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Special District White Paper <br /> territory proposed for annexation is required; the double majority requirement does not apply to <br /> annexation elections. <br /> The Boundary Commission has jurisdiction in the case of annexation to a park and recreation <br /> district, county service district, rural fire protection district or library district. In this case, the <br /> County is not involved, and the annexation proposal is filed with the Boundary Commission. Once <br /> all filing requirements have been met, the Commission must act upon the proposal within 90 days of <br /> submission unless the involved parties agree to a postponement. If the Commission approves the <br /> proposal, no election is required and the proposal is put into effect on the date specified in the <br /> order. An election may be required to be held, however, if written objections to the Boundary <br /> Commission's approval of the annexation proposal are filed by not less than 10% or 100, whichever <br /> is lesser, of electors in the area to be annexed. In such a case an election on the proposal must be <br /> held on the next available election date. An election can also be triggered by a resolution of <br /> opposition by the board of the affected district. If the proposal were successful, the district's <br /> principal Act would apply to providing representation of the annexed area on the district board. <br /> ANNEXATIONS AND DISTRICT PERMANENT TAX RATE LIMITS <br /> Financial Effects of Annexation <br /> In the case of an annexation, the current district tax is simply extended to the newly annexed area. <br /> This will generate additional revenue to support the extension of district services to the new area. <br /> The permanent operating property tax rate limit of the district will not change, but the maximum <br /> amount of property tax revenue that the rate will allow to be levied will increase because more = <br /> property would be located within the district. If the district has outstanding GO debt levies, then <br /> repayment of that debt amount will be spread among more taxpayers and the amount paid for this <br /> purpose by individual property taxpayers will decrease. <br /> If a city's territory were annexed to a district, the city government would then probably not provide <br /> the services that would be provided by the special district. City revenue that might have been <br /> budgeted on that service activity would be available to fund other services. The city's permanent <br /> maximum property tax rate limit would not change, and city operating tax rates and local option <br /> levies then in effect would not necessarily change as a result of the annexation, nor would the <br /> amount of city taxes paid by individual property owners. The city council could choose to decrease <br /> the tax levies in recognition of the reduced provision of services from the city or could redirect the <br /> funds to other needed services. <br /> March 31 Deadline for District Tax Revenue Determination <br /> In the case of formation of a new district or annexation, the date of March 31 is very important. A <br /> formation or annexation order must be filed in final approved form with the Oregon Department of <br /> Revenue by March 31 in order for the change to be effective for the tax year beginning on July 1. If <br /> this deadline is missed, the district's tax levy cannot be imposed on the territory subject to the <br /> boundary change, and the district will receive no revenue until the subsequent tax year. <br /> Special Districts Paper - Final 11- 8- 01.doc Page 22 of 41 <br /> City Council Agenda page 46 <br />