City Council Minutes 1987 10 06 - Laserfiche WebLink

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Mohr moved that Council adopt Resolution #29, the 1988 Budget for thE~ City of Louisville. Mayor Fauson seconded. By Roll Call Vote, Resolution #29 was adopted unanimously. RESOLUTION #30 - LEVYING TAXES Hundley stated that: as the Council Communication stated, Resolution #30 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 8.02;6 to 4.908. House 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 HB 1003 and the increased reve- nue generated by tYiis 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 they City lower that mill 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. Hundley further stated that this procedure was "nowhere embodied i:n 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." Hundley 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 gold 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