HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/17/2010 - RESOLUTION 2010-057 IDENTIFYING CERTAIN PURPOSES F DATE: August 17, 2010 AGENDA ITEM SUMMARY
STAFF: Darin Atteberry FORT COLLINSCOUNCIL
Resolution 2010-057 Identifying Certain Purposes for Which the Discretionary Portion of Revenues Derived from a
Proposed .85% Increase in the City's Sales and Use Tax Rate Might Be Used.
EXECUTIVE SUMMARY
On July 27,2010,City Council approved Resolution 2010-047 submitting a proposed 0.85%increase in the city's sales
and use tax rate to the voters for their consideration on the November 2,2010 Election Ballot, The proposed increase
is allocated to transportation, police, fire, parks and recreation, and other community priorities. Resolution 2010-058
provides additional details regarding the types of programs,activities and services which could be funded through the
approximately $2.1 million in revenue provided by the 11% allocated to "other community priorities." Examples of
these needs which the City Council could fund through the City's Budgeting for Outcomes process include economic
health programs, neighborhood programs, environmental programs, cultural programs, and other critical internal
services and support.
BACKGROUND/DISCUSSION
The proposed tax increase includes the following provisions:
• An increase of.85% (or 8.5 cents on a$10 purchase)
• The additional revenue would be allocated in the following manner:
0 33%for street maintenance and repair
0 17%for other street and transportation needs
0 17% for police services
0 11% for fire services
0 11% for parks maintenance and recreation services; and
0 11% for other community priorities as determined by City Council.
• The increase would commence January 1, 2011 and sunset after 10 years, ending at midnight on
December 31, 2020.
• The increase would yield an estimated $18.9 million in the first full year of collection
Additionally,the ballot language requires the City Manager to report annually to City Council on how the revenues are
used and the cost saving measures that were undertaken by the City each year.
In continuing to communicate with community members regarding the proposed ballot measure,City Council and staff
have received questions regarding the proposed uses for the funds reserved for "other community priorities as
determined by City Council." While the original resolution does not provide details on the anticipated uses for these
funds, Council expects to allocate these funds to high priority City needs identified by City Council in the annual
Budgeting for Outcomes process. This portion of the sales and use tax revenue would provide approximately$2.1
million of new resources in the first year.
The services which would receive allocated revenues based on the formula in Resolution 2010-047 include
Transportation, Police, Fire, Parks and Recreation. In 2010,these programs account for 68%of the expenses in the
City's General Fund. The remaining 32% portion of the General Fund includes such services as Economic
Development, City Planning, Affordable Housing programs, Cultural Services, Development Review, Code
Enforcement, Natural Resources programs,and citywide administrative costs. (The General Fund does not cover the
various Utility Enterprise funds including Electric, Water, Wastewater, and Stormwater services.)
This Resolution provides additional details regarding the types of programs, activities and services which could be
funded through the approximately$2.1 million in revenue provided bythe 11%allocated to"other community priorities."
Some examples of needs which the City Council could fund include:
August 17, 2010 -2- ITEM 23
• Economic Health Programs:
• assistance program for business retention and expansion;
• financial/economic_support for clusters;
• "systems improvements for development review and planning processes;
• Foothills Mall and other midtown College corridor redevelopment;
• support of the downtown area.
• Neighborhood Programs:
• Code compliance;
• community mediation program;
• various community partnerships (with entities such Colorado State University, the Poudre School
District, Larimer County);
• affordable housing programs.
• Environmental Programs:
• air quality;
• recycling;
• sustainability programs;
• green building.
• Critical Internal Services and Support:
• technology infrastructure;
• facility and vehicle maintenance;
• administration and internal services such as Finance.
FINANCIAL/ ECONOMIC IMPACTS
A 0.85% increase in the City's sales tax rate, which would not apply to groceries or prescription drugs, will generate
approximately$18.9 million in fiscal year2011 (January 1,2011 to December 31,2011). The 11%dedicated to"other
community priorities'would provide approximately$2.1 million in revenue in the first year.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
PUBLIC OUTREACH
No additional public outreach has been conducted since the July 27, 2010 City Council meeting.
RESOLUTION 2010-057
OF THE COUNCIL OF THE CITY OF FORT COLLINS
IDENTIFYING CERTAIN PURPOSES FOR WHICH THE DISCRETIONARY
PORTION OF REVENUES DERIVED FROM A PROPOSED .85% INCREASE
IN THE CITY'S SALES AND USE TAX RATE MIGHT BE USED
WHEREAS, on July 27, 2010,the City Council approved Resolution 2010-047 submitting
to the registered electors of the City a proposed .85%increase in the City's sales and use tax rate on
all non-exempt taxable items; and
WHEREAS, if the proposed .85% tax rate increase is approved by the voters, the revenue
derived from such tax rate increase would be used for the following purposes: 33% for street
maintenance and repair; 17%for other street and transportation needs; 17%for Police Services; 11%
for fire protection and other emergency services; 11%for parks maintenance and recreation services;
and 11%for community priorities other than those listed above,as determined by the City Council;
and
WHEREAS,the City Council believes that it is necessary and in the best interests of the City
that a portion of the revenues generated by the proposed tax rate increase be available to fund City
services other than those specified above; and
WHEREAS,it is also important that future City Councils have the discretion to use a portion
of the revenues generated by the proposed tax rate increase for purposes that may not presently be
foreseeable; and
WHEREAS,the City Council wishes to identify certain needs of the City that would benefit
from the portion of the revenues generated by the proposed tax rate increase that will be available
for other community priorities.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the community needs for which this City Council could utilize the discretionary
portion of the proposed .85% tax rate increase may include the following:
• Economic Health Programs:
• assistance program for business retention and expansion;
• financial/economic support for clusters;
• systems improvements for development review and planning processes;
• Foothills Mall and other midtown College corridor redevelopment;
• support of the downtown area.
• Neighborhood Programs:
• Code compliance;
• community mediation program;
• various community partnerships (with entities such Colorado State
University, the Poudre School District, Latimer County);
• affordable housing programs.
• Environmental Programs:
• air quality;
• recycling;
• sustainability programs;
• green building.
• Critical Internal Services and Support:
• technology infrastructure;
• facility and vehicle maintenance;
• administration and internal services such as Finance.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 17th
day of August A.D. 2010.
Mayor
ATTEST:
City Clerk