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
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Background Paper for Proposed
ORDINANCE
DATE: May 27, 2008
DEPARTMENT: Law Department
TITLE
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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.
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