Consideration and Adoption of Resolution No. 2019-01 and Ordinance No. 2019-01:  A resolution of the City Council of the City of Flagstaff, Arizona declaring that certain document known as the "2019 City Tax Code Amendments - Codification of Election Results" as a Public Record, and providing for an effective date; and an ordinance of the City Council of the City of Flagstaff, Arizona, amending the Flagstaff City Code, Title 3, Business Regulations, Chapter 3-05, Privilege and Excise Taxes, by adopting "2019 City Tax Code Amendments - Codification of Election Results" as set forth in that public record on file with the City Clerk; providing for penalties, repeal of conflicting ordinances, severability, authority for clerical corrections, and establishing effective dates. (2019 City Tax Code Amendments - Codification of Election Results)

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 continuation and increase. The City has duly posted notice of the tax codification on the City website, published a 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 codification and is responsible for updating the 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 the use of tax revenues.

Three taxes were approved by voters on ballot propositions

• November 8, 2016 - Proposition 411 is a continuation of a combined 0.295% local transaction privilege tax rate for public transportation purposes known as the "Public Transit Sales Tax" for a ten (10) year period commencing July 1, 2020, and is expected to generate approximately $5.6 million annually.
• November 6, 2018 - Proposition 419 is a continuation of a combined 0.426% local transaction privilege tax for roadway, pedestrian, bicycle, and safety improvements known as "Transportation Sales Tax" for a twenty-one (21) year period commencing July 1, 2020, and is expected to generate approximately $8.1 million annually.
• November 6, 2018 - Proposition 420 is an additional .23% local transaction privilege tax for a Lone Tree Railroad Overpass, along with related pedestrian, bicycle, and street connections known as "Lone Tree Overpass Sales Tax" for a twenty (20) year period commencing July 1, 2019, and is expected to generate approximately $4.6 million annually.

At the November 2018 General Election, State voters passed Proposition 126, amending the Arizona Constitution to prohibit any governmental entity from imposing new taxes on services effective December 31, 2017.  The impact of this amendment on local propositions approved by local voters is being explored.

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 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.

• On July 5, 2016, City Council unanimously adopted the ballot language for Resolution 2016-27 addressing Question 411 - continuation of the Public Transit Tax Sales Tax on November 8, 2016
• City Council canvassed the November 8, 2016 election results on November 28, 2016
• On June 19, 2018, City Council unanimously adopted the ballot language for Resolutions 2018-32 and 2018-33 addressing Question 419 - Transportation Sales Tax and Question 420 - Lone Tree Overpass, respectively, on November 6, 2018
• City Council canvassed the November 6, 2018 election results on November 26, 2018

This action is procedural only and will amend the City Tax Code to conform with the voter-approved sales taxes. If the ordinance is not approved the taxes will be levied per voter mandate; however, ADOR collection may be delayed or jeopardized.

In accordance with the City Charter, Article VI, Section 2(b), the City Council shall have the power to levy a transaction privilege tax subject to approval by a majority of the qualified electors voting in the regularly scheduled General Election.  After much community outreach and involvement in developing the objectives and priorities presented to Council, including the appointment of a Transportation Committee, such elections were held and the following taxes approved as noted:

• November 8, 2016 Proposition 411 approved - 0.295% Public Transit Sales Tax Continuation
• November 6, 2018 Proposition 419 approved - 0.426% Transportation Sales Tax Continuation
• November 6, 2018 Proposition 420 approved - 0.23% Lone Tree Overpass Sales Tax Increase

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Team Flagstaff Strategic priority #4: Work in partnership to enhance a safe and livable community
1. Foster a safe, healthy, equitable and accessible community.
2. Cultivate community partnerships through civic engagement and participation.

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