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Special District White Paper or by the Boundary Commission. The proposed annexation must be reviewed and approved by the Boundary Commission as in the case of a formation petition. The City Council must consent to the annexation of City territory to the special district. The Boundary Commission will review the proposal as a minor boundary change. The Commission may reject the proposal or may modify the proposed district boundary prior to approval. The annexation is effective on a date specified in the approval order. Upon approval of the annexation, district board zones would be adjusted to provide for proportional representation of the annexed area. However, the annexation order will not take effect if within 45 days the Commission receives written objections signed by not Tess than 10% or 100, whichever is fewer, of the voters in the affected territory or the District Board adopts a resolution objecting to the annexation. In this case the District board and the County must place the question of annexation on the ballot before the electors within the district and the area proposed to be annexed in the same election. The ballot question is not subject to the constitutional double majority rule; simple majorities must be provided in both the district and the area to be annexed for the annexation to be effective. The District's approved permanent operating property tax rate limit and current tax levies would apply in the annexed area as it does in the rest of the district following voter approval. If annexation were to Willamalane Park and Recreation District in FY02, the operating tax rate applied would be $2.025 per $1000 AV and would generate a maximum of about $15.1 million net additional revenue to pay for park and recreation services provided by Willamalane. If annexation were to River Road Park and Recreation District, the operating tax rate applied would be $3.0559 per $1000 AV. This would produce about $23 million net additional revenue for services from that District. In either case net revenue would be greater than the $9.16 million net tax revenue required to provide continuing park and recreation services to Eugene. The park and recreation district board would have the option of reducing the taxes levied to the entire district below current levels in order to match district revenue to actual requirements. Annexation to either district would leave quite a bit of unused constitutionally permitted general govemment rate capacity and, therefore, not cause tax rate compression. City tax rates would be unaffected by the annexation; however the funds that formerly went to support the park and recreation services provided by the City could then be used for other important service needs. Example 3: Adding Park & Recreation Functions to the Metropolitan Wastewater Service District County service districts are permitted by their principal Act to provide park and recreation services among many other permissible services. Park and recreational functions could be added to the current purpose of the Lane County Metropolitan Wastewater Service District. The District's name could be changed to reflect the broader functions. A permanent maximum tax rate could, but would not have to be, proposed. This is an important point since the boundary of the MWSD includes the incorporated areas of Eugene and Springfield and surrounding unincorporated urban area. The additional park and recreation services would likely not be provided to areas within the District that are already served by Willamalane Park and Recreation District or River Road Park and Recreation District. Since these districts already have permanent rate limits and levy operating taxes, electors '*111) s Special Districts Paper - Final 11- 8- 01.doc Page 30 of 41 City Council Agenda page 54