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Special District White Paper <br /> It is particularly important to note that an independently elected board of directors usually governs a <br /> special district. Such an elected district board is answerable to the district's residents, and cannot <br /> be expected to answer to another jurisdiction's goveming body. The exceptions, among the types of <br /> districts discussed in this paper, are county service districts and county road districts, for which the <br /> county board of commissioners acts as the district governing board. Since powers of a special <br /> district are specified in the district's principal Act, a special district's capabilities cannot be limited by <br /> another jurisdiction. Relationships between a special district and a city are fundamentally peer -to- <br /> peer, established on the same grounds as other intergovernmental relationships. <br /> It is important to understand how much of the constitutionally permitted total general government <br /> tax rate is currently in use and how much of the permitted rate remains available for use by a <br /> special district. Applying the practical limitation of the current estimated 93% property tax collection <br /> rate to this possible revenue capacity would result in a net maximum potential of $34.2 million within <br /> Eugene, based on FY02 property values. With voter approval, a special district serving territory <br /> within Eugene's boundary could utilize some of this unused general government rate capacity for a <br /> new permanent operating tax rate or special levies without causing significant revenue <br /> compression. <br /> There are 3 basic approaches to implementing special district services within the Eugene - <br /> Springfield metropolitan area: <br /> 1. Forming a new single - purpose district or multiple- purpose district; <br /> 2. Annexing city territory to one of the existing special districts; or <br /> 3. Adding services or functions to the Lane County Metropolitan Wastewater Service District, <br /> the county service district that is already serving the metropolitan area. <br /> If formation of a district and a permanent tax rate limit for operating revenues is proposed, placing <br /> the proposal on a primary or general election ballot is mandatory, and it is subject to the <br /> constitutional double majority requirement. In the case of annexation of City territory to a district, the <br /> current district tax is simply extended to the newly annexed area. This will generate additional <br /> revenue to support the extension of district services to the new area. <br /> , 4411)) <br /> Special Districts Paper - Final 11- 8- 01.doc Page 2 of 41 <br /> City Council Agenda page 26 <br />