Consideration and Adoption of Resolution No.2016-25:  A resolution authorizing referral of a ballot question to the qualified electors of the City at the General Election on November 8, 2016, related to possible continuation of a local transaction privilege tax (sales tax), (excluding the sales of food as exempt by state law), for a period of ten years commencing July 1, 2020, with proceeds from the tax to be designated for public transportation purposes. (Ballot Question - Transit Tax Renewal) 

The City Council gave direction at the June 14, 2016 Council Work Session to prepare ballot language for purpose of a renewal of the local transaction privilege tax dedicated for public transportation (transit tax). The purpose of this resolution is to adopt official ballot language to be submitted at the City’s general election to be held on November 8, 2016.

 

The ballot question will ask voters to consider a continuation of the City's local transaction privilege tax dedicated for public transportation (transit tax) at the rate of 0.295% to sunset June 30, 2030.  This tax is projected to generate approximately $5.5 million per year, beginning in 2020.  Mountain Line's current operating budget is approximately $7.5 million per year.  Mountain Line's capital budget varies but has averaged about $5 million annually.  Funding for Mountain Line's operation and capital budgets are supported by the City's transit tax, grants, other agencies and rider fares.  A flat tax renewal/continuation will maintain existing service levels.   

TAX BACKGROUND
The City Charter Article V, Section 2 provides that the City Council shall have the power to levy a transaction privilege tax (also referred to as a sales tax) subject to approval by a majority of the qualified electors voting in the regularly scheduled general election. The City base local transaction privilege tax rate is 2.051% of gross revenues from a taxable activity (with an additional 2% rate on bar/restaurant/lodging businesses). The transit tax was approved by the City electorate via five separate propositions, totals as a .295% rate,and is part of the base rate of 2.051%. The approved propositions dedicate the transit tax revenues for specific public transportation purposes, and impose a "sunset" or expiration date for such tax of June 30, 2020. The applicable propositions are referenced in the City Code, Section 3-05-008-0800.A.5,7,8,9,10.
 

COUNCIL GOALS:
3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics
6) Provide a well-managed transportation system
7) Continue to implement the Flagstaff Regional Plan and focus efforts on specific plans
8) Improve effectiveness of notification, communication, and engagement with residents, neighborhoods and businesses and about City services, programs, policies, projects and developments
 

On June 14, 2016, City Council directed staff to prepare ballot language for the continuation of the transit tax.

 

Approve Resolution 2016-25 as drafted.
Amend and adopt Resolution 2016-25.
Do not adopt Resolution 2016-25.

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