Sales Tax Collections Report

Sales tax is the most significant source of general fund revenue. Collections of the city’s total 3% sales tax is used for capital projects and municipal services.  Please see the following allocation of Sales Tax that was approved by voters on November 8, 2016.

Current City Sales Tax Allocation and Revenue Funds

Sec. 4-3-50. – Disposition of revenue.
 (a)

No less than thirty-two percent (32%) of proceeds received from the three percent (3%) sales tax imposed by the City of Salida shall be deposited into the Streets Fund and used solely for the construction, operation, maintenance and repair of city streets and street-related infrastructure as defined herein, or to pay debt service on bonds or other obligations of the City issued to provide for such streets and street-related infrastructure as defined herein. For purposes of this Section “street” is defined in Section 1-2-10 of the Salida Municipal Code, except that said definition of street for this Section shall not be interpreted to include recreational trails. “Street-related infrastructure” includes, curbs, gutters, sidewalks, storm drainage systems, and water or sewer lines underlying or running along streets as defined herein. The terms “construction, operation, maintenance and repair” may apply to capital projects or operating projects. If used for operating projects, expenditures shall be applied only to costs that are traceable directly to the authorized work (e.g., in-house or contracted labor and materials for street maintenance or repair). It shall not be used to cover Public Works departmental overhead, allocated costs or work not done on streets and street-related infrastructure.

(b)

Up to eight percent (8%) of proceeds received from the three percent (3%) sales tax imposed by the City of Salida shall be allocated to the Capital Improvement Fund to be used to provide capital improvements, as defined herein, other than streets, as defined herein, or to pay debt service bonds or other obligations of the City issued to provide for such capital improvements. “Capital improvements” is defined as expenditures on items or improvements over five thousand dollars ($5,000.00) and with a useful life of longer than three (3) years, including, by way of example, machinery, vehicles, equipment, facilities and public improvements. For purposes of this Section, allowable expenditures from the Capital Improvement Fund include, but not be limited to: l) paying the costs of acquiring or constructing any capital improvement; 2) acquiring land or equipment; 3) the costs associated with issuing bonds or other obligations; 4) the costs of capitalized interest and reserves; and 5) the costs of operating and maintaining the capital improvements to be provided.

(c)

Up to two percent (2%) of the proceeds received from the three percent (3%) sales tax imposed by the City of Salida shall be allocated to the Economic Development Fund to be used, as approved by City Council, for Economic Development purposes. “Economic Development purposes” includes, but is not limited to, the creation of affordable and sustainable housing and to the support of efforts to improve the standard of living of the community through the creation of jobs, the support of innovation and new ideas, the creation of greater net wealth; and the improvements to quality of life.

(d)

Any proceeds from the sales tax for restricted spending or special revenue funds which are received and not spent within the same fiscal year shall be retained in the fund to which it is deposited or allocated and spent only for the purposes defined for that fund in future years.

(e)

All other proceeds received from the three percent (3%) sales tax imposed by the City of Salida shall be allocated to the General Fund for General Fund purposes as established by local, state or federal laws, rules, regulations or policy.

Below is detailed information about the structure of the City’s funds, which became effective on December 9, 2016.

Sec. 4-2-30. – Special funds.

 (a)

The City Administrator shall maintain, in the accounting records of the City, separate accounts for any and all special funds of the City, including, but not limited to, the following:

(1)

Conservation Trust Fund. All funds received from the conservation trust fund of the State of Colorado shall be deposited into the Conservation Trust Fund and expended only for the acquisition, development and maintenance of new conservation sites and recreational facilities as defined in C.R.S. 29-21-101.

(2)

Water And Wastewater Enterprise Fund. The Water and Wastewater Enterprise Fund shall consist of all revenues, fees, etc., of the Water and Wastewater Enterprise. Such revenues shall not be used or appropriated for any purpose other than payment of the operating expenses of the Water and Wastewater Enterprise for improvements, repairs, replacements and enlargements to the water plant or other facilities and the payment of principal of and interest on the obligations of the City payable out of the revenues of the Water and Wastewater Enterprise.

(3)

SteamPlant Event Center Fund. The SteamPlant fund shall consist of revenues, fees, etc., of the SteamPlant Event Center. Such revenues shall not be used or appropriated for any purpose other than operations, events, projects, capital expenditures and capital improvements for or managed by the SteamPlant.

(4)

Streets Fund. No less than thirty-two percent (32%) of proceeds received from the three percent (3%) sales tax imposed by the City of Salida shall be deposited into the Streets Fund and used solely for the construction, operation, maintenance and repair of city streets and street-related infrastructure, or to pay debt service on bonds or other obligations of the City issued to provide for such streets and street-related infrastructure. For purposes of this Section “street” is defined in Section 1-2-10 of the Salida Municipal Code, except that said definition of street for this Section shall not be interpreted to include recreational trails. “Street-related infrastructure” includes, curbs, gutters, sidewalks, storm drainage systems, and water or sewer lines underlying or running along streets. “Construction, operation, maintenance and repair” may apply to capital projects or operating projects. If used for operating projects, expenditures shall be applied only to costs that are traceable directly to the authorized work (e.g., in-house or contracted labor and materials for street maintenance or repair). It shall not be used to cover Public Works departmental overhead, allocated costs or work not done on streets and street-related infrastructure.

(5)

Capital Improvement Fund. Up to eight percent (8%) of proceeds received from the three percent (3%) sales tax imposed by the City of Salida shall be allocated to the Capital Improvement Fund to be used to provide capital improvements, other than streets, or to pay debt service bonds or other obligations of the City issued to provide for such capital improvements. “Capital improvements” is defined as expenditures on items or improvements over five thousand dollars ($5,000.00) and with a useful life of longer than three (3) years, including, by way of example, machinery, vehicles, equipment, facilities and public improvements. For purposes of this Section, allowable expenditures from the Capital Improvement Fund include, but not be limited to: 1) paying the costs of acquiring or constructing any capital improvement; 2) acquiring land or equipment; 3) the costs associated with issuing bonds or other obligations; 4) the costs of capitalized interest and reserves; and 5) the costs of operating and maintaining the capital improvements to be provided.

(6)

Economic Development Fund. Up to two percent (2%) of the proceeds received from the three percent (3%) sales tax imposed by the City of Salida shall be allocated to the Economic Development Fund to be used, as approved by City Council, for economic development purposes. “Economic development purposes” includes, but is not limited to, the creation of affordable and sustainable housing; and to the support of efforts to improve the standard of living of the community through the creation of jobs, the support of innovation and new ideas, the creation of greater net wealth; and the improvements to quality of life.

(7)

Lodging Tax Fund. The Lodging Tax Fund shall consist of revenues derived from the levy of an occupation tax on the business of leasing or renting of rooms or other accommodations within the City of Salida pursuant to Section 4-6-10of the Salida Municipal Code. Such revenues shall be used primarily for capital improvements and operations expenses for parks and recreation and arts facilities in the City, including without limitation, the Aquatic Center and the SteamPlant Theater.

(b)

The principal and interest earned by the amounts in each such fund shall be credited separately in each such account and the monies in each fund shall be used only for the purposes allowed by law.