Under a similar approach , but somewhat differently structured , Cincinnati ’ s City Charter sets aside a defined amount of the total property tax revenue for support of the municipal parks and recreation system .
Louisville could choose to establish a park and open space district solely within the Louisville Metro boundaries . An issue to be resolved would be the inclusion or exclusion of the smaller incorporated cities within Louisville Metro . Alternatively , consideration might be given to establishing a wider regional district , incorporating more than one county .
There is a tendency for the public to be more supportive of taxation which provides for clearly identified benefits . Thus it is conceivable that greater public support might be forthcoming for an increase in local property taxation if it were tied to a specific dedicated account , in the form of either a dedicated bond issue or special financing district .
A Parks and Open Space District , if formed , would have provided a vehicle to fund both capital and operating costs for the whole LMPRD system .
Benefit Assessment Districts
In some communities , benefit assessment districts are used to generate funds for maintenance of parks , trails , greenways , and other open space areas . In this approach , an annual assessment is levied on properties which draw an identified benefit from particular park ( s ) and open space areas . In some cases an entire city has been defined as a single benefit assessment district , collectively providing funds for maintenance of the entire parks and open space system . It is possible to levy such assessments on commercial properties . For example , if commercial properties were to be developed to take advantage of overlooking parkland along the riverfront , it might be possible to assess a fee on the commercial land uses .
Taxes In addition to the use of property taxes , either through the general fund or from specifically dedicated sources as described above , there are a number of other taxes which have the potential to support parks and recreation in Louisville . This support might occur directly , through taxes specifically earmarked for open space , parks and recreation , ( for example , the City of Boulder dedicates part of its sales tax revenues for open space preservation ), or indirectly , by increasing the revenues to the City and County general funds . Potential sources include a transient occupancy tax ( TOT ), utilities user taxes ( such as are already levied to support the Metropolitan Sewer District ( MSD )), sales taxes , construction taxes , a recreational fuel tax ( at the state level ), and property transfer taxes .
Tax Increment Financing
In a designated redevelopment area , tax increment financing can be used to support park , recreation facility , and other open space improvements . Where such a system is in place , the increment or difference between the taxes generated by the initial assessment of the properties in the district and the higher tax revenues collected after properties are redeveloped is used to repay tax increment bonds typically issued for a variety of public infrastructure
Parks and Recreation System Master Plan | VII . IMPLEMENTATION 159