Title
Ordinance No. 20-62 amending Multiple Sections under Part 11 (Road Repair, Maintenance, and Improvements Sales and Use Tax Fund) to Article 6 (City Funds) of Chapter 1 (Administration, Personnel and Finance) of the Code of the City of Colorado Springs 2001, as Amended, Regarding the Road Repair, Maintenance, and Improvements Sales and Use Tax Fund
Presenter:
Charae McDaniel, Chief Financial Officer
Body
Summary:
At the November 5, 2019, special municipal election, the voters of the City approved a ballot question authorizing an extension of the temporary sales and use tax levy at a rate reduced from 0.62% to 0.57% in City sales and use tax dedicated solely to road repair, maintenance and improvements.
The attached Ordinance modifies the relevant sections of Article 6 of Chapter 1 of the Code of the City of Colorado Springs to amend the rate of the temporary sales and use tax levy from 0.62% to 0.57%, for a period of five years. The tax levy established in this ordinance shall apply to all transactions occurring on or after January 1, 2021, and expire on December 31, 2025.
A related Ordinance amends sections within Article 7 (Sales and Use Tax) of Chapter 2.
Background:
At the November 3, 2015, special municipal election, the voters of the City approved a ballot question authorizing a temporary additional levy of sixty-two one-hundredths percent (0.62%) in City sales and use tax dedicated solely to road repair, maintenance and improvements, with said temporary tax levy to expire on December 31, 2020.
At the November 5, 2019, special municipal election, the voters of the City approved a ballot question authorizing a five (5) year extension of the temporary additional levy in the decreased amount of fifty-seven one-hundredths percent (0.57%) in City sales and use tax dedicated solely to road repair, maintenance and improvements and constituting a voter approved revenue change exempt from spending and revenue limitations.
This tax will sunset (expire) on December 31, 2025, and will not affect or apply to purchases of food for domestic home consumption, prescriptions, residential utility bills or other items exempt from City sales and use tax under the City Code.
Previous Council Action:
N/A.
Financial Implications:
The expenditure of these revenues for road repairs and improvements is to be in addition to, and not in lieu of, amounts currently being expended by the City for road maintenance and improvements.
During the period the temporary sales and use tax is in effect, the City will maintain spending on repair and maintenance of roads and streets at the average of the City's annual spending amount for such repair and maintenance during fiscal years 2012, 2013 and 2014. The City Auditor has performed, and will continue to perform, an annual audit to verify the City spending.
City Council Appointed Board/Commission/Committee Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Move approval of the Ordinance Amending Multiple Sections under Part 11 (Road Repair, Maintenance, and Improvements Sales and Use Tax Fund) to Article 6 (City Funds) of Chapter 1 (Administration, Personnel and Finance) of the Code of the City of Colorado Springs 2001, as Amended, Regarding the Road Repair, Maintenance, and Improvements Sales and Use Tax Fund
Summary of Ordinance Language
An Ordinance Amending the Code of the City of Colorado Springs to change the Road Repair, Maintenance, and Improvements Sales and Use Tax rate from 0.62% to 0.57%, as approved by voters