimates it will have available excess Vendor Fee in the amount of $400,000 annually for debt service on the additional $8 million bonds to be issued to finance an expansion of the Convention Center and related parking facilities and other improvements. With respect to the $8 million in new bonds, Authority proposes only to pay interest and no principal for eleven (11) years and to extend the Vendor Fee for debt service payments from 2019 to 2029 or for ten (10) years. Authority further estimates that it will have $7.5 million bond proceeds plus $3 million excess Vendor Fee or $10.5 million available after issuance of its $8 million bonds to finance the acquisition and construction of the expanded Convention Center and parking facilities. All Authority bond documents are other uses of the Vendor Fee must be approved by the City Council. ORDINANCE NO. 7628 AN ORDINANCE AMENDING CHAPTER 4, TITLE XIV OF THE PUEBLO MUNICIPAL CODE TO REALLOCATE THE USE OF THE THREE AND THREE - TENTHS PERCENT PORTION OF THE CITY'S SALES AND USE TAX REVENUES WHICH WERE PREVIOUSLY BEING RETAINED BY THE RETAILERS WHO COLLECT SUCH TAX; AUTHORIZING THE CITY COUNCIL TO DEDICATE THE REVENUES FROM SUCH THREE AND THREE - TENTHS PORTION OF THE CITY'S SALES AND USE TAX TO PAY THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO ( "AUTHORITY") REFUNDING REVENUE BONDS, SERIES 2005 IN THE AGGREGATE PRINCIPAL AMOUNT OF $7,310,000.00, OR ANY BONDS ISSUED TO REFINANCE SUCH BONDS, TO PAY THE NET OPERATING AND MAINTENANCE EXPENSES OF THE PUEBLO CONVENTION CENTER, INCLUDING A RESERVE FOR REPLACEMENT FUND, TO FINANCE IN AN AMOUNT NOT TO EXCEED $3,000,000.00 THE ACQUISITION AND CONSTRUC- TION OF PARKING FACILITIES AND OTHER IMPROVEMENTS RELATED TO THE PUEBLO CONVENTION CENTER, TO PAY THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THE AUTHORITY'S REVENUE BONDS, IF ISSUED, IN A PRINCIPAL AMOUNT NOT TO EXCEED $8,000,000.00 TO FINANCE AN EXPANSION OF THE PUEBLO CONVENTION CENTER AND THE CONSTRUCTION OF RELATED PARKING FACILITIES AND OTHER IMPROVEMENTS, OR ANY BONDS ISSUED TO REFINANCE SUCH BONDS, AND /OR TO REIMBURSE RETAILERS FOR THEIR COSTS INCURRED IN COLLECTING AND REMITTING THE SALES AND USE TAX REVENUES TO THE CITY; CREATING A SPECIAL FUND FOR THE DEPOSIT OF SUCH REVENUES; AND PROVIDING OTHER MATTERS RELATING THERETO BE IT ORDAINED BY THE PEOPLE OF PUEBLO, that: (Brackets indicate matter deleted; underscoring indicates matter added) SECTION 1 Section 17 of Chapter 4, Title XIV of the Pueblo Municipal Code (a portion 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 and 5810 ) is hereby amended to read as follows: Sec. 14 -4 -17. Collection fees. Notwithstanding Sections 14-4 -1 and 14 -4 -85 of this Chapter, three and three - tenths percent (3.3 %) of the revenues derived from the taxes imposed by this Chapter shall be deposited and placed in a special fund hereby created pursuant to Section 7 -21 of the Charter of the City to be known as the "Collection Fee Fund ". The moneys in the Collection Fee Fund shall be used solely for one or more of the following purposes in such amounts and proportions as the City Council shall determine: [[(1) paying the operation and maintenance expenses of a civic center and hotel complex within the Urban Renewal Authority of the City; (2) paying the principal of, premium, if any, and interest on revenue bonds of the Urban Renewal Authority of the City issued to finance the civic center and hotel complex and other improvements, orany bonds issued to refinance such bonds; and /or(3) reimbursing retailers for their costs incurred in collecting and remitting the sales and use tax revenues to the City.]] (1) to pay the principal of, premium. if any, and interest on bonds issued to refinance such bonds. (2) to pay the net operating and maintenance expenses of the Pueblo Convention Center, including a reserve for replacement fund. to finance in an amount not to exceed $3.000.000.00 the acguisition and construction of parking facilities and other improvements related to the Pueblo Convention Center. (4) to pay the principal of, premium, if any, and interest on the Authority's revenue bonds, if issued, in a principal amount not to exceed $8.000.000.00 to finance an expansion of the Pueblo Convention Center and the construction of related parking facilities and other improvements, or any bonds issued to refinance such bonds, and /or (5) to reimburse retailers for their costs incurred in collecting and remitting the sales and use tax revenues to the City. The City Council is authorized to pledge irrevocably all or any part of the moneys in the Collection Fee Fund for [the] any and all of the purposes set forth in clauses [(1) and /or (2)] (1). (2). (3). (4) and (5) above. SECTION 2 Section 14 -4 -17 of the Pueblo Municipal Code (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 and 7181), as amended, will promote the public peace, health, safety and welfare and the expenditure of such revenues for the purposes set forth in said Section 14 -4 -17 is a public purpose and municipal function notwithstanding such expenditure may, directly or indirectly, aid, assist or benefit private persons, corporations or other entities. SECTION 3 -2- 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 same may be amended by this Ordinance. SECTION 4 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 5 If any section, subsection, paragraph, clause or other provision of this Ordinance forany reason is invalid or unenforceable, the invalidity or unenforceabilityof such section, subsection, paragraph, clause or other provision shall not affect any of the remaining provisions of this Ordinance. SECTION 6 This Ordinance shall become effective upon majority vote in favor thereof by the registered electors of Pueblo voting thereon at the Regular Municipal Election to be held Tuesday, November 6, 2007. -3-