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HomeMy WebLinkAbout11255Docusign Envelope ID: 386E5A61-6B7F-8A72-81DB-E5790657910B ORDINANCE NO. 11255 AN ORDINANCE SUBMITTING TO THE ELIGIBLE ELECTORS OF THE CITY OF PUEBLO, COLORADO AT THE COORDINATED ELECTION TO BE HELD ON NOVEMBER 3, 2026, A QUESTION RELATING TO THE IMPOSITION OF AN ADDITIONAL ONE - QUARTER PERCENT (0.25%) SALES AND USE TAX RATE FOR DEPARTMENT OF FIRE AND TECHNOLOGY RELATED TO PUBLIC SAFETY PURPOSES AND THE ADOPTION OF ORDINANCE NO. 11243 TO IMPLEMENT THE TAX WHEREAS, the City of Pueblo, Colorado (the "City") presently imposes, pursuant to Chapter 4 of Title XIV of the Pueblo Municipal Code (the "Code"), a sales and use tax at the rate of three and seven -tenths percent (3.7%); and WHEREAS, the City does not presently have a dedicated source of revenue for Department of Fire and Technology Related to Public Safety purposes, which are presently supported through the General Fund and through limited fees and charges; and WHEREAS, the City Council of the City has determined and hereby finds and determines that the imposition of an additional one -quarter percent (0.25%) sales and use tax rate dedicated to Department of Fire and Technology Related to Public Safety purposes would promote the public peace, health, safety, and welfare of the residents of the City; and WHEREAS, the City Council has proposed an Ordinance (Ordinance No. 11243), the text of which is set forth in Section 1 below, which if adopted by the voters of the City would impose the additional one -quarter percent (0.25%) sales and use tax rate dedicated to Department of Fire and Technology Related to Public Safety purposes; and WHEREAS, Article X, Section 20 of the Colorado Constitution requires voter approval in advance for any new tax; and WHEREAS, Section 5-1-10 of the Pueblo Municipal Code authorizes the City Council, by resolution or ordinance, to fix the ballot title for any referred measure submitted to the eligible electors of the City; and WHEREAS, Section 18-5 of the Charter of the City provides that an ordinance adopted by electoral vote cannot be repealed or amended except by electoral vote, with the result that the dedication of revenues from the new tax to Department of Fire and Technology Related to Public Safety purposes will be embodied in the Code and may not be redirected without subsequent approval by the voters of the City; and WHEREAS, the City desires to ask the electors of the City, pursuant to Article X, Section 20 of the Colorado Constitution and Section 5-1-10 of the Pueblo Municipal Code, to approve Ordinance No. 11243 and thereby impose the additional one -quarter percent (0.25%) sales and use tax rate dedicated to Department of Fire and Technology Related to Public Safety purposes; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: Docusign Envelope ID: 386E5A61-6B7F-8A72-81DB-E5790657910B SECTION 1. The question of adopting Ordinance No. 11243 and thereby imposing the additional one - quarter percent (0.25%) sales and use tax rate dedicated to Department of Fire and Technology Related to Public Safety purposes shall be submitted to a vote of the eligible electors of the City at the coordinated election to be held on November 3, 2026. The ballot question (submission clause and title) therefore shall be as follows: QUESTION NO. (IMPOSITION OF ONE -QUARTER PERCENT SALES AND USE TAX FOR DEPARTMENT OF FIRE AND TECHNOLOGY RELATED TO PUBLIC SAFETY PURPOSES) SHALL THE CITY OF PUEBLO'S TAXES BE INCREASED BY $5,878,267.00 ANNUALLY (FIRST FULL FISCAL YEAR INCREASE) AND BY WHATEVER AMOUNTS ARE RAISED ANNUALLY THEREAFTER, BEGINNING JANUARY 1, 2027, BY ADOPTING ORDINANCE NO. 11243 IMPOSING AN ADDITIONAL ONE -QUARTER PERCENT (0.25%) SALES AND USE TAX AND ESTABLISHING A SPECIAL FUND TO BE KNOWN AS THE "DEPARTMENT OF FIRE AND TECHNOLOGY RELATED TO PUBLIC SAFETY SALES AND USE TAX FUND" FOR THE DEPOSIT OF SUCH REVENUES TO BE SPENT SOLELY FOR DEPARTMENT OF FIRE AND TECHNOLOGY RELATED TO PUBLIC SAFETY PURPOSES WITHIN THE CITY OF PUEBLO, AND SHALL ALL REVENUES DERIVED FROM SUCH TAX BE COLLECTED, RETAINED AND SPENT, NOTWITHSTANDING ANY LIMITATIONS PROVIDED BY LAW, 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? YES/FOR NO/AGAINST The text of Ordinance No. 11243 is set forth as the Implementing Ordinance attached to this Referral Ordinance and incorporated herein by reference as if fully set forth in this Section. SECTION 2. The officers and employees of the City are authorized to take all action necessary, appropriate, or required to implement the provisions of this Ordinance, including without limitation the timely certification of the ballot title set forth in Section 1 above to the Pueblo County Clerk and Recorder for inclusion on the November 3, 2026 coordinated election ballot. Docusign Envelope ID: 386E5A61-6B7F-8A72-81 DB-E5790657910B 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, 2026. Final adoption of Ordinance by City Council on August 24, 2026. DocuSigned by: auk President of City Council Action by the Mayor: Q Approved on 08/25/2026 ❑ Disapproved on based on the following objections: Signed by: 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: DocuSigned by: G'f,�,oGG B�oy- City Clerk Docusign Envelope ID: 386E5A61-6B7F-8A72-81DB-E5790657910B City Clerk's Office Item # R7 4 c s t O . III[_PU1E,.BLO cµc l¢ c d Background Paper for Proposed Ordinance COUNCIL MEETING DATE: August 24, 2026 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Clyde Bishop, City Clerk FROM: Harley Gifford, Deputy City Attorney SUBJECT: AN ORDINANCE SUBMITTING TO THE ELIGIBLE ELECTORS OF THE CITY OF PUEBLO, COLORADO, AT THE COORDINATED ELECTION TO BE HELD ON NOVEMBER 3, 2026, A QUESTION RELATING TO THE IMPOSITION OF AN ADDITIONAL ONE -QUARTER PERCENT (0.25%) SALES AND USE TAX RATE FOR THE DEPARTMENT OF FIRE AND TECHNOLOGY RELATED TO PUBLIC SAFETY PURPOSES AND THE ADOPTION OF ORDINANCE NO. 11243 TO IMPLEMENT THE TAX SUMMARY: Attached is a proposed Ordinance referring to the eligible electors of the City of Pueblo at the coordinated election to be held on November 3, 2026, a ballot question imposing an additional one -quarter percent (0.25%) sales and use tax rate dedicated to Department of Fire and Technology Related to Public Safety purposes within the City. The implementing Ordinance No. 11243 amends Chapter 4 of Title XIV of the Pueblo Municipal Code to add the additional rate to Sections 14-4-85 and 14-4-63 and creates a dedicated Department of Fire and Technology Related to Public Safety Sales and Use Tax Fund into which the revenues from the new tax will be deposited and from which expenditures may be made solely for Department of Fire and Technology Related to Public Safety purposes. This measure is one of four (4) sales and use tax referral measures being submitted by the City Council to the voters at the November 3, 2026 coordinated election. The other three measures address Parks and Recreation, Roads and Related Infrastructure, and Non -Profit and Key Contractual Entities. Each measure stands or falls on its own merits. The implementing Ordinance also directs the City Clerk to assign consecutive subsection designations in Sections 14-4-85 and 14-4-63 of the Pueblo Municipal Code in the event fewer than all four measures are approved by the voters. PREVIOUS COUNCIL ACTION: None on this specific measure. The most recent voter -approved sales and use tax measures are the extension of the Sales and Use Tax Capital Improvement Projects tax Docusign Envelope ID: 386E5A61-6B7F-8A72-81DB-E5790657910B at the November 4, 2025 regular municipal election (Ordinance No. 11001, referred by Resolution No. 16103) and the extension of the Public Safety Sales Tax at the November 8, 2022 special municipal election (Ordinance No. 10260, referred by Ordinance No. 10261). BACKGROUND: The City of Pueblo presently imposes a sales and use tax at the rate of three and seven - tenths percent (3.7%) pursuant to Chapter 4 of Title XIV of the Pueblo Municipal Code. That rate consists of a three percent (3%) base rate together with voter -approved increments dedicated to capital improvement projects and to police personnel and operating needs. The City does not presently have a dedicated revenue stream for the Department of Fire or Technology Related to Public Safety purposes. Such expenditures are presently supported through the General Fund and through limited fees and charges. The Department of Fire strives to comply with National Fire Protection Agency ("NFPA") 1900, Appendix F, which provides that frontline equipment should be put in reserve status after fifteen (15) years due to technology and safety. One apparatus costs more than $1,200,000 and lead time to build is two (2) years. Currently, the Department has three (3) frontline vehicles older than fifteen (15) years that need to be replaced. Once the outdated fleet vehicles are replaced, the Department will need to replace one apparatus per year to maintain standards. Additionally, the Department must properly manage aging equipment on every apparatus to keep it updated and reliable. The Department spends an average of $150,000 annually to maintain aging equipment. Outdated equipment and apparatus impacts response times which directly impact, accreditation, and potential insurance rates for the community (ISO). These are some examples of how the money could be used if voters approve the tax. Dedicated tax revenue will allow the Department to address equipment and apparatus needs, maintain its accreditation, and improve overall service to the community. Public Safety depends greatly on technological solutions and equipment, including portable and mobile radios for emergency communication, medical devices such as cardiac heart monitors and controlled substance storage, radio communication towers, drones for fire response, as well as in -car computers, printers, and modems. Software applications support fire call services, automated dispatch systems at each station, record management, medical response, fire training, and scheduling and rostering, among other tasks. Recently, the Department of Fire identified the need to modernize their wildland fire response efforts by incorporating drones and systems that detect fires and hotspots, improving early action along rivers, plains, and within our community. Maintaining these systems with up-to-date technology is expensive for the City but is an absolute necessity to keep our community safe. The proposed Ordinance refers to the voters the question of whether to impose an additional one -quarter percent (0.25%) sales and use tax rate, the revenues from which would be deposited in a dedicated Department of Fire and Technology Related to Public Safety Sales and Use Tax Fund and used solely for Department of Fire and Technology Related to Public Safety purposes within the City. If approved by the voters, the new rate would take effect January 1, 2027, and would be permanent. Section 18-5 of the City Charter provides that an ordinance adopted by electoral vote cannot be repealed or Docusign Envelope ID: 386E5A61-6B7F-8A72-81DB-E5790657910B amended except by electoral vote, with the result that the dedication of the new revenues to Department of Fire and Technology Related to Public Safety purposes is locked into the Code and may not be redirected by the Council without subsequent voter approval. Article X, Section 20 of the Colorado Constitution (the Taxpayer's Bill of Rights) requires voter approval in advance for any new tax. This referral Ordinance places the proposed new tax on the November 3, 2026 ballot for approval by the voters of the City. FINANCIAL IMPLICATIONS: It is anticipated that the additional one -quarter percent (0.25%) sales and use tax rate will generate approximately $5,878,267.00 in 2027 and each subsequent year, subject to fluctuation in sales and use tax revenues collected during those years. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Members of the public are the primary stakeholders affected by the proposed Ordinance. The proposal has been the subject of public discussion at City Council meetings and work sessions during 2026. ALTERNATIVES: If this Ordinance is not approved by the City Council, the ballot question will not be referred to the voters at the November 3, 2026 election and the City will not establish a dedicated revenue source for Department of Fire and Technology Related to Public Safety purposes. RECOMMENDATION: Approve the Ordinance. ATTACHMENTS: 1. Proposed Referral Ordinance 2. Proposed Implementing Ordinance No. 11243