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Special District White Paper <br /> Allowing for Future Local Option and Special Levies <br /> Another reason to leave room within permitted tax limits is to allow local general government <br /> jurisdiction to have an opportunity to pass limited funding levies for special purposes. The City of <br /> Eugene currently has two outstanding local option levies that are outside the City's permanent rate <br /> limitation but fall inside the constitutional limitation. Formation of one or more special districts will <br /> not eliminate the need for cities and counties to respond to community demands for services not <br /> provided by the special district. <br /> Double Majority Requirement Applies to Special District Property Tax Proposals <br /> Constitutional double majority requirements apply to special district ballot measures proposing <br /> permanent maximum operating tax rates, local option levies and general obligation debt. An <br /> altemative is to place district property tax issues on the general election ballot of even numbered <br /> years. A vote on formation of a new district accompanied by a proposed permanent property tax <br /> rate limit is required to appear on a primary or general election ballot only (ORS 198.815(2)). Votes <br /> on special district formation or annexations that do not include establishment of a permanent rate <br /> limit or other property tax levy are not subject to these requirements. <br /> Maximum Permitted District Revenue and Debt Based on Eugene FY02 Property Values <br /> It is important to be able to estimate the maximum local level of revenue permitted under the <br /> constitutional and principal Act limitations for each district type. This must be based on property <br /> values within the boundary of a proposed district. If proposed boundaries or property values are <br /> different, then permitted maximum tax revenues will be different. A detailed, up -to -date financial <br /> analysis will be necessary for each specific district proposal. <br /> For the following discussion, FY02 Eugene property values are used, assuming a special district is <br /> created that has the same boundary as the City of Eugene. The following revenue estimates and <br /> tax rates are calculated upon the FY02 real market value (RMV) of taxable property (approximately <br /> $10.9 billion) and assessed value for taxable property (approximately $8.1 billion) within the city of <br /> Eugene. These total values will change from year to year. <br /> Please note that for each type of district reviewed here, the principal Act limits are shown as a <br /> percent of real market value, and then are expressed as a rate on AV calculated from Eugene FY02 <br /> taxable property value. The net potential maximum amounts are based on FY02 Eugene taxable <br /> property value and a current estimated 93% property tax collection rate. Authority for other revenue <br /> sources and debt is also noted for each type of district. (Refer to Appendix C for a summary of tax <br /> and debt authority by type of district.) <br /> Library District <br /> Library districts are permitted to levy and collect property taxes of up to 0.25% of RMV of taxable <br /> property, for a maximum rate of approximately $3.30 per $1000 taxable AV within the City of <br /> Eugene. This would potentially allow a net revenue of about $26.7 million. A district's voters are <br /> also permitted to adopt a local option levy and may approve GO bonds. The district's aggregate <br /> outstanding GO debt is limited to 2.5% of RMV, or about $267.4 million within Eugene. Library <br /> districts may also charge user fees. There is no authorization for revenue bonds. <br /> Special Districts Paper - Final 11- 8- 01.doc Page 15 of 41 <br /> City Council Agenda page 39 <br />