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HomeMy WebLinkAboutordinance.council.083-92 ORDINANCE NOo 83 (Series of 1992) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, ESTABLISHING A SEPARATE CHILD CARE INVESTMENT FUND FROM REVENUES DERIVED FROM THE .45% MUNICIPAL SALES TAX FOR AFFORDABLE HOUSING AND DAY CARE AND SETTING FORTH INVESTMENT AND EXPENDITURE LIMITA- TIONS FOR SAID FUND. WHEREAS, on February 13, 1990, the electorate of the cityiof Aspen approved the adoption of Ordinance No. 81 (Series of 1989), imposing a .45% sales tax upon the sale of tangible personal property and/or the furnishing of services within the City; and WHEREAS, as approved and mandated by the electorate, all revenues derived from the .45% sales tax are and have been dedicated to and expended for the purpose of creating affordable housing and day care opportunities within the City of Aspen and Pitkin County; and WHEREAS, all revenue currently derived from the .45% sales tax is deposited into to a single "affordable housing/day care fund"; and WHEREAS, the City Council desires to establish a separatei fund for the financing of child care opportunities and services and into which a certain portion of the .45% sales tax revenues shall be deposited; and WHEREAS, the city Council also desires to establish expendi- ture and investment parameters for said child care fund to better promote and secure long-term funding for child care services in the city of Aspen and Pitkin County; and WHEREAS, it is the intent of the city Council that the child care fund created through the adoption of this ordinance remain as a permanent fund of the city of Aspen and extend beyond the! life of the .45% sales tax, and that the monies deposited in said fund be invested in such a way so as to promote the fund's continuing future existence; and WHEREAS, it is the goal and intention of the City Council to have no less than Two Million Dollars ($2,000,000.00) in princi- pal in the Child Care Investment Fund as an endowment to secure the long-term financing of child care services upon the date that the .45% sales tax expires in the year 2000. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, THAT: Section 1 Article II, "Sales Tax", of Chapter 21, "Taxation", of the Municipal Code of the city of Aspen, Colorado, is hereby amended by the addition of new Division 3, "Child Care Investment Fund", such amendment to read as follows: DIVISION 3. CHILD CARE INVESTMENT FUND. Sec. 21-14-1. Purpose. Pursuant to the vote of the elec- torate of the city of Aspen on February 13, 1990, authoriz- ing the imposition of a .45% sales tax upon the sale of tangible personal property at retail or the furnishing of services in the City of Aspen, the revenue from which is to be used to create public or private affordable housing and day care opportunities within the city of Aspen and Pitkin County, there is hereby established the Child Care Invest- ment Fund into which are to be deposited so much of the .45% sales tax revenues as set forth in this Division. All monies deposited in the Child Care Investment Fund shall be 2 expended and/or invested so as to create and/or further public or private child care services within the City of Aspen and Pitkin County, including, but not limited to, the funding or lending of funds for capital improvements and capital expenditures, the funding of reserves, the funding or lending of funds for child care facility operating ex- penses, scholarship/tuition assistance, and such expendi- tures as necessary to protect and preserve child care ser- vices or facilities. Sec. 21-14-2. Funding~ Commencing January 1, 1993, the Child Care Investment Fund shall receive no less than twenty percent (20%) of all revenues collected and paid to the City under the .45% municipal sales tax for affordable housingI and day care. City Council may authorize such additionali funding from the .45% municipal sales tax, or from such other sources, for deposit into the Child Care Investment Fund as it may deem necessary from time to time. Sec. 21-14-3. Principal. All monies deposited in the Child Care Investment Fund as principal shall be utilized for investment purposes only and may not be expended or used for any other purpose. Sec. 21-14-4. Interest -- Other Income. All interest or other income earned or generated by monies in the Child Care Investment Fund shall accrue exclusively to the Fund and may only be expended or reinvested in accordance with the limi- tations as set forth in this Division. Section 21-14-5. Investments Authorized. The Director of Finance is authorized to invest Child Care Investment Funds, without distinction between principal and income, in any security, bond, note, stock, debenture, mortgage or otheri investment as specified in C.R.S. Section 24-75-601.1, as may be amended. Investments may be made for those periods of time or with such dates of maturity as deemed prudent by the Director of Finance. The Director of Finance may also invest Child Care Investment Funds in loans to provide for the delivery of child care services, and loans secured byla mortgage for the construction or purchase of affordable housing within Pitkin County for financially qualified full- time Pitkin County residents regardless as to whether such loans are otherwise secured or guaranteed by the Federal Home Loan Mortgage Corporation, Federal National Mortgage! Association, or other federal or state home mortgage lending agency. All investments of Child Care Investment Funds shall be governed by the standard for investments as de- scribed at C.R.S Section 15-1-304o 3 Sec. 21-14-5. Child Care Investment Fund Committee. (A) There is hereby created a Child Care Investment Fund Committee composed of five (5) members, one of whom shall be the Director of Finance, who shall serve in an ex officio capacity. The remaining four (4) members of the committee shall be appointed by and serve at the pleasure of the city council. The committee shall be non-permanent and require reauthorization for its exis- tence by city council resolution every two years, at which time one or all committee members may be replaced or reappointed. All appointed committee members must be residents of Pitkin County. (B) The Child Care Investment Fund Committee shall assist and advise the Director of Finance in the selection of investments for Child Care Investment Fund monies and shall specifically review and approve all applications for affordable housing loans and loans for facilitating or improving the delivery of child care services. The committee, subject to the approval and ratification of the city council, shall also devise and implement eligibility and qualification policies and standards governing loans made from the Child Care Investment Fund. Such loan policies and standards shall be re- viewed on an annual basis. (C) The Child Care Investment Committee shall submit a report to the city council on an annual basis describ- ing its activities for the past year and outlining its goals for the upcoming year. Section 3 This ordinance shall not have any effect on existing litiga- tion and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be construed and concluded under such prior ordinances. Section 4 If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or 4 unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof° Section 5 A public hearing on the ordinance shall be held on the day of ~%-~~ , 199~, in the City Council Chambers, Aspen City Hall, Aspen, Colorado. INTRODUCED, READ AND ORDERED PUBLISHED as provided by law by the City Council of the City of Aspen on the ~ day of ~~/ , 1992. Joh Bennett, Mayor ATTEST: city Clerk FINALLY adopted, passed and approved this .~ day of ~~ ,1993. John ~ Bennett, Mayor ATTEST: Kathryn ~Koch/City Clerk jc1130.2 5