HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/07/2010 - FIRST READING OF ORDINANCE NO. 126, 2010, AMENDING DATE: December 7, 2010
STAFF: Mike Freeman • • •
First Reading of Ordinance No. 126, 2010, Amending Section 25-75(a)of the City Code to Increase the Rate of Tax
By Eighty-Five Hundredths Percent (0.85%) Effective January 1, 2011, in Accordance with the Ballot Measure
Approved by the Registered Electors on November 2, 2010.
EXECUTIVE SUMMARY
A Special Municipal Election was held in conjunction with the November 2, 2010, Larimer County General Election for
a 0.85%increase in the sales and use tax rate with an effective date of January 1, 2011. The qualified electors of the
city approved the imposition of such additional tax
BACKGROUND / DISCUSSION
In June 2010, the City Manager presented to Council an Ordinance Calling a Special Municipal Election to be held in
conjunction with the November 2, 2010, Larimer County General Election.
In July 2010, a Resolution was passed by Council to refer to the qualified electors of the City a proposed 0.85%
increase in the City's sales and use tax rate on all non-exempt taxable items,to be used for certain specified purposes,
to be levied for a ten (10) year period, beginning January 1, 2011, and ending December 31, 2021.
In August 2010, Council presented an amendment to the Resolution to exclude from the use tax increase,
manufacturing equipment as defined in Section 25-63.
The increase will not apply to food for home consumption; therefore, those items will continue to be taxed at the rate
of 2.25%. All other taxable items will be taxed at a rate of 3.85%.
FINANCIAL/ ECONOMIC IMPACTS
The 0.85% increase in the City's sales and use tax rate,will generate approximately$18.7 million in fiscal year 2011 .
(January 1,2011 —December 31,2011). In accordance with the voter-approved ballot measure,the additional funding
will be allocated as follows:
• 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.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
ORDINANCE NO. 126, 2010
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING SECTION 25 -75 (a), OF THE CODE OF THE CITY
OF FORT COLLINS TO INCREASE THE RATE
OF TAX BY EIGHTY-FIVE HUNDREDTHS PERCENT (0 . 85%)
EFFECTIVE JANUARY 1 , 2011 , IN ACCORDANCE
WITH THE BALLOT MEASURE APPROVED BY THE REGISTERED
ELECTORS ON NOVEMBER 2 , 2010
WHEREAS , the City has heretofore enacted a comprehensive retail sales and use tax, which
enactment is codified in Chapter 25 , Article III, of the City Code; and
WHEREAS , the amount of such tax imposed by the City Code is contained in Section 25 -
75 (a) thereof; and
WHEREAS , on July 27, 2010, by Resolution 2010-047 , the City Council referred to the
registered electors of the City a proposed 0. 85 % increase in the City ' s sales and use tax rate on all
non-exempt taxable items to be levied for a ten year period, beginning January 1 , 2011 , and ending
December 31 , 2021 , with the revenues from the additional tax to be used as provided in the ballot
measure ; and
WHEREAS , the ballot measure provides that the 0. 85 % tax increase will not apply to the use
tax on manufacturing equipment; and
WHEREAS, on November 2 , 2010, the registered electors of the City approved the ballot
measure imposing the additional tax.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows :
Section 1 . That Section 25 -75 (a) of the Code of the City of Fort Collins is hereby
amended to read as follows :
Sec. 25-75. Rate of tax.
(a) The amount oftax hereby levied is three and eighty-five hundredths (3 . 85 )
percent of the purchase price of tangible personal property or taxable services except
that the amount of use tax levied on Manufacturing Equipment is three (3) percent
of the purchase price. Twenty-five one-hundredths (0 .25) percent of such amount is
a tax which shall expire at midnight on December 31 , 2030, the proceeds of which
shall 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 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 , 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 , 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 (7) years of
operation and maintenance of certain capital projects specified in the 'Building on
Basics " capital project program, subj ect to the terms and conditions of Ordinance No .
92 , 2005 . Another eighty-five one-hundredths (0 . 85 ) percent is a tax which shall
expire at midnight on December 31 , 2021 , the proceeds of which shall be used in
accordance with the terms and conditions of Ordinance No . 126, 2010 .
Section 2 . That the revenue generated by the eighty-five one-hundredths (0. 85 ) percent
sales and use tax imposed pursuant to this Ordinance (the "Resourcing Our Future Tax") shall be
used as follows :
• 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 .
Section 3 . That the City Manager shall annually report to the City Council on the
purposes for which the revenues from the Resourcing Our Future Tax have been designated or used
in the preceding calendar year and the cost saving measures that were undertaken by the City in such
year.
Introduced, considered favorably on first reading, and ordered published this 7th day of
December, A.D . 2010, and to be presented for final passage on the 21 st day of December, A.D .
2010.
Mayor
ATTEST :
City Clerk
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Passed and adopted on final reading on the 21 st day of December, A . D . 2010 .
Mayor
ATTEST :
City Clerk
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