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CE,O|CFFS|M2016 <br />ITY OF UGENEREGON ONSERVATION INANCE EASIBILITY TUDY AY <br />Oregon voters have shown support for funding parks and open space measures – approving 20 of <br />33local funding questions (61 percent) since 1996. The most common finance mechanism utilized <br />by local jurisdictions in the state is general obligation bonds, which accounted for 15 of the <br />successful ballot measures. Two jurisdictions, the City of Portland and the Portland Metro special <br />14 <br />district, have passed local option property taxes for parks and land conservation. <br />Bond22$562,345,00015 <br />Local Option Property Tax8$99,400,0002 <br />Constitutional Amendment2 $2,440,000,0002 <br />Meals Tax1 $30,000,0001 <br />Total33$3,131,745,00020 <br />Source: The Trust for Public Land's LandVote Database.The LandVote database tracks ballot <br />measures that include significant funding for land acquisition. <br />General Obligation Bonds <br />Upon voter approval, a city may issue general obligation bonds to finance capital construction or <br />capital improvements, such as land acquisition or building construction. Generally, bond proceeds <br />15 <br />are limited to capital projects and may not be used for operations and maintenance purposes. An <br />Oregoncity many not issue or have outstanding at the time of issuance general obligation bonds in <br />a principal amount that exceeds three percent of the real market value of the taxable property <br />16 <br />within its boundaries. The city determines the maturity dates for bonds to provide for short-term, <br />interim, or long-term borrowing and establishes the principal amounts, interest rates, and other <br />17 <br />terms and conditions of the bonds. <br />In order to pay the principal of and interest on outstanding general obligation bonds, the city levies <br />annually an ad valorem property tax on the taxable property within the boundaries of the city. The <br />revenues of this levy many only be used to pay the principal of and interest on the general <br />18 <br />obligation bond. Property taxes imposed to pay the principal and interest on voter-approved <br />general obligation bonds for capital construction or improvements are not subject to the property <br />19 <br />tax limits of Measure 5. Measure 5 limitations are discussed further in the following section on <br />the Property Tax. <br />General obligation bonds are a popular finance mechanism for funding land conservation in <br />Oregon. Since 1996, several municipalities in Oregon, including Eugene, have passed general <br />obligation bonds for parks and recreation. See Appendix B for examplesof municipal bond ballot <br />language. <br />14 <br />The Trust for Public Land’s LandVote Database <br />15 <br />Federal IRS rules governing the issuance of tax-exempt bonds limit the use of proceeds to capital purposes such that only a small <br />fraction of bond funds may be used for maintenance or operations of facilities. Stateand local laws may further limit the use of bond <br />proceeds. <br />16 <br />Unless the city charter provides a lesser limitation; Oregon Revised Statutes §287A.050 <br />17 <br />Oregon Revised Statutes §287A.300 <br />18 <br />Oregon Revised Statutes §287A.140 <br />19 <br />Oregon Constitution Article XI Section 11b <br />14TTPL::CFD <br />HE RUST FOR UBLIC AND ONSERVATION INANCE EPARTMENT <br /> <br />