City Council Minutes 1984 06 05 - Laserfiche WebLink

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6/5/84 Page -6- a:nd critical one to parts of the down- town program. In 1981 the Colorado Legis- lature changed the sales tax law to permit Statuatory Cities to ear-mark part of their existing or increased sales taxes into a Capital Improvements Fund; and from that Sales Tax Revenue Bonds fund that may issue Sales Tax Revenue Bonds Financing wherein they simply fund Capital Improve- ments each year. In order to start that process the City must have an ear-marked election and they were recommending that election be held in February, 1985. Be- cause of the Primary and General Election this year, February, 1985 would possibly be the earliest date that the City could hold that election. Mr. Caldwell referred to the chart and noted that Louisville's sales tax rate was far below the State average, which was 2.7%; and the average in the City's average population category is 2.875%, Mr. Caldwell advised that once the funds are earmarked for the Capital Improvements Fund, they may not be trans- . ferred back into the General Fund, when a. Sales Tax Revenue Bond is issued. The money must be spent to pay off bonds or spent annually for Capital Improvements. If 40% of the proceeds are used for down- town improvements as suggested, and Council would go along with this program, they should draw a ballot question making the Capital Improvements quite broad allowing for a full range of such improvements for the City. H[e commented that the only two cities that ~rere below the state average in sales tax percentages were Louisville and Rocky Ford. Phased Improvements to the Z'he next chart showed the phased improvements Downtown t:o the downtown. There were 4 mechanisms c>f financing these other than cash. The. mechanisms would include a Special Improve- ment District, a General Improvement District, si General Obligation Bond, or Sales Tax F;evenue Bond. It was their suggestion to combine in the first phase a Special Improve- ment District with the merchants and the property owners and leasees being involved in taxing themselves; and a Sales Tax Revenue Bond. Phase I included parking, sidewalk improvements, and plazas. The City had con- t=ributed $567,000 in water lines. and other public works - the Special Improvement Dis- t=rict would provide $530,000 for parking.