City Council Minutes 2003 07 26 - Laserfiche WebLink

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Louisville City Council Meeting July 26, 2003 Page 4 of 5 Deputy City Manager Julie Boyd stated Ordinance No. 1424, Series 2003 sets an election question allowing the City to continue to receive a 3% use tax on purchase of building materials for residential property. The revenue would be used to fund youth-related activities. The ordinance would continue the use tax previously approved by the Louisville voters in 1994 and commonly known as the "school tax". The use tax was originally approved to generate funding for Monarch High School and since its completion; the use tax has provided playground equipment, technology, auditorium equipment and other items. The ballot question would reflect this change in intent for the use tax, allowing expenditures "for purposes determined by the City Council to further the acquisition, construction, improvement, or expansion of capital facilities, capital projects or equipment which are located within the City, which are owned by the City of Louisville or the Boulder Valley School District RE-2, and which benefit youth within the community". Because the question expands the scope for which the tax revenues can be used, the question is referred to as a new tax rather than a continuation, in accordance with TABOR requirements. The existing use tax will end December 31, 2003. If approved, the continuation of the tax will sunset after ten years. Davidson asked if anyone in the audience wished to speak for or against Ordinance No. 1424, Series 2003. COUNCIL COMMENTS Davidson explained the ballot language is misleading because it is not a tax increase, but a continuance of the use tax. He explained it is a use tax on building materials. Keany noted the tax is for physical structures or equipment that would benefit the youth of the community and stressed the use tax is limited to capital projects, which could include improvements to the Recreation Center and the Library. He asked Council to consider involving the Youth Advisory Board in the planning process. Brown stated this is an opportunity for the City to assist Louisville schools and asked Deputy City Manager Boyd to highlight the change in the usage of the tax. Boyd clarified the original question dealt specifically with improvements to Monarch High School. The language has been expanded to include acquisition, construction or improvement of capital facilities, capital projects or equipment on City or school property. The tax is collected on commercial building purchases and not on residential construction and if the tax is paid and not required, a refund may be requested. She noted there was an error on the original public notice for the public hearing on Ordinance No. 1424, Series 2003, which required the notice to be republished twice. Light asked for clarification that the ordinance should contain language to include: acquisition, construction or improvement of capital facilities, capital projects or equipment. Council confirmed the ballot language should include acquisition, construction or improvement of capital facilities, capital projects or equipment. 4