2021-2022 Biennial Operating & Capital Budget

Home Browse Search

accomplish over the next one to two years. The purpose of the plan is to serve as roadmap for the organization, to strengthen the organizational culture and to serve as a communication tool for the community to understand the City's strategic vision and operating guidelines. The City continues to move forward with its program -based budget structure, which includes program areas with specific goals and sub -programs with measurable objectives. These goals and objectives are measured on a regular basis through our Key Performance Indicators (KPIs) and the Strategic Plan reflects how our Priority Initiatives are aligned with these program areas. In essence, the program and sub -program areas reflect all of the work the City performs on a day-to-day basis, while the Priority Initiatives reflect those high -priority efforts that represent an increased financial and resource investment over a period of time. The mission, vision and values reflect how the City does this work. Vision: The City of Louisville — dedicated to providing a vibrant, healthy community with the best small town atmosphere. Mission: Our commitment is to protect, preserve, and enhance the quality of life in our community. Values: Innovation, Collaboration, Accountability, Respect, Excellence The updated Strategic Plan is included as an attachment to the Budget Message. Revenue and Expenditure Projections Revenue Projections The City relies on sales tax revenue to fund most of its major programs, other than utilities and the golf course, which are fully supported by user fees. Sales tax revenue typically represents about 30% of total City-wide revenue and about 45% of total General Fund revenue. Staff estimates the City will receive approximately $15 million in total sales tax revenue during 2020. Due to the economic impacts of the pandemic, this projection is 13% below the actual sales tax revenue received in 2019. Anticipating a partial recovery, staff is estimating approximately $16 million in sales tax revenue for 2021, which is a 7% increase over the 2020 projection. Property tax revenue is another important revenue source for the General Fund and Debt Service Fund. Total property taxes declined in 2019 due to the elimination of the debt service levy for the Library Bonds. In line with the growth projections on assessed valuations and a flat mil levy, staff estimates that the City will receive approximately $5.3 million of property tax revenue in 2020. Property tax revenue for 2021 and 2022 is projected to grow at a 5% rate for both years. Note that these projections were made and included in the final proposed budget prior to the City receiving its final assessed valuation from Boulder County. The following table reflects staff's current estimates for major sources of revenue for 2020 and budget projections for 2021 and 2022. 2