City Council Minutes 2010 07 20 - Laserfiche WebLink

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City Council Meeting Minutes July 20, 2010 Page 3 of 9 CONSUMPTION OF ANY ARTICLE OF TANGIBLE PERSONAL PROPERTY OR TAXABLE SERVICES PURCHASED, LEASED OR RENTED FROM SOURCES OUTSIDE THE CITY ON WHICH THE CITY SALES TAX HAS NOT BEEN PAID AND UPON RENTAL OF STORAGE SPACE WITHIN THE CITY AND, IN CONNECTION THEREWITH, MAKING AMENDMENTS TO THE LOUISVILLE MUNICIPAL CODE TO ALLOCATE PORTIONS OF THE USE TAX REVENUES FOR OPEN SPACE AND HISTORCIAL PRESERVATION PURPOSES, PRESCRIBE EXEMPTIONS FROM THE USE TAX, AND ADOPT OTHER AMENDMENTS CONCERNING THE ADMINISTRATION AND COLLECTION OF THE USE TAX; AND PROVIDING FOR THE SUBMISSION OF THE ORDINANCE TO A VOTE OF THE REGISTERED ELECTORS AT A SPECIAL ELECTION TO BE HELD NOVEMBER 2, 2010 Mayor Sisk requested a City Attorney introduction. City Attorney Light read Ordinance No. 1575, Series 2010 and noted there are second reading amendments, including the amendment to the title. Mayor Sisk opened the public hearing and requested a Staff presentation. City Manager Fleming explained the Council directed staff to prepare a draft ordinance with ballot language related to imposing a use tax for consideration. The City completed phone surveys of Louisville voters, and discussed the current budget situation with various community focus groups. Staff prepared a list of items Council may wish to add back into the City's budget should the use tax pass. If approved by the voters, the ordinance and ballot question is structured so the tax revenue would be used in the same manner the City currently uses the sales tax for historic preservation projects, land acquisition and parks maintenance and general government activities. Potential uses of revenue if the use tax is approved by the voters included filling the two vacancies in the police department; restoring the services cut within the last two years and providing a "Rainy Day Fund He noted one of the challenges is to determine the fiscal impact of the use tax. It is difficult to accurately predict the revenue this tax would generate, especially in the first year because it would reflect changes in building activity and business expansions. Staff estimated, with ConocoPhillips and other large developments coming in 2011, the commercial building use tax wound increase approximately $275,000. Expanding the use tax to cover residential building materials would likely generate an additional $285,000 in revenue. The base consumer use tax for appliances, furniture and fixtures would generate $900,000 in additional revenue. Under the provisions of TABOR, the ballot title must specify the maximum amount of tax revenue the measure would generate for the first year. Staff believes $1.5 million dollars represents the best estimate. If the actual revenues exceed that amount, the excess must be refunded. Mayor Sisk requested public comment. There were no comments.