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11: City,/ <br />im Louisville <br />COLORADO • SINCE 1878 <br />CITY COUNCIL COMMUNICATION <br />AGENDA ITEM 8D <br />SUBJECT: <br />DISCUSSION/DIRECTION — PROPOSED EXCESS TAX <br />REVENUE TABOR BALLOT ISSUE LANGUAGE <br />DATE: JUNE 11, 2019 <br />PRESENTED BY: KATHLEEN KELLY, CITY ATTORNEY <br />HEATHER BALSER, CITY MANAGER <br />SUMMARY: <br />The City exceeded its 2018 sales and use tax revenue estimates from the 0.15 percent <br />recreation tax used in connection with Ballot Issue 2B, approved by the voters in <br />November 2016, and the total fiscal year spending estimate for 2018. <br />At the November 8, 2016 election, City voters approved the following ballot issue: <br />SHALL THE CITY OF LOUISVILLE TAXES BE INCREASED $575,000 IN 2018 <br />AND THEN ANNUALLY BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED <br />THEREAFTER FROM THE LEVY OF AN ADDITIONAL SALES AND USE TAX OF 0.15 <br />PERCENT BEGINNING JANUARY 1, 2018 AND CONTINUING THEREAFTER; WITH <br />SUCH 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 <br />OF SUCH SALES AND USE TAX TO BE COLLECTED, RETAINED AND SPENT FOR <br />OPERATING AND MAINTAINING THE LOUISVILLE RECREATION/SENIOR CENTER <br />AND POOL FACILITIES AT MEMORY SQUARE PARK; AND SHALL THE CITY BE <br />PERMITTED TO COLLECT, RETAIN AND EXPEND ALL REVENUES DERIVED <br />FROM SUCH SALES AND USE TAX AS A VOTER -APPROVED REVENUE CHANGE <br />AND AN EXCEPTION TO LIMITS WHICH WOULD OTHERWISE APPLY UNDER <br />ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER <br />LAW? <br />In connection with new taxes, TABOR requires the distribution of a ballot issue notice <br />which requires the City disclose: "For the first full year of each proposed district (City) <br />tax increase, district estimates for the dollar amount of each increase and of district <br />fiscal year spending without the increase." For 2018, the first year of collection of the <br />recreation tax, the notice estimated the dollar amount of the increase to be $575,000 <br />and the estimated 2018 fiscal year spending without the increase to be $33,470,000. <br />Previous Finance Committee memos with additional detail on TABOR requirements and <br />applications are included in the attachments. <br />Absent later voter approval, TABOR requires a refund if either the revenue generated <br />by the new tax exceeded the estimate ($575,000) or the City's total 2018 fiscal year <br />spending without the tax increase exceeded the amount in the TABOR notice <br />CITY COUNCIL COMMUNICATION <br />