Item B: Youth/School-Based Services Local Option Levy

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Youth/School-Based Services Local Option Levy Meeting Date: June 26, 2006 Agenda Item Number: B Department: Library, Recreation and Cultural Services Staff Contact: Renee Grube www.eugene-or.gov Contact Telephone Number: 682-5067 ISSUE STATEMENT The purpose of the work session is to solicit council direction on future youth/school-based services local option tax levies. BACKGROUND Council Action History On November 7, 2000, Eugene voters passed Ballot Measure 20-37, a two-year, $3.5 million local option tax levy, to fund youth activities. The levy expired on June 30, 2003. On August 12, 2002, the council directed the City Manager to place a local option levy measure on the November ballot for youth and school based services. On November 5, 2002, Eugene voters passed Ballot Measure 20-67, a four-year, $0.86/$1,000-of-assessed-value local option levy expected to raise approximately $8.0 million per year under the general government $10 tax rate limit. Of this amount, 7% was to be retained by the City to directly provide youth services and the remainder split between the 4J and Bethel school districts, based upon their relative share of assessed value within the city of Eugene (83% to 4J and 17% to Bethel) to provide five categories of services historically supported by the City. To date, the levy has raised an average of $7.6 million per year (net of discounts and delinquencies), and would be expected to raise a net amount of $8.5 million in FY07 if the current litigation were resolved in the City’s favor (see “Litigation History” below). This levy will expire June 30, 2007. On November 16, 2005, the council held a work session on sequencing of financial measures to be presented to the voters. The council approved a tentative election schedule that included presenting a Youth/School-Based Services Local Option Levy renewal to the voters in November 2006. In May 2006, both the Budget Committee and council discussed the policy issue of funding ongoing services with limited-term local option levy revenue. Both bodies expressed a desire to fund core ongoing activities from within the General Fund, rather than through renewable serial levies. The citizen members of the Budget Committee will be meeting in the summer of 2006 to discuss the formation of subcommittees to develop a metric for Human/Social Services in the community and to review City basic services accessibility. Although the scope and outcome of the work of these subcommittees is unknown at this time, the outcome will likely be a factor in future discussions regarding youth services. L:\CMO\2006 Council Agendas\M060626\S060626B.doc