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HomeMy WebLinkAbout07822ORDINANCE NO. 7822 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF PUEBLO, COLORADO AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 4, 2008 A QUESTION RELATING TO AN AMENDMENT TO THE CITY'S SALES AND USE TAX ORDINANCE AUTHORIZING THE USE OF A PORTION OF THE THREE AND THREE - TENTHS PERCENT (3.30 %) OF THE CITY'S SALES AND USE TAX REVENUE TO FINANCE THE EXPANSION OF THE PUEBLO CONVENTION CENTER AND RELATED PARKING FACILITIES BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 A Question amending the City's sales and use tax ordinance authorizing the use of a portion of the three and three - tenths percent (3.30 %) of the City's sales and use tax revenue to finance the expansion of the Pueblo Convention Center and related parking facilities shall be submitted to a vote of the registered electors of the City of Pueblo at the special municipal election to be held November 4, 2008. The ballot title (submission clause and title) therefor shall be as follows: Question No. (Pueblo Convention Center Expansion) Shall Ordinance No. 7792 be approved which amends the City's sales and use tax ordinances to authorize the City to use a portion of the three and three - tenths percent (3.3 %) of City's sales and use tax revenue which was previously retained by the retailers who collect such tax, to pay the principal of, premium, if any, and interest on the Urban Renewal Authority of Pueblo, Colorado's revenue bonds in a principal amount not to exceed $8,000,000.00, or any bonds issued to refinance such bonds, and an additional $3,500,000.00 of such sales and use tax revenue, to finance the expansion of the Pueblo Convention Center and the acquisition and construction of related parking facilities? For the Ordinance Against the Ordinance 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 May 27, 2008 BY Vera Ortegon Councilperson APPROVE O—Z. i i l� l F'erf run i A S ECG lay, � CLERK PASSED AND APPROVED: June 9, 2008 Da A � 8ZZ PD L � � D D o Background Paper for Proposed ORDINANCE DATE: May 27, 2008 DEPARTMENT: Law Department TITLE 'r0 AGENDA ITEM # Al AN ORDINANCE SUBMITTINGTOTHE REGISTERED ELECTORS OFTHECITY OF PUEBLO, COLORADO AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 4, 2008 A QUESTION RELATING TO AN AMENDMENT TO THE CITY'S SALES AND USE TAX ORDINANCE AUTHORIZING THE USE OF A PORTION OF THE THREE AND THREE - TENTHS PERCENT (3.30 %) OF THE CITY'S SALES AND USE TAX REVENUE TO FINANCE THE EXPANSION OF THE PUEBLO CONVENTION CENTER AND RELATED PARKING FACILITIES ISSUE Should the City Council at the request of the Urban Renewal Authority of Pueblo, Colorado ( "Authority ") call a special municipal election in order to submit to a vote of the registered electors at a special municipal election to be held November 4, 2008 the question set forth in the attached Ordinance and described under Background? RECOMMENDATION None. BACKGROUND The Authority is requesting the City Council to call a special municipal election for November 4, 2008, the same date as the general election and to refer to the vote of the registered electors at the November 4, 2008 special municipal election a ballot question amending the City sales and use tax ordinance to authorize the City to use a portion of the 3.3% of City's sales and use tax revenue which was previously retained by the retailers who collect such tax ( "Vendor Fee ") to pay the debt service on the Authority's revenue bonds in a principal amount of $8,000,000.00 and an additional $3,500,000.00, out of Vendor Fee on hand at the time of construction, to finance the expansion of the Pueblo Convention Center and acquisition and construction of related parking facilities. 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. There will be annually available excess Vendor Fee in the amount of $400,000 for debt service on the additional $8 million bonds to be issued to finance an expansion of the Convention Center and related parking facilities. 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. There will be $3.5 million in Vendor Fee at the start of construction of the Convention Center expansion. Therefore, $7.5 million bond proceeds after issuance of Authority's bonds, plus $3.5 million Vendor Fee, or $11 million, will be available to finance the acquisition and construction of the expanded Convention Center and parking facilities. The use and expenditure of the Vendor Fee is not under the control of the Authority but under the control of the City Council. Therefore, Authority's $8 million bond documents and all other uses of the Vendor Fee must be approved by the City Council by ordinance. -2-