City Council Agenda and Packet 2021 06 17 SP

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SUBJECT: POTENTIAL BALLOT TRANSPORTATION TAX DISCUSSION DATE: JUNE 17, 2021 PAGE7OF8 NOT TO EXCEED [] MILLS AND ALSO FROM EXISTING CITY SALES AND USE TAXES AS DETERMINED BY THE COUNCIL AND FROM OTHER AVAILABLE REVENUE OF THE CITY; (3) SUCH DEBT SHALL BE SOLD IN ONE OR MORE SERIES, ON TERMS AND CONDITIONS AND WITH SUCH MATURITIES AS PERMITTED BY LAW AND AS THE CITY MAY DETERMINE, INCLUDING PROVISIONS FOR SALE OF THE BONDS AT A PRICE ABOVE OR BELOW PAR, AND FOR REDEMPTION OR PREPAYMENT PRIOR TO MATURITY, WITH OR WITHOUT PAYMENT OF A PREMIUM NOT TO EXCEED 3.00%; AND SHALL THE CITY BE AUTHORIZED TO INCREASE SUCH MILL LEVY BEGINNING IN TAX COLLECTION YEAR 2022 AND ANNUALLY THEREAFTER TO OFFSET PROPERTY TAX REFUNDS OR ABATEMENTS OR REDUCTIONS IN THE PERCENTAGE OF ACTUAL VALUATION USED TO DETERMINE ASSESSED VALUATION; AND SHALL THE EARNINGS FROM THE INVESTMENT OF THE PROCEEDS OF SUCH DEBT, SUCH SALES AND USE TAX REVENUES AND SUCH PROPERTY TAX REVENUES BE COLLECTED, RETAINED, AND SPENT AS A VOTER - APPROVED REVENUE CHANGE AND AN EXCEPTION TO LIMITS WHICH WOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? This question is similar to the unlimited tax general obligation bond question, but sets a hard mill levy limit. The consensus at the May 4 City Council meeting was to proceed with a limited tax G.O. bond similar to the Limited Tax General Obligation bonds the City sold in 2017 for the rec and senior center improvements. In this question, the maximum annual and total repayment costs would be for the full amount of the debt, and would not take into account any decreases in repayment costs attributable to the City's sales and use tax contribution or LRC contributions. With any question, the intent is to provide ballot language that informs the voters, but does not limit the City's flexibility in implementation of that intent. The City can also make the ballot questions more broad/flexible and educate the voters of the City's "financing plan" prior to the election. Subject to the fair campaign practices act limits, the City could adopt a resolution of intent, explaining to the voters that while the City may be asking for a "limited tax general obligation bond" question, the intent is for the City to contribute some of its sales and use tax revenue annually and/or LRC contributions to reduce the tax increase impact. The City could utilize any available revenue of the City to pay back debt, even without specifically stating a dollar amount in the ballot question. This option for ballot language allows the City the flexibility to both increase property taxes and use existing sales and use tax revenue as well as LRC contributions to pay any debt in one question, and further determine a plan of outreach to the community to explain the plan of finance and the City's intent for repayment. CITY COUNCIL COMMUNICATION 8