TOWN OF GYPSUM Ordinance No.15 (Series 2004) AN ORDINANCE
OFTHE TOWN OF GYPSUM, COLORADO, READOPTING AND INCREASING THE TOWNWIDE SALES TAX; AND CONFIRMING THE SUBMISSION
OF THIS ORDINANCE ANDTHE INCURRENCE
OF RELATED DEBTOFTHETOWN FOR APPROVAL AT THE ELECTION OFTHE REGISTERED ELECTORS OFTHETOWN ON NOVEMBER

2,2004

. WHEREAS, the Townof Gypsum ("Town")

isahome rule municipality duly organized and existing under Article XXofthe Colorado Constitution and the Town's HomeRule Charter effective October 21, 1982 ("Charter"); and WHEREAS, the Townis authorized bythe Charter, including Section 1.3and Article VI, and the Colorado Constitution

to impose

asalestaxonthe saleof tangible personal property
at retail, the furnishing of services, and saleof food, subject to approval ofthe registered electors of the Town;and WHEREAS, the Townis authorized

toissue revenuebonds and other indebtedness subject to approval ofthe registered electors ofthe Town;and WHEREAS, the Townhas previously authorized and currently imposes sales and use taxesatatotal rateof 3%,such taxes being authorized
in part by Ordinance No.10 (Series 1995), codifiedin Chapter 3.08ofthe Gypsum Municipal Code ("Ordinance No. 1995·10"); and WHEREAS, duetothe need toconstructand acquire certain capital improvements
for recreation and the necessity of creating

arevenuesourcetherefor, the Town Council (''Council") has detennined and hereby detennines that the public interest requires the Town readopt and increase byonepercent
(1 %)the sales taxtoatotal Townrateoffour percent (4%)onthe saleof tangible personal property
at retail, the furnishing of services, and saleof food, machinery and machine tools; and WHEREAS, the state general election of Tuesday, November

2, 2004,isoneofthe election dates atwhich ballot issues and spending questions maybe submitted
tothe registered electors ofthe Town pursuant
toArticle X,Section 20ofthe Colorado Constitution. \\IDE· 7016U0.100. 213562v4NOW THEREFORE,
BEIT ORDAINED BYTHETOWN OF GYPSUM, COLORADO: Section

1. Definitions. Forthe purposesofthis Ordinance, the words herein contained shall have the meanings setforth herein,in Chapter 3.08ofthe Gypsum Municipal Code, andin Sections 39-26-102 and 39-26-201, C.R.S.,asthey currently exist ormayhereafter be amended. Such definitions are incorporated herein bythis specific reference. Section
2. Readoption
of Portions of Title 3. Chapter 08, Gypsum Municipal Code. The following sections of Title 3, Chapter 08ofthe Gypsum Municipal Code arereadopted

to readasfollows: 3.08.080 Sales Tax Imposed. A. Pursuant
toArticleXXofthe Colorado Constitution andthe Town's HomeRule Charter effective October 21, 1982, including Section 1.3and Article VIofthe Charter, thereis hereby imposed onthesaleof tangible personal property
at retail, the furnishing of services, and saleoffood items,

asales tax equal tofour percent (4%)ofthe grossreceipts ("Sales Tax"). The tangible personal propertyand services taxable under this Ordinance shall bethe sameasthe tangible personal property, services, and food taxable pursuant
to Section 39-26-104, C.R.S., and subject tothe same exemptions

asthose specified
in Section 39-26-114, C.R.S., PROVIDED THATthe exemption for sales of electricity, coal, wood, gas,fuel oil,orcoke soldto occupantsof residences pursuant
toSection 39-26- 114(1)(a)(XX1), C.R.S., shall apply tothe Sales Taxand the saleofsuch items shall notbe taxable, and PROVIDED FURTHERTHATthe exemption for sales of machinery
or machine tools pursuant
toSection 39-26-114(11), C.R.S., andthe exemption for sales of food specified
in Section 39-26-114(1)(a)(XX), C.R.S., shall not apply tothe Sales Tax,and thesaleofsuch itemsis expressly made taxable under this Ordinance. The imposition ofthe Sales Taxonindividual sales shallbein accordance with schedules setforthin the rules and regulations promulgated bythe Department
of Revenue.
If anyvendor, during anyreporting period, shall collect asthe Sales Taxanamountin excessofthe amountofthe Sales Tax imposed bythis Ordinance,
he shall remit tothe Executive Director thefull amountofthe Sales Taxherein imposed and also such excess. B. Immediately following the paymentofall costsofthe recreation center ("Recreation Center") constructed bythe Town, including debt service onBonds orother obligations issued tofinance the Recreation Center, the Town Managershall certify tothe TownCouncil thatallsuch costshave been paid, satisfied orcancelled,

astobe morefully setforthin the Townordinance authorizing the Bonds described
in Section

6of Ordinance No.15 (Series 2004). The onepercent (1%) Sales Taxincrease approved bythe Town's electors onNovember

2, 2004,shall tenninate
assoonaspossible after such certification ("Termination Date"), consistent with the regulations and practices ofthe Colorado Department
of Revenuefor collection ofanexpiring sales tax,andonand after the Termination Date,the Sales Taxshall be imposed
attherateof three percent (3%)of gross receipts. Any revenuescollected from theonepercent
(1 %)sales taxincrease priortothe 2 \\ \DE -1016W300

•2US62 v4Termination Date and not needed to pay costs of the Recreation Center may be used for any other capital improvement purposes designated by Town resolution or ordinance. 3.08.200. Use of Revenues. A. 2004 Increase and Authorization. Use of the revenues derived from the one percent (1 %) Sales Tax increase approved by the Town's electors on November

2, 2004, shall be restricted
to capital improvement purposes, including deposit to a sales tax capital improvement fund that may be created by subsequent ordinance, relating to a recreation center, as more fully described
in Section

4 of Ordinance No. 15 (Series 2004) and the ballot title for such election. B. 1995 Increase and Authorization. Use of the revenues derived from the one percent (1 %) Sales Tax and the three percent (3%) Use Tax approved by the Town's electors on November

7, 1995, shall be restricted
as follows: (1) Sales Tax: Twenty percent (20%) to general administration, and eighty percent (80%) to law enforcement, Town Hall and recreation. (2) Use Tax: Twenty percent (20%) to general administration and engineering, and eighty percent (80%) to roads and road improvements. C. Other Revenues. Except as restricted
in subsections
A. or B. of this Section, all other revenues generated by Sales and Use Taxes within the Town may be used for any lawful purpose. Section
3. Confirmation
of Sales and Use Tax. (a) Except as amended hereby, Ordinance No. 1995-10, codified
as Title 3, Chapter 08 of the Gypsum Municipal Code, is hereby confirmed, readopted and incorporated herein by reference pursuant
to Article XX of the Colorado Constitution and the Charter, including Section 1.3 and Article VI of the Charter, including without limitation the provisions relating to licensing, the sales, uses or property
to which the Sales and Use Taxes apply, the exemptions and exceptions therefrom and the collection thereof. Copies of Ordinance No. 1995- 10 and the Gypsum Municipal Code are available during regular business hours at the office of the Town Clerk. (b) In the event the six and nine-tenths percent (6.9%) limitation provided
in Section 29-2-108(1), C.R.S.,
is to be exceeded in the Town by a proposed county sales tax, such limitation shaH be exceeded by two percent (2%) in the Town. Section
4. Duration and Amendment. The one percent
(1 %) of the Sales Tax increase provided herein shall commence January

1, 2005, and continue until all costs of the Recreation Center have been fully paid, as provided
in Gypsum Municipal Code Section 3.08.080,
as amended by Section

2 of this Ordinance No 15 (Series 2004). The provisions
of Chapter 08 of Title
3 of the Gypsum Municipal Code, including the amendments adopted by this 3 1\IJ)E -7016210300-213362

v4Ordinance No. 15 (Series 2004) may be amended by subsequent ordinance, except that no amendment may increase the amount of the Sales or Use Tax, increase the types of sales, uses or property subject to the taxes, reduce the allocation of revenues dedicated
to specific uses, or extend the one percent
(1 %) Sales Tax increase without voter approval

. Section

5 .Intention
to Issue Town Bonds. The Town hereby declares its intention
to issue revenue bonds, notes or other evidence of debt or multiple fiscal year financial obligations of the Town ("Bonds"), subject to (i) approval by the registered electors of the Town and (ii) further authorization
by Town ordinance

as required by Article VI of the Town Charter, such Bonds to be tax-exempt,

in an aggregate principal amount up to $8,500,000,

to reimburse the costs of planning, financing, constructing, acquiring and equipping

a recreation center, including reasonable reserves therefor, and to be payable from
a pledge of the revenues from the one percent
(1 %) sales tax increase provided herein and other revenue and to contain such other terms as determined by subsequent ordinance of the Town Council. Section
6. Election. Before this Ordinance shall become effective and before any Bonds are issued,
it shall be submitted
to and receive the approval of a majority of the registered electors of the Town voting thereon
at the election
to be held on Tuesday, November

2, 2004. The election shall be conducted

as set forth in Resolution No. 23 (Series 2004) adopted by the Council on August 24, 2004, and as follows: (a) Conduct of Election. The election shall be held and conducted
in accordance with the Charter, Article 10, Title 31, C.R.S., and Article X, Section 20 of the Colorado Constitution. The Council hereby approves and authorizes the Town Clerk to execute and enter into such agreements
or amendments

to agreements,
on behalf of the Town, with Eagle County, Colorado, regarding the preparation and mailing of the Notice required by Article X , Section 20 of the Colorado Constitution. The Council hereby designates the Town Clerk as the Election Official for the conduct of the election on behalf of the Town, with the authority and direction
to proceed with any action necessary
or appropriate

to effectuate the provisions of this Ordinance and all constitutional and statutory provisions governing the conduct of this election. (b) Ballot Title. The ballot title for the Sales Tax increase and related Town Bond question shall be in substantially the following form: SHALL TOWN OF GYPSUM TAXES BE INCREASED
BY $460,000 ANNUALLY, COMMENCING

IN 2005, AND SHALL TOWN OF GYPSUM DEBT BE INCREASED UP TO $8,500,000, WITH A REPAYMENT COST OF NOT MORE THAN $17,000,000, FOR A RECREATION CENTER AS PROVIDED HEREIN, SUCH TAXES TO INCLUDE WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY FROM AN INCREASE OF ONE PERCENT

(1 %) TO THE EXISTING TOWN SALES TAX, RESULTING
IN A TOTAL TOWN SALES TAX OF FOUR PERCENT (4%); AND SHALL SUCH (1%) INCREASE
IN THE SALES TAX COMMENCE JANUARY

1, 2005 AND CONTINUE ONLY UNTIL ALL COSTS OF A RECREATION CENTER HAVE BEEN PAID IN CONFORMANCE WITH ORDINANCE NO. 15 (SERIES 2004); AND SUCH 4 \\IDE· 7016210300

·213562 v4DEBT TO CONSIST OF REVENUE BONDS OR OTHER MULTIPLE FISCAL YEAR OBLIGATIONS, ISSUED OR INCURRED FOR THE PURPOSE OF PAYING, REIMBURSING,
OR FINANCING ALL OR ANY PART OF THE COSTS OF DESIGNING, ACQUIRING, CONSTRUCTING, INSTALLING, FINANCING AND OTHERWISE PROVIDING,

A RECREATION CENTER AND ALL NECESSARY EQUIPMENT AND IMPROVEMENTS, TOGETHER WITH ALL NECESSARY, INCIDENTAL, AND APPURTENANT RESERVES, FACILITIES, LAND AND EASEMENTS,
OR FOR THE PURPOSE OF REFUNDING OBLIGATIONS ISSUED FOR SUCH PURPOSES WHETHER OR NOT SUCH REFUNDING OBLIGATIONS ARE ISSUED AT A LOWER INTEREST RATE; SUCH BONDS OR OTHER OBLIGATIONS
TO MATURE, BE SUBJECT TO SUCH TERMS AND BEAR INTEREST AT A NET EFFECTIVE INTEREST RATE NOT IN EXCESS OF 8% PER ANNUM, TO BE PAYABLE AT SUCH TIMES AND WHICH INTEREST MAY COMPOUND ANNUALLY
OR SEMIANNUALLY, ALL AS MAY BE DETERMINED
BY ORDINANCE
OF THE GYPSUM TOWN COUNCIL; SUCH DEBT TO BE ISSUED OR INCURRED AT ONE TIME OR FROM TIME TO TIME AND TO BE PAY ABLE FROM THE PLEDGE OF REVENUES FROM THE ONE PERCENT

(1 %) SALES TAX INCREASE AND ANY OTHER LEGALLY AVAILABLE REVENUE OF THE TOWN; AND, IN CONNECTION THEREWITH,
AS A VOTER-APPROVED REVENUE CHANGE, SHALL THE PROCEEDS
OF ANY SUCH DEBT AND THE PROCEEDS OF SUCH TAX, ANY OTHER REVENUE USED TO PAY SUCH DEBT, AND INVESTMENT INCOME THEREON, BE COLLECTED AND SPENT BY THE TOWN WITHOUT REGARD TO ANY SPENDING, REVENUE-RAISING,

OR OTHER LIMITATION CONTAINED WITHIN ARTICLE
X, SECTION 20 OF THE COLORADO CONSTITUTION
OR ANY OTHER LAW AS IT CURRENTLY EXISTS OR AS IT MAY BE AMENDED IN THE FUTURE, AND WITHOUT LIMITING
IN ANY YEAR THE AMOUNT OF OTHER REVENUES THAT MAY BE C0LLECTED AND SPENT BY THE TOWN? Section
7. Severabilitv

.If any portion of this Ordinance

is found to be void or ineffective,

it shall be deemed severed from this Ordinance and the remaining provisions shall remain valid and in full force and effect. Section

8 .Public Hearing.
A public hearing on this Ordinance shall be held on the 14TH day of September, 2004 at 7:00p

.m
.at the Town Council Chambers, Gypsum Town Hall, Gypsum, Colorado

· Section
9. Effective Date. This Ordinance shall become effective
as a permanent ordinance five days after publication following final passage, except that Sections
2, 3 and 4 of this Ordinance shall not take effect until and unless the ballot title provided
in Section

6 of this Ordinance,

is approved by the eligible electors
at the November

2, 2004 election,
in which event the Sales Tax provided for herein shall apply to sales beginning January

1, 2005. Upon such approval, this Ordinance shall readopt the provisions
of Chapter 08 of Title
3 of the 5 \\IDE·70162!0300

• 213562 v4Gypsum Municipal Code pursuant
to Article XX of the Colorado Constitution and the Charter, including Section 1.3 and Article VI of the Charter. Section 10. Authorization. The officers of the Town are authorized and directed
to take all action necessary and appropriate

to effectuate the provisions
of this Ordinance. INTRODUCED, READ, AND ORDERED PUBLISHED BY THE TOWN COUNCIL OF THE TOWN OF GYPSUM, COLORADO, UPON A MOTION DULY MADE, SECONDED AND PASSED AT ITS REGULAR MEETING HELD AT THE TOWN OF GYPSUM, ON THE 24TH DAY OF AUGUST, 2004, BY A VOTE OF __LIN FAVOR AND .¥ AGAINST.

TOWN OF GYPSUM **~**

=== Stephen M. Carver, Mayor ATTES FINALLY ADOPTED, PASSED AND APPROVED ON SEPTEMBER
l!/., 2004. TOWN OF GYPSUM Stephen M. Carver, Mayor 6 11 \Dil- 70162/0300 **-lm6~**

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