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HomeMy WebLinkAbout2010-047-07/27/2010-SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY A PROPOSED .85% INCREASE IN THE CITY'S SALES AND U RESOLUTION 2010-047 OF THE COUNCIL OF THE CITY OF FORT COLLINS 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, TO BE USED FOR CERTAIN SPECIFIED PURPOSES WHEREAS,despite a series of budget reductions and other cost saving measures undertaken by the City, the amount of funding that is available to the City for critical City services such as street maintenance, transportation,police and fire protection,parks maintenance and recreations services is substantially less than the amount needed to maintain a level of service commensurate with the needs and expectations of the community; and WHEREAS, the City Council and staff have for several months been engaged in a conversation with community representatives about the options available to the City to deal with the ongoing revenue shortfall; and WHEREAS,since 2005,the City has reduced planned or existing expenses by approximately $24 million, has eliminated 150 positions of employment within the City organization, has systematically reviewed City services and eliminated those that are considered by the City Council and community to be lower priority, and is aggressively pursuing ways to make its operations more efficient; and WHEREAS,at the same time,the City is actively supporting the creation of new jobs in the community and working to retain, grow and attract new businesses that will foster the overall economic health of the City; and WHEREAS,the City's sales and use tax on the sale of tangible personal property is the City's primary source of revenue for general government expenses; and WHEREAS,the City's current sales and use tax rate is among the lowest of Colorado Front Range communities; and WHEREAS, the City Council believes that the voters of the City should be given an opportunity to consider increasing the rate of the City's sale and use tax to supplement City revenues for street maintenance, road improvements, emergency services, parks and recreation and other critical needs; and WHEREAS, the City Manager originally recommended that a 1% increase in the sales and use tax rate be placed on the November, 2010, ballot; and WHEREAS, after receiving feedback from the community on this proposal, the City Manager, working with the City Council Leadership Team, has revised this tax proposal to reflect a more modest, .85% increase that would be earmarked for specific,pressing needs of the City and that would terminate in ten years; and WHEREAS, the City Council believes that it would be in the best interests of the City to place this proposed increase on the November ballot for the voters' consideration; and WHEREAS, by the adoption of Ordinance No. 080,2010 on July 6, 2010, the City Council has called a special municipal election to be held in conjunction with the Larimer County General Election on November 2, 2010; and WHEREAS,under Article X,Section 3 of the City Charter,the City Council may submit any question or proposed ordinance or resolution to a vote of the people at a regular or special election. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the following question,in substantially the form shown below, shall be submitted to the registered electors of the City of Fort Collins at a special municipal election to be held in conjunction with the November 2, 2010, Larimer County General Election: SHALL CITY OF FORT COLLINS TAXES BE INCREASED BY AN ESTIMATED $18.9 MILLION FOR THE FIRST FULL FISCAL YEAR(2011),AND BY SUCH AMOUNTS AS MAY BE GENERATED ANNUALLY THEREAFTER, BY INCREASING THE RATE OF THE CITY SALES AND USE TAX FROM 3.00% TO 3.85% ON ALL TAXABLE ITEMS, BUT NOT ON EXEMPT ITEMS SUCH AS FOOD AND PRESCRIPTION DRUGS, COMMENCING JANUARY 1, 2011, AND ENDING AT MIDNIGHT ON DECEMBER 31, 2020, WITH ALL REVENUE GENERATED THEREFROM TO BE SPENT 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, PROVIDED THAT THE CITY MANAGER SHALL ANNUALLY REPORT TO THE CITY COUNCIL ON THE PURPOSES FOR WHICH THE REVENUES FROM THE 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,AND FURTHER PROVIDED THAT THE FULL REVENUES DERIVED FROM THE TAX, AND ANY INVESTMENT EARNINGS THEREON, MAY BE RETAINED AND EXPENDED BY THE CITY FOR SUCH PURPOSES,NOTWITHSTANDING ANY STATE REVENUE OR EXPENDITURE LIMITATIONS INCLUDING BUT NOT LIMITED TO ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION? YES NO -2- Passed and adopted at an adjourned meeting of the Council of the City of Fort Collins this 27th day of July A.D., 2010. Mayor _ ATTEST: City Clerk -3-