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<br /> e would exacerbate nongovernmental rates within the district. Mr. Wong said <br /> staff was examining all the City's user fees. <br /> 3. General obligation bonded debt is excluded from $10 rate cap; must <br /> be voted on by the public. <br /> 4. Bancroft bonds--bonds for local public improvement districts must <br /> be voted on to receive general obligation pledge. <br /> Mr. Wong reminded the council that under former State law, the primary source <br /> of repayment for Bancroft bonds was the assessment payments from property <br /> owners; the secondary source was the ability to levy a property tax without a <br /> vote. Ballot Measure 5 takes away that authority. Mr. Wong said that the <br /> City had intended to finance current assessment projects with Bancroft Bonds <br /> sold in spring 1991 and now the City cannot sell the bonds. Staff is <br /> assessing the City's position regarding outstanding projects and has issued <br /> short-term notes as interim financing. Mr. Wong said the City could finance <br /> its projects through revenue bonds backed by assessment payments but that <br /> would not satisfy the credit market. In order to finance the projects, the <br /> City will have to pledge additional revenue streams or create additional <br /> security. <br /> Ms. Bascom asked for further detail regarding the projects that were to have <br /> been funded through the sale of Bancroft bonds. Mr. Wong said the projects <br /> were located throughout the community and included sidewalks, sewers, and <br /> road improvements. Mr. Miller asked if the River Road/Santa Clara project <br /> e was included. Mr. Wong said that project was to be financed through <br /> assessment bonds. The City had pledged as secondary security any remaining <br /> resources in the Sewer Fund and its good faith effort to look for other <br /> financing if assessments were insufficient. He noted that the result of the <br /> measure was that it will cost property owners more money for local <br /> improvement districts. <br /> 5. General obligation bonds can only be used for "capital <br /> construction or improvements." <br /> Mr. Wong said that the effect of this provision was unclear and may not be <br /> resolved until the Legislature meets or there was litigation. The provision <br /> might mean that City would be unable to buy open space as it had ten years <br /> previous when the City sold the parklands acquisition bond. <br /> Mr. Wong reviewed an overhead detailing the Attorney General's opinion as to <br /> what constitutes property taxes and what user fees and charges might be <br /> considered property taxes. He said every department will inventory its user <br /> fees and charges for further review. Mr. Wong noted that the systems <br /> development ordinance developed by the Council Committee on Infrastructure <br /> and drafted by the City Attorney's Office was written to avoid the effects of <br /> Ballot Measure 5. <br /> Responding to a question from Mr. Nicholson, Mr. Wong said that State Motor <br /> Vehicle registration fees were considered a tax under the measure. <br /> e <br /> MINUTES--Eugene City Council November 19, 1990 Page 3 <br />