Consideration and Adoption of Resolution No. 2014-28:  A resolution of the Mayor and Council of the City of Flagstaff, Arizona, ordering a question be submitted to the qualified electors of the City with respect to a temporary  increase to the City's transaction privilege (sales) tax and authorization for the sale and issuance of bonds of the City of Flagstaff, Arizona, said question to be submitted at the City's General Election to be held on November 4, 2014. (Road Repair and Street Safety Ballot Initiative)

The City Charter, Article XVI, Amendment No. 1 requires a vote for any bond issuance that will levy a bond that pledges City tax revenues as a guarantee for their payment, in whole or in part. Article VI requires an election to raise sales tax to occur at a general election.

The City budgeted funds  for elections in FY2015. The proposed sales tax increase would result in an additional 33 cents per $100 of taxable sales for a period of 20 years starting January 1, 2015.  This increase will raise an estimated $106M over the term of the tax. The principal amount borrowed would not exceed $20,000,000.

  1. Repair Replace maintain infrastructure (streets & utilities)
  5. Retain, expand, and diversify economic base
11. Effective governance

Council reviewed information pertaining to this ballot initiative at several meetings, work sessions and budget retreats over the last two years.

Approve  the question as written or amended to be placed on the November 4, 2014 general election.
Do not approve the bond question to be placed on the November 4, 2014 general election.

Over the past two years, the City of Flagstaff has reviewed the current condition of Flagstaff streets and discussed possible scope and financing to fund repairs to existing street infrastructure (including some sidewalks, curbs, ADA ramps, and bike lane restriping) and underlying utility infrastructure.  The following is a summary of past City action and discussion:

2010: Street and Utility Bond Initiative
November 2012: Completed analysis on the condition and improvement costs of critical City infrastructure
March 2013: First regional coordination meeting
April 2013: Council discussion on project approach
July 2013: Reallocation of $1M for FY15 Budget
September 2013: Council discussion on funding proposals and direction to form Citizen Committee
November 2013:Citizen Survey
January – March 2014: Citizen Committee
April 2014: Citizen Committee recommendation presented to City Council
May 2014: Focus Groups and Survey Results
June 2014: Ballot options presented to City Council

During the month of June, Council met four times to discuss the scope and financing for the Road Repair and Street Safety Initiative. Through these discussions, Council discussed the following key considerations:

• fund repairs to existing street infrastructure (including adjacent sidewalks, curbs, ADA ramps, and bike lane restriping)
• fund repairs to utilities infrastructure underlying roads that need also to be repaired
• commit to the public that in addition to improving Flagstaff roads, the City will also commit resources to preserving the investment that improved the road condition
• fund repairs with a 1/3 cent sales tax increase over a 20 year term
   

Based on past advice from bond counsel, there will be no charge for pro/con statements for the Informational Pamphlet since this involves the issuance of bonds.

The City Manager's Office engaged the public in the development of the Road Repair and Street Safety Initiative.  This included initiating a Citizen Review Committee to inform the public of the current condition of the City's infrastructure, consulting the public on possible solutions and empowering the public to provide a policy recommendation in the form of a resolution.  City staff also consulted with the Transportation Commission and conducted surveys and focus groups on proposed the ballot initiative.