Sec. 130-32. Purpose of sales and use tax; allocation of proceeds.
(a) The city council declares that the purpose of the levy of the first 3.5 percent of the sales and use tax imposed by this article is for the production of revenue in order to defray the cost of general functions of city government and the construction and acquisition of capital improvements, including but not limited to the pledging of such revenue for the retirement of general obligation bonds of the City or of any revenue bonds of the city issued for such capital improvements. In accordance with this purpose, the annual proceeds of the sales and use tax shall be allocated to:
(1) The capital improvements fund for such purposes as are authorized by the city council, not less than 100 percent of the net proceeds of the use tax imposed on all items of tangible personal property, except for automotive vehicles, and on taxable services.
(2) The capital improvements fund for new capital projects authorized by the city council, not less than such portion of the net proceeds of the sales tax imposed by this article and of the use tax imposed on automotive vehicles as shall equal four percent of total general fund revenues less any use tax proceeds allocated pursuant to subsection (a)(1) of this section.
(3) The general fund for any purpose authorized by the city council or approved by the electors, the balance of the net proceeds of the sales and use tax.
(b) The purpose of the remaining one-fourth percent of the sales and use tax imposed by this article shall be for the production of revenue to defray the costs associated with:
(1) Staffing of the city police department, including civilian support staff and necessary facilities and equipment, to provide a minimum of two uniformed police officers per 1,000 persons of population; and
(2) Operation and maintenance of the city detention facility.
(c) If, in any given fiscal year, the undesignated fund balance of the capital improvements fund exceeds the projected capital needs of the City as determined by the first five years of the capital improvement plan then in effect, the city council may reduce the amount of the net sales and use tax proceeds allocated to the capital improvements fund under this section upon a two-thirds vote of its entire membership.
(d) No provision of this section shall be modified or amended by the city council except upon a two-thirds vote of the entire membership of the council. (Code 1979, § 36-47; Ord. No. 2011-01, § 3, 2-14-2011; Ord. No. 97-19, § 1, 5-12-1997)