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Special District White Paper — Draft for Internal Review <br /> Allowing for Future Local Option and Special Levies <br /> Another reason to leave room within permitted tax limits is to allow one or another local <br /> jurisdiction to have an opportunity to pass limited funding levies for special purposes. The City <br /> of Eugene currently has two outstanding local option levies that are outside the City's <br /> permanent rate limitation but fall inside the constitutional limitation. Formation of one or more <br /> special districts will not eliminate the need of cities and counties to respond to community <br /> demands for services not 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. District <br /> property tax issues may also be placed on the general election ballot of even numbered years <br /> and so avoid the double majority requirement. A vote on formation of a new district <br /> accom•anied b a •ro•osed •ermanent •ro•ert tax rate limit is re•uired to a• •-ar on a primary <br /> or general election ballot only (ORS 198.815(2)). Votes on special district formation or <br /> annexations that do not include establishment of a permanent maximum tax rate limit or other <br /> property tax levy are of subj ct t4 these re quirements 1 <br /> I ----. <br /> __ <br /> Maximum Permitted i "trtht li e' en a a nd £ eb f ¢a on Eugene FYQ.I Property Values <br /> It is important to be a le t a tin a a thg niaxirr un Ioca1 level of-revenue permitted under the <br /> constitutional and prin ip�I ,Act Irritations f'• r each district type. This must be based on property <br /> values within the bou daries of�'a ropo ed��istrict -i1 proposed boundaries or property values <br /> are different, then pe nittecLn1faximum tax re eaves r' wilL'besiifferent. Aidetailed, up -to -date <br /> financial analysis will be necessary for each specific district proposal. <br /> For the following discussion, we will use FY01 Eugene property values, assuming a special <br /> district is created that has the same boundaries as the City of Eugene. The following revenue <br /> estimates and tax rates are calculated upon the FY01 real market value of taxable property <br /> (approximately $10.6 billion) and assessed value for taxable property (approximately $7.5 <br /> billion) within the city of 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 <br /> FY01 taxable property value. The net potential maximum amounts are based on FY01 Eugene <br /> taxable property values and a 93% collection rate. Authority for other revenue sources and debt <br /> is also noted for each type of district. (Refer to Appendix C for a summary of tax and debt <br /> 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 ----- X, <br /> taxable property, for a maximum rate of approximately $3.50 per $1000 taxable FY01 AV within <br /> the City of Eugene. This would potentially allow a net revenue of about $24.7 million. A district's <br /> voters are also permitted to adopt a local option levy and may approve GO bonds. The district's <br /> aggregate outstanding GO debt is limited to 2.5% of RMV, or about $265.6 million within <br /> Eugene for FY01. Library districts may also charge user fees. There is no authorization for <br /> revenue bonds. <br /> Draft #5 Page 15 10/24/01 <br />