City Council Study Session Agenda and Packet 2004 05 25

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TO: MAYOR AND COUNCIL FROM: WILLIAM A. SIMMONS CITY MANAGER DATE: May 21, 2004 SUBJECT: Tax Relief for the Elderly ORIGINATING DEPARTMENT: Finance SUMMARY: • Ordinance No. 430 -1973 provided financial relief and security for elderly citizens of the City of Louisville by providing a cash rebate of the City of Louisville's Mill Levy for qualified residents over the age of 65. The applicant must have been a resident of the city for some part of the calendar year preceding the calendar year in which the application is made. No income restrictions applied to the ordinance. Staff prepared an analysis of the rebate program and the results are summarized below: 2003 2002 # of Rebates Given 393 355 Total $ of Rebates Pd. $36,789 $41,515 Avg. Payment Per Applicant $93.61 $116.94 Avg. Home Owner Value $219,263.79 $232,962.21 Please note that in 2003 a one -time state - funded homestead credit was received by many applicants that ultimately reduced the average payment per application for that year only. Based on the analysis and attached graph's, Staff would like to make two recommendations to the current ordinance. > That the homeowner value be capped at $250,000, which would allow for a maximum rebate of $103.21 per resident. > That the percent of rebate given to applicants exclude the Library levy of 1.526. This results in residents obtaining a 7.57% rebate on the total levy of 69.772 vs. a 9.61% rebate if the Library levy was included. If the library levy were included, the impact would be approximately $14,000 in 2004 for taxes paid in 2003. RECOMMENDATION: Cap the homeowner value at $250,000 for all City of Louisville residents that qualify for the rebate and exclude the library levy from the rebate calculation. SUBJECT AGENDA ITEM L Tax Relief for the Elderly 11 COMMUN