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HomeMy WebLinkAboutminutes.council.19960905Aspen City Council Special Meeting September 5, 1996 Mayor Bennett called the special meeting to order at 12:00 p.m. with Councilmembers Waggaman, Richards and Paulson present. Councilman Marolt previously signed a waiver; all other members present signed a waiver of notice less than 24 hour notice. COUNTY USE TAX Mayor Bennett said Council has a responsibility to spend the taxpayer’s money wisely. The county is putting a question on the November ballot seeking approval to extend the county use tax. The county has asked the city to allow the county to spend a portion of these dollars on county roads. Mayor Bennett said how can the city cooperate with the county in putting their use tax to the voters while maintaining the responsibility of looking after the city’s tax revenues. Mayor Bennett said one option is that the city is entitled to their fair share of revenues raised by this use tax, which may be 28 percent. Mayor Bennett noted another option is to give the county 5 percent and have the city take 23 percent with the condition that the county spend this 5 percent on highway 82 and that the city would get joint approval with the county on how this is spent. The city would retain joint control over this 5 percent of taxpayers’ money. Mayor Bennett pointed out the city is doing a better job of maintaining their infrastructure because the county taxpayers don’t pay as much property tax. Mayor Bennett said it is unfair to boost use tax to keep county property taxes artificially low. Mayor Bennett said the city could make a cash rebate to city residents of however much the county taxes increase. Councilwoman Waggaman said the city could also use this money for a project specific to the citizens advantage. Councilwoman Richards said the county has put a lot of work on this question and feels it is ready to go to the voters. Councilwoman Richards said she is uncomfortable making a commitment to rebates until the 1997 budget process is farther along and Council gets a chance to examine the 10 year asset management plan. Mayor Bennett said at 23 percent, the use tax would raise $319,000 annually. This money could go into the existing asset management plan, street improvements which would get these done in half the time. An alternative is to spend this additional use tax in the Midland Park area. Mayor Bennett said these alternatives could go to the electorate, whether the voters want a rebate or the money spent on a pre-determined plan. 1 Aspen City Council Special Meeting September 5, 1996 Amy Margerum, city manager, said the city is in a bind because this issue came up so late and the ballot deadline is 4 days away. Ms. Margerum said it will be difficult for the city to support this unless they can tell the voters what the city plans to do with this $220,000. The policy issue for Council is whether they can make this decision in the next month and tell the voters. Ms. Margerum said she feels it is poor public policy not to have a plan for the money before it goes to the electorate. Mayor Bennett said he feels the choices are any property tax revenue increase to city residents from the county will be rebated or the city will give the city voters a chance to vote in May on whether they want a rebate or want certain outlined improvements. Ms. Margerum said this type of commitment from the city will be a political advantage for the county when they go to the voters that the city voters know their property taxes will not go up. Councilwoman Waggaman stated she would not support increasing the property tax without allowing citizens to vote on it. Councilwoman Waggaman said she would support cooperating with the county and she likes the 5 percent only of the use tax going to the county. Councilwoman Waggaman suggested the city and county agree jointly on the highway 82 improvements. Councilman Paulson said he does not want to see 13 years of a use tax going only to roads. Mayor Bennett said the county is adamant that to pass this in the county it has to say “road improvements”. Councilman Paulson said he would rather see the money spent on alternate transportation. Bill Tuite, county commissioner, said that 10 percent of the use tax goes toward highway 82; up to another 10 percent goes to trails and bike paths. In the past this use tax has been used only for roads. Councilwoman Richards suggested if this agreement goes forward, there should be a list of what highway 82 improvements could be. Councilwoman Richards said it is very premature for Council to discuss what may or may not happen with this money. Mayor Bennett agreed there is a difference between the city and the county and their staffs and in priorities. Mayor Bennett said the city wants their fair share of any extended tax because of different priorities. Mayor Bennett said the city cannot dictate policy to the county. Mayor Bennett said he would have preferred this be put off until next November and have a much broader citizen panel address this issue. 2 Aspen City Council Special Meeting September 5, 1996 Councilwoman Richards supports an intergovernmental agreement with the county that the city will give back 5 percent, which is about 1/4 of the city’s share. Councilwoman Richards said she would like joint sign off on highway 82 improvements; however, it is not important enough to stop the deal. Mayor Bennett said the city lays claim to the portion of the tax paid by city voters. City of Aspen taxpayers have a legitimate claim to this money. The city will pay 5 percent, or half of the 10 percent to be spent on highway 82 - the city will share that cost. The city would like joint approval with the county on how that 5 percent is spent. Mayor Bennett suggested the entire 10 percent could be reviewed by the EOTC. Mayor Bennett said Council realizes road improvements are important to the county. The city is taking the rest, or 23 percent, and the county may have to increase property taxes. To make this more passable by the voters, the city will commit to rebate the additional property tax or commit to put this additional tax spend question to a City vote in May 1997. Council agreed on the 5 percent to be spent on Highway 82. Council said they would like the 10 percent for pedestrian improvements to be clarified so that it is separate from any highway improvements. Tuite said he will bring up to the BOCC that 10 percent for highway 82 should be reviewed by the EOTC. Councilwoman Waggaman agreed with that approach as Snowmass is involved, and this is a county tax. Councilwoman Richards said if there is a property tax increase, the city voters should be allowed a vote in May for either a refund or the taxes collected to go to a specific project. Steve Barwick, assistant city attorney, suggested the city’s “fair share” be calculated annually rather than just set a number. Tuite said the methods should be mutually agreed upon. Council agreed. Councilwoman Waggaman moved that the city will give up 5 per cent of their “fair share” to be calculated annually on a method mutually agreed upon; and this 5 percent goes to highway 82; expenditure of all highway 82 funds will be agreed upon by the EOTC; remainder of city’s share goes to the city of Aspen; Council requests the ballot language to be written in as flexibly as possible on highway 82 and pedestrian enhancements; Council intends to ask the city voters in May 1997 whether they would prefer their share of any county property tax increase to be rebated or to be spent on specific city infra-structure projects to be identified by May 1997; seconded by Councilman Paulson. All in favor, motion carried. 3 Aspen City Council Special Meeting September 5, 1996 Mayor Bennett said the city and county staffs have brought up whether highway 82 as it crosses Marolt should have curb and gutter and shoulders and whether it should have wide or narrow shoulders. The issue is whether to create a de facto possibility for bus lanes. This will be addressed in the joint resolution at the EOTC this evening. Mayor Bennett presented a copy from the DSEIS with CDOT’s approach with 2-lane and rail in the middle, depicting curb and gutter with a 6 foot emergency shoulder. This is what the city has approved. Tuite agreed he likes the least amount of concrete. Councilwoman Waggaman said she would like to keep this a little flexible. The city will have a chance to review this again. Councilman Paulson said he does not want to say the city wants a parkway and beautiful entrance to town. This gives drivers no impetus to get out of their car and use alternative transportation. Mayor Bennett said this is not just for highway users; it is also for train passengers. Councilwoman Waggaman moved to adjourn at 1:20 p.m.; seconded by Councilman Paulson. All in favor, motion carried. Kathryn S. Koch, City Clerk 4