RESOLUTION NO. 13-07

A RESOLUTION SETTING A TITLE AND SUBMITTING TO THE ELECTORATE ON APRIL 3, 2007 A MEASURE TO RETAIN AND SPEND REVENUES AS DEFINED BY ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION

RECITALS.

In 1992, the Colorado electorate amended the Colorado Constitution by the passage of the “Taxpayers Bill of Rights” (TABOR Amendment). The Amendment requires, among other things that any time fiscal year revenues exceed the limitation imposed by the Amendment for the fiscal year, then the local government must refund the excess revenues unless the voters approve otherwise.

It has been shown in recent studies that a significant portion of the City’s general government revenue is derived from sales tax paid by visitors, shoppers and tourists. Because the City is principally funded by sales tax, the tax burden on City residents is reduced. Sales tax funding of municipal services provides a means of sharing the cost of services among all users. Sales tax will be the primary source of excess revenues under those revenue limits imposed by the TABOR Amendment. As a result, approval of the ballot question would allow the City of Grand Junction to retain this important tax revenue, for use to pay a portion of the Riverside Parkway Bonded Debt.

The ballot question does not repeal the TABOR provisions, especially those that require voter approval of any future government debt or tax increases.

The ballot question will not increase taxes or tax rates.

The passage of this ballot question will provide assistance with the Riverside Parkway Bonded Debt and is intended to result in the early payment of these bonds.

NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAND JUNCTION THAT:

1.  The ballot question will maximize resources for the accelerated payment of the Riverside Parkway Bonded Debt.

2.  Principal and interest from all retained excess revenues will be added to debt service payments budgeted by the City and allocated solely for additional payment toward the Riverside Parkway debt at the earliest possible date

3. The following question be submitted to the registered electors on Tuesday,

April 3, 2007.

City of Grand Junction A

“SHALL THE CITY OF GRAND JUNCTION, COLORADO, WITHOUT ANY INCREASE IN TAXES, BE AUTHORIZED TO RETAIN ALL REVENUES IN EXCESS OF AMOUNTS WHICH THE CITY IS PERMITTED TO SPEND UNDER ARTICLE X, SECTION 20 (TABOR) OF THE COLORADO CONSTITUTION FOR 2006 AND SUBSEQUENT YEARS UNTIL THE RIVERSIDE PARKWAY BONDED DEBT IS PAID IN FULL, WITH ALL AMOUNTS RETAINED TO BE USED FOR PAYMENT OF THE RIVERSIDE PARKWAY BONDED DEBT?”

YES

NO

Adopted this 17^th day of January, 2007.

/s/ James J. Doody    

President of the Council

ATTEST:

/s/ Stephanie Tuin    

City Clerk