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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/04/2005 - RESOLUTION 2005-111 EXPRESSING THE CITY COUNCILS S ITEM NUMBER: 26 AGENDA ITEM SUMMARY DATE: October 4, 2005 FORT COLLINS CITY COUNCIL STAFF: Darin Atteberry Diane Jones SUBJECT Resolution 2005-111 Expressing the City Council's Support of Referred Issue 2A Renewing the City of Fort Collins' One-Quarter Cent Capital Sales and Use Tax. RECOMMENDATION Staff recommends adoption of the Resolution. FINANCIAL IMPACT Renewal of the current one-quarter cent sales and use tax to fund the Building on Basics capital program will result in $5.6 million per year of revenue available to the City for completion of 13 specific capital projects. Over the ten year term of the tax, $4.4 million will be provided for the Operation and Maintenance of these projects. EXECUTIVE SUMMARY In August 2005, City Council placed a capital sales tax ballot measure before the voters for the November 1, 2005 election. This item will appear as Referred Issue 2A on the Latimer County coordinated election ballot. The purpose of the sales tax measure, known as Building on Basics 2005, is to provide funding for 13 specific, high priority capital projects. These projects will be constructed over the ten-year period January 1, 2006 to December 31, 2015. The total cost of the projects, including operation and maintenance costs, will be $56.2 million (2005 constant dollars). Staff recommends that City Council adopt this Resolution in support of the ballot measure and urge the registered electors of the City to vote in favor of the Ballot Measure. BACKGROUND In early 2005, staff presented City Council with a list of 34 high priority projects for consideration as part of the Building on Basics sales tax program. The projects total over $189 million in funds needed, and address many different service needs, including roads/multi-modal October 4, 2005 -2- Item No. 26 projects, transit, bike/pedestrian projects, libraries, cultural facilities, parks and recreation,police and natural areas. The project list was based on adopted City master plans, including the Transportation Master Plan, Parks Master Plan, Cultural Facilities Plan, Library Master Plan, General Governmental Facilities Master Plan and Natural Areas Policy Plan. During 2004, the City conducted extensive outreach with citizens via Open Houses, Web Surveys, speaker's bureau, newsletters, newspaper articles and columns, City Council meetings, and the City website. City Council has also received recommendations for Boards and Commissions including Transportation Board, Parks and Recreation Board, Cultural Resources Board, Library Board, Natural Resources Advisory Board, Senior Advisory Board and Air Quality Board. During the past several months, City Council has met several times to review the proposed projects and develop a list of projects to present to voters at the November 1, 2005 election. On August 9, 2005, City Council directed staff to prepare an ordinance and ballot language that will include 13 projects with a total cost of $56.2 million. The final list includes the following projects: • Library Technology • Fort Collins Museum/Discovery Science Center Joint Facility • Lincoln Center Renovation and Cultural Facilities Plan • Park Upgrades and Enhancements • Fort Collins Senior Center Improvements • Police Services CAD/RMS/JMS Replacement Project • Harmony Road - Seneca to College Avenue • Intersection Improvements and Traffic Signals (including Harmony/College) • North College Avenue Improvements Phase 2 — Vine Drive to Conifer Street • Timberline Road—Drake Road to Prospect Road • Transit Fleet Vehicle Replacement • Fort Collins Bicycle Program Plan Implementation • Pedestrian Plan and Disability Access Improvements The list represents a package of projects that address basic needs and critical deficiencies in several categories. The package is allocated 56% to Transportation needs, 43% to Cultural, Library and Recreational projects and 1% to Police Services capital needs. Highlights of the Ballot Language The measure placed before the voters will renew the Building Community Choices sales and use tax currently set to expire December 31, 2005. The measure asks voters to approve an ordinance which includes several provisions to be used in the implementation of the Building on Basics capital plan. Provisions include: • A tax term of ten years (January 1, 2006 through December 31, 2015) • Seven years of operations and maintenance costs for projects October 4, 2005 -3- Item No. 26 • A provision that any overages in revenues projected after all projects are completed will be directed to any capital project or to the operation and maintenance of BOB projects, as directed by City Council. • Language required by the TABOR amendment such as a reference to this being a new tax; an estimate that the 1/4 cent tax will generate not more than $6.2 million in the first year; and permission to retain all of the revenues for the purposes specified. • Detailed information about the implementation of the tax, such as permission for Council to decide on the project schedule, specific costs and scope, within the general project description. • A contingency that requires that City funds be expended on the Museum/Discovery Science Center Joint Facility project upon successful private fundraising for DSC portion of the project. The DSC will be required to raise, have pledges or "in-kind" contributions valued at $3.6 million before Building on Basics funding will be available for the project. RESOLUTION 2005-111 EXPRESSING THE CITY COUNCIL'S SUPPORT OF REFERRED ISSUE 2A RENEWING THE CITY OF FORT COLLINS' ONE-QUARTER CENT CAPITAL SALES AND USE TAX WHEREAS, the City of Fort Collins has undertaken a two-year process of identifying its highest priority capital needs in all areas; and WHEREAS, these unfunded needs total over$300 million over the coming years; and WHEREAS, the citizens of Fort Collins have funded many similar capital needs during the past 30 years through the use of voter approved sales and use taxes; and WHEREAS, the current voter approved general City capital sales and use tax for Building Community Choices—Community Enhancements projects (the "Existing Tax") is scheduled to expire on December 31, 2005; and WHEREAS, the City Council has reviewed the projects which citizens, boards and commissions and staff have identified as being of a high priority and has selected thirteen projects to place before the voters in a package known as "Building on Basics 2005" ("BOB") that would be funded by a ten- year extension of the Existing Tax; and WHEREAS, the proposed extension of the Existing Tax would generate $5.6 million per year for the next 10 years, totaling $56 million to be used to complete specific capital projects and fund $4.4 million in initial operation and maintenance costs; and WHEREAS, the question of whether to extend the Existing Tax will be presented to the voters of the City at the November 1, 2005 Coordinated Larimer County election; and WHEREAS, the City Council believes that voter approval of the renewal of the Existing Tax for capital and construction of the 13 projects is in the best interests of the community. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF FORT COLLINS that, the City Council strongly supports the proposed extension of the Building on Basics 2005 capital improvement sales and use tax, and urges the registered electors of the City to vote in favor of the ballot measure. Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this 4th day of October, A.D. 2005. Mayor ATTEST: City Clerk