City Council Minutes 1984 11 20 - Laserfiche WebLink

Home Browse Search

11/20/84 Page -6- In reply to Mayor Meier's inquiry, Mr. Caldwell stated that conservatively $350,000 to $400,000 in revenue would be realized from either measure that are on the two ballot issues, which translates into a bonding capacity of 2.3 million or as high as 2.6 million dollars in immediate projects. If the City does a sales and use tax bond issue he suggested looking at some credit enhancements and increase the rating on them and get them insured. The sales tax has a better rate than the use tax and is generally somewhat easier to insure. Their Company did see the City of Louisville as a good candidate for bonding under either of the proposed measures. MOTION TO GO WITH Councilman Luce moved, Councilwoman Johnson QUESTION NO. II seconded that Council direct the City Attor- ney to prepare an ordinance for first read- ing, for December 4, 1984, based on question No. II Increase of Sales Tax and Imposition of Use Tax. Mayor Meier Requested that Council be given additional information on the use tax issue as soon as possible so they have a better understand- ing of it . Councilwoman Morris inquired if when the or- dinance is prepared should specific projects such as a library facility be included. Mr.. Caldwell advised that it should be. EvE,rything that the City hopes to fund from thE~ taxation should be included. He also stated that an information sheet would be sent out to the voters telling specifically what would be funded by the taxation measure. Mr. Caldwell stated that if the City goes to 1% sales tax they have the same bonding ca}~acity as it has if they go for 2% sales ta:K and a 22o use tax. 1% sales tax would equal the same as zo sales tax plus the 220 use tax. Councilman Leary favored going with only the to sales tax issue as it would be less diffi- cult to explain to the voters and produce possibly more revenue long range.