City Council Minutes 2000 12 05 - Laserfiche WebLink

Home Browse Search

Louisville City Council Meeting December 5, 2000 Page 3. REGULAR BUSINESS 2001 BUDGET - PUBLIC HEARING (published in the Louisville Times 10/16/00) Davidson called for Staff introduction. Finance Director Dianne Ray reviewed the 2001 budget highpoints beginning with main revenue sources and the basis for the 2001 estimates. Property Tax: Ray reported on property taxes and noted that the assessed valuation of property in Louisville, at $316,260,420, increased by 8.0% over the previous year. The growth factor calculated for TABOR is 3.15%, an increase over the 1.77% growth factor for the 2000 budget. Combining the 3.15% with the Denver/Boulder Consumer price Index of 3.15%, the TABOR cap on growth for 2001 budget year is 6.25%. This would require a mill levy cap of 4.532, or $1,433,265 in property tax revenue. The statutory limitation, at 5.5% is less restrictive in the calculation, allowing for a mill levy of 4.767, or an additional $74,389 in property tax revenue over the TABOR restriction. The 2000 property tax revenue was $1,359,687. Ray stated that the proposed mill levy for 2001 is at the statutory limitation of 4.767. In order to retain the $74,389, an approval of the voters is required as a November, 2001 ballot issue. The growth factor would indicate that a significant amount of the increase in the assessed valuation is due to the new commercial development over the past year. For a property owner of a house valued at $200,000 in Louisville, the property taxes would be $92.86 at the 4.767 mill levy. If the TABOR-restricted mill levy was used, the taxes would be $88.28, a difference of $4.58. With approximately 5,850 residential units, that would calculate to approximately 65% of the $74,389 being generated from commercial development. This revenue has not been appropriated. Sales Tax: Ray reviewed that the sales tax projection for 2000 is estimated at just under 1% over budget, and that the projection for the 2001 sales tax budget is based on that amount. The 2001 budget takes into account the reduction of some sales tax and the effects of competition. The 2001 total sales tax estimate is $10,120,440 or 3.4% over the projected 2000 sales tax. The Consumer Price Index is 3.1% and the sales tax totals include a full year of revenue for those businesses that opened during the 2000 calendar year. Development Revenue: Ray reported that the development revenue is significantly declining. The taxes and fees are calculated and factored in to the various funds. The 3