Ordinance No. 20564 - Laserfiche WebLink

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tax. For the typical Eugene home that the Lane County Assessor calculated for FY16, this taxpayer would pay the same amount of total taxes before or after urban renewal division of taxes. The only difference is that some of the tax revenues go to the urban renewal districts, instead of to the overlapping taxing districts. Table 8 in Exhibit F sets out this calculation for the typical taxpayer in Eugene. As can be seen, the before and after urban renewal views of this taxpayer's bill are exactly the same. Impact on Tax Rates: Urban renewal nominally affects voter -approved local option levies and bonds because the affected district has less property value to levy taxes against, resulting in slightly higher tax rates. Based on the FY16 tax rates, the estimated impact of this slight tax rate increase from the Downtown Urban Renewal District is about $0.55 per year for the typical Eugene taxpayer, which represents less than 0.02% of the total tax bill of $3,565 in FY16. The Downtown Urban Renewal District is a "reduced rate plan" under the statutes, which means that the property taxes that may be used to fund urban renewal activities is limited to the permanent tax rates and any bonds or local option levies that were approved by voters prior to October 2001. The projected tax rate used to generate urban renewal revenues for the district will be reduced over time as bonds approved by voters before October 2001 are paid off. Impact on Overlapping Taxing District Revenues: For the overlapping taxing jurisdictions, a share of property taxes from the "excess value" or "incremental value" is not collected by the overlapping jurisdictions during the period of an active district, which is foregone revenue. The incentive for the overlapping districts to support urban renewal is higher property tax revenues in the long -run and potential direct and indirect benefit from the urban renewal funded projects. The School District 4J Board discussed the proposed plan amendment on May 4; the Board voted 7:0 on May 18, 2016 "to concur with the Eugene City Council's proposed plan amendment to increase maximum indebtedness for the Downtown Urban Renewal District by up to $48 million in accordance with ORS 457.220 and 457.470(7)." The Lane County Board of County Commissioners (BCC) reviewed the proposed plan amendment on May 17, 2016 expressed support for the amendment, and voted 4:1 to provide a letter of support on May 24, 2016. On May 11, 2016, the LCC Board of Directors discussed their building, reviewed the proposed plan amendment, and voted 6:0 to support the proposed projects, specifically the LCC Downtown Center project, for inclusion in the Downtown Urban Renewal Plan amendment and the use of tax increment financing as the funding mechanism. The estimated amount of urban renewal taxes to be divided over the remaining term of the Plan (net of discounts, delinquents, etc.) is shown in Table 9 in Exhibit G. Only the permanent tax rates of the overlapping jurisdictions are considered in this analysis because there are no local option levies that impact the Downtown Urban Renewal District, and Report on the 2016 Amendment 20