HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/12/2019 - ITEMS RELATING TO SETTING BALLOT LANGUAGE FOR KEEPAgenda Item 1
Item # 1 Page 1
AGENDA ITEM SUMMARY February 12, 2019
City Council
STAFF
Ginny Sawyer, Policy and Project Manager
John Duval, Legal
SUBJECT
Items Relating to Setting Ballot Language for Keep Fort Collins Great Tax Revenue Replacement.
EXECUTIVE SUMMARY
A. Possible Public Hearing and Motions Regarding Protest(s) of Ballot Language.
B. Resolution 2019-022 Setting Ballot Language for Keep Fort Collins Great tax Revenue Replacement.
The purpose of this item is to consider a resolution and ballot language reflecting comments and feedback
from the Council discussion on February 5, 2019.
Any protest of the proposed ballot language must be received no later than Monday, February 11, 2019, at
noon. The protest(s) shall be heard, considered, and resolved by Council prior to adoption of Resolution 2019-
022. If protest(s) are received, copies will be included in Council’s “Read-before” packet.
Protest hearings pursuant to City Code Section 7-156 (regarding ballot title and/or submission clause) are
conducted in the following order, as part of the agenda item for the item under protest:
• Announcement of Item;
• Staff Presentation for Agenda Item;
• Presentation by each person who timely filed a Protest;
• Councilmember questions of City staff and the protesting parties; and
• Motion on each Protest, discussion and vote on each Protest the by the City Council.
After completion of the Protest Hearing, Council will return to the Agenda Item and receive citizen comments
from any persons desiring to speak on the Agenda Item.
STAFF RECOMMENDATION
Staff recommends adoption of Resolution 2019-022.
BACKGROUND / DISCUSSION
On February 5, 2019, Council considered, and passed, Resolution 2019-019 which set the ballot language and
referred the 0.85% Keep Fort Collins Great tax amount to the April 2, 2019 election.
During the discussion, modifications were made and it was discussed that staff may need to review and
confirm that the modifications achieve the desired results. Staff has reviewed the changes and conferred with
outside counsel in the creation of Resolution 2019-022 presented in this item.
Changes include:
Agenda Item 1
Item # 1 Page 2
• Where the words “replace” or “continue” were used previously, “renew” has been used. “Renew”
captures the desire to convey that the initiative is not an additional tax but is a “renewed” means to
maintain the 0.85% expiring KFCG tax.
• Where language had been added to convey a commitment to public safety, adjustments have been
made to clarify that revenue supporting public safety is not limited to funds collected through a 0.60%
tax rate.
• The expiration of the renewable 0.25% tax has been changed to add clarity from midnight to 11:59
PM, December 31, 2030.
Redline and clean versions of Resolution 2019-022 are attached.
ATTACHMENTS
1. February 5, 2019 Agenda Materials (PDF)
2. Resolution 2019-022 (showing changes) (PDF)
Agenda Item 17
Item # 17 Page 1
AGENDA ITEM SUMMARY February 5, 2019
City Council
STAFF
Ginny Sawyer, Policy and Project Manager
John Duval, Legal
SUBJECT
Items Relating to Extending the Keep Fort Collins Great Tax.
EXECUTIVE SUMMARY
A. Possible Public Hearing and Motions Regarding Protest(s) of Ballot Language.
B. Resolution 2019-019 Submitting a Ballot Issue Question to the City’s Registered Electors at the City’s
Regular Election on April 2, 2019, Asking Them to Extend the “Keep Fort Collins Great” .85% Sales and
Use Tax Voters Approved in 2010.
BALLOT LANGUAGE AMENDED 02/04/2019
The purpose of this item is to set the ballot language and refer the 0.85% Keep Fort Collins Great tax amount to
the April 2, 2019, election.
Any protest of the proposed ballot language must be received no later than Monday, February 4, 2019, at noon.
The protest(s) shall be heard, considered, and resolved by Council prior to adoption of Resolution 2019- 019. If
protest(s) are received, copies will be included in Council’s “Read-before” packet.
Since 2011, the voter-approved Keep Fort Collins Great 0.85% sales tax has funded basic operations and
enabled the City to maintain a desired level of service and respond to community desires in an environment of
population growth and annual inflation.
Prior to the 2020 sunset of KFCG, and before building the 2021-22 budget, the City has been engaging the
community in the decision of how to fund current service levels. After a year-plus effort including multiple Council
discussions, board and commission outreach, and public engagement, a Resolution presenting ballot language
for the April 2, 2019, election is being presented for Council consideration. This ballot option does not increase
the overall local tax rate.
Please note that in the ballot question the dollar amount for the estimate of the first fiscal year revenues is left
blank. City staff is continuing to work on what this estimate should be. Council will be provided with a memo in
its “Read Before” packet on Tuesday with the dollar amount to insert into the ballot question.
Protest hearings pursuant to City Code Section 7-88 (regarding re-districting) and Section 7-156 (regarding ballot
title and/or submission clause) shall be conducted in the following order, as part of the agenda item for the item
under protest:
Announcement of Item;
Staff Presentation for Agenda Item;
Presentation by each person who timely filed a Protest;
Councilmember questions of City staff and the protesting parties; and
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Agenda Item 17
Item # 17 Page 2
Motion on each Protest, discussion and vote on each Protest the by the City Council.
After completion of the Protest Hearing, Council will return to the Agenda Item and receive citizen comments
from any persons desiring to speak on the Agenda Item.
STAFF RECOMMENDATION
Staff recommends adoption of Resolution 2019-019.
BACKGROUND / DISCUSSION
The City’s current local tax burden is 3.85%. The on-going general tax rate is 2.25% and has not changed in 36
years. There are three dedicated and temporary ¼-cent taxes (Open Space, Street Maintenance, Community
Capital) totaling .75% and the Keep Fort Collins Great (KFCG) .85% dedicated tax that expires on December
31, 2020.
In 2008-2009, the City was experiencing significant revenue shortfalls. In response, a major community dialogue
was launched to engage the public regarding choices surrounding elimination of services and identification of
new revenue.
The end-result of these efforts and dialogues was the passage of KFCG, a .85 dedicated sales tax, in November
2010. By vote, these dollars support the following operations:
33% Street Maintenance and Repair
17% Other Transportation Needs
17% Police Services
11% Parks and Recreation
11% Other Community Priorities
11% Fire Protection and Other Emergency Services (Poudre Fire Authority)
The City utilizes KFCG dollars to fund numerous programs and basic services. Each year a summary report of
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Agenda Item 17
Item # 17 Page 3
KFCG funds and projects is created and posted online allowing residents to see all projects funding by KFCG
dollars (www.fcgov.com/kcfg).
For over a year, staff has been engaging the public and Council on what a sunset of KFCG means and possible
revenue replacement options. The following general themes emerged throughout the engagement process:
Residents support City services.
On the whole residents are happy with the services they receive.
People recognize that the on-going base rate has not increased in 36-years and yet demands for
operations and maintenance have increased in that time.
There were few suggestions for reductions in service and no consensus within the suggestions.
While majority support an on-going base rate option, some would prefer a renewable option.
On January 22, 2019, a majority of Council expressed support for bringing forward ballot language for a one
time vote to increase the base sales tax rate by 0.85%. However, this tax would not be imposed on food for
home consumption. (Attachment 1)
This option for revenue replacement when KFCG sunsets does not increase the local tax rate, but it does require
a TABOR election.
CITY FINANCIAL IMPACTS
As previously stated, proposed ballot language does NOT increase the current local sales tax rate.
Resolution 2019-019 would increase the ongoing sales tax rate by 0.85% on January 1, 2021 following the
sunset of KFCG.
The language includes existing KFCG exemptions, most notably not taxing food for home consumption and not
imposing the use tax on manufacturing equipment. It also continues the existing level of contributions for fire
protection and other emergency services, 11% of the tax revenues.
The remaining revenue would be collected as General Fund revenue and would be prioritized and allocated by
Council and the community to address needs and desires through the budgeting process, with the exception of
the fire protection amount.
BOARD / COMMISSION RECOMMENDATION
Staff met with 18 City boards and commissions to discuss the KFCG sunset and possible revenue replacement
options. Most boards supported replacing revenue in full (0.85%) with few boards voicing a preferred option.
Written recommendations are attached. (Attachment 2).
PUBLIC OUTREACH
Staff hosted and/or presented KFCG sunset information at:
9 public meetings
3 CityWork Alumni groups
2 service clubs
Fort Collins Chamber legislative group and Leadership Fort Collins class
The Board of Realtors legislative group
Downtown Business Association Board and Membership meetings
North Fort Collins Business Association
Campus West Merchant Association
United Way staff
Poudre Fire District Board meeting
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Agenda Item 17
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Coloradoan Editorial Board
Visit Fort Collins Board
Multiple City staff department meetings
The feedback from these meetings is reflected in the general themes mentioned above.
ATTACHMENTS
1. Work Session Summary, January 22, 2019 (PDF)
2. Board and Commission Written Recommendations (PDF)
3. PowerPoint Presentation (PDF)
COPY
RESOLUTION 2019-019022
OF THE COUNCIL OF THE CITY OF FORT COLLINS
SUBMITTING A BALLOT ISSUE QUESTION TO THE CITY’S REGISTERED
ELECTORS AT THE CITY’S REGULAR ELECTION ON APRIL 2, 2019,
ASKING THEM TO REPLACERENEW WITH MODIFICATONS THE “KEEP FORT
COLLINS GREAT” .85% SALES AND USE TAX VOTERS APPROVED BY VOTERS IN
2010 AND REPLACING AND SUPERSEDING RESOLUTION 2019-019
WHEREAS, on November 2, 2010, the City held a special election conducted as a
coordinated election with Larimer Countyon February 5, 2019, City Council adopted Resolution
2019-019 (“Resolution 2019-019”) submitting to the City’s registered electors at the City’s regular
election on April 2, 2019, a ballot issue question concerning the renewal of the “Keep Fort Collins
Great” .85% sales and use tax approved by voters in 2010 (“KFCG Tax”); and
WHEREAS, the KFCG Tax was adopted to begin on January 1, 2011, and to end on
December 31, 2020, and for its revenuesat that election, the City’s electorate considered and 60%
of those voting approved a ballot issue question asking whether the City’s sales and use tax rate
should be increased from 3.00 % to 3.85% commencing on January 1, 2011, and ending midnight
on December 31, 2020, to be spent for these purposes:
(a) 33% for street maintenance and repair,
(b) 17% for other street and transportation needs,
(c) 17% for police services,
(d) 11% for fire protection and other emergency services,
(e) 11% for parks maintenance and recreation services, and
(f) 11% for other community priorities as determined by the City Council;which tax
rate increase is known as the “Keep Fort Collins Great” tax (the “KFCG Tax”); and
WHEREAS, since 2011, the KFCG Tax has funded basic City operations and enabled the
City to maintain a desired level of services and respond to community desires in an environment
of population growth and annual inflation; and
WHEREAS, in anticipation of the 2020 sunset of the KFCG Tax and its potential effect on
the City’s budget in future years, the City has engaged the community in the decision of how to
best fund current service levels in upcoming years and, after a year-plus effort, including multiple
City Council discussions, Board and Commission outreach and public engagement, the Council
has determined in Resolution 2019-019 this cancould best be accomplished by asking the City’s
electors to extend the KFCG Tax; and
WHEREAS, in considering Resolution 2019-019, the City Council made several
modifications to the language of the ballot issue question in its Section 2; and
WHEREAS, in doing so, City Council acknowledged that staff may have recommendations
for additional changes to the ballot issue question, given Council’s modifications, to be considered
by Council at its adjourned February 12, 2019, meeting; and
WHEREAS, staff has recommended to Council that it replace and supersede in all respects
Resolution 2019-019 with this Resolution and, in particular, that the ballot issue question in
Section 2 of this Resolution be submitted to the City’s registered electors at the City’s April 2,
2019, election instead of the ballot issue question in Section 2 of Resolution 2019-019; and
WHEREAS, the Council has determined that replacing Resolution 2019-019 with this
Resolution better reflects the Council’s intent in submitting this ballot issue question to the
electorate and adds needed clarification as to how the revenues from this renewed tax will be used;
and
WHEREAS, it is the City Council’s intent in submitting the ballot issue question in this
Resolution that has also determined that of the renewed .85% tax rate, the extended rate of .25%
and its revenues should are to be used to fund municipal operations and maintenance and any other
public purposes, with and that this .25% rate is to expire on midnight at 11:59 p.m. of on December
31, 2030; and
WHEREAS, it is also the City Council’s intent that with the remaining .60% tax rate
extendedbe renewed without an expiration date and its revenues be used to help sustain public
safety service levels, to fund municipal operations and maintenance, and for any other public
purposes, except that 15.6% of these revenues are to be used to continue the City’s level of funding
now being provided under the KFCG Tax for the fire protection and emergency services provided
by the Poudre Fire Authoritynot restricted to specific uses, with one exception, so that its revenues
are available for public safety, municipal operations and maintenance and any other public
purposes; and
WHEREAS, the one exception the City Council has determined is necessary for the
restricted use of the revenues from the .60% tax rate is that the City’s current funding of the fire
protection and emergency services being provided by the Poudre Fire Authority should be
maintained at the same level of revenues as is now being provided under the KFCG Tax which
requires is the equivalent of 15.6% of the revenues generated from the .60% tax rate; and
WHEREAS, Article X, Section 3 of the City’s Charter authorizes the City Council to
submit any question to a vote of the people at a regular City election.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings in the recitals set forth above.
Section 2. That there is hereby submitted to the City’s registered electors at the City’s
regular municipal election to be held on April 2, 2019, this ballot issue question with the following
ballot title and submission clause:
City-Initiated Ballot Issue Question No. 1
SHALL CITY OF FORT COLLINS TAXES BE INCREASED BY AN ESTIMATED
$34,000,000 FOR THE FIRST FULL FISCAL YEAR (2021) AND BY ALL AMOUNTS
COLLECTED ANNUALLY THEREAFTER, BY EXTENDINGRENEWING WITH
MODIFICATIONS THE CITY’S CURRENT “KEEP FORT COLLINS GREAT” .85% SALES
AND USE TAX, WHICH EXPIRES ON DECEMBER 31, 2020, WITH THIS TAX IMPOSED
COMMENCING MIDNIGHT ON DECEMBER 31, 2020, AND USED AS FOLLOWS:
THE TAX RATE OF .25% SHALL EXPIRE AT MIDNIGHT11:59 P.M. ON
DECEMBER 31, 2030, AND ITS REVENUES SHALL BE USED TO FUND
MUNICIPAL OPERATIONS AND MAINTENANCE AND FOR ANY OTHER
PUBLIC PURPOSES; AND
THE REMAINING TAX RATE OF .60% SHALL NOT EXPIRE AND ITS REVENUES
SHALL BE USED TO HELP SUSTAIN PUBLIC SAFETY SERVICE LEVELS, AND
FORTO FUND MUNICIPAL OPERATIONS AND MAINTENANCE, AND FOR ANY
OTHER PUBLIC PURPOSES, EXCEPT 15.6% OF THESE REVENUES SHALL BE
USED TO FUND THE FIRE PROTECTION AND EMERGENCY SERVICES BEING
PROVIDED BY THE POUDRE FIRE AUTHORITY (PFA) UNDER THE CITY’S
EXISTING AGREEMENT WITH THE POUDRE VALLEY FIRE PROTECTION
DISTRICT (DISTRICT), OR IN SUCH OTHER AMOUNT AS THE CITY AND
DISTRICT MAY AGREE, BUT ABSENT AN AGREEMENT BETWEEN THEM FOR
PFA’S SERVICES, THESE REVENUES MAY BE USED AS DETERMINED BY CITY
COUNCIL;
BUT THE .85% TAX RATE SHALL NOT APPLY TO:
ITEMS NOW EXEMPT UNDER THE CITY CODE FROM THE CITY’S SALES AND
USE TAX;
FOOD FOR HOME CONSUMPTION; AND
REGARDING THE USE TAX ONLY, MANUFACTURING EQUIPMENT;
AND WITH ALL THE TAX REVENUES, AND INVESTMENT EARNINGS THEREON, TO
BE COLLECTED, RETAINED AND SPENT AS A VOTER-APPROVED REVENUE
CHANGE NOTWITHSTANDING THE SPENDING AND REVENUE LIMITATIONS OF
ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION?
_____ Yes/For
_____ No/Against
Section 3. That this Resolution shall replace and supersede in all respects Resolution
2019-019.
Passed and adopted at an adjourned meeting of the Council of the City of Fort Collins this
512th day of February, A.D. 2019.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
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RESOLUTION 2019-022
OF THE COUNCIL OF THE CITY OF FORT COLLINS
SUBMITTING A BALLOT ISSUE QUESTION TO THE CITY’S REGISTERED
ELECTORS AT THE CITY’S REGULAR ELECTION ON APRIL 2, 2019,
ASKING THEM TO RENEW WITH MODIFICATONS THE “KEEP FORT COLLINS
GREAT” .85% SALES AND USE TAX APPROVED BY VOTERS IN 2010 AND
REPLACING AND SUPERSEDING RESOLUTION 2019-019
WHEREAS, on February 5, 2019, City Council adopted Resolution 2019-019
(“Resolution 2019-019”) submitting to the City’s registered electors at the City’s regular election
on April 2, 2019, a ballot issue question concerning the renewal of the “Keep Fort Collins Great”
.85% sales and use tax approved by voters in 2010 (“KFCG Tax”); and
WHEREAS, the KFCG Tax was adopted to begin on January 1, 2011, and to end on
December 31, 2020, and for its revenues to be spent for these purposes:
(a) 33% for street maintenance and repair,
(b) 17% for other street and transportation needs,
(c) 17% for police services,
(d) 11% for fire protection and other emergency services,
(e) 11% for parks maintenance and recreation services, and
(f) 11% for other community priorities as determined by the City Council; and
WHEREAS, since 2011, the KFCG Tax has funded basic City operations and enabled the
City to maintain a desired level of services and respond to community desires in an environment
of population growth and annual inflation; and
WHEREAS, in anticipation of the 2020 sunset of the KFCG Tax and its potential effect
on the City’s budget in future years, the City has engaged the community in the decision of how
to best fund current service levels in upcoming years and, after a year-plus effort, including
multiple City Council discussions, Board and Commission outreach and public engagement, the
Council determined in Resolution 2019-019 this could best be accomplished by asking the City’s
electors to extend the KFCG Tax; and
WHEREAS, in considering Resolution 2019-019, the City Council made several
modifications to the language of the ballot issue question in its Section 2; and
WHEREAS, in doing so, City Council acknowledged that staff may have
recommendations for additional changes to the ballot issue question, given Council’s
modifications, to be considered by Council at its adjourned February 12, 2019, meeting; and
WHEREAS, staff has recommended to Council that it replace and supersede in all
respects Resolution 2019-019 with this Resolution and, in particular, that the ballot issue
question in Section 2 of this Resolution be submitted to the City’s registered electors at the
City’s April 2, 2019, election instead of the ballot issue question in Section 2 of Resolution
2019-019; and
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WHEREAS, the Council has determined that replacing Resolution 2019-019 with this
Resolution better reflects the Council’s intent in submitting this ballot issue question to the
electorate and adds needed clarification as to how the revenues from this renewed tax will be
used; and
WHEREAS, it is the Council’s intent in submitting the ballot issue question in this
Resolution that of the renewed .85% tax rate, the rate of .25% and its revenues are to be used to
fund municipal operations and maintenance and any other public purposes and that this .25% rate
is to expire at 11:59 p.m. on December 31, 2030; and
WHEREAS, it is also the City Council’s intent that the remaining .60% tax rate be
renewed without an expiration date and its revenues be used to help sustain public safety service
levels, to fund municipal operations and maintenance, and for any other public purposes, except
that 15.6% of these revenues are to be used to continue the City’s level of funding now being
provided under the KFCG Tax for the fire protection and emergency services provided by the
Poudre Fire Authority; and
WHEREAS, Article X, Section 3 of the City’s Charter authorizes the City Council to
submit any question to a vote of the people at a regular City election.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings in the recitals set forth above.
Section 2. That there is hereby submitted to the City’s registered electors at the
City’s regular municipal election to be held on April 2, 2019, this ballot issue question with the
following ballot title and submission clause:
City-Initiated Ballot Issue Question No. 1
SHALL CITY OF FORT COLLINS TAXES BE INCREASED BY AN ESTIMATED
$34,000,000 FOR THE FIRST FULL FISCAL YEAR (2021) AND BY ALL AMOUNTS
COLLECTED ANNUALLY THEREAFTER, BY RENEWING WITH MODIFICATIONS THE
CITY’S CURRENT “KEEP FORT COLLINS GREAT” .85% SALES AND USE TAX,
WHICH EXPIRES ON DECEMBER 31, 2020, WITH THIS TAX IMPOSED COMMENCING
MIDNIGHT ON DECEMBER 31, 2020, AND USED AS FOLLOWS:
• THE TAX RATE OF .25% SHALL EXPIRE AT 11:59 P.M. ON DECEMBER 31,
2030, AND ITS REVENUES SHALL BE USED TO FUND MUNICIPAL
OPERATIONS AND MAINTENANCE AND FOR ANY OTHER PUBLIC
PURPOSES; AND
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• THE REMAINING TAX RATE OF .60% SHALL NOT EXPIRE AND ITS
REVENUES SHALL BE USED TO HELP SUSTAIN PUBLIC SAFETY SERVICE
LEVELS, TO FUND MUNICIPAL OPERATIONS AND MAINTENANCE, AND FOR
ANY OTHER PUBLIC PURPOSES, EXCEPT 15.6% OF THESE REVENUES SHALL
BE USED TO FUND THE FIRE PROTECTION AND EMERGENCY SERVICES
BEING PROVIDED BY THE POUDRE FIRE AUTHORITY (PFA) UNDER THE
CITY’S EXISTING AGREEMENT WITH THE POUDRE VALLEY FIRE
PROTECTION DISTRICT (DISTRICT), OR IN SUCH OTHER AMOUNT AS THE
CITY AND DISTRICT MAY AGREE, BUT ABSENT AN AGREEMENT BETWEEN
THEM FOR PFA’S SERVICES, THESE REVENUES MAY BE USED AS
DETERMINED BY CITY COUNCIL;
BUT THE .85% TAX RATE SHALL NOT APPLY TO:
• ITEMS NOW EXEMPT UNDER THE CITY CODE FROM THE CITY’S SALES
AND USE TAX;
• FOOD FOR HOME CONSUMPTION; AND
• REGARDING THE USE TAX ONLY, MANUFACTURING EQUIPMENT;
AND WITH ALL THE TAX REVENUES, AND INVESTMENT EARNINGS THEREON, TO
BE COLLECTED, RETAINED AND SPENT AS A VOTER-APPROVED REVENUE
CHANGE NOTWITHSTANDING THE SPENDING AND REVENUE LIMITATIONS OF
ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION?
_____ Yes/For
_____ No/Against
Section 3. That this Resolution shall replace and supersede in all respects Resolution
2019-019.
Passed and adopted at an adjourned meeting of the Council of the City of Fort Collins
this 12th day of February, A.D. 2019.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk