HomeMy WebLinkAbout022 - 02/15/2005 - AMENDING SECTION 25-49 OF THE CITY CODE, INCREASING THE ANNUAL INCOME LIMITS FOR THE DETERMINATION O ORDINANCE NO. 022, 2005
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING SECTION 25-49 OF THE CODE OF THE CITY OF FORT COLLINS,
INCREASING THE ANNUAL INCOME LIMITS FOR THE DETERMINATION OF
ELIGIBILITY FOR THE SALES TAX REBATE ON FOOD TO FIFTY PERCENT
OF THE MEDIAN INCOME
WHEREAS,the City ofFort Collins has operated a sales tax rebate program(the"Program"),
along with property tax and utility rebate programs since the 1980s for the purpose of offsetting the
amount of sales tax that low-income households pay on grocery food; and
WHEREAS, approximately 640 households, representing about 884 people, apply for and
are determined to be eligible for the Program at a cost to the City of approximately$36,000 per year;
and
WHEREAS, the Program currently sets the income eligibility levels at 30%of area median
income which is slightly higher than the official poverty level set by the U.S. government; and
WHEREAS, communities in the Northern Colorado with similar rebate programs currently
set their income levels and the per person compensation levels higher than Fort Collins; and
WHEREAS, City staff has reviewed five options for increasing eligibility for the sales tax
rebate program, and has recommended that: (a) the new income levels be set at 60% of median
income,rounded to the nearest$50 increment,which would result in an increase in participation by
a factor of six, and(b)the size of an eligible household be increased to include up to eight members
from the current limit of four; and
WHEREAS, the Council Finance Committee also recommends that the new income level
be set at 50%of median income,rounded to the nearest$50 increment, and the household members
be increased to eight; and
WHEREAS, staff further recommends that the level be reviewed in two years to determine
if the additional benefit of reducing the cost to low income households is in line with the costs to the
City; and
WHEREAS, the Council has determined that Chapter 25 of the Code of the City of Fort
Collins should be amended by the modification of Section 25-49 to allow the rebate for eligible
families to be increased to fifty percent(50%)of the area median income,rounded to the nearest$50
increment, for the applicable household size.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Section 25-49(1) of the Code of the City of Fort Collins is amended to
read as follows:
Sec. 25-49. Qualifications.
In order to qualify for the rebate, the following requirements must be met:
(1) All members of an applicant household must have resided within the city
prior to the commencement of the calendar year for which application is
made and at the time the application is made. The applicant household shall
have an annual income which shall not exceed fifty percent(50%)of the area
median income for the applicable household size in the Fort Collins-Loveland
metropolitan statistical area,rounded to the nearest fifty-dollar increment,up
to a maximum household income of fifty percent (50%) of the area median
income for a household of eight(8),as most recently published by the United
States Department of Housing and Urban development as of August 1 of the
rebate year.
Section 2. That, on or before February 15, 2007, the City Manager is hereby directed
to review the income levels for eligibility established by this ordinance to determine if the additional
benefit of reducing the cost to low income households is in line with the costs to the City, and to
submit a written report and recommendation to the Council regarding that question.
Introduced, considered favorably on first reading, and ordered published this 1st day of
February, A.D. 2005, and to be presented for final passage on the 15th day of Feb ary, A.D. 2005.
Mayor
ATTEST:
VU_L19k S�_�-
City Clerk
Passed and adopted on final reading this 15th day of February, A.D. 2005.
Mayor
ATTEST:
�l
City Clerk