1998 BUDGET - Laserfiche WebLink

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H. The wastewater treatment plant is budgeted for expansion at a total cost of $2,407,000. The Council will determine this course early in 1998. The Council continues to reserve part of the fund balance in the capital projects fund at $100,000 for community park development, and $100,000 for debt reduction. This brings the cumulative balances to $300,000 for the park and $200,000 for debt. J. The 1998 budget also includes the refund of one mill levy. This is due to Louisville's inclusion in the Northern Colorado Water Conservancy District; increasing the property tax by one mill. In 1996, the Council decided that the City would refund this to the citizens of Louisville. Compliance With Tabor Amendment In November 1992, Colorado voters approved an amendment to the State Constitution providing tax and spending limitations on local governments. In the interim, several ballot issues have been presented to the citizens of Louisville that impact the limitation. In 1993, the open space tax was approved. In 1994, the open space bond issue and the residential use tax were passed. In November 1996, authorization was given for the City to receive and expend all sales and use tax revenues. These specific revenues and debt are exempt from the Tabor calculations. In 1997, a revenue -sharing intergovernmental agreement was approved, exempting these revenues from the Tabor ceiling. The City of Louisville's 1998 budget reflects compliance with the provisions of the Tabor Amendment. Under the Tabor Amendment, all taxes (except as previously noted), licenses and permits, intergovernmental revenue (except federal grants and lottery proceeds), charges for services, fines and forfeitures, and miscellaneous revenue 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 (5.20%) and the rate of inflation in the Denver/Boulder Area (3.4%). The 1998 budget reflects a 4.61 % decrease over the estimated 1997 level. The City's property tax mill levy rate for 1998 is 5.246 mills, which is the same as in 1997. Tabor Amendment provisions require that annual property tax revenue changes be restricted by the same growth rate applicable to the City's general spending of 8.60%. For 1998, the mill levy rate meets the requirements of the Tabor Amendment as well as below the 5.5% statutory revenue limit. 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 1998 to comply with the provisions of the Tabor Amendment.