HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/20/2005 - SECOND READING OF ORDINANCE NO. 163, 2005, AMENDIN ITEM NUMBER: 22
AGENDA ITEM SUMMARY DATE: December 20, 2005
FORT COLLINS CITY COUNCIL STAFF: Diane Jones
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SUBJECT
Second Reading of Ordinance No. 163, 2005, Amending Section 25-75 of the City Code so as to
Extend Certain Portions of the City's Sales and Use Tax in Accordance with Three Voter-Approved
Ballot Measures.
RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
EXECUTIVE SUMMARY
Fort Collins' voters have approved the renewal of three one-quarter cent sales and use taxes to fund
high priority capital needs in the community. The three taxes were previously used to fund three
packages of capital projects in the Building Community Choices capital plan. All three current taxes
are set to expire on December 31,2005. Ordinance No. 163,2005,which was unanimously adopted
on First Reading on November 29,2005,implements the tax extensions by amending the sales and
use tax code to reflect the provisions of the voter actions.
ITEM NUMBER: 10
AGENDA ITEM SUMMARY DATE: November29, 2005
FORT COLLINS CITY COUNCIL STAFF: Diane Jones
4
SUBJECTG,_
First Reading of Ordinance No. 163, 2005, Amending Section 25-75 of the City Code so as to
Extend Certain Portions of the City's Sales and Use Tax in Accordance with Three Voter-Approved
Ballot Measures.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
Fort Collins' citizens voted to renew three one-quarter cent sales and use taxes: Open Space,Street
Maintenance, and Building on #asks. Each q e arter cent tali will yield approximately $5.6
million per year (2005 dollar �� The prpceed �o ok,tax� ` allocated to specific projects or
programs. The additional $16. I*million o1 rev e ' ong the ree packages will be appropriated
to the appropriate programs and capital projects.
EXECUTIVE SUMMARY
Fort Collins' voters have approved the renewal of three one-quarter cent sales and use taxes to fund
high priority capital needs in the community. The three taxes were previously used to fund three
packages of capital projects in the Building Community Choices capital plan. All three current taxes
are set to expire on December 31, 2005. The ordinance will implement the tax extensions by
amending the sales and use tax code to reflect the provisions of the voter actions.
BACKGROUND
The ordinance implements the,e'x`tensiopwbf1 Ft
''Sales 'd � use taxes. These extensions were
approved by voters and the M ,intcipal Cde m u pptendeti implement the provisions of the
voter approved measures. h1;;
A. Open Space Sales and Use Tax
In November 2002, voters approved the renewal of the"Natural Areas and Parks"one-quarter cent
sales tax to continue the City's existing open space program. The tax was renewed for a period of
25 years, beginning January 1, 2006 and ending December 31, 2030.
The initiative stated that the purposes of the tax are to include"acquiring,operating,and maintaining
November 29, 2005 -2- Item No. 10
open spaces, community separators, natural areas, wildlife habitat, riparian areas, wetlands, and
valued agricultural lands, and providing for the appropriate use and enjoyment of these areas by the
citizenry." The ballot measure adopted Citizen-Initiated Ordinance No. 1, 2002 which includes
specific provisions for the use ofllth'ese,reyenuq an�ad {ji'�lyinrl�trat �pn of the program.
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B. Street Maintenance Prog m Saless nd Useiax
In April, 2005, voters approved a City-initiated ballot measure which extends the "Street
Maintenance and Transportation" one-quarter cent sales and use tax to continue the City's Street
Maintenance Program. The tax was renewed for a period of 10 years,beginning January 1,2006 and
ending December 31, 2015.
The measure provides funding for the repair and renovation of the City's street system, including
preventative maintenance to streets. The purpose of the program is to ensure that repairs can be
made when inexpensive processes can be used, rather than waiting until more expensive and
disruptive major maintenance or replacement is required.
The Street Maintenance program has been in existence since 1989 when it was funded through the
Choices 95 Capital Improvement Program,and was renewed under the Building Community Choices
Capital Improvement Program in 1997.(
Approval of the ballot measure, quires t��,t the ty dad cil adt��it an ordinance amending the Code
to implement the tax extension.1Ii„ k
C. Building on Basics Sales and Use Tax
In November,2005,voters approved a City-initiated ballot measure which extends the"Community
Enhancements Projects" one-quarter cent sales and use tax to continue the City's capital
improvement program. The tax was renewed for a period of 10 years, beginning January 1, 2006
and ending December 31, 2015.
The City-initiated measure was developed after extensive community outreach and includes 13 high
priority projects. 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. The renewal of this tax represents
a continuation of this local tradition.
The extension of the tax will enera $ r6 '11i pe� y� for;ithe next 10 years, totaling $56
million to be used to complet pecif petal o ctsol nX i '[also fund $4.4 million in initial
operation and maintenance cos �E
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ORDINANCE NO. 163, 2005
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING SECTION 25-75 OF THE CITY CODE
SO AS TO EXTEND CERTAIN PORTIONS OF THE CITY'S SALES AND USE TAX
IN ACCORDANCE WITH THREE VOTER-APPROVED BALLOT MEASURES
WHEREAS, Section 25-75(a) of City Code establishes the rate of the sales and use tax
imposed on the purchase price paid or charged for tangible personal property and taxable services
sold or brought into the City; and
WHEREAS, 75/100 percent of such amount consists of three quarter-cent taxes which are
presently scheduled to expire at midnight on December 31, 2005; and
WHEREAS, 25/100 percent of such amount consists of a tax imposed to fund the
acquisition,construction,enhancement and maintenance of trail systems,wildlife habitat and other
natural areas to benefit the citizens of the City and for the construction of certain park projects as
described in Ordinance No. 29, 1997 (the "Open Space Tax") and;
WHEREAS, at a special City election held on November 5, 2002, the registered electors of
the City approved the extension of the Open Space Tax through midnight on December 31, 2030,
with the proceeds of such extended tax to be used for the purposes of acquiring, operating and
maintaining open spaces, community separators, natural areas, wildlife habitat, riparian areas,
wetlands and valued agricultural lands,and to provide for the appropriate use and enjoyment of these
areas by the citizenry, pursuant to the provisions of Citizen-Initiated Ordinance No. 1, 2002; and
WHEREAS, another 25/100 percent of the City's sales and use tax is a tax imposed to fund
street maintenance and overlay and for the construction of certain transportation projects as identified
in Ordinance No. 30, 1997 (the "Street Maintenance Tax"); and
WHEREAS, at a regular City election held on April 5, 2005, the registered electors of the
City approved a ballot measure extending the Street Maintenance Tax through December 31, 2015,
for the purpose of paying the costs of planning,design,right-of-way acquisition, incidental upgrades
and other costs associated with the repair and renovation of City streets, including but not limited
to, curbs, gutters, bridges, sidewalks, parkway shoulders and medians; and
WHEREAS, another 25/100 percent of the City's sales and use tax is a tax imposed to fund
the construction of certain capital projects identified in Ordinance No. 31, 1997, and approved by
the City Council according to the provisions of said ordinance (the "Capital Projects Tax"); and
WHEREAS, at a special City election held on November 1, 2005, the registered electors of
the City approved the extension of the Capital Projects Tax through December 31, 2015, for the
purpose of paying the costs of planning, design, right-of-way acquisition, construction and at least
seven years of operation and maintenance of certain capital projects specified in the "Building on
Basics" capital project program,subject to the terms and conditions of Ordinance No.92, 2005;and
WHEREAS, Section 25-75(a) of the City Code should be amended to reflect the foregoing
tax extensions.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that Section 25-75(a) of the City Code is hereby amended so as to read in its entirety as
follows:
Sec. 25-75. Rate of tax.
(a) The amount of tax hereby levied is three(3) percent of the purchase price of
tangible personal property or taxable services. Twenty-five one-hundredths (0.25)
percent of such amount is a tax which shall expire at midnight on December 31,
2030, and the proceeds of which shall be used for the purposes of acquiring,
operating and maintainingopen spaces,community separators,natural areas,wildlife
habitat, riparian areas, wetlands and valued agricultural lands, and to provide for the
appropriate use and enjoyment of these areas by the citizenry, pursuant to the
provisions of the Citizen-Initiated Ordinance No. 1,2002. Another twenty-five one-
hundredths (0.25) percent is a tax which shall expire at midnight on December 31,
2015, and the proceeds of which shall be used for the purpose of paying the costs of
planning, design, right-of-way acquisition, incidental upgrades and other costs
associated with the repair and renovation of City streets,including but not limited to,
curbs,gutters,bridges,sidewalks,parkway shoulders and medians. Another twenty-
five one-hundredths (0.25) percent is a tax which shall expire at midnight on
December 31, 2015, and the proceeds of which shall be; used for the purpose of
paying the costs of planning, design, right-of-way acquisition, construction and at
least seven years of operation and maintenance of certain capital projects specified
in the "Building on Basics" capital project program, subject to the terms and
conditions of Ordinance No. 92, 2005.
Introduced and considered favorably on first reading and ordered published this 29th day of
November, A.D. 2005, and to be presented for final passage on the 20th day of December, A.D.
2005.
Mayor
ATTEST:
i
' v
City Clerk
Passed and adopted on final reading this 20th day of December, A.D. 2005.
Mayor
ATTEST:
City Clerk