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HomeMy WebLinkAbout11242ORDINANCE NO. 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 NON-PROFIT ENTITIES AND KEY CONTRACTUAL ENTITIES, WITH PRIORITY GIVEN TO CONTRACTUAL OBLIGATIONS OWED TO KEY CONTRACTUAL ENTITIES, AND THE ADOPTION OF ORDINANCE NO. 11242 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 payments to Non - Profit Entities and Key Contractual Entities, 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 Non - Profit Entity and Key Contractual Entity 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. 11242), 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 Non -Profit Entity and Key Contractual Entity 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and WHEREAS, Section 18-5 of the Charter of the City provides that an ordinance adopted by electoral vote cannot be repealed or amended except by electoral vote, with the result that the dedication of revenues from the new tax to Non -Profit Entity and Key Contractual Entity purposes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. 11242 and thereby impose the additional one -quarter percent (0.25%) sales and use tax rate dedicated to Non -Profit Entity and Key Contractual Entity purposes; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The question of adopting Ordinance No. 11242 and thereby imposing the additional one -quarter percent (0.25%) sales and use tax rate dedicated to Non -Profit Entity and Key Contractual Entity 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 NON-PROFIT ENTITIES AND KEY CONTRACTUAL ENTITIES) 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. 11242 IMPOSING AN ADDITIONAL ONE -QUARTER PERCENT (0.25%) SALES AND USE TAX AND ESTABLISHING A SPECIAL FUND TO BE KNOWN AS THE "NON-PROFIT AND KEY CONTRACTUAL ENTITIES SALES AND USE TAX FUND" FOR THE DEPOSIT OF SUCH REVENUES TO BE SPENT SOLELY TO MAKE PAYMENTS TO KEY CONTRACTUAL ENTITIES AND NON-PROFIT ENTITIES FOR PURPOSES WITHIN THE CITY OF PUEBLO, WITH PRIORITY GIVEN TO CONTRACTUAL OBLIGATIONS OWED BY THE CITY TO KEY CONTRACTUAL ENTITIES, AND DEFINING KEY CONTRACTUAL ENTITY AND NON-PROFIT ENTITY IN THE PUEBLO MUNICIPAL CODE, WHICH DEFINITIONS MAY BE AMENDED BY THE CITY COUNCIL BY ORDINANCE, 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? FOR THE ORDINANCE AGAINST THE ORDINANCE The text of Ordinance No. 11242 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. SECTION 3 This Ordinance shall become effective on the date of final action by the Mayor and City Council.