City Council Minutes 2016 08 02 - Laserfiche WebLink

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City Council Meeting Minutes August 2, 2016 Page 5 of 15 taxes to construct, expand, and renovate the Louisville Recreation/Senior Center and the pool facilities at Memory Square Park. • Debt amount of $28.6 million • Equates to 3.35 mills • Assumes a relatively flat growth rate in assessed valuation • Assumes interest rate on bonds of 4.138% and a 25 year term • Total amount of debt service, both principal and interest over 25 years is approximately $45,400,000 3.35 mills equates to annual increase in property taxes of - $107 on a $400,000 house - $133 on a $500,000 house Ordinance No. 1724, Series 2016, imposes an additional 0.15 percent sales and use tax beginning January 1, 2018 for operating and maintaining the Louisville Recreation/Senior Center and the pool facilities at Memory Square Park. • .15 percent sales and use tax generate approximately $575,000 annually in revenue • An additional 15 cents on every $100 spent • To cover the additional operations and maintenance necessary for the expanded and renovated facilities • Ongoing beyond the 25 year debt financing • Begin collection in January 2018 • Only imposed if financing for the construction is approved • Best estimate on the 2018 sales and use tax necessary to collect $575,000 annually • Under TABOR should the amount collected exceed $575,000 in the first year only, the City would need to refund the excess revenue unless additional voter approval to retain the excess Mayor Muckle called for public comment and hearing none, called for Council comment. Council member Keany asked what the offset would be when the Library bond debt service goes away. Finance Director Watson noted the net on a $500,000 home would be a reduction from $133 to $75. Mayor Muckle noted there had been some concern about this project being too large and stated this is part of why it is being referred to the voters.