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Special District White Paper The primary purpose of a port district is to promote and facilitate shipping and other economic activity, but a wide range of activities are permitted within that broad purpose. This aspect allows port districts to perform as multiple - purpose districts. A port district may be particularly valuable as a means to fund the municipal airport, own and operate the Eugene railroad terminal, support the Private Industry Council, implement infrastructure and economic development projects, encourage tourism, and develop fish restoration programs, among many other possible activities. Port districts have authority to generate revenue from a range of sources as well as through GO and revenue bond issuance. IMPLEMENTING PARK & RECREATION SPECIAL DISTRICT SERVICES WITHIN EUGENE The following discussion is for the purpose of example only, to illustrate alternative ways a special district's services could be obtained. This discussion does not constitute a proposal to implement a special district alternative for park and recreation services, or any other services currently provided by the City of Eugene. In this example we exclude Library services and facilities, and only include park and recreation services and facilities. The City currently owns and operates an extensive range of park and recreation properties and facilities. To provide park and recreation services, the City employs administrative, maintenance and recreational staff. A two -year voter - approved $3.5 million youth recreational local option levy will expire in FY03 and replacement revenue is not yet determined. The voters also recently approved a $25 General Obligation bond levy for upgrading recreation facilities and acquisition of more parkland and open space. It is clear that city residents desire high quality park and recreation services, yet the City will likely have difficulty reliably funding these services into the future. Stable and adequate funding outside the City's permanent tax revenue limits is a reasonable alternative. A park and recreation district with an adequate permanent operating tax rate limit of its own could provide the needed stable funding. The district would be an independent municipal corporation, governed by an independent, elected board accountable to the voters for the performance of the district. An important point to understand is that, once the district is formed, decisions about how park and recreation services may best be provided would be up to the district board rather than the City Council. In this example we exclude Library services, the Hult Center and Cuthbert Amphitheater and include only Park and Recreation operations performed by Eugene Public Works and Library, Recreation & Cultural Services Departments. Park and recreation services provided by the City of Eugene in FY02 include city parks, urban forestry, aquatics, athletics, before and after school programs, community arts and services, outdoor /environmental program, senior program, specialized recreation, youth recreational services, and administration. The City's FY02 adopted budget provides for general fund expenditures totaling about $9.87 million for these services. The City recovers about 23% of these needed resources from user fees. After accounting for this L e revenue, the net expenditure from the general fund for operation of parks and recreation services in Special Districts Paper - Final 11- 8- 01.doc Page 27 of 41 City Council Agenda page 51