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HomeMy WebLinkAbout16103RESOLUTION NO. 16103 A RESOLUTION FIXING THE BALLOT TITLE AND SUBMITTING TO THE ELIGIBLE ELECTORS OF THE CITY OF PUEBLO, COLORADO AT THE REGULAR MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 4, 2025, A QUESTION RELATING TO THE EXTENSION OF THE ONE- HALF PERCENT SALES AND USE TAX RATE FOR FIVE YEARS FOR PROJECTS WITHIN THE CITY AND THE PUEBLO MEMORIAL AIRPORT BOUNDARIES CONSISTENT WITH THE CRITERIA, STANDARDS, RULES AND REGULATIONS AND THE ADOPTION OF ORDINANCE NO. 11001 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, included in the total 3.7% rate, are deposited in a special fund known as the "1992 to 2026 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 are scheduled to expire on December 31, 2026; 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 and economic development 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, the City desires to ask the electors of the City to vote on whether to extend the one-half percent sales and use tax rate dedicated to primary job and economic development creating capital improvement projects within the City and the Pueblo Memorial Airport boundaries; and WHEREAS, the City Council has proposed an ordinance ("Ordinance No. 110 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, pursuant to Article X, Section 20 of the Colorado Constitution and Section 5-1-10, P.M.C., referring to the voters a measure to approve Ordinance No. 11001 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 RESOLVED BY THE CITY COUNCIL OF PUEBLO, that SECTION 1. The question of adopting Ordinance No. 11001 and thereby extending the one-half percent sales and use tax rate for five years for projects within the City and the Pueblo Memorial Airport boundaries consistent with the criteria, standards, rules and regulations shall be submitted to a vote of the eligible electors of the City at the City's regular municipal election to be held on November 4, 2025. The ballot question (submission clause and title) therefore shall be as follows: AND BY CONTINUING TO DEPOSIT REVENUES FROM THE ONE-HALF PERCENT SALES AND USE TAX RATE INTO A SPECIAL FUND FOR THE DEPOSIT OF SUCH REVENUES TO BE USED CONSISTENT WITH THE CRITERIA ESTABLISHED FOR USE OF SUCH FUNDS, AND FINDING AND DETERMINING THAT THE EXPENDITURE OF SUCH REVENUES ARE PUBLIC PURPOSES AND MUNICIPAL FUNCTIONS? YES _____ NO _____ 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 Resolution. SECTION 3. This Resolution shall become effective immediately upon final passage. INTRODUCED: August 25, 2025 BY: Bret Boston MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: CITY CLERK City Clerk's Office Item # Q2 Background Paper for Proposed Resolution COUNCIL MEETING DATE: August 25, 2025 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Marisa Stoller, City Clerk FROM: Carla Sikes, City Attorney SUBJECT: A RESOLUTION FIXING THE BALLOT TITLE AND SUBMITTING TO THE ELIGIBLE ELECTORS OF THE CITY OF PUEBLO, COLORADO AT THE REGULAR MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 4, 2025, A QUESTION RELATING TO THE EXTENSION OF THE ONE- HALF PERCENT SALES AND USE TAX RATE FOR FIVE YEARS FOR PROJECTS WITHIN THE CITY AND THE PUEBLO MEMORIAL AIRPORT BOUNDARIES CONSISTENT WITH THE AMENDED CRITERIA, STANDARDS, RULES AND REGULATIONS AND THE ADOPTION OF ORDINANCE NO. 11001 TO IMPLEMENT THE EXTENSION SUMMARY: Attached is a proposed Resolution which proposes to fix the ballot title and ballot language for the November 4, 2025 regular municipal election that would extend the one- half percent sales and use tax rate for five years beginning January 1, 2027 and ending December 31, 2031. PREVIOUS COUNCIL ACTION: The Half-Cent Sales and Use Tax was most recently extended by a vote of the people approving Ordinance No. 9698 dated April 13, 2020. BACKGROUND: The 1992-2026 Sales and Use Tax Capital Improvement Projects Fund, commonly - and has been extended multiple times for the purpose of funding job-creating capital improvement projects within the City. The current half-cent sales tax will expire on December 31, 2026. Colorado Constitution, any extension of an existing tax must be approved by the voters. The ballot question to be submitted to the voters at the November 4, 2025 refers the extension of the one-half cent sales and use tax question to the voters, and if approved, would also exempt it from the revenue growth and spending limitations of TABOR. FINANCIAL IMPLICATIONS: It is anticipated that the one-half cent sales and use tax rate will generate approximately $11,500,000 in 2027 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 Resolution is not approved, the ballot question will not be submitted or presented to the voters in the November 4, 2025 regular municipal election and the one-half cent sales and use tax will expire on December 31, 2026. RECOMMENDATION: Approve the Resolution. ATTACHMENTS: 1. Proposed Resolution 2. Ordinance No 11001