Finance Committee Agenda and Packet 2021 10 18

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City Council Finance Committee Meeting Minutes 09/27/21 Page 2 of 4 APPROVAL OF THE MINUTES FROM THE AUGUST 23, 2021 MEETING The Finance Committee approved the August 23, 2021 minutes as presented. REPORT ON PRELIMINARY ASSESSED VALUATION Kevin Watson, Director of Finance, presented the assessed valuation amounts as reported from the Boulder County Assessor's Office. The Assessor reported the City of Louisville's gross assessed valuation increased by 9.80%, from $728,802,059 in 2020, to $800,216,959 in 2021. The City of Louisville's total net assessed valuation, which is the City's gross valuation less the Urban Revitalization District's incremental assessed valuation, increased by 9.78%, from $706,320,493 in 2020, to $775,368,866 in 2021. Director Watson noted that 2021 is a "re -assessment" year, so changes in valuation are due to changes in both actual values and to new construction. If the General Fund mill levy remains the same at 5.184 mills, General Fund property tax revenue will increase by the same percentage as the net assessed valuation (9.78%), from $3,661,565 in 2021, to $4,019,512 in 2022. If the Recreation Center Debt Service Fund mill levy remains the same at 2.750 mills, Recreation Center Debt Service Fund property tax revenue will also increase by 9.78%, from $1,942,381 in 2021 to $2,132,264 in 2022. Director Watson also gave a brief summary of Senate Bill 21-293, discussed the timing differences between the levy year and collection year, and briefly discussed the repeal of the Gallagher Amendment and the possible effects on assessment rates. The report and corresponding narrative can be located in the packet of the September 27, 2021 Finance Committee Meeting. DISCUSSION OF DEBT SERVICE LEVY FOR RECREATION CENTER BONDS Kevin Watson, Director of Finance, presented two options for setting the future mill levies for debt service on the Recreation Center Bonds: Option 1: Annually set the Recreation Center Bond levy to the minimum amount necessary to pay principal, interest, and miscellaneous fees during the year. This option would maintain a fund balance of approximately 20%-25% of annual expenditures. Staff is recommending Option 1, which is assumed in the City Manager's Recommended Budget for 2022. 3