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

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Because this levy is currently being challenged in the courts, if voters were to approve the measure, the City might not be able to levy the schools portion of the tax in the event that the Supreme Court upholds the Tax Court ruling. Voters might also be confused about the City’s intention in placing such a measure on the ballot during a time when the courts are reviewing the levy. Additionally, if the Bethel school district places a local option levy on the ballot in November, the City might not want to have a competing measure. Option 2 -Develop Smaller Levy for City Services Only: The City could propose a smaller levy to voters that would fund only those programs provided directly by the City and/or through other youth service partners with the current levy funds, and would add levy funding for programs currently funded with limited-term grant funding and for some of the high priority services identified in the Parks, Recreation, and Open Space (PROS) project and priority plan. The types of services added could include programs such as a water safety program and after-school programs at elementary schools. Attachment A includes a description of potential services that are identified as high priority services in the PROS project and priority plan. Such a levy would raise approximately $2.4 million per year and would cost taxpayers $0.24 per $1,000 of assessed value, or about $35 per year for the typical taxpayer. This approach would reduce tax bills by $0.62 per $1,000 of assessed value, or about $91 for the typical taxpayer. Option 3 -Incorporate City Youth Services into the General Fund without Levy Renewal: The City could provide its core youth services from within the General Fund without asking voters for renewal of a local option levy. This approach would be consistent with the discussion that both the Budget Committee and council had around the library local option levy. This approach would reduce tax bills by $0.86 per $1,000 of assessed value, or about $126 for the typical taxpayer. In this case, the City would have to absorb some or all of the $1.3 million of existing youth services into the General Fund by FY08, in addition to absorbing some or all of the library services that will not be funded with local option levy proceeds during FY08 through FY11. Service levels for the youth programs, the library programs and all other General Fund programs would be prioritized during the FY08 budget process. If all else remains constant, this approach will require either a new on-going revenue source or reductions in expenditures in order to accommodate additional core youth services and provide structural balance in the General Fund over time. November Election Passage of a property tax measure on a general election ballot in an even-numbered year requires a simple majority of the votes cast. A double majority is required in any other election. The following items have been placed on the November 2006 ballot: ? PROS (Parks, Recreation and Open Space) bond measure ? Library local option levy renewal ? Lane Community College local option levy Additionally, there are other items that may be placed on the November 2006 ballot: ? Lane County income tax proposal ? Bethel School District local option levy L:\CMO\2006 Council Agendas\M060626\S060626B.doc