City Council Agenda and Packet 2019 10 08

Home Browse Search

SUBJECT: URD BUDGET AND CALCULATION OF PLEDGED REVENUE DATE: OCTOBER 8, 2019 PAGE 3 OF 6 Based upon the preliminary information, the URD's gross assessed valuation increased from $61,021,831 in 2018 to $66,856,634 in 2019. The URD's base assessed valuation increased from $41,986,395 in 2018 to $45,237,015. The difference between the gross valuation and the base valuation equals the incremental valuation, which multiplied by the overlapping levies is the amount of property tax revenue captured by the URD. The URD's incremental assessed valuation for 2019 is $21,619,619. The overlapping levies are estimated at 93.849 mils. Multiplying these amounts, and accounting for Boulder County's collection fee, results in an estimated property tax revenue of $1,998,540 for 2020. The actual amount of overlapping levies will not be known until all entities certify their levies to Boulder County in December. Interest Earnings are currently proposed at $30,000 for 2020. This amount is based on an expected rate of return and the amount and timing of budgeted revenue and expenditures. Expenditures Support Services are payments to the City of Louisville for services such as accounting, budget, revenue collection, disbursements, debt administration, and general administration. The proposed 2020 budget is $60,000. The LRC agreed to assist the City with funding for the Downtown Lights Project in the amount of $72,000 for 2020. Under the Tri-Party Agreement, the URD is required to remit 7.15% of net property tax revenue back to Boulder County. The proposed budget for 2020 is $142,900. The LRC has been in discussions with the Louisville Fire District about refunding a portion of the property tax revenue captured through the Fire District's overlapping levy. The proposed budget amount of $75,870 assumes: • A 25% refund of the Fire District's current 6.686 mil levy; plus • A 100% refund of the Fire District's new levy, estimated at 3.900 mils. Note: Unlike the refund to Boulder County, this refund can only be calculated on the incremental valuation outside the Core Area. Bond Maintenance Fees ($7,150) are fees charged by the Paying Agent for the 2014 Property Tax Increment Revenue Bonds. Investment Fees ($3,500) include fees charged by USBank to maintain the DELO Construction Account and fees charged by the City of Louisville's Investment Advisor for funds on deposit at the City. Professional Services includes a proposed 2020 budget of $20,000 for possible 3rd party reviews of TIF agreements in 2020. CITY COUNCIL COMMUNICATION 4