Open Space Advisory Board Agenda and Packet 2012 07 11

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COUNCIL COMMUNICATION TO: MAYOR AND CITY COUNCIL FROM: MALCOLM FLEMING, CITY MANAGER DATE: JULY 3, 2012 SUBJECT: ORDINANCE NO. 1617, SERIES 2012 — AN ORDINANCE IMPOSING FOR AN ADDITIONAL TEN -YEAR PERIOD THE CITY'S THREE - EIGHTHS OF ONE PERCENT (3/8 %) SALES TAX FOR OPEN SPACE ACQUISITION, DEVELOPMENT, MAINTENANCE, AND RELATED PURPOSES; AND PROVIDING FOR THE SUBMISSION OF THE ORDINANCE TO A VOTE OF THE REGISTERED ELECTORS AT A SPECIAL ELECTION TO BE HELD NOVEMBER 6, 2012 — 2ND Reading — Public Hearing (Advertised Daily Camera 06/24/2012) ORIGINATING DEPARTMENT: CITY MANAGER'S OFFICE SUMMARY: In 2002 the City Council referred to Louisville voters a TABOR ballot issue for the continuation of a temporary 10 -year 3/8% sales and use tax increase for the acquisition of land in and around Louisville for open space buffer zones, trails, wildlife habitats, wetlands preservation and future parks; and for the development, construction, operation, and maintenance of such open space zones, trails, wildlife habitats, wetlands and parks. This ballot issue was approved by a majority of the voters for collections beginning January 1, 2004. The temporary 3/8% sales tax will expire on December 31, 2013 unless it is continued by the approval of the City's voters. Should a ballot issue pass on November 6, 2012, the City would continue revenue collection on January 1, 2014. In 2010, Louisville voters approved a permanent City use tax at a rate of 3.50% to supersede the City's then-current use tax, with revenues from a 3/8% rate of use tax to be used exclusively for the acquisition of land in and around Louisville for open space buffer zones, trails, wildlife habitats, wetlands preservation and future parks; and for the development, construction, operation, and maintenance of such open space zones, trails, wildlife habitats, wetlands and parks. Thus, the use tax collection for open space purposes, as defined above, is permanent. As a result, voters will be asked in the upcoming election for approval of a 10- year extension for the temporary 3/8% sales tax. The ballot language proposed in Ordinance No. 1617, Series 2012 has the same uses for the tax dollars as defined in the 2002 ballot language, without revision. The ballot language proposed includes a dollar figure for the following verbiage, "Shall City of Louisville taxes be increased $1,500,000 in 2014 and then annually..." This dollar figure is an estimate based on the City Finance Director's calculation of the previous years' allocations, an assumption of 10% growth per year and a further buffer to allow for more optimistic revenue collections. L SUBJECT AGENDA ITEM ORDINANCE NO. 1617, SERIES 2012 8D 155