Economic Vitality Committee Agenda and Packet 2023 02 17

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Revenue and Expenses As of January 31, 2023, $188,020.28 has been collected from the disposable bag tax since it went into effect on January 1, 2022. 2022 Bag Tax Direct Expenses $3,300 — Prairie Mountain Media, December 2021 bag tax advertising $1,000 — Prairie Mountain Media, January 2022 bag tax advertising $458 — Mittera Group, December 2022 business mailer $25,000 was not allocated to staffing in 2022 for bag tax administration. This was confirmed by Vik Runkle, Interim Finance Director Remaining Bag Tax Revenue $183,262.28 According to pre -ballot City Council communications, the following expenses were proposed: $60,000 in the first year (2022) for program marketing and training, $25,000 per year for staffing costs related to the administration of the bag tax and related programming, $15,000 per year for low-income resources and $5,000 per year for marketing and outreach. Bag Reduction The estimated total of single -use bags distributed in Louisville was approximately 4.5 million bags per year before the tax went into effect. With regards to the revenue collected and the City's retention of $.15 of each $.25 tax, there were 1.25 million (1,253,469) single -use bags distributed in Louisville in 2022, which is a 72% reduction in bag use in comparison to pre-tax estimates. This percentage decrease in bag use is similar to bag reduction seen in other Colorado communities that have implemented bag fees, such as Boulder and Denver. Typically, bag use reduces by 60-80% in the first year and remains consistent in future years of the tax. Waste Reduction Programs The objective of the bag -tax funded waste reduction programs is to utilize the collected revenue to provide programs and services to the Louisville community that continue to reduce waste in the commercial sector. When the Sustainability division developed the waste programs proposal, staff intended to develop a variety of programs, so that individual businesses are able to choose the program that best suits the needs of the specific business. Each business participating in the bag tax program will have the option to choose one waste reduction program per calendar year and the estimated value of all waste reduction programs are $1,000, so that the value of each program option is comparable to the other program options. If there is funding available, businesses may be eligible to participate in more than one waste reduction program per year. This option may become available if communication has been made to all businesses that participate in the program and each business has had an opportunity to participate in one waste reduction program. Agenda Packet P. 36