HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/03/2015 - SECOND READING OF ORDINANCE NO. 131, 2015, AMENDINAgenda Item 4
Item # 4 Page 1
AGENDA ITEM SUMMARY November 3, 2015
City Council
STAFF
Peggy Streeter, Senior Sales Tax Auditor
Mike Beckstead, Chief Financial Officer
SUBJECT
Second Reading of Ordinance No. 131, 2015, Amending Section 25-75(a) of the Code of the City of Fort
Collins to Extend the Expiration Date of the City's 0.25% Street Maintenance Sales and Use Tax as Approved
by the Voters at the City's April 7, 2015, Regular Election and to Correct an Error in the Expiration Date of the
City's 0.85% Sales and Use Tax Increase Approved by the Voters at the City's November 2, 2010, Special
Election.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on October 20, 2015 amends Section 25-75(a) of the
City Code to reflect the appropriate tax expirations dates as approved by the electors. The expiration date of
the street maintenance tax will reflect the extension to December 31, 2025. The expiration date for the Keep
Fort Collins Great (KFCG) tax increase of .85% needs to be corrected to December 30, 2020.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (PDF)
2. Ordinance No. 131, 2015 (PDF)
Agenda Item 10
Item # 10 Page 1
AGENDA ITEM SUMMARY October 20, 2015
City Council
STAFF
Peggy Streeter, Senior Sales Tax Auditor
Mike Beckstead, Chief Financial Officer
SUBJECT
First Reading of Ordinance No. 131, 2015, Amending Section 25-75(a) of the Code of the City of Fort Collins to
Extend the Expiration Date of the City's 0.25% Street Maintenance Sales and Use Tax as Approved by the
Voters at the City's April 7, 2015, Regular Election and to Correct an Error in the Expiration Date of the City's
0.85% Sales and Use Tax Increase Approved by the Voters at the City's November 2, 2010, Special Election.
EXECUTIVE SUMMARY
The purpose of this item is to amend Section 25-75(a) of the City Code to reflect the appropriate tax
expirations dates as approved by the electors. The expiration date of the street maintenance tax needs to
reflect the extension to December 31, 2025. The expiration date for the Keep Fort Collins Great (KFCG) tax
increase of .85% needs to be corrected to December 30, 2020.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
Street Maintenance Tax Expiration Date
In April 2015, the electors of the City approved the extension of the .25% street maintenance tax from
December 31, 2015, to December 31, 2025. Section 25-75(a) of the Fort Collins City Code needs to be
amended to reflect the approved change.
Keep Fort Collins Great (KFCG) Expiration Date
In November 2010, the electors of the City approved a tax increase of .85% with an expiration date of
December 31, 2020. When codified in Section 25-75(a), the expiration date was inadvertently listed as
December 31, 2021. Section 25-75(a) of the Fort Collins City Code needs to be amended to reflect the
expiration date of December 31, 2020.
BOARD / COMMISSION RECOMMENDATION
The proposal to amend City Code was presented to the Council Finance Committee (CFC) on September 21,
2015. CFC supported the proposed changes.
ATTACHMENTS
1. Council Finance Committee minutes, September 21, 2015 (PDF)
ATTACHMENT 1
- 1 -
ORDINANCE NO. 131, 2015
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING SECTION 25-75(a) OF THE CODE OF THE CITY OF FORT COLLINS
TO EXTEND THE EXPIRATION DATE OF THE CITY’S 0.25% STREET MAINTENANCE
SALES AND USE TAX AS APPROVED BY THE VOTERS AT THE CITY’S APRIL 7, 2015,
REGULAR ELECTION AND TO CORRECT AN ERROR IN THE EXPIRATION DATE OF
THE CITY’S 0.85% SALES AND USE TAX INCREASE APPROVED BY THE VOTERS AT
THE CITY’S NOVEMBER 2, 2010, SPECIAL ELECTION
WHEREAS, the City of Fort Collins has enacted comprehensive retail sales and use tax
provisions that are codified in Chapter 25, Article III of the Fort Collins Municipal Code; and
WHEREAS, the rate for this tax, as amended from time to time, is set in City Code
Section 25-75(a); and
WHEREAS, on February 3, 2015, the City Council adopted Resolution 2015-020 to refer
to the City’s voters at the City’s April 7, 2015, regular election, a ballot measure to extend the
expiration date of the City’s existing 0.25% sales and use tax used for the maintenance of City
streets (the “Street Maintenance Tax”) from December 31, 2015, to December 31, 2025, which
ballot measure the City’s voters approved; and
WHEREAS, this Ordinance amends Code Section 25-75(a) to change and extend the
expiration date of the Street Maintenance Tax from December 31, 2015, to December 31, 2025,
as approved by the City’s voters on April 7, 2015; and
WHEREAS, on August 17, 2010, the City Council adopted Resolution 2010-058 to refer
to the City’s voters at the City’s November 2, 2010, special election, a ballot measure to increase
the rate of the City’s then existing sales and use tax from 3.00% to 3.85%, which measure was
known as the “Keep Fort Collins Great” tax increase, with such increase to commence on
January 1, 2011, and expire at midnight on December 31, 2020, (the “Ballot Measure”) and the
voters approved the Ballot Measure; and
WHEREAS, on December 21, 2010, the City Council adopted Ordinance No. 126, 2010
to amend Code Section 25-75(a) to increase the rate of the City’s sales and use tax by 0.85% as
authorized by the Ballot Measure (the “Tax Increase”), but Ordinance No. 126, 2010 incorrectly
set December 31, 2021, as the expiration date for the Tax Increase instead of December 31,
2020;
WHEREAS, this Ordinance amends Code Section 25-75(a) to so change the expiration
date of the Tax Increase from December 31, 2021, to December 31, 2020.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that Section 25-75(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
- 2 -
Sec. 25-75. Rate of tax.
(a) The amount of tax hereby levied is three and eight-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,
2025, 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, parkways, 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,
subject 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, 2020,
the proceeds of which shall be used in accordance with the terms and conditions of
Ordinance No. 126, 2010.
. . .
Introduced, considered favorably on first reading, and ordered published this 20th day of
October, A.D. 2015, and to be presented for final passage on the 3rd day of November, A.D.
2015.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
- 3 -
Passed and adopted on final reading on this 3rd day of November, A.D. 2015.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk