City Council Agenda and Packet 1987 10 20

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Mohr moved that Council adopt Resolution 1129, the 1988 Budget for the City of Louisville. Mayor Fauson seconded. By Roll Call Vote, Resolution #29 was adopted unanimously. RESOLUTION 1130 - LEVYING TAXES Rundley stated that as the Council Communication stated, Resolution 1130 sets the 1987 Property Tax Mill Levy at 4.908 mills. Due to the reappraisal of real and personal property the City's mill levy decreased from 8.026 to 4.908. Rouse Bill 1003 allows the City to increase it's property tax reve- nues by 5.5% excluding the portion of assessed valuation attributed to annexation and new construc- tion. The mill levy of 4.908 represents the in- crease allowable by BB 1003 and the increased reve- nue generated by this 5.5% increase ($30,995) will go to the City's Capital Improvement Program. However, Wednesday of last week, Asti-Caranci received a notice from the Division of Local Govern- ment requesting the City lower that will levy certification. The Division's request was based on a request by the State Legislature because of an assumed windfall that would go to Louisville by virtue of the change in the way in which property is being assessed. The change consists of deflating the new annexations and construction values back to the 1977 base year. The Division of Local Govern- ment did not notify the City until late last week of the change consisting of the deflating factor for new annexations and construction. This would affect the City by decreasing revenues by $32,000 and decreasing the mill levy from the proposed 4.908 to 4.644. Rundley further stated that this procedure was 'nowhere embodied in State legislation, but was rather a request, an eleventh hour request.' Hundley checked with CML and discovered that to this date no other municipality has in fact decided to challenge this by certifying a higher mill levy. Sackett stated that he has never understood the term "windfall." Bundley stated that the new assessed valuation calculated by the new assessment technique is approximately $8 million. By the old assessment technique, that figure would be $4.6 million, If you use the new assessment technique values and apply it times the old mill levy, you get an artifi- cially high number and why the Department of Local Government says that there is a need to deflate the assessment back to the prior year because that is the year that the 8 mills was based on. 5