[{"_1":2,"_87":-5,"_88":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6393150,"mediaKeyId","2107879-64bc5145aab646922c05baa3d747a439","parentId",2107879,"title","City presents options to raise revenue including food tax; council discusses trade-offs","audioSeconds",2120,"startMs",3254000,"endMs",5374000,"viewUrl","/Search/View?dp=1&key=2107879-64bc5145aab646922c05baa3d747a439&start=3254&end=5374","thumbnailUrl","https://assets.pipeline.soar.com/2107879-64bc5145aab646922c05baa3d747a439/thumbnail_3254000.jpg","articleUrl","/articles/6393150/Pueblo-City/Pueblo-County/Colorado/City-presents-options-to-raise-revenue-including-food-tax-council-discusses-trade-offs","mediaUrl","https://secure.pipeline.soar.com/6393150-8e999be4367a3b67efd13511e01e6b8d/orig.mp4?Expires=1771203230&Signature=I9tFWSJhN9svuzMvcCQAIKArvmSM~f0ftJBgC~~kvUnMTNZ89xVjCmEDeqb6-rfuvTXyRAbJJN1l~zXt053lcqYy~3KTA6~kjHfBCfXqffxxdTyiY2SJTSpMd9-pPXkw3gBz98lp~mmStuPvBZdNz2qDnkekXt43bLFIvzVNrkdj~B8lpJilcO60vZQHuo5fKDcmSvkle~4nWuJhrXSGpEskZkbCmhhHhSaBSeNnWzD2B10ik91ieglKBxyYTvafiTlyYp7xWjQBpUvg9pgLKNLLQm9WtVUdCa6pOoUApztsP8ixStkA-BPS0Z0TbiD7qQvMQtXxX5mSfXy08XV-vw__&Key-Pair-Id=KUT5TJCACFTXG","author","City of Pueblo","date","2025-01-06T00:00:00Z","article","City finance staff on Jan. 6 presented a menu of options to increase municipal revenue, including modest increases to the local sales tax base, a tax on groceries purchased for home consumption and stepped-up compliance and audit efforts.

Valerie (Val) Colombo of the finance/sales-tax division described Pueblo's current local sales tax base and compared Pueblo to other Colorado home-rule cities. She said Pueblo's local sales tax rate that goes to the general fund is 3.0 percent, below the home-rule-city average of about 3.74 percent (based on the slide set shown to council). She said total combined tax in Pueblo is 7.6 percent compared with an average of 8.22 percent across the 66 home-rule cities included in the comparison.

Colombo presented estimated revenue outcomes based on 2023 gross sales and grocery deductions. Using 2023 grocery deductions (which the presentation listed as $373,471,350), staff showed scenarios where a dedicated food-for-home-consumption tax at various rates could generate between roughly $5 million and $25 million annually depending on the rate chosen and whether the city also increased its general sales tax base. For example, staff's slides estimated that a 0.5 percent tax on groceries could produce mid-range millions in additional revenue (slides in the presentation showed graduated projections and per-$200-purchase impacts for consumers).

Colombo also described enforcement and compliance steps the city has taken since implementing the statewide marketplace facilitator and tax-collection systems (referred to in the meeting as SUDs/WAYFAIR implementation): voluntary disclosure agreements with vendors, audit work that recovered revenue, prepaid sales-tax certificates for construction projects and active outreach to e-commerce vendors. She said those compliance efforts produced new revenue and that continuing them is part of the revenue strategy.

Council discussion focused on trade-offs. Some councilors said taxing groceries risks further burdening lower-income households; Councilor Gomez argued that the council should first cut wasteful spending and seek economic development to expand the tax base rather than increase taxes. Councilor Martinez said many peer home-rule cities tax groceries and that a phased-in approach could be used; she expressed support for pursuing more information and noted the council must decide whether to send a measure to the ballot.

Colombo told council the administration would need ballot language by August if the council wished to pursue a voter-approved change in tax authority or a ballot measure for a food tax. Staff suggested the city could structure a grocery tax so revenues were earmarked for capital projects (as Greeley did, per staff's presentation) or create programs to offset impacts for low-income residents. The presentation referenced a variety of possible design choices, including starting at a lower rate and gradually increasing over several years and exempting certain items or creating a rebate program for eligible households.

No final decisions or votes were taken Jan. 6. Councilors asked staff for additional analysis on likely revenue, distributional effects, ballot language options and whether any tax increase could be coupled with legally required earmarks. Several councilors reiterated that increasing revenue should be balanced with expense reductions and incentives to spur private development and job growth. Council and staff set a preliminary planning timeline: staff said ballot language would be required by August to place measures before voters in a future election cycle.

Colombo closed by noting the sales-tax division had increased collections after marketplace facilitator changes and that the division would continue compliance and outreach work alongside any policy changes the council directed staff to explore.","mediaType","Video","parentTitle","Pueblo City Council Work Session - January 6, 2025","oneSentenceSummary","Finance staff outlined options to increase revenue — raising general sales tax, taxing groceries for home consumption, and other enforcement/compliance steps. Staff said ballot language would be needed by August; councilors debated economic effects, alternatives and the need to pair revenue changes with spending cuts or development reforms.","taxTitle","Pueblo City, Pueblo County, Colorado","taxId",4964,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6393155,"City details flooding and property damage linked to Bessemer Ditch, plans legal review",713,688000,1401000,"/Search/View?dp=1&key=2107879-64bc5145aab646922c05baa3d747a439&start=688&end=1401","https://assets.pipeline.soar.com/2107879-64bc5145aab646922c05baa3d747a439/thumbnail_688000.jpg","/articles/6393155/Pueblo-City/Pueblo-County/Colorado/City-details-flooding-and-property-damage-linked-to-Bessemer-Ditch-plans-legal-review","https://secure.pipeline.soar.com/6393155-a7580b3207bba4c0268886330af4ad22/orig.mp4?Expires=1771203230&Signature=Y1q6BOJnGvucWK8etG3bbWWZwXgQklw2m1HI0Wh~H959DbD2-Mw-i15Yma5cPXGOQ8bfzge0lXQh-pPZkiF~CHlcmfYUarI8qCT95cRLCeVRFDqXF4de~RUePA3vLzRV3rYGOUkxm2RgkIVfjpEnGntNCeaERQfkzOJnfOvXBxtWJ~TPIElDS5Xv58Ph-bQd6VS2zuzqdwEbI~071hRQ9La5zg1zFyTv0yLztR5nsTYE0yX-loiXxOeZCcmEoUJuwxvdiZheZWS0CdabgbRjiSA5MraWByC48JVc9JRUg5zXeY8BiaoO8F2o-6QM22YmGMbj45F5n0FSt3zqBRKA9Q__&Key-Pair-Id=KUT5TJCACFTXG","Pueblo City officials on Jan. 6 presented photographs and legal analysis showing prolonged seepage and structural deterioration along the Bessemer Ditch that city staff say has damaged City Park facilities, parts of the municipal golf course and at least one private basement.

The presentation, led by Brian McCain of Parks and Recreation and by city legal staff, described sinkholes and standing water on city property and said employees were removed from a city park annex after mold and standing water were observed. City attorneys reported the ditch company disputes financial or repair responsibility for the lined portions of the ditch.

McCain displayed photos taken over the summer showing brown, saturated ground and holes under the golf course surface; he said there were multiple sinkholes large enough to present safety concerns. He also described two sump pumps installed in the annex building basement and said staff had relocated employees because the area developed mold and was not safe to occupy.

City Attorney Jagger (identified in the meeting as the city's legal presenter) summarized the legal landscape, saying the ditch company has told the city it does not acknowledge an obligation to maintain or replace the gunite lining installed decades ago. Jagger cited a provision the presentation identified as Public Law 96-309 and a local citation read in the meeting as section 742-108, and quoted the statute language that the ditch company \"shall be responsible for maintaining or replacing the gunite lining authorized by the act.\" He said the ditch company's stated position is that any 1973 contract cited by the company relates to a bridge crossing and does not absolve it of duties arising from the federal law.

City attorneys said the ditch has obtained at least one bid of approximately $800,000 to address the lining in the City Park area but that the ditch company had told staff it lacked the financial ability to proceed. The city reported it had proposed an interest-free 10-year loan to help fund repairs; that offer was declined and, according to staff, the company has stopped communicating.

Because the ditch company disputes the obligation and because the legal situation involves federal grant conditions and possible tort claims, staff said the next step would be to retain outside counsel with irrigation-ditch and federal-law experience. The city attorney said outside counsel would review the public law, state law and any contracts; evaluate remedies (including compelling performance or seeking replacement/repair) and potential defenses such as statute-of-limitations or other limitations on tort claims; and estimate litigation costs and likely outcomes. The city plans to return to council with an engagement letter and a proposed resolution to approve retention and compensation for outside counsel.

Councilors pressed for additional factual detail and for clarity about the scope of any legal action. Councilor Martinez asked whether the city's proposed legal effort would be limited to city-owned property; the city attorney said the initial scope would focus on damage to city-owned property but that legal review could reveal whether broader remedies or claims are available. Councilor Flores asked whether the Colorado Governmental Immunity Act provides the ditch company any protection; the attorney said that is one of several legal issues outside counsel would evaluate. President Niemann and other councilors described the visible damage to the golf course, neighborhoods near Powell Avenue and to city facilities, and said the city must pursue remedies.

No vote was taken at the Jan. 6 work session. Instead, staff requested direction to solicit proposals from outside law firms experienced with irrigation ditch companies and federal grant conditions and to return to council with engagement letters and a resolution to approve compensation. City staff indicated two national firms had already been contacted and that a recommended firm would be brought forward after conflicts checks and an engagement letter were prepared.

If litigation or formal legal action is pursued, staff said they would present cost estimates and a recommended course of action for council approval. The city also noted it owns some stock in the ditch company but staff had not completed a review of whether shareholder status affects legal strategies or remedies.

The council discussion included requests for further factual work to support any legal action: confirmation whether the ditch or its insurer had been put on notice, full review of prior federal grant agreements and city contributions dating to the 1980s, and identification of any prior repair contracts or maintenance records for the lined sections.

City staff said they will return with the outside counsel engagement letter, a scope of work, and cost estimates; council will consider a formal resolution to retain counsel and authorize payment.

The issue remains under study by staff and city counsel; the city did not take formal legal action or vote during the Jan. 6 session.","City staff showed photos of prolonged flooding and sinkholes along the Bessemer Ditch that have damaged City Park, a golf course and private basements. City attorneys said the ditch company disputes responsibility; staff will solicit outside counsel and return with an engagement letter for council approval.","actionData","errors"]

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City presents options to raise revenue including food tax; council discusses trade-offs

City details flooding and property damage linked to Bessemer Ditch, plans legal review