Parks and Recreation System Master Plan Update (2016) parks_and_recreation_system_master_plan_update_oct | Page 180

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
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