Archuleta County Ballot Initiative


BOARD OF COUNTY COMMISSIONERS

RESOLUTION NO. 2017-40

A RESOLUTION TO APPROVE AND AUTHORIZE A BALLOT QUESTION FOR THE NOVEMBER 2017 COORDINATED ELECTION FOR THE PURPOSE OF PROPOSING AN INCREASE TO THE EXISTING COUNTYWIDE SALES TAX RATE TO ADDRESS CRITICAL AND URGENT NEEDS OF THE ARCHULETA COUNTY SHERIFF’S OFFICE AS MORE PARTICULALRY DESCRIBED WITHIN THE PROPOSED RESOLUTION

WHEREAS, C.R.S. §29-2-101, et. seq. authorizes the County to levy an increase in the countywide sales tax rate upon approval of the majority of qualified registered electors of the County voting on such proposal at an election conducted and held according to Colorado law; and

WHEREAS, Archuleta County Sheriff Richard Valdez (“Sheriff”) is the chief law enforcement officer for Archuleta County, with statutorily mandated duties to be performed on behalf of all Archuleta County residents regardless of municipal boundaries, including emergency response to public safety, wild land firefighting, carrying out orders and decrees of the court, responding to calls for service and staffing the Archuleta County Detention Center in a safe and secure manner; and

WHEREAS, due to structural deficiencies, the Archuleta County Detention Center is no longer in existence and inmates are being transported to and held in neighboring La Plata County at great cost to the taxpayers and posing significant safety risks to the officers and residents of Archuleta County; and

WHEREAS, due to the age and condition of the building that was housing the Archuleta County Detention Center it would not be feasible to attempt to repair that structure for the purpose of housing inmates; and

WHEREAS, passage of this measure will ensure that the Archuleta County Sheriff’s Office has the funding it needs to provide suitable jail facilities for inmates at the Archuleta County Detention Facility as well as appropriate equipment for staff at the Archuleta County Sheriff s Office; and

WHEREAS, the proposed one cent per dollar ($.01) sales tax increase in this measure is temporary and will expire on December 31st of the year in which the last payment on the bonded indebtedness is made, but in no event shall termination occur later than December 31, 2032; and

WHEREAS, the Board of County Commissioners of Archuleta County finds that the imposition of a sales tax of one cent per dollar ($.01) of taxable transactions will permit the county to utilize the revenues derived from these taxes for any and all capital expenditures related to touching upon or concerning the construction or operation of a detention facility, including but not limited to jail cells, sheriff’s administration offices, sheriff’s patrol and transport vehicles, communications and dispatching, courtrooms, district attorney facilities, and related facilities; and

WHEREAS, by separate resolution considered contemporaneously with the adoption of this Resolution the Board of County Commissioners will establish a separate fund to be known as the Justice System Capital Fund so that all revenue and expenditures related to the temporary tax increase imposed hereby will be more transparently accounted for and available for review by the general public; and

WHEREAS, the Board of County Commissioners of Archuleta County finds that the imposition of a sales tax of one cent per dollar ($.01) of taxable transactions will promote the health, safety and welfare of the citizens of Archuleta County.

NOW THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Archuleta County:

GENERAL PROVISIONS

  1. Purpose of this Resolution: The purpose of this Resolution is to authorize the submission of a ballot question and, upon the approval of a majority of the eligible electors voting on such Proposal at the November 2017 Coordinated Election, to enact, and, therefore, levy and impose an increase in the countywide sales tax rate of one cent per dollar ($.01) upon the sale at retail of tangible personal property and the furnishing of certain services in the County (“the sales tax”) all of the foregoing being in accordance with the provisions of Article 2 of Title 29, C.R.S., which provisions are incorporated herein by this reference and to authorize the issuance of bonds therefor.

 

  1. Effective Date of Sales Tax Rate Increase: If approved by a majority of the eligible electors voting thereon in the November 2017 Coordinated Election, the county wide sales tax rate increase proposed in this Resolution and in the ballot issue shall become effective January 1, 2018 and will expire on December 31st of the year in which the last payment on the bonded indebtedness is made, but in no event shall termination occur later than December 31, 2032, after which date the countywide sales tax rate increase shall be ended by operation of law, and the County shall notify the Executive Director of Department of Revenue to stop collecting this countywide sales tax increase.

 

  1. Statutory Definitions Incorporated / Specific Definition of Countywide:  The definitions of the words contained herein shall be as set forth in C.R.S. §§ 39-26-102, 39-26-201, and 39-26-701, which definitions are incorporated by reference into this Resolution as if fully set forth herein. The term, "countywide", as used in this Resolution includes all incorporated areas (i.e., municipalities, including, but not limited to, all statutory cities and towns and all home rule cities and towns) and unincorporated areas within Archuleta County.

SPECIFIC PROVISIONS RELATING TO THE SALES TAX

  1. Property and Services Taxed:  Upon the approval of a majority of the eligible electors in the November 2017 Coordinated Election. there shall be enacted and, therefore, levied and imposed, and there shall be collected and paid, an increase in the existing countywide sales tax rate of one cent per dollar ($.01) on the gross receipts upon the sale of tangible personal property at retail and the furnishing of certain services as provided in C.R.S. § 29-2-105(1)(d) upon all taxable transactions in the County. The sale of tangible personal property and services taxable pursuant to this Resolution shall be the same as the sale of tangible personal property and services taxable pursuant to C.R.S.  §39-26-104. except as otherwise provided in such § 29-2-105(1)(d)

  1. Adoption of State Rules and Regulations: The imposition of this increase in the tax on the sale at retail of tangible personal property and the furnishing of certain services subject to this tax shall be in accordance with the schedule set forth in the rules and regulations of the Colorado Department of Revenue, and in accordance with any regulations which may be enacted by separate written resolution.

  1. Exclusions from Sales Tax: The incidents subject to sales tax shall not include the following:

  1. The amount of any sales or use tax imposed by Article 26 of Title 39, C.R.S.

  1. The sale of construction and building materials, as the term is used in section 29-2-109, if such materials are picked up by the purchaser and if the purchaser of such materials presents to the retailer a building permit or other documentation acceptable to such local government evidencing that a local use tax has been paid or is not required to be paid.

  1. The sale of tangible personal property at retail or the furnishing of services if the transaction was previously subjected to a sales or use tax lawfully imposed on the purchaser or user by another statutory or home rule county equal to or in excess of that sought to be imposed by the subsequent statutory or home rule county. A credit shall be granted against the sales tax imposed by the subsequent statutory or home rule county with respect to such transaction equal in amount to the lawfully imposed local sales or use tax previously paid by the purchaser or use to the previous statutory or home rule county. The amount of the credit shall not exceed the sales tax imposed by the subsequent statutory or home rule county. The following provision shall apply in defining the applicability of its higher rate to the sales tax ordinance or resolution of any statutory or home rule city, town, city and county, or county which provides a higher rate of taxation on prepared food or food for immediate consumption than its general rate of taxation: Prepared food or food for immediate consumption shall exclude any food for domestic home consumption.

  1. The sale of food purchased with food stamps. For purposes of this provision, the term, "food", shall have the same meaning as provided in C.R.S. § 39-26-102(4.5) and 7 U.S.C. § 2012 (g), as such section exists on October 1, 1987, or as thereafter amended.

  1. The sale of food purchased with funds provided by the special supplemental food program for women, infants and children, 42 U.S.C. § 1786, For the purposes of this provision, "food" shall have the same meaning as provided in 42 U.S.C. §1786, as such section exists on October 1, 1987, or is thereafter amended.

  1. The sales of cigarettes pursuant to C.R.S. §29-2-105(9).

  1. Mobile Telecommunications Services: Imposition of a sales tax pursuant to C.R.S. § 39-26-104(1)( c) on a mobile communications service shall be imposed in accordance with the provisions of the Mobile Telecommunications Sourcing Act 42 U.S.C. §§ 116 to 126 as amended, and pursuant to section 117(b) of the Act, mobile telecommunications service taxable by the County on or after August 1, 2002 may be subject to any sales tax or other charge imposed by the County on the service only if the customer's place of primary use is within the geographical boundaries of the County.

  1. Sales Tax Exemptions: There shall be exempt from sales taxation under the provisions of this Resolution all of the tangible personal property and services which are exempt from County sales taxation under the State Statue, "Sales and Use Tax Exemptions", C.R.S. S39-26-701, et seq. The sales tax exemptions imposed pursuant to this Resolution will be expressly subject to the following exemptions. as provided in C.R.S. §29-2-501(1)(d):

  1. Exemption for sales of food specified in C.R.S. § 39-26-707(1)(e);
  2. Exemption for sales of machinery or machine tools specified in C.R.S.  § 39-26-709(1); and
  3. Exemption for sales of electricity, coal, wood, gas (including natural, manufactured and liquefied petroleum gas), fuel oil, or coke sold to occupants of residences as specified in C.R.S. § 39-26-715(1)(a)(II), C.R.S.

 

  1. Nonresident Exemption: All sales of tangible personal property on which a specific ownership tax has been paid or is payable shall be exempt from the subject sales tax increase when such sales meet both of the following conditions:

 

  1. The purchaser is a nonresident of or has his or her principal place of business outside the of County; and
  2. Such tangible personal property is registered or required to be registered outside the limits of the County under the laws of Colorado.

 

  1. Place of Sale:  For purposes of this Resolution, all retail sales shall be considered consummated at the place of business of the retailer, unless the tangible personal property sold is delivered by the retailer or his agent to a destination outside the limits of the County or to a common carrier for delivery to a destination outside the limits of the County. The gross receipts from such sales shall include delivery charges, when such charges are subject to the sales and use tax of the State of Colorado imposed by Article 26 of Title 39, C.R.S., regardless of the place to which delivery is made. If a retailer has no permanent place of business in the County, or has more than one place of business, the place or places at which the retail sales are consummated for the purpose of the sales tax increase imposed by this Resolution shall be determined by the provisions of Article 26, of Title 39, C.R.S., and by the rules and regulations promulgated by the Colorado Department of Revenue.

 

  1. Sales Tax License: No separate County sales tax license shall be required. Any person engaging in the business of selling tangible personal property at retail or furnishing certain services as herein specified shall annually obtain and hold a State license as required by C.R.S. §39-26-103.

 

  1. Sales Tax Vendor’s Fees:  As collection agent for Archuleta County, the vendor shall be entitled to withhold an amount equal to three and one-third percent (3 1/3%) of the total amount to be remitted by vendor to the Executive Director of the Colorado Department of Revenue each month to cover vendor's expense in the collection and remittance of said County sales tax. If any vendor is delinquent in remitting said tax, other than in unusual circumstances shown to the satisfaction of the Executive Director, the vendor shall not be allowed to retain any amounts to cover his or her expenses in collecting and remitting said tax. By separate resolution, the Board of County Commissioners at any time, may increase, decrease or eliminate all or any part of the vendor fee.

 

  1. Collection, Administration and Enforcement: The collection, administration and enforcement of the sales tax increase imposed by this Resolution shall be performed by the Executive Director of the Colorado Department of Revenue in the same manner as the collection, administration and enforcement of the Colorado State sales tax. The provisions of Article 26 of Title 39, CR.S. and all rules and regulations promulgated by the Executive Director of the Department of Revenue thereunder are incorporated herein by this reference and shall govern the collection, administration and enforcement of the sales tax increase imposed by this Resolution.

If the sales tax increase proposed by this Resolution is approved by the electorate at the Coordinated Election in November, 2017, the County Clerk and Recorder, shall send notice of said adoption to, and make a request of, the Executive Director of the Department of Revenue to administer, collect and distribute the sales tax increase hereby imposed, pursuant to C.R.S. §29-2-106, The Board of County Commissioners and the Clerk and Recorder, at the time of making such request, shall provide the following documents to the Executive Director of the Department of Revenue:

  1. A copy of this Resolution, certified by the Clerk and Recorder;
  2. Affidavits of Publication of this Resolution, as provided herein; and
  3. An abstract of election results, certified as to the approval of the sales tax by a majority of the registered, qualified electors of Archuleta County voting thereon.

In the event the Executive Director of the Department of Revenue fails or refuses to collect the sales tax increase imposed by this Resolution, the Board shall be authorized to provide for the collection, administration or enforcement of such sales tax increase to the extent permitted by law or to amend this Resolution to comply with the requirements of the Department of Revenue.

  1. Use by County:  The Board shall direct the utilization of the revenues of the sales tax increase proposed by this Resolution solely as described in the ballot measure referred to the voters of Archuleta County by this Resolution.

  1. Effective January 1, 2018 and continuing through the point that, Archuleta County shall have expended all revenue generated from this sales tax increase for the purposes listed on Attached Exhibit A and for no other purposes.

  1. Revenue generated from this sales tax increase shall be restricted to the following uses:

  1. TO PAY ALL PRINCIPAL, INTEREST OR PREMIUM, IF ANY, ON ANY BONDS ISSUED BY THE COUNTY FOR THE PURPOSES SET FORTH IN THE BALLOT MEASURE; AND

  1. TO FUND AND PAY OTHER COSTS OF THE JUSTICE SYSTEM AS AUTHORIZED BY AND CONSISTENT WITH THE BALLOT MEASURE

 

  1.  Sunset of Sales Tax Rate Increase:  The one cent per dollar ($0.01) sales tax increase shall terminate on the December 31st following the payment in full of any bonds issued under the authority of the ballot measure but in no event later than December 31, 2032 by operation of law, and without the need for any action by the County.

 

  1. Distribution of Proceeds of Sales Tax Rate Increase: In order to carry out the purposes expressed in paragraph numbered 14, above, and pursuant to C.R.S. §29-2-104(2), the County shall retain all revenue generated by this sales tax increase for the sole and exclusive use for the purposes set forth in the ballot measure by depositing all of the revenues generated by this sales tax increase into a fund to be known as the Justice System Capital Fund.

 

ELECTION REQUIREMENTS

 

  1. Submission to Electors:  Pursuant to C.R.S. §29-2-104(3), this sales tax increase

proposal as set forth in this Resolution shall be referred to the eligible electors of Archuleta County at the Coordinated Election to be held Tuesday, November 7, 2017, and being referred to herein as the November 2017 Coordinated Election. The ballot issue to be submitted to the eligible electors shall be substantially as set forth on attached Exhibit A, which Exhibit A is incorporated by reference into this Resolution as if fully set forth herein.

  1. Publication of Resolution:      The County Clerk and Recorder is hereby authorized and directed to publish the text of this proposal for a sales tax increase four separate times, a week a part, in The Pagosa Sun, a newspaper circulated in Archuleta County.

  1. Conduct of Election:  The election shall be held and conducted and the results thereof shall be determined so far as practicable, in conformity with the provisions of the Colorado Uniform Election Code of 1992 as set forth in Articles I through 13, inclusive, of Title 1, C.R.S.

  1. Ballot Title:  The ballot title for the question shall be “A ballot question for a countywide temporary sales tax increase of one percent for the purpose of funding Justice System improvements and including the issuance and payment of bonds or other financial obligations in connection therewith.”

  1.  Authority to Effect Resolution:  The officers, employees and agents of the County are hereby authorized and directed to take all action necessary or appropriate to effectuate the provisions of this Resolution in accordance with Colorado law.

 

MISCELLANEOUS

 

  1. Effective Date – Applicability:  Upon approval at the November 2017 Coordinated Election, this proposal shall become effective and in force immediately, subject to the terms and conditions as set forth in this Resolution, and shall remain effective unless otherwise repealed according to Colorado law; provided, however, that the provisions of this Resolution calling for an election on the ballot measure set forth in Exhibit A, which is incorporated herein by this reference, shall take effect immediately upon the passage of this Resolution by the Board.

  1. Statutory References: Unless otherwise referenced, all statutory citations in this Resolution shall be construed to refer to the Colorado Revised Statutes, 2017, referred to above as C.R.S., and as the same may be from time to time amended.

  1. Amendments: Unless otherwise required by Colorado law, the provisions of this Resolution may be amended by resolution of the Board of County Commissioners.

  1. Severability: If any section, paragraph, clause, or provision of this Resolution shall be adjudged to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining sections, paragraphs, clauses, or provisions of this Resolution. It is the intention of the Board that the various parts of this Resolution are severable.

PASSED AND ADOPTED this 15th day of August, 2017.

THE BOARD OF COUNTY COMMISSIONERS

OF ARCHULETA COUNTY, COLORADO

By: Steve Wadley, Chair

ATTEST:

By: June Madrid, County Clerk

EXHIBIT A

Ballot Question ______________

SHALL THE COUNTY OF ARCHULETA TAXES BE INCREASED $2,950,000 (FIRST FULL FISCAL YEAR DOLLAR INCREASE) ANNUALLY AND SHALL THE COUNTY OF ARCHULETA DEBT BE INCREASED BY AN AMOUNT NOT TO EXCEED $20,550,000, WITH A MAXIMUM REPAYMENT COST OF $26,550,000; SUCH DEBT TO CONSIST OF SALES TAX REVENUE BONDS OR OTHER FINANCIAL OBLIGATIONS ISSUED SOLELY FOR THE PURPOSE OF CONSTRUCTING, MAINTAINING IMPROVING AND EQUIPPING JUSTICE SYSTEM CAPITAL IMPROVEMENTS, TO INCLUDE BUT NOT BE LIMITED TO A NEW DETENTION CENTER AND NEW SHERIFF’S OFFICES, AND ALL NECESSARY AND INCIDENTAL COSTS RELATED THERETO WITH SUCH SALES TAX REVENUE BONDS TO BE DATED AND SOLD AT SUCH TIME, AND AT SUCH PRICES (AT, ABOVE OR BELOW PAR) AND CONTAINING SUCH TERMS, NOT INCONSISTENT HEREWITH, AS THE BOARD OF COUNTY COMMISSIONERS MAY DETERMINE; SUCH AUTHORIZATION SHALL INCLUDE AUTHORIZATION TO REFUND SUCH DEBT WITHOUT ADDITIONAL VOTER APPROVAL; SUCH TAX INCREASE TO CONSIST OF A COUNTY-WIDE RATE INCREASE OF 1.0% IN THE COUNTY SALES TAX (WHICH REPRESENTS A ONE CENT INCREASE ON EACH DOLLAR PURCHASE) BEGINNING JANUARY 1, 2018 WITH A TERMINATION ON DECEMBER 31ST FOLLOWING THE DATE ON WHICH THE REVENUE BONDS OR REFUNDING BONDS APPROVED HEREBY ARE PAID IN FULL (BUT IN NO EVENT SHALL SUCH TERMINATION OCCUR LATER THAN DECEMBER 31, 2032); SHALL THE COUNTY OF ARCHULETA BE AUTHORIZED TO DEPOSIT INTO ONE OR MORE COUNTY FUNDS SUCH AMOUNT OF SALES TAX REVENUES AS DETERMINED BY THE BOARD OF COUNTY COMMISSIONERS TO BE NECESSARY FOR THE PAYMENT OF THE BONDS AUTHORIZED HEREIN; SHALL THE REMAINING PORTION OF THE SALES TAX REVENUES BE DEPOSITED INTO A JUSTICE SYSTEM CAPITAL FUND TO BE UTILIZED SOLELY FOR THE PURPOSE OF CONSTRUCTING, IMPROVING, MAINTAINING AND EQUIPPING, THE COUNTY JUSTICE SYSTEM; SHALL RESOLUTION NO. 2017-40 OF THE COUNTY PROVIDING FOR THE IMPOSITION OF THE SALES TAX BE APPROVED AND SHALL THE REVENUES GENERATED FROM THE SALES TAX AUTHORIZED HEREIN AND THE PROCEEDS OF SUCH BONDS AND ALL EARNINGS FROM THE INVESTMENT THEREON (REGARDLESS OF AMOUNT) CONSTITUTE A VOTER-APPROVED REVENUE CHANGE, AND AN EXCEPTION TO THE REVENUE AND SPENDING LIMITS OF ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION, OR ANY OTHER LAW?

SENATE BILL 03-139 (§ 1-7-908, C.R.S.) NOTICE

Archuleta County, Colorado

NOTICE IS HEREBY GIVEN by the Board of County Commissioners of the above referenced political subdivision (Archuleta County) of the information required under Section 1-7-908, Colorado Revised Statutes.

General Fund Information

Year

Revenues

Expenditures

Ending Balance

2013

$10,415,107

$8,723,263

$8,880,189

2014

$11,014,592

$9,118,274

$10,776,507

2015

$10,790,547

$11,200,933

$10,366,121

2016

$12,642,692

$10,849,732

$12,159,081

2017 (projected)

$11,910,518

$11,650,497

$12,419,102

When bonds are issued, a fund will be established from which payment on the bonds will be made.

Short Term Debt Information

Year

Amount Incurred During Fiscal Year

2013

$0

2014

$0

2015

$0

2016

$0

2017 (projected)

$0

Emergency Reserve

The Political Subdivision's emergency reserve required by Section 20(5) of Article X of the Colorado Constitution is held in the Political Subdivision's various governmental funds, being; General, Road & Bridge, Human Services, Combined Dispatch, Conservation Trust and Fairfield Settlement Funds.

The Political Subdivision's emergency reserve fund has been fully funded by cash or investments for the current fiscal year and each of the last four fiscal years.

Financial Information Review

The Political Subdivision's audited financial statements for the last four fiscal years, any management letters that have been made public and have been provided provided to the Political Subdivision by its auditors in connection with the preparation of its audits for the last four fiscal years and the Political Subdivision's budget for the current fiscal year may be reviewed by any person at the following locations:

Audited Financial Statements:

http://www.archuletacounty.org/211/Audited-Financial-Statements

Management Letters:

N/A

Budget for the Current Fiscal Year:

http://www.archuletacounty.org/212/Budgets