Item B - Transportation Funding - Laserfiche WebLink

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Incidence (who The tax is paid by all property owners within City limits. Property owners include pays?) business and residences. Businesses may choose to pass the tax on to their customers. Fairness/Equity The property tax is a proportional tax on the value of real and personal property for both Issues businesses and residences. It does not take into account the ability of the taxpayer to pay the tax. There are numerous exemptions from the property tax designed to promote a variety of policy goals, including some designed to lessen the impact on low-income owners and tenants. Bond financing is a way to more closely match the users of a capital project with those that must pay for the project. Assessment of This funding source would generate a lump-sum, which would be spent over a period of Financial several years on various projects. Stability and Political The property tax is understandable to the voters (as opposed to a new form of user fee or Feasibility taxes), making it politically feasible from that standpoint. G.O. bond proposals have had mixed success in the Eugene area in recent years. There have been six G.O. bond proposals on the ballot from Eugene 1990, and two of those have passed (Public Safety and Parks & Open Spaces). Council members have expressed dissatisfaction with heavy reliance on property taxes in various forums in recent years. Potential This tax would increase the cost of owning a home or business, and potentially increase Economic the cost of leasing or renting a home or business, if the property owner passes on the tax Impacts increase. Consistency with Council has two financial policies around capital funding and debt issuance, both of Council Goals which are consistent with the use of G.O. bonds for funding transportation projects. and Policies Policy C.4 states that the City will secure a dedicated revenue source to fund general capital projects to the extent possible. Policy D.3 states that the use of G.O. bonds will be limited to major capital construction or improvements in support of general municipal services. Council goals include a desire to foster affordable housing. An additional property tax levy would be contrary to that goal, as it would raise the cost of housing. Other Several cities had G.O. bond proposals on the November ballot and none of them were Jurisdiction successful. The City of Salem had the largest proposal, at $12 million for restoration and Experiences resurfacing projects. They have been successful in the past in securing voter approval for $62 million of G.O. bonds for a variety of transportation projects. Subcommittee Conclusions and Recommendation