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EUGENE CITY COUNCIL <br /> AGENDA ITEM SUMMARY &EU—GEI■2_2E <br /> Work Session: Special Districts <br /> Meeting Date: November 13, 2001 Agenda Item Number: D <br /> Department: Central Services Staff Contact: Jim Carlson <br /> www.ci.eugene.or.us Contact Telephone Number: 682 -5524 <br /> AGENDA ITEM SUMMARY <br /> This is a work session to review and discuss a staff report on special districts as a service delivery <br /> option. This is one of a series of work sessions to discuss revenue options for city services. <br /> BACKGROUND <br /> Council Action History <br /> The Metro Plan contains the current City Council policy on special districts. <br /> The council included a work plan item in the City Council Goals 2001 -2002, under the goal of "Fair, <br /> Stable and Adequate Financial Resources," to review and discuss staff report on special districts as a <br /> Vir service delivery option. <br /> Policy Issues <br /> The primary policy issue is whether the changes in the Oregon Constitution provisions related to <br /> property taxation justify a change in the Metro Plan policies discouraging the use of special districts to <br /> provide funding for urban services in Eugene. If changes in the policies are appropriate, which types of <br /> districts should be allowed and under what conditions? <br /> Financial and/or Resource Considerations <br /> .The use of special districts for service delivery in Eugene could have significant financial impact on city <br /> services. <br /> Other Background Information <br /> Many city services are funded primarily with property tax revenue, which flows to the City's General <br /> Fund. Among important City of Eugene services relying in whole or in part on the General Fund are <br /> police, fire, library, recreation, and parks and open space. Local property taxes are subject to <br /> constitutional, statutory, political and practical constraints. In particular, Ballot Measure 50 established <br /> a permanent tax rate for the City of Eugene which cannot be changed by the voters. The only way to <br /> increase the tax rate to fund city services is through the use of time - limited (up to 5 years) local option <br /> levies. The City is using this tool for the library and for youth services. One of the only ways to <br /> increase property taxes permanently is through the use of special districts, either by annexing the city to <br /> C an existing district or creating a new district which includes the territory within the city limits. <br /> P: \CMO\2001 Council Agendas\M011113\S0111 <br /> City Council Agenda page 19 <br />