1999 BUDGET - Laserfiche WebLink

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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. In 1998 the City Council, by ordinance, declared the golf course an enterprise under the TABOR definition. The City of Louisville's 1999 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 (2.28%) and the rate of inflation in the Denver/Boulder Area (3.0%). The 1999 budget, after the TABOR exemptions, reflects a 12.09% decrease over the estimated 1998 level. The City's property tax mill levy rate for 1998 is 5.184 mills, which has decreased from the 5.246 level of 1998. TABOR Amendment provisions require that annual property tax revenue be restricted by the same growth rate applicable to the City's general spending of 5.28%. For 1999, 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 1999 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 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 1999 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 1999 budget is funded by a stable revenue stream, and addresses quality of life issues as well as