Finance Committee Agenda and Packet 2025 05 15

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Cityof FINANCE COMMITTEE Louisville COMMUNICATION COLORADO •SINCE 1878 ITEM 2 SUBJECT: EXPLORATION OF POTENTIAL NEW REVENUE SOURCES FOR CITY MAJOR CAPITAL ITEMS DATE: MAY 15, 2025 PRESENTED BY: RYDER BAILEY, CPA, FINANCE DIRECTOR SUMMARY: The Finance Committee has requested that Staff research the following information to facilitate discussion around potential new revenue sources for City Major Capital Items. Sales Tax The City of Louisville's existing Sales Taxes, and their expiration dates, if applicable, as well as benchmarked to other local jurisdictions' for comparison. Property Tax/ Mill Levies The City of Louisville's existing Property Taxes / Mills and benchmarked Property Taxes / Mills to other local jurisdictions for Comparison. Certificates of Participation (COP) (Sourced from DebtBook.com — Link) Among state and municipal governments, COPs are the most popular form of appropriation -supported debt. One of the main reasons for their popularity is that, in many states, COPs are not considered a "debt" and thus do not require prior voter approval before issuance— unlike many General Obligation (GO) Bonds. This potentially shortens the path to a debt issuance. Under the terms of a lease agreement, the municipality (lessee) is obligated to make base rental payments, which are separated into principal and interest (P&I) components. Before the sale of the certificates is finalized, the municipality assigns a trustee through a trust agreement. The trustee is responsible for receiving the base rental payments from the municipality and distributing the P&I payments to the certificate holders. BACKGROUND: The City of Louisville has a myriad of programmatic offerings to its residents. However, as the demand for services is ever-increasing, projected future revenue streams are limited. FINANCE COMMITTEE COMMUNICATION7