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Prescott Council Considers Potential Ballot Language for PSPRS Sales Tax Proposal
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21 February 2017  

Prescott City Council members take a look at the potential ballot language for proposed sales tax. 

Last Tuesday, Council members asked to see the possible ballot language for an increased sales tax designated to be used for the unfunded liability. On January 31, 2017  the Council voted to add an unspecified ballot measure to the August 29th election. Now they are filling in the details.

The goal was to place on the ballot a measure that would meet these requirements:

  • Length of the tax to be no longer than 10 years, shorter if the unfunded liability is paid sooner
  • KISS (Keep It Simple, Stupid)
  • Designated for the unfunded liability

Although Council is planning to place a measure on the ballot, they also will continue to actively seek other methods of paying down the unfunded liability, such as selling assets, using financial reserves or working towards legislative solutions.

Here is the proposed language that they will be discussing during a special voting meeting today: 

"Shall the City of Prescott adopt a transaction privilege tax of three-quarters of one percent (0.75%), the revenue from which shall be dedicated to the payment of the City’s unfunded liability to the Public Safety Personnel Retirement System, taking effect on January 1, 2018, and ending [the earlier of] December 31, 2027 [or at such time as the City’s PSPRS obligations are 100% funded as determined by actuarial value].

"A "yes" vote shall have the effect of adopting a transaction privilege tax of three quarters of one percent (0.75%), the revenue from which shall be dedicated to the payment of the City’s unfunded liability to the Public Safety Personnel Retirement System, taking effect on January 1, 2018, and ending [the earlier of] December 31, 2027 [or at such time as the City’s PSPRS obligations are 100% funded as determined by actuarial value]. 

"A "no" vote shall have the effect not of adopting a transaction privilege tax of three-quarters of one percent (0.75%), the revenue from which would have been dedicated to the payment of the City’s unfunded liability to the Public Safety Personnel Retirement System.”

The discussion takes place today (Tuesday) at 3 PM in Council chambers. It is scheduled as a voting meeting.

Lynne LaMaster

Lynne LaMaster is the Founder and Editor of the eNewsAZ Network of websites. She asks a lot of questions! In her spare time, she loves photography, cooking and hanging out with her family.