THE ELECTION OF THE REGISTERED ELECTORS OF THE TOWN ON 

NOVEMBER 2, 2004. 

WHEREAS, the Town of Gypsum ("Town") is a home rule municipality duly organized 

and existing under Article XX of the Colorado Constitution and the Town's Home Rule Charter 

effective October 21, 1982 ("Charter"); and 

WHEREAS, the Town is authorized by the Charter, including Section 1.3 and Article VI, 

and the Colorado Constitution to impose a sales tax on the sale of tangible personal property at 

retail, the furnishing of services, and sale of food, subject to approval of the registered electors of 

the Town; and 

WHEREAS, the Town is authorized to issue revenue bonds and other indebtedness 

subject to approval of the registered electors of the Town; and 

WHEREAS, the Town has previously authorized and currently imposes sales and use 

taxes at a total rate of 3%, such taxes being authorized in part by Ordinance No. 10 (Series 1995), 

codified in Chapter 3.08 of the Gypsum Municipal Code ("Ordinance No. 1995·10"); and 

WHEREAS, due to the need to construct and acquire certain capital improvements for 

recreation and the necessity of creating a revenue source therefor, the Town Council (''Council") 

has detennined and hereby detennines that the public interest requires the Town readopt and 

increase by one percent (1 %) the sales tax to a total Town rate offour percent (4%) on the sale of 

tangible personal property at retail, the furnishing of services, and sale of food, machinery and 

machine tools; and 

WHEREAS, the state general election of Tuesday, November 2, 2004, is one of the 

election dates at which ballot issues and spending questions may be submitted to the registered 

electors of the Town pursuant to Article X, Section 20 of the Colorado Constitution. 

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The following sections of Title 3, Chapter 08 of the Gypsum Municipal Code are readopted to 

read as follows: 

3.08.080 Sales Tax Imposed. 

A. Pursuant to Article XX of the Colorado Constitution and the Town's Home Rule 

Charter effective October 21, 1982, including Section 1.3 and Article VI of the Charter, 

there is hereby imposed on the sale of tangible personal property at retail, the furnishing of 

services, and sale of food items, a sales tax equal to four percent (4%) of the gross receipts 

("Sales Tax"). The tangible personal property and services taxable under this Ordinance 

shall be the same as the tangible personal property, services, and food taxable pursuant to 

Section 39-26-104, C.R.S., and subject to the same exemptions as those specified in Section 

39-26-114, C.R.S., PROVIDED THAT the exemption for sales of electricity, coal, wood, 

gas, fuel oil, or coke sold to occupants of residences pursuant to Section 39-26-

114(1)(a)(XX1), C.R.S., shall apply to the Sales Tax and the sale of such items shall not be 

taxable, and PROVIDED FURTHER THAT the exemption for sales of machinery or 

machine tools pursuant to Section 39-26-114(11), C.R.S., and the exemption for sales of 

food specified in Section 39-26-114(1)(a)(XX), C.R.S., shall not apply to the Sales Tax, and 

the sale of such items is expressly made taxable under this Ordinance. The imposition of the 

Sales Tax on individual sales shall be in accordance with schedules set forth in the rules and 

regulations promulgated by the Department of Revenue. If any vendor, during any reporting 

period, shall collect as the Sales Tax an amount in excess of the amount of the Sales Tax 

imposed by this Ordinance, he shall remit to the Executive Director the full amount of the 

Sales Tax herein imposed and also such excess. 

B. Immediately following the payment of all costs of the recreation center 

("Recreation Center") constructed by the Town, including debt service on Bonds or other 

obligations issued to finance the Recreation Center, the Town Manager shall certify to the 

Town Council that all such costs have been paid, satisfied or cancelled, as to be more fully 

set forth in the Town ordinance authorizing the Bonds described in Section 6 of Ordinance 

No. 15 (Series 2004). The one percent (1%) Sales Tax increase approved by the Town's 

electors on November 2, 2004, shall tenninate as soon as possible after such certification 

("Termination Date"), consistent with the regulations and practices of the Colorado 

Department of Revenue for collection of an expiring sales tax, and on and after the 

Termination Date, the Sales Tax shall be imposed at the rate of three percent (3%) of gross 

receipts. Any revenues collected from the one percent (1 %) sales tax increase prior to the 

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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 

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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 

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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 

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\\IDE·70162!0300 • 213562 v4 
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 

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11\Dil- 70162/0300 -lm6~ v4