Business Retention and Development Committee Agenda and Packet 2016 11 07

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SUBJECT: DATE: BRAD COMMITTEE RESTRUCTURING DISCUSSION NOVEMBER 7, 2016 PAGE 2 OF 3 Confer with BRaD regarding possible changes to the Committee that City Staff may have. DISCUSSION: To determine possible solutions to a restructuring of the BRaD committee, defining the problem is a worthy exercise. Staff has taken the last month to attempt to describe why the current configuration of BRaD may be a concern. The following are two statements that attempt to define the current challenges for BRaD in providing input on City policies and decisions to City Council. 1) The input is coming from the inside rather than the outside City Council communicated on September 6th that a challenge the BRaD committee has is that 3 of the members are City Council members. This has limited the effectiveness of BRaD providing recommendations to City Council as each of the Council members abstain from voting on recommendations. Other members of BRaD, particularly the Planning Commission member and LRC member, are also mostly within City Government. This leaves the BRaD Committee with 5 members represented by City or City related organizations and 3 members not City related (CTC, Chamber, DBA). Thus, the majority (5-3) of the BRaD members are within City Government. 2) Louisville is Resident Centric yet Business Reliant It is undoubtedly true that Louisville is a great place to live. It's suburban lifestyle with great access to employment, necessities, and amenities all help create a community loved by its residents. Louisville, as stated in its Vision Statement, strives to be an "inclusive, family -friendly community that manages its continued growth by blending a forward -thinking outlook with a small-town atmosphere" and be the "most livable, innovative, and economically diverse communities in the United States." The City of Louisville is business reliant as significant revenue to provide municipal services comes from business uses. Looking at Fiscal Year 2015, total tax revenue for Louisville was $21,366,109. Of that amount, business activity accounted for an estimated 53% of revenues from the following taxes: Property Tax (53%) $1,829,758 Sales Tax (50%) $5,889,296 Use Tax (excluding 100% auto) $2,933,785 Franchise Tax (20%) $216,100 Lodging Tax (75%) $352,280 Total $11,221,219 In 2010, total tax revenue was $14,324,756 and business activity accounted for 49% of the City's tax revenue. Business related tax revenue increased 59.5% between 2010- 2015, whereas residential revenue (total tax revenue — business tax revenue) increased 39%. Business activity (and thus the taxes it generates) is more elastic to the economic BRAD COMMUNICATION 8