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RESOLUTION # 83
(Series of 2007)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, IN
SUPPORT OF THE CITY OF ASPEN 2007 BALLOT ISSUE KNOWN AS "TRANSIT
SALES AND USE TAX", WHICH AUTHORIZES A NEW .0.15% SALES TAX AND 2.1%
USE TAX FOR CITY TRANSIT SERVICES AND PEDESTRIAN AMENITIES.
WHEREAS, the City of Aspen owns six diesel buses, four hybrid buses, and six
smaller shuttle buses for in-town service that RFTA is contracted to operate. The eight
free shuttle routes in Aspen (Castle/Maroon, Cemetery Lane, Cross Town, Galena
Street, Hunter Creek, Maroon Creek Road, Mountain Valley, and West Side) carry
approximately 1 million passengers per year; and
WHEREAS, the transit system is currently funded by parking fees as well as
Aspen's share of the 1 % countywide transit tax and half of the 1 % City lodging tax; and
The City of Aspen pays RFTA over $4 million annually to operate its free shuttle service
and estimates the City will pay $4.3 million in 2008; and
WHEREAS, in recent years, the cost of providing transit services has outpaced
the growth of its funding mechanisms, resulting in a structural deficit. Specifically,
transit operating costs are rising by at least 6% annually, while transit revenue sources
are expected to increase by only 3.5% per year; and
WHEREAS, financial projections estimate that the transit fund will deplete its
reserves by the end of 2008 and face an average revenue shortfall of $1.3 million per
year by 2010. If no solutions are found, major service reductions such as the
elimination of entire routes will become necessary; and
WHEREAS, the Transit Sales and Use taxes will provide funding for continued
operation, maintenance, capital replacement and improvement of Aspen's free in-town
shuttle system. Additionally, the funds raised would be used to purchase, operate, and
maintain various pedestrian amenities; and
WHEREAS, the current 0.25% sales tax that funds the parking garage will expire
on September 8, 2009. The new $0.15% sales tax would go into effect on September
9, 2007 and only fund transit and pedestrian amenities; and
WHEREAS, the 2.1 % use tax will be levied upon construction materials that are
purchased outside of City limits for use on construction projects occurring within City
boundaries. The first $100,000 of materials will be exempt from the tax; and
NOW, THEREFORE, BE IT RESOLVED THAT THE ASPEN CITY COUNCIL supports
the ballot question known, as "Transit Sales and Use Tax" will provide funding
necessary to continue proving free in-town bus services to the citizens and guests of
Aspen. The Aspen City Council urges the electors of the City of Aspen to support said
proposed referendum and to vote "Yes" on its passage.
Dated:
ID II \ ff-:+
I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a
true and accurate copy of that resolution adopted by the City Council of the City of
Aspen, Colorado, at a meeting held October 9,2007.