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Special District White Paper <br /> EXECUTIVE SUMMARY <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 /> library, recreation, parks and open space, police, fire, and emergency medical services. Local <br /> property taxes are subject to constitutional, statutory, political and practical constraints. These <br /> revenue constraints are increasingly forcing city councils to make choices among important city <br /> services, including reducing or foregoing some services in order to preserve or implement others. <br /> The Eugene City Council recognizes these needs in its adopted goal of Fair, Stable and Adequate <br /> Financial Resources. The applicable action priority under this goal is for a Review of the City role in <br /> provision of regional services. The adopted work plan for this item includes an analysis of the <br /> potential of special districts as a service delivery option. <br /> This paper focuses on the use of one or more special districts as a strategy to provide adequate, <br /> stable and politically acceptable revenue for necessary urban -level services. Each type of special <br /> district is authorized by State statute to provide particular services or functions to accomplish its <br /> purpose with its own independent revenue sources. Because a special district typically has a <br /> permanent property tax rate for its purposes, a district may provide more stable and adequate <br /> funding of particular services than can be provided within the City's permanent property tax rate <br /> limit. Six of the most relevant types of districts are examined. <br /> The Lane County Local Government Boundary Commission (LCOG) is a State agency created <br /> under ORS Chapter 199 that has jurisdiction over local government boundary changes for many <br /> special districts as well as cities. The Governor appoints commission members. The Boundary <br /> Commission and LCOG have an intergovernmental arrangement by which LCOG provides <br /> operating services, including staffing, to the Commission. The Boundary Commission has <br /> jurisdiction over boundaries of park and recreation districts, county service districts, library <br /> districts and rural fire protection districts, among others, within Lane County (Appendix E lists all <br /> the types of districts that are subject to the Boundary Commission). However, the boundary <br /> commission does not have jurisdiction over port districts or county road districts; instead the <br /> county board has jurisdiction over these types of districts. <br /> At this time, several existing special districts now provide park and recreation, fire and wastewater <br /> services to various part of the Eugene - Springfield metropolitan area. Port and library districts also <br /> serve various areas within Lane County. If the special district alternative for provision of urban <br /> services were to be implemented, one or more of these existing districts might expand their <br /> services through annexation of territory, or a new district might be formed. <br /> Most special districts can serve contiguous or non - contiguous territory and may include both <br /> incorporated and unincorporated areas within their boundaries, and some may even extend <br /> countywide. Each type of district is granted particular authority by its principal Act to levy property <br /> taxes and otherwise raise revenue, own or lease facilities, hire employees and so forth. In a typical <br /> role, a special district generates revenue, employs staff, owns or leases facilities, and provides <br /> program services to residents of the district. Districts may contract with cities, counties, other <br /> existing districts, and private contractors to provide the services desired. <br /> Special Districts Paper - Final 11- 8- 01.doc Page 1 of 41 <br /> City Council Agenda page 25 <br />
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