Finance Committee Agenda and Packet 2016 09 19

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City Council Finance Committee Meeting Minutes 08/15/16 Page 3 of 8 Malcolm Fleming, City Manager, asked how the capital assets were audited. Ms. Kurtz stated that they looked at all the additions for the year and chose a sampling to review in detail. For 2015, there were approximately (100) assets sampled and tracked. Committee Chairperson Stolzmann stated that Public Service was named as one of the top property tax contributors in the statistical section of the CAFR, and asked if that was true. City Manager Fleming stated that Public Service does remit property taxes though at a different rate than other commercial entities. Ms. Kurtz stated that the audit was very smooth and thanked City Finance staff for all their work. Finance Committee Members Stolzmann and Maloney thanked the Finance Director and staff for their excellent work on the 2015 CAFR. The CAFR and corresponding narratives can be located in the packet of the August 15, 2016 Finance Committee Meeting. CONTINUED DISCUSSION OF FISCAL IMPACT MODEL Planner, Scott Robinson, provided to the Finance Committee statistics and other data from the Bureau of Labor Statistics and ITE for discussion. Resident John Leary opened the discussion by stating that he believes there is a fundamental disagreement on what constitutes a fiscally sound government. Mr. Leary stated that the decision variables between land use planning and revenue policy need to be resolved. Mr. Leary stated that the Fiscal Impact Model outputs insufficient data by which to make fiscal decisions, noting variables in the 75/35 road formula and a deficit of approximately $8M in non-resident spending. Mr. Leary stated that to be fiscally sound, the Finance Committee, City Council and staff must determine the tradeoffs of using the Fiscal Impact Model data alone. Finance Committee Member Maloney stated that the purpose of the Fiscal Impact Model is as a tool in maintaining fiscal sustainability. Member Maloney stated it is a directional model and that the accuracy of the Model inputs and outputs will need to be determined. Chairperson Stolzmann stated that the role of modeling is to know what, if any, tradeoffs exists and that adding taxable sales and household income data will help in those efforts. Finance Committee Members discussed what data and statistics would be most applicable for the City of Louisville and how best to choose factors. Member Maloney stated that an increase in the value of homes is not reflective of 4