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HomeMy WebLinkAboutminutes.council.19870310timed Meeting Aspen City Council March 10, 1987 Mayor Stirling called the meeting to order at 7:00 p.m. with Councilmembers Isaac, Collins, Walls and Fallin present. ORDINANCE #4, SERIES OF 1987 - Eighth Penny Sales Tax Mayor Stirling said he does not understand the rush to enact this. It is a major decision, and the needs of the community have been in existence for awhile. Mayor Stirling said he does not know why the May ballot is so important; the city has had a lot of special elections in previous years. Mayor Stirling said he feels the process of public notice has been subverted to accommodate Council and to accommodate the groups interested in this sales tax. Mayor Stirling said the amended ordinance #4 is a brand new issue from -,2 cent to 1 cent sales tax. The ordinance is no longer for one project but is for many, yet to be named projects. Mayor Stirling said there should be a first reading and a noticed second reading to proceed with this. Mayor Stirling opened the continued public hearing. Councilman Isaac suggested having first reading on an eighth penny ordinance at this meeting, and have the second reading and public hearing in two weeks. Councilman Isaac said he will be gone and asked if Councilman Collins or Mayor Stirling would support this on second reading. Both said they would not. City Attorney Taddune told Council they do not necessarily have to have second reading on a new eighth penny ordinance at the next regular Council meeting. Taddune said the second reading of the ordinance could be after the question has been set but before the election, or it could be after the election. Mary Martin pointed out Council had a public hearing last night on 1/2 cent sales tax, and questioned adding 1/2 cent without a full public process. Taddune recommended Council have another first reading on a full penny sales tax, and schedule a public hearing for another date. Taddune said the preferred approach of bond counsel would be to adopt a new ordinance on first reading and have a public hearing and adoption at a subsequent meeting. City Clerk Kathryn Koch said the last day Council could take action to get the questions for the election set is April 3. Mayor Stirling said he is perplexed by the rush to move this issue onto the May ballot. Councilwoman Walls pointed out t he city went through the capital improvement budget and there are several items considered important enough to be done soon. Councilwoman Walls said the eighth penny sales tax was also discussed at the budget time as a possibility f or financing the parking garage and other projects that need to be done. Council- woman Fallin said during the capital improvement discussions, Council took out any funding for the ice garden and swimming pool 1 Continued-Meeting AshenCity Council March ~OL__1987 in order to see what the ad hoc committee would recommend. Councilwoman Fallin said before Christmas there was a public meeting on the recreation center and everyone was excited about the possibility of a recreation center. Councilwoman Fallin said this is an issue for funding which authorization has to come from the voters. Mayor Stirling said he feels it is Council's respon- sibility, as elected officials, not to take a new tax to the voters. Mayor Stirling said the Council voted not to pursue funding of the recreation center with any new resources. Councilwoman Walls said she would like to see 1/2 cent for the recreation center and 1/2 f or other capital improvements or an eighth penny sales tax and let the voters make that choice. Marty Flug suggested Council pass Ordinance #4 f or the 1/2 penny and write a new ordinance for another 1/2 penny and have them both on the May ballot. This would also give the voters an opportunity to choose. Councilwoman Fallin said she amended Ordinance #4 at the last meeting and added additional language for the extra half penny. Cindy Shafer, finance director, looked at the sales tax to determine what amount of bonds could be issued. Ms. Shafer said the most debt the city could issue wold be $14,000,000 if the tax on food is kept on both the 6 and 8 pennies. Ms. Shafer said if the city does not tax food, there is no money from the sale of the Red Roof, there would be a bonding capability of $8,000,000. Councilman Collins asked if this allows for operating deficits on the improvements. City Manager Bob Anderson said in the w orst scenario, staff did not include operating debt. Ms. Shafer told Council she used the existing city finance ratios, w hick state city wide the ending year end cash balance should be 70 percent of the current year debt payments or 60 percent of the next year's debt. Mark said if this issue is going to the voters the arts are important to the city and all businesses in town. Mark said the perf orming arts specifically should be included on the ballot. Councilwoman Walls pointed out that previous Councils dedicated the real estate transfer tax for the Wheeler Opera House, which is a cultural facility, as well as 5100,000 to the performing arts. Councilwoman Walls said the city has an ice rink, which is dangerous, and a swimming pool which has deterior- ated. Councilman Collins said he feels the Council is being rushed into this. The Council has been studying capital improvements for years, and some of these current requests have never been mentioned before. The Council reduced the capital improvement plan to include city hall, the sidewalks, better streets, which are basic city services. Councilman Collins pointed out the parking structure was dropped down on the capital improvements list. Councilman Collins said there are certain limits in term 2 Continued Meeting ----- Aspen City Council Marc-h 10,_ 1987 of what the city can handle financially. Councilman Collins said Council has to look at the balance in this community. The city needs to be able to take care of the basic services in the community. Councilman Collins said the city cannot take care of every project imaginable. Marty Flug said the recreation center committee does have two years of study. Flug said the recreation center in Fort Collins is making money, and there are studies that the return to the community is positive. Flug said his group is prepared to present to the community a well studied economic program for the recreation center and to back the performing arts. Councilwoman Walls moved to adopt Ordinance #4, Series of 1987, on second reading as amended; seconded by Councilwoman Fallin. Councilman Isaac said he would like to not tax food. Council- woman Fallin said Council would be better off to drop the sales tax on food on the 6th and 8th pennies in one ordinance, separate from this. Councilman Isaac said he would like that ordinance passed before this issue goes to election. Taddune said he needs to analyze the extent to which the bonds that encumber the sixth penny would prevent the Council from making an amendment to the sixth penny tax ordinance. Councilwoman Walls asked if Council could amend Ordinance #4 to exclude sales tax on food. Taddune said Council could but he does not have the language prepared. Taddune said the state statute contains very technical language for excluding tax on f ood. City Manager Bob Anderson said it is important for Council to realize the impact of reducing sales tax on food from the financial aspect. Ms. Shafer told Council on one penny the revenue annually is about $200,000. Marty Kahn said he does not feel the issue of sales tax on f ood will have a significant impact on the vote of this issues. Kahn suggested Council go forward with the proposal as outlined and repeal the tax on food at a later date. Richie Cohen said the formula Council arrived at last night for the 1 cent sales tax was fair and equitable and makes sense to the community. That formula gave a usable amount of money to everyone. Mayor Stirling said that f ormula was not a Council policy. Mary Martin said Council should consider how much of the Nordic trails are within in the city, if Council is going to fund them out of this tax. Ms. Martin said Council should not f and the burden of the trails or the recreation center when these are mostly used for non-city residents. Roll call vote; Councilmembers Collins, no; Fallin, yes; Walls, no; Isaac, no; Mayor Stirling, no. Motion NOT carried. 3 Conrtirrued Meeting Asge-n City ~o-un~il -- Mare -10 198 Mayor Stirling moved to adjourn; seconded by Councilman Collins. Councilmembers Isaac, Fallin, and Walls opposed. Motion NOT carried. Councilman Isaac moved to draft Ordinance #13, Series of 1987, for a one cent sales tax to fund a recreation center up to $5,000,000 with proceeds of the balance funding capital improve- ments for the arts and for a parking structure and other munici- pal needs that may arise; seconded by Councilwoman Walls. All in favor, with the exception of Councilman Collins and Mayor Stirling. Motion carried. Councilman Isaac moved to adopt Ordinance #13, Series of 1987; seconded by Councilwoman Walls. Taddune said Council needs to have an ordinance in tact to read in order to vote upon. Councilwoman Fallin said this is changed from her proposal of last night and no money is included for Nordic trails nor for the operation of the recreation facility. Councilwoman Fallin said-she f eel one half of the eighth penny sales tax should go toward recreation. Councilwoman Walls asked to add maintenance and operating costs to any facility built. Councilman Isaac amended his motion to add general operating funds f or the facilities buil t out of these funds; seconded by Councilwoman Walls. Councilman Isaac said he is not sure the Nordic operation should come out of this fund. Roll call vote; Councilmembers Fallin, no; Collins, no; Isaac, yes; Walls, yes; Mayor Stirling, no. Motion NOT carried. Mayor Stirling moved to adjourn; seconded by Councilman Collins. All in favor, with the exception of Councilmembers Fallin, Walls and Isaac opposed. Motion NOT carried. Councilwoman Fallin moved to continue this meeting to 5:30 p.m. Wednesday March 11, 1987; seconded by Councilman Collins. All in favor, with the exception of Mayor Stirling and Councilman Collins. Motion carried. Council left the meeting at 8:27 p.m. i J. q ~ - _... _.. _. _. ~i _'.4 _ __.. Kathryn S~ Koch, City Clerk 4 Continued Meeting _ - ---- Aspen---pity Council - Marcrr ii. 1987 Mayor Stirling called the meeting to order at 5:33 p.m. with Councilmembers Fallin, Isaac and Walls present. ORDINANCE #13. SERIES flF 19$7 - Eighth Penny Sales Tax Councilwoman Walls moved to read Ordinance #13, Series of 1987; seconded by Councilman Isaac. All in f avor, with the exception of Mayor Stirling. Motion carried. ORDINANCE #13 (Series of 1987) AN ORDINANCE IMPOSING AN ADDITIONAL ONE PERCENT SALES TAX IN THE CITY OF ASPEN, COLORADO, THEREBY INCREASING THE CITY SALES TAX TO 2 PERCENT UPON THE SELLING OF TANGIBLE PERSONAL PROPERTY, RETAIL, UPON EVERY RETAILER FURNISHING OF SERVICES IN THE CITY OF ASPEN, COLORADO, OPERATIVE AND EFFECTIVE ON AND AFTER JULY 1, 1987, PROVIDING THAT ADDITIONAL REVENUES RECEIVED BY SAID INCREASE MAY BE EXPENDED BY THE CITY COUNCIL FOR RECREATIONAL, CULTURAL AND PUBLIC FACILITIES, SUCH AS BUT NOT LIMITED TO MULTI-USE RECREATIONAL FACILITIES, PERFORMING ARTS FACILITIES, AND PARKING FACILITIES, INCLUDING RECREATIONAL AND CULTURAL PROGRAMS, CAPITAL IMPROVEMENTS, CAPITAL EXPENDITURES, LAND ACQUISITION, GENERAL OPERATING PURPOSES, PAYMENT OF INDEBTEDNESS INCURRED IN CONNECTION THEREWITH, RESERVES AND FOR THE EXPENDITURES NECESSARY TO PROTECT ANY SUCH PROPERTY AGAINST LOSS OR DAMAGE OR DESTRUCTION, PROVIDING THAT THE CITY COUNCIL MAY AMEND, ALTER OR CHANGE SAID ORDINANCE EXCEPT AS TO THE PERCENTAGE OF TAX, AND MAY REPEAL SAID TAX IF ALL INDEBTEDNESS SECURED HEREBY IS PAID OR PROVIDED FOR, AND PROVIDING DETAILS IN RELATION TO THE FOREGOING was read by the city clerk Councilwoman Walls moved to adopt Ordinance #13, Series of 1987, on first reading; seconded by Councilwoman Fallin. City Attorney Taddune told Council in order to achieve some consensus he met with staff . One idea was to go with a generic ordinance and to try to get a reading from the electors. Taddune said of ter last night's Council meeting, the consensus seems to be to raise the sales tax one cent and this ordinance was drafted as a result of that. Mayor Stirling said this issue would generate about $1,700,000 per year. Mayor Stirling pointed out that not every project can be funded by this sales tax. Mayor Stirling said the city has put in place the f first 5 year capital improvement plan. One of the things Council decided was to stay within the existing budget 1 Continued Mee-t rra ___ _. -A upon - C i t~ Co u n c l_ _ _ Ma rc_h_ 1~ 1~ __ 1.~8 7 constraints. Mayor Stirling said every project that comes before Council is worthy of consideration by Council. Mayor Stirling stated there is no question that work has to be done on the existing pool and ice garden facilities. Mayor Stirling said no f ormal decision has been made by Council about a parking garage. Mayor Stirling said the Council needs to consider reallocation of existing resources rather than seeking new funding ways. Mayor Stirling said the city's overall budget is $16,000,000 for a permanent population of 4,000 people. Mayor Stirling said the ri. A. A, and Ballet are essential to the heart and sole of the community not an amenity of the community. Mayor Stirling said these entities are not being f unded enough by the city. Mayor Stirling said he would support funding them with more money from the city. Mayor Stirling said he feels it is his charge not to take any new tax to the voters. Councilwoman Walls said the voters will decide this issue; the Council is not imposing a 1 cent sales tax and will decide how it will be spent. Councilman Isaac said this ordinance will be beneficial for the community and will raise some funds needed for capital improvements. The money is not available within the city. The city is bonded to its fullest extent within the financial guidelines. Councilman Isaac said he feels the com- munity must move forward and must stay competitive with other ski resorts. Taddune said Council should set a public hearing f or this ordinance prior to April 3rd. Council, at this time, can also consider the resolution setting forth the ballot questions. Councilwoman Fallin moved to call a special meeting and set a public hearing for April 2, 1987, at 5:00 p.m.; seconded by Councilman Isaac. All in favor, with the exception of Mayor Stirling. Motion carried. Roll call vote; Councilmembers Isaac, yes; Walls, yes; Fallin, yes; Mayor Stirling, yes. Motion carried. (Councilman Collins came into the meeting) RE`Sfl~~~BN -#7 .- ~L~R~E~--OF-1-887 - Setting Election Questions Mayor Stirling said there are 8 proposed ballot questions; the imposition of one cent sales tax, a limit of $5,000,000 for tax revenue bonds for a multi-use recreational facility; issuance of sales tax revenue bonds for a performing arts facility maximum of $5,000,000; issuance of tax revenue bonds f or a parking facility maximum $4,000,000; bonds to finance the cost of renovating city hall at $2,000,000; charter amendment requiring the number of Council to approve an emergency ordinance from 5 to 4; approval of sale or exchange of the Aspen Ice Garden; approval of con- veyance of the city's interest in the dump site to Pitkin County. 2 Cont-i~Ued Meeting_--- _____ _A-s~en ~`i.tv -C~unc~. __.___-March _ll_~ 197. City Attorney Taddune said the bond questions are tied to the additional one penny sales tax question. Mary Martin said these issues should be studied more and a special election scheduled in the fall. Ms. Martin said the county should be brought into this to help pay for things like a recreation center and the performing arts center. Marty Kahn thanked the Council for the time they took in this issue. Kahn said he feels this is a reasonable compromise and holds a great deal of promise for the community. Les Anderson congratulated Council f or moving toward a solution. Anderson said it now becomes incumbent upon the citizens to see these issues are passed at the polls. Councilwoman Fallin moved to adjourn at 6:06 p.m.; seconded by Councilwoman walls. All in favor, motion carried. Kathryn S Koch, City Clerk 3