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Special District White Paper — Draft for Internal Review Eugene and the new district board may reach agreement for the City to continue to own and operate facilities and provide services with City staff, funded under by the district. It is possible that the district board and the City may not reach full agreement on transition of facilities, staff and program. But since the City now owns most public park and recreation facilities within Eugene, it seems likely that the City would be in a reasonably good position for satisfactory transition discussions with the new district's board. Example 2: Annexation to an Existing Park and Recreation District A petition by electors could propose to annex territory of the Eugene to an existing district; either the Willamalane Park and Recreation District or the River Road Park and Recreation District. The annexation procedure may also be initiated by resolution of the affected park & recreation district, 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 reje fthe proposal, oT may modify the proposed ?district boi ndaries prior to approval. The annexa ion is efictive o.q a date specified ip the approval order. Upon approval of the annexation, dis ict b and \zones Wo, ul i be adjusted to provide fot proportional representation of the nn xe'd area. -- 11 ,, However, the annexat on order ' ill not take effect if within 45 ;days the Commission receives written objections sig d bi no less than 19$ or 100, whichever is fev}rer, of the voters in the affected territory or th distric odrd adapt ai espluti9n objecting to the annexation. In this case the district board and fie-minty must place the question or 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 districts 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 FY01, the rate applied would be $2.0046 per $1000 AV and would generate a maximum of about $14 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 $21.4 million net additional revenue for services from the District. In either case net revenue would be greater than the $11.8 required to continue park and recreation services to Eugene. The park and recreation district board would have the option of reducing the taxes levied below current levels in order to match revenue to actual requirements. Annexation to either district would leave quite a bit of unused constitutionally permitted general government rate capacity and therefore not cause tax 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. Draft #5 Page 30 10/24/01