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18,000.000 - 16.000.000 14.000.000 12.000.000 10.000.0 00 8,000,000 6.000,000 4.000.000 2.000,000 Total City -Wide Charges for Services Actual and Projection Increases due to Increases in Building - elated Fees (1Tnpac Fees and Utility Tap Beginning 04l01110,Golt Course User Fees No longer Recorded due to New Management Agreement with WG P. Reduction Onset by New Solid Waste User Fee in Mid -2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Sales Tax Revenue Sales tax is the second largest source of revenue for the City, accounting for 28% of total City- wide revenue (excluding interfund transfers). Sales tax is the largest General Fund revenue source, accounting for 39% of total General Fund revenue. Beginning in 2006, sales tax revenue declined due to increased retail competition in neighboring municipalities. The recent recession worsened this trend and sales tax revenue for 2009, excluding the new Historical Preservation Tax, declined by 7% compared with 2008. In 2010 sales tax revenue declined an additional 3% from 2009. Recovery began in 2011 when sales tax revenue increased by 3.7% over 2010. Final projected sales tax for 2012 is projected to increase by 5% over 2011. Total sales tax revenue for 2013 is budgeted at $9.97 million, an increase of 3.5% over 2012 estimate. Staff estimates that sales tax revenue will gradually increase from 2014 through 2017. The City has taken past declines in sales tax revenue seriously and initiated various programs to address this issue. In 2006 the City established an Urban Renewal District and adopted an Urban Renewal Plan. The City also developed a Business Assistance Program with the intent of stabilizing the current sales tax base and expanding that base for the future. The City's current sales tax rate is 3.5 %. The City currently allocates 1% to the Capital Projects Fund and 2% to the General Fund. This allocation meets the requirement set by the voters that a minimum of 33% of the 3% sales tax be allocated for capital projects. The Conservation Trust — Open Space & Parks Fund receives 0.375% of the sales tax and is used for open space land purchases, open space management, and maintenance activities. The Historic Preservation Fund receives the remaining 0.125% sales tax and those revenues are dedicated to specified historic preservation purposes approved by the voters in November 2008. Those purposes include: • Providing incentives to preserve historic resources, • Providing incentives to preserve buildings that contribute to the historic character of historic Old Town Louisville; 11