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Special District White Paper — Draft for Internal Review Park and recreation services provided by the City of Eugene in FY02 (excluding library services) include city parks, urban forestry, aquatics, athletics, before and after school programs, community arts and services, the Hult Center and Cuthbert Amphitheater, 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 $13.2 million. The City now recovers about $4.8 million or 36% of these general fund expenditures from user fees. After accounting for this revenue, the net expenditure from the general fund for parks and recreation services in FY02 will be about $8.4 million. In addition the youth recreation local option levy will provide $1.6 million revenue in FY02.The City employs about 116 FTE staff to deliver these services. Refer to Appendix H for details on City parks and FY02 recreation services. For the purposes of this example, we can assume that the cost of providing park and recreation services by a special district to Eugene residents will be about the same as the amount budgeted for these services by the City. So, in order to serve the Eugene territory at a continuing level, the district will need to generate about the same total amount as the City is now spending from the general fupd'and recreation itevy;that; is about - 114.8 million in new revenue. Some of this can be obtained from user fees by the district. i Within the Eugene -Sp ingfiet1! njetropolifan 'area, Wiliam ane-Park an Recreation District generates about 20% f its needed revenue with User tee , rather` tha a higher amount, in order to keep user fee atforgalqle In This exarnpleike wills use 20% as the target level for user fees within the territo ! oftEugehe under a special district,1rather than the higher level of 36% currently raised throu�h user feesiby the, Eugene. E The Lane County Department of Assessment & Taxation certifies tax rolls and releases adjusted district tax rates in October. At the time of this paper, it is necessary to use the FY01 certified property values and adjusted tax rates of the various taxing jurisdictions. Keep in mind that these values and rates will change from year to year. Permanent maximum tax rates do not change once approved by the voters. Permanent maximum property tax rate limits for the Willamalane Park and Recreation District, the River Road Park and Recreation District and the City are shown in the following table. (Refer to Appendix 8 for additional detail.) Jurisdiction FY01 Permanent Property Tax Rate Limit $/1000 Assessed Value Willamalane Park and Recreation District 2.0046 River Road Park and Recreation District 3:0559 City of Eugene 7.0058 The goal in this example is to obtain the services of a special district to deliver all park and recreation services now delivered by the city of Eugene — excluding library services. We assume that the total new revenue the district needs to accomplish this will be $14.8 million, and about 20% or $3 million of this will be generated via user fees. So, district property taxes will need to generate at least $11.8 million new revenue annually. Draft #5 Page 28 10/24/01