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Light <br />Kelly - <br />Attorneys at Laic <br />TO: <br />Samuel J. Light <br />Nicolas D. Cotton -Baez <br />(303) 298-1601 tel <br />(303) 298-1627 fax <br />slightna,lightkelly. com <br />MEMORANDUM <br />Louisville City Council Finance Committee <br />Heather Balser, City Manager <br />Kevin Watson, Fitlance Director <br />FROM: Samuel J. Light /s <br />Nicolas D. Cotton -Baez /s/ <br />DATE: June 11, 2018 <br />RE: City Recreation Sales and Use Tax - Excess Revenue <br />Obligations under Taxpayer's Bill of Rights (TABOR) <br />Introduction. The City anticipates its 2018 sales and use tax revenue from the 0.15 percent <br />recreation tax will exceed the estimate used in connection with Ballot Issue 2B, approved by the <br />voters in November 2016. This memo outlines TABOR requirements related to the receipt of such <br />excess tax revenues, and outlines for the Committee's discussion options for how the City might <br />address these issues. <br />Background. At the November 8, 2016 election, City voters approved the following ballot issue: <br />SHALL CITY OF LOUISVILLE TAXES BE INCREASED $575,000 IN 2018 AND THEN <br />ANNUALLY BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED THEREAFTER <br />FROM THE LEVY OF AN ADDITIONAL SALES AND USE TAX OF 0.15 PERCENT <br />BEGINNING JANUARY 1, 2018 AND CONTINUING THEREAFTER; WITH SUCH <br />TAX TO BE IMPOSED ONLY IF REFERRED MEASURE 2A, REFERRED TO <br />REGISTERED ELECTORS OF THE CITY AT THE NOVEMBER 8, 2016, ELECTION, IS <br />APPROVED BY A MAJORITY OF SUCH ELECTORS; WITH THE NET PROCEEDS OF <br />SUCH SALES AND USE TAX TO BE COLLECTED, RETAINED AND SPENT FOR <br />OPERATING AND MAINTAINING THE LOUISVILLE RECREATION/SENIOR <br />CENTER AND POOL FACILITIES AT MEMORY SQUARE PARK; AND SHALL THE <br />CITY BE PERMITTED TO COLLECT, RETAIN AND EXPEND ALL REVENUES <br />DERIVED FROM SUCH SALES AND USE TAX AS A VOTER -APPROVED REVENUE <br />CHANGE AND AN EXCEPTION TO LIMITS WHICH WOULD OTHERWISE APPLY <br />UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY <br />OTHER LAW? <br />In connection with new taxes, TABOR requires the distribution of a ballot issue notice which, as <br />pertinent here, requires the City disclose: "For the first full fiscal year of each proposed district <br />[City] tax increase, district estimates of the dollar amount of each increase and of district fiscal year <br />