HomeMy WebLinkAboutRes 2007-32 RESOLUTION NO.2007-32
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN
HILLS FINANCIAL POLICIES RELATING TO NEW CONSTRUCTION
SALES TAX COLLECTIONS.
WHEREAS, the Mayor and Council of the Town of Fountain Hills (the "Town
Council") adopted written financial policies for the Town of Fountain Hills (the "Town") on
May 1, 2003 (the "Financial Policies"); and
WHEREAS, the Town Council has determined that a change to the Financial Policies is
necessary to address the Town's significant capital improvement needs, which are expected to
increase substantially in the near future; and
WHEREAS, pursuant to the Town's Tax Code, the Town collects taxes for construction
contracting activities at a rate of two and six tenths percent (2.6%); and
WHEREAS, the Town Council has determined that it is in the best interests of the Town
that eighty-five percent (85%) of the sales tax generated from construction contracting activities
be segregated from other tax revenue, placed in a separate account and used exclusively for the
purposes of capital improvements.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE TOWN OF FOUNTAIN HILLS as follows:
SECTION 1. That the Financial Policies are hereby amended to modify the Revenues
and Collections section therein (page 9), to include a new subsection 6, to read as follows:
6. Local sales tax revenues are derived from several sources with a significant
portion from construction-related activity. To ensure that the revenues from
growth or development are targeted to costs related to development, or invested in
improvements that will benefit future residents or make future service provision
more efficient, the Town will designate 85% of those one-time revenues to the
Capital Projects Fund. At the end of each fiscal year these revenues will be
transferred from the General Fund to the Capital Projects Fund for future
appropriation.
SECTION 2. That the Mayor, the Town Manager, the Town Clerk and the Town
Attorney are hereby authorized and directed to take all steps necessary to carry out the purpose
and intent of this Resolution.
SECTION 3. That the effective date of this Resolution shall be June 30, 2007, and the
amendments to the Financial Policies herein shall apply to the designated tax revenue collected
for construction activity during Fiscal Year 2007-08.
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PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills,
August 16, 2007.
FOR THE TOWN FOUNTAIN HILLS: ATTESTED TO:
r
W. J. Nic ols, May Bevelyn J. de own Clerk
REVIEWED APPROVED AS TO FORM:
Timothy G. Pickering, Town ger Andrew J. McGuire, Town Attorney
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