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(These revenues are now exempted from the TABOR calculation.) The City of Louisville's 2001 budget reflects compliance with the provisions of the TABOR Amendment, with the exception of the property tax revenue. Under the TABOR Amendment, all taxes (except as previously noted), licenses and permits, charges for services, fines and forfeitures, and miscellaneous revenue (except developer contributions and payments in lieu of land dedications) are part of the limitation calculation. Transfers into the fund and debt service (except the open space bond) are deducted. The remainder may increase by the combination of the local growth rate (3.15%) and the rate of inflation in the Denver/Boulder Area (3.1%). The 2001 budget, after the TABOR exemptions, reflects a 19.95% decrease below the estimated 2000 level. The City's property tax mill levy rate for 2001 has been set as a temporary levy of 4.767 mills, which has increased from the 4.643 level of 2000. TABOR Amendment provisions require that annual property tax revenue be restricted by the same growth rate applicable to the City's general spending of 6.25%. For 2001, the mill levy rate meets the requirements of the 5.5% statutory revenue limit, but not TABOR. The TABOR requirements would restrict the mill levy to 4.532, or $74,389 less revenue than the statutory limitation. The City Council has approved the higher mill levy with the understanding that in order to retain this additional revenue an approval of the voters is required in a November, 2001 ballot issue. This additional revenue has not been appropriated. The TABOR Amendment also requires local government to reserve three percent of total expenditures for emergencies in 1995 and thereafter. (The definition of an "emergency," under TABOR is restricted to natural events, but excludes "economic conditions, revenue shortfalls, or district salary or fringe benefit increase.") Accordingly, the City has reviewed existing reserves and determined that a minimum of 3% will exist for 2001 to comply with the provisions of the TABOR Amendment. The TABOR Amendment excludes activities or funds considered to be "enterprises." The classification of an "enterprise" under the TABOR Amendment is based on three criteria: (1) The entity be considered a government owned business; (2) the entity be authorized to issue its own revenue bonds; (3) the entity receive under 10% of its annual revenue in grants from all Colorado and local governments combined. The 2001 TABOR calculations represent the exclusion of the City's water utility fund and sewer utility fund, as approved by Ordinance No. 1167 and 1168, Series 1994, and the golf course fund, as approved by Ordinance No. 1280, Series 1998, declaring these funds as "enterprises" under the TABOR Amendment definition. Summary The 2001 budget is funded by a stable revenue stream, and addresses quality of life issues as well as fiscal responsibility. The Council has focused on projects such as street improvements, water rights, beautification, trails, and open space, that will benefit the citizens of Louisville well into the future. vi