Finance Committee Agenda and Packet 2024 11 21

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City Council Finance Committee Meeting Minutes October 17, 2024 Page 3 of 4 Councilmember Hamlington asked if it is common to have turnback in utilities. The Director of Public Works responded that the city hasn't done an audit of other utilities, but it is likely not common. He also noted that most utilities don't model annually like Louisville does. It's typical for utilities to perform a study, build a three -to -five-year plan, and then follow that plan for the length of the plan. Annual modeling allows Louisville to be agile in responding to changes in usage and expenses, keeping rates as low as possible. The present committee members expressed support for the 0% turnback approach. Councilmember Hamlington asked about the Wastewater CIP adjustment. The Deputy Director of Utilities responded that the city's solids handling project is separate from the Redtail project. It was initially planned to move forward with the solids handling project in the next month or so, but the Redtail upgrades have altered the project schedule because it makes sense to have the Redtail upgrades and solids handling projects moving forward in a concerted plan in a way that spreads out funding for the portion which is outside of the Redtail project. It was noted that Redtail is paying for their portion of the project, which is considerably larger than the city's solids handling project. There was a discussion around what the resident's bill will look like due to increases in both utilities and trash service. Councilmember Hamlington feels it is very important to educate the community as to why the bills are changing and how Louisville compares to our neighboring communities. The Director of Public Works responded that the PR materials will be presented to council if/when the finance committee approves the utility rate proposal to move forward. The Deputy Director of Utilities added that prior messaging in the utility bill insert communications to residents did include information on trash service rates. Councilmember Hoefner agreed that communication is important and commented that discussion at the study session was very important. He said he is pleased with where we have landed to moderate the large wastewater rate increase, and he is comfortable with the loan option at this particular time. Councilmember Hamlington also supports the loan option. Public Comments: None. Review of Preliminary Assessed Valuation and 2025 Mill Levies: The Director of Finance presented the Preliminary Assessed Valuation / 2025 Mill Levies to the committee. The information was included in the meeting packet. Mill Levies are proposed to not change in 2025 from the 2024 level. Committee Comments: Councilmember Hoefner requested a chart showing how the city's Mill Levies compare with surrounding communities. The Director of Finance will provide this information at a future meeting. Public Comments: None. Monthly Revenue and Sales Tax Report: The Sales Tax Department presented the Monthly Revenue and Sales Tax Report to the committee. The report was included in the meeting packet.