City Council Minutes 2002 07 16 - Laserfiche WebLink

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Louisville City Council Meeting July 16, 2002 Page 13 MOTION: Keany moved that Council approve Ordinance No. 1394, Series 2002, seconded by Levihn. Roll call vote was taken. The motion passed by a vote of 6-0. Brown excused. ORDINANCE NO. 1395, SERIES 2002 - AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS AT THE NOVEMBER 5, 2002, SPECIAL ELECTION A BALLOT ISSUE CONCERNING CONTINUATION OF THE CITY SALES AND USE TAX FOR OPEN SPACE ACQUISITION, DEVELOPMENT, MAINTENANCE AND RELATED PURPOSES - 1st reading - set public hearing 8/6/02 Davidson called for City Attorney introduction. City Attorney Sam Light read Ordinance No. 1395, Series 2002. Deputy City Manager Julie Boyd reported that approval of Ordinance No. 1395, Series 2002, would place a fourth question on the November 5, 2002 ballot. The question would ask the voters to continue the 3.8% city sales and use tax that is used for open space acquisition. The tax, which was approved in 1993 and will expire in 2004, included land acquisition only. The language in Ordinance No. 1395, Series 2002, allows the money to be used for the "development, construction, operation and maintenance of such open spaces zones, trails, wildlife habitats, and parks." Boyd explained that TABOR requires the election question include the amount that would be collected in the first year of the tax. It is important that this is the largest amount anticipated for collection in the first year, or a refund of the surplus funds collected would have to be returned to the taxpayers. That amount has been calculated at $1.5 million dollars. She reviewed the process for the calculation and stated that in 2002, $1,262,000 in revenue was budgeted. Assuming a 5% annual increase in sales and use tax collections, revenues would be $1,325,000 in 2003, and $1,391,250 in 2004. The 2004 estimate was rounded up by approximately $100,000 for 2004, making it an even $1,500,00. Boyd reported that since the tax went into effect in 1993, 8.6 million dollars in revenue has been collected. Additionally, the Northwest Parkway open space donations, interest on investments, and land dedications have contributed 7 million dollars to that fund. The City has purchased approximately 9.2 million dollars of open space. Boyd stated that if approved the continuation of the use tax will apply to those items that were affected when the tax was first approved in 1993. Those items include all sales tax items and use tax on vehicle registrations and on building materials used in non- residential construction. She explained that the additional use tax approved in 1994 and designated for the Boulder Valley School District, was not addressed in this ordinance, nor was the ten-year sunset provision. 13