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CE,O|CFFS|M2016
<br />ITY OF UGENEREGON ONSERVATION INANCE EASIBILITY TUDY AY
<br />The table below includes the general obligation bond projections from a variety of potential debt
<br />issuances displaying the average household cost for each. For example, the City of Eugene could
<br />issue $30 million in general obligation bonds at a cost of about $31 per year for the typical
<br />homeowner based on an average home assessed value of $189,821. This would represent a
<br />property tax increase of $0.1613 per $1000 of assessed value. See Appendix B for implementation
<br />procedures and ballot language requirements.
<br />$10,000,000$735,8180.0538$10
<br />$20,000,000$1,471,6350.1075$20
<br />$30,000,000$2,207,4530.1613$31
<br />$40,000,000$2,943,2700.2151$41
<br />$50,000,000$3,679,0880.2688$51
<br />$70,000,000$5,150,7230.3764$71
<br />$100,000,000$7,358,1750.5377$102
<br />Assumes a 20-year bond issue at 4.0% interestrate
<br />Total taxable assessed value = $13,685,478,306, Lane County Assessment and Taxation
<br />*Average assessed value = $189,821, Lane County Assessment and Taxation
<br />The Trust for Public Land’s bond cost calculations provide an estimate of debt service, tax
<br />increase, and cost to the average homeowner in the community of potential bond issuances for land
<br />conservation. Assumptions include the following: the entire debt amount is issued in the first year
<br />and payments are equal until maturity; 20-year maturity; and a4percent interest rate. Property tax
<br />estimates assume that the city would increase property taxes to pay the debt service on bonds;
<br />however, other revenue streams may be used. The cost per household represents the average annual
<br />impact of increased property taxes levied to pay the debt service. The estimates do not take into
<br />account growth in the tax base due to new construction and annexation over the life of the bonds,
<br />the property tax collection rate, or the costs of issuing the bonds. The jurisdiction’s officials,
<br />financial advisors, bond counsel and underwriters would establish the actual terms.
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<br />Local Option Property TaxLevy
<br />While property tax revenue makes up only a portion of most city budgets, it is usually a critical
<br />resource supporting daily operations. Both the Oregon Constitution and Oregon Revised Statutes
<br />limit the amount and types of tax a city may impose. The first property tax limitation came in 1990
<br />with the passage of Ballot Measure 5. Article XI, Section 11(b), Oregon Constitution. Ballot
<br />Measure 5 imposed a tax rate limit on local governments: one for schools (kindergarten through
<br />community colleges), and one for all other local governments. Oregon local governments are
<br />limited to billing each property tax account no more than $10.00 per $1,000 of real market value
<br />(RMV) plus any voter approved general obligation bonded debt (school districts have a $5.00
<br />limit).
<br />Ballot Measure 50 was adopted by the voters in November 1996. Measure 50 created a new
<br />property tax system by repealing the tax base system and replacing it with a permanent tax rate
<br />system with some local options and the concept of maximum assessed value. The measure set the
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<br />The property tax overview was largely excerpted from League of Oregon Cities, City Handbook, May 2013
<br />16TTPL::CFD
<br />HE RUST FOR UBLIC AND ONSERVATION INANCE EPARTMENT
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