City Council Agenda and Packet 2021 03 09 SP

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SUBJECT: COMMUNITY ENERGY DISCUSSION DATE: MARCH 9, 2021 Page 9 of 13 Total projected taxable sales in Louisville is estimated to be $438,561,370 for 2021 with the City's projected sales/use tax revenue as $21,149,060. Below are several examples of what an increase in both the sales tax and use rate would generate annually based on the 2021 budget: • 0.069% = $400,000 • 0.112% = $650,000 • 0.173% = $1,000,000 • 0.265% = $1,535,480 • 0.408% = $2,364,060 Property Tax The final 2020 net assessed valuation, which applies to property taxes collected in 2021, is $706,320,493. Below are several examples of what a mil levy would generate based on the 2020 net assessed valuation: • 0.934 = $650,000 • 1.437 = $1,000,000 Assuming a Residential Assessment Rate (RAR) of 7.15%, each mil levy on a $500,000 market value residence would cost the property owner about $36 per year. However, after the repeal of the Gallagher Amendment, it is difficult to project where the RAR will be in the future. Utility Bill Fee The total number of water meters in which a flat fee differentiated by sector or square footage as proxy to energy consumption could be applied to customers in Louisville is approx. 7,150. The City's utility billing is based on water meters and some premises like apartments do not have a separate meter and would not be subject to the tax. Staff is unable to determine the total number of premises that would be missed if a flat fee were applied. The City may also want to exclude some meters from the flat fee (i.e. irrigation meters, City meters, etc.). A flat fee could be based on sector, uniform across all sectors or determined by square footage as a proxy to energy consumption. This data is currently not available and would need to be developed. Excise Tax The total number of electric meters in which an excise tax could be applied in Louisville is approx. 8,791, which is broken down into 8,541 residential meters, 1,180 commercial meters and 14 industrial meters per Xcel Energy's 2019 data. If billed on energy consumption, residential and commercial premises are incentivized to reduce the amount of energy consumed. An excise tax rate could be determined by three methods: CITY COUNCIL COMMUNICATION 11