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14.A.
City Council Meeting
Meeting Date:
12/16/2014
From:
Stephanie Smith, Assistant to City Manager

Information

TITLE:

Public Hearing, Consideration and Adoption of Ordinance No. 2014-34:  An Ordinance of the City Council of the City of Flagstaff amending the Flagstaff City Code, Title 3, Business Regulations, Chapter 3-05, Privilege Taxes, levying a local transaction privilege tax increase of 33 cents per $100 of taxable gross income (sales) as approved by the majority of the qualified electors of the city voting in the November 4, 2014 General Election, Proposition 406, “Road Repair and Street Safety Initiative”; providing for use of tax revenues, providing for penalties, repeal of conflicting ordinances, severability, authority for clerical corrections, and establishing an effective date (Transaction Privilege Tax - Road Repair and Street Safety Initiative) 

RECOMMENDED ACTION:

At the Council Meeting of December 16, 2014
1) Hold public hearing
2) Read Ordinance No. 2014-34 by title only
3) City Clerk reads Ordinance No. 2014-34 by title only (if approved above)
At the Council Meeting of January 6, 2015
4) Read Ordinance No. 2014-34 for the final time by title only
5) City Clerk reads Ordinance No. 2014-34 by title only (if approved above)
6) Adopt Ordinance No. 2014-34

Policy Decision or Reason for Action:

Subsidiary Decisions Points: 

The City Charter provides that a majority of the qualified electors in the City voting in a regularly scheduled General Election shall approve any transaction privilege tax (sales tax) increase. This action will amend the City Tax Code to conform with the voter approved sales tax increase.  The City has duly posted notice of the tax increase on the City website, published notice in the local paper, and is holding a public hearing in accord with Arizona statutes relating to municipal tax code changes generally.  Arizona Department of Revenue (ADOR) has been advised of the tax increase and updated the official copy of the Model City Tax Code on its website.

In order to improve transparency concerning how local tax revenues are used, the ordinance will also update the City Tax Code to recite voter restrictions on use of tax revenues; this is a cleanup item.
 

 

 

Financial Impact:

The voter approved ballot question increases the City sales tax 1/3 of one cent for a term of 20 years.  This sales tax increase is estimated to generate $5.3 million per year to fund road repairs and street safety improvements. 

Connection to Council Goal and/or Regional Plan:

COUNCIL GOALS:
1. Repair Replace maintain infrastructure (streets & utilities)
5. Retain, expand, and diversify economic base

REGIONAL PLAN:
Goal T.1. Improve mobility and access throughout the region.
Policy T.1.7. Coordinate transportation and other public infrastructure investments efficiently to achieve land use and economic goals.
Goal T.2 Improve transportation safety and efficiency for all modes.
Policy T.2.1. Design infrastructure to provide safe and efficient movement of vehicles, bicycles and pedestrians.

Has There Been Previous Council Decision on This:

City Council unanimously adopted the ballot language (Resolution 2014-28) for Question 406 - Road Repair and Street Safety on July 1, 2014.

Options and Alternatives:

This action is procedural only, and will amend the City Tax Code to conform with the voter approved sales tax increase effective January 1, 2015.  If the ordinance is not approved the tax will be levied per voter mandate; however ADOR collection may be delayed or jeopardized.  ADOR is responsible for all local tax collection as of January 1, 2016.   

Community Involvement:

Inform
Consult
Empower

Attachments