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Home My WebLink About2022 Ordinance No. 0341 BY AUTHORITY ORDINANCE NO. 34 COUNCIL BILL NO. 35 SERIES OF 2022 INTRODUCED BY COUNCIL MEMBER WARD AN ORDINANCE SUBMITTING AND REFERRING TO THE REGISTERED ELECTORS OF THE CITY OF ENGLEWOOD AT THE COORDINATED ELECTION CONDUCTED BY MAIL BALLOT TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, TWO QUESTIONS AUTHORIZING A CITY OF ENGLEWOOD SALES AND USE TAX INCREASE OF $2,937,000 ANNUALLY IN THE FIRST FULL FISCAL YEAR AND BY SUCH AMOUNTS AS ARE RAISED ANNUALLY THEREAFTER BY IMPOSING AN ADDITIONAL SALES AND USE TAX OF 0.1% AND 0.2% FOR THE PURPOSE OF IMPROVING AND MAINTAINING VITAL CITY SERVICES AND PROVIDING THE FORM OF THE BALLOT TITLE AND CONTENT. WHEREAS, the Taxpayer’s Bill of Rights, Article X, Section 20 of the Colorado Constitution (“TABOR”) requires governmental entities to seek advance voter approval for any new tax or tax increase; and WHEREAS, the City of Englewood (“City”) imposes a sales and use tax (collectively, “Sales Tax”) at the rate of 3.5 percent to fund general municipal operations; and WHEREAS, the City’s 3.5 percent Sales Tax rate became effective on January 1, 1988 and has not been increased in thirty-four (34) years, other than on retail marijuana sales; and WHEREAS, even though the City of Englewood has not increased its sales tax rate in 34 years, it also has kept property tax rate low by comparison, and in 2021 Englewood had a lower mill levy than the surrounding cities of Denver, Lone Tree, Parker, Boulder, Wheat Ridge, Greenwood Village, Lakewood, Centennial, Sheridan, Cherry Hills Village, Westminster, Arvada, Littleton, Aurora and Thornton; and WHEREAS, City Council strives to keep taxes low in Englewood, but lower taxes can mean less funding to perform and maintain vital City services, including streets and public safety/law enforcement functions; and WHEREAS, the City has received repeated citizen requests to improve the current condition of its streets and to ensure the City is safe by providing necessary safety services and alternative law enforcement functions to its permanent inhabitants and transient populations; and WHEREAS, the City Council carefully evaluated the City’s finances, and carefully considered the potential solutions to these important citizen concerns; and WHEREAS, the City conducted a targeted survey of its registered electors, and concluded citizen support exists for increasing the City’s sales tax rate to improve and maintain the City’s streets and expand public safety and alternate policing services; and WHEREAS, in order to ensure that the City may continue to adequately fund and expand these core City services, the City Council determined that it is in the best interest of the residents of the City to refer to the eligible electors two ballot issues to seek approval to impose and collect a Sales and Use Tax DocuSign Envelope ID: 180E927E-671D-4D08-A2B4-80C30182711F 2 increase of 0.3 percent dedicated to repave and maintain Englewood streets and roads and to fund alternate policing services to address homelessness, mental health, and addiction to raise the total Sales Tax rate in the City from 3.5 percent to 3.8 percent; and WHEREAS, if approved, these increases would increase the tax on a $100 qualifying purchase from $3.50 to $3.80, or an increase of less than 1/3 of a penny on every dollar spent that is subject to sales tax; and WHEREAS, the ballot questions would seek a total increase of 0.3 percent in the Sales Tax, or 0.2 percent to be dedicated to fund street improvements in one ballot question, and 0.1 percent to be dedicated to fund alternate policing services in a second ballot question. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: Section 1. Submission of Ballot Question. The City Council hereby refers the following TABOR ballot title and question to the vote of the registered electors of the City to be placed on the November 8, 2022 ballot: SHALL CITY OF ENGLEWOOD TAXES BE INCREASED NOT MORE THAN $1,957,596 ANNUALLY BEGINNING JANUARY 1, 2023 AND BY SUCH AMOUNTS AS ARE RAISED ANNUALLY THEREAFTER BY AN ADDITIONAL SALES AND USE TAX OF 0.2 PERCENT (OR AN INCREASE OF APPROXIMATELY 1/5 OF ONE CENT PER DOLLAR SPENT, TO THE CURRENT SALES AND USE TAX RATE OF 3½ CENTS PER DOLLAR SPENT), EXCLUDING THE SALE OF FOOD FOR DOMESTIC HOME CONSUMPTION, TO FUND: • REPAVING, REPAIRING, MAINTAINING, AND IMPROVING CITY STREETS AND ROADS WITH ALL SPENDING OF SUCH REVENUES REPORTED IN THE CITY’S ANNUAL INDEPENDENT AUDIT PUBLISHED ON THE CITY’S WEB SITE AND REVIEWED BY A CITIZEN COMMITTEE; AND SHALL THE RESULTING REVENUE AND INVESTMENT EARNINGS THEREON BE ALLOWED TO BE COLLECTED, RETAINED AND SPENT BY THE CITY NOTWITHSTANDING ANY LIMITATIONS OF ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? Yes______ No_____ Section 2. Submission of Ballot Question. The City Council hereby refers the following TABOR ballot title and question to the vote of the registered electors of the City to be placed on the November 8, 2022 ballot: SHALL CITY OF ENGLEWOOD TAXES BE INCREASED NOT MORE THAN $978,455 ANNUALLY BEGINNING JANUARY 1, 2023 AND BY SUCH AMOUNTS AS ARE RAISED ANNUALLY THEREAFTER BY AN ADDITIONAL SALES AND USE TAX OF 0.1 PERCENT (OR AN INCREASE OF APPROXIMATELY 1/10 OF ONE CENT PER DOLLAR SPENT, TO THE CURRENT SALES AND USE TAX RATE OF 3½ CENTS PER DOLLAR SPENT), EXCLUDING THE SALE OF FOOD FOR DOMESTIC HOME CONSUMPTION, TO FUND: • ALTERNATE POLICING SERVICES TO ADDRESS MATTERS INCLUDING HOMELESSNESS, MENTAL HEALTH, AND ADDICTION DocuSign Envelope ID: 180E927E-671D-4D08-A2B4-80C30182711F 3 WITH ALL SPENDING OF SUCH REVENUES REPORTED IN THE CITY’S ANNUAL INDEPENDENT AUDIT PUBLISHED ON THE CITY’S WEB SITE AND REVIEWED BY A CITIZEN COMMITTEE; AND SHALL THE RESULTING REVENUE AND INVESTMENT EARNINGS THEREON BE ALLOWED TO BE COLLECTED, RETAINED AND SPENT BY THE CITY NOTWITHSTANDING ANY LIMITATIONS OF ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? Yes______ No_____ Section 3. Application, Exemptions pursuant to C.R.S. § 29-2-105. A. The proposed sales and use tax shall apply to the sale of tangible personal property at retail, the furnishing of services, and all other transactions to which a sales and use tax apply under law. B. All retail sales are sourced as specified in C.R.S. § 39-26-104(3). C. The amount subject to tax shall not include the amount of any sales or use tax imposed by C.R.S. Article 26 of Title 39. D. The sale of tangible personal property and services taxable shall be the same as the sale of tangible personal property and services taxable pursuant to C.R.S. § 39-26-104, except as otherwise provided in C.R.S. § 29-2-105. The sale of tangible personal property and services taxable shall be subject to the same sales tax exemptions as those specified in C.R.S. Part 7 of Article 26 of Title 39. E. As provided in C.R.S. § 29-2-105, the sales and use tax proposed for voter consideration by this Ordinance shall not apply to: food purchased with food stamps as provided in 7 U.S.C. § 2012(g); the sale of food purchased with funds provided by the special supplemental food program for women, infants, and children under 42 U.S.C. § 1786; or the sale of food for domestic home consumption, except that “food” does not include carbonated water marketed in containers; chewing gum; seeds and plants to grow foods; prepared salads and salad bars; packaged and unpackaged cold sandwiches; deli trays; and hot or cold beverages served in unsealed containers or cups that are vended by or through machines or non-coin- operated coin-collecting food and snack devices on behalf of a vendor. In determining whether a food product is for domestic home consumption, unless the vendor is described in C.R.S. § 39-26-104(1)(e), no inference shall be drawn from the type of vendor selling the product, the location of the product within a store, or the manner in which the product is marketed. Section 4. This Ordinance shall serve to set the title and content for the ballot question set forth herein and the ballot title for such question shall be the text of the question itself. Section 5. The City Clerk, as the Designated Election Official, is authorized to correct typographical errors and omissions in the ballot question, to conform the language of the ballot question to comply with applicable law without amending the substantive content, and to take all action necessary or appropriate to effectuate the provisions of this Ordinance. Section 6. If any section, paragraph, clause, or other portion of this Ordinance is for any reason held to be invalid or unenforceable, the invalidity or unenforceability shall not affect any of the remaining portions of this Ordinance. Section 7. Upon approval on first reading, this Council Bill shall be sent to Colorado Department of Revenue for review of the tax-related portions. If CDOR finds the provisions of this Council Bill or proposed ballot language require revision, the proposed ballot language may be revised by the Clerk as DocuSign Envelope ID: 180E927E-671D-4D08-A2B4-80C30182711F 4 provided above, or for substantive revisions, by Resolution duly adopted by City Council, for placement on the November coordinated election ballot and consideration by the registered electors of the City of Englewood. Introduced, read in full, and passed on first reading on the 27th day of June, 2022. Published by Title as a Bill for an Ordinance in the City’s official newspaper on the 30th day of June, 2022. Published as a Bill for an Ordinance on the City’s official website beginning on the 29th day of June, 2022. for thirty (30) days. Read by Title and passed on final reading on the 25th day of July, 2022. Published by Title in the City’s official newspaper as Ordinance No. 34, Series of 2022, on the 28th day of July, 2022. Published by title on the City’s official website beginning on the 27th day of July, 2022 for thirty (30) days. This Ordinance shall take effect thirty (30) days after publication following final passage. Othoniel Sierra, Mayor ATTEST: Stephanie Carlile, City Clerk I, Stephanie Carlile, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true copy of the Ordinance passed on final reading and published by Title as Ordinance No. 34, Series of 2022. Stephanie Carlile DocuSign Envelope ID: 180E927E-671D-4D08-A2B4-80C30182711F