Agenda - 04/19/05 JEO Mtg. - Laserfiche WebLink

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LANE COUNTY c.'~ [.,~lC~c ~_~t.~O ~ PUBLIC SERVICE BUILDING, 125 EAST 8TH AVENUE, EUGENE, OR 97401/(541 ) 682-4203/FAX (541) 682-4616 February 1, 2005 To: Lane County Planning Commission Eugene Planning Commission Springfield Planning Commission From: Bill Van Vactor, County Administrator Property tax changes 1982 -- The year the Metro Plan was acknowledged as being in compliance with the state's land use planning goals. General purpose governments' property tax base grew at 6% per year. 1990 -- Ballot Measure 5 passes, property tax capped at $15.00 per $1,000 of assessed value excluding bonds: $10.00 for general government and $5.00 for schools. Creates the concept of compression when voters approve rates in excess of limits. The issue of compression will be the subject of focused discussion before the boundary commission as financial impact is a substantive criterion in district formation proceedings. 1996 -- Ballot Measure 47. 1997 -- As a result of legislative action Ballot Measure 50 supersedes Ballot Measure 47. This measure rolled assessed values back by 17% and capped growth at 3% annually. It created "permanent" tax rates. Unlike the old tax base law, there is no legal mechanism by which a general purpose government may seek to have its permanent rate increased. Local option levies are limited to five years. See explanatory statement. Current condition What we have learned over the last seven years is that Lane County's tax rate of $1.27 per $1,000 is not adequate to provide the services necessary to serve 325,000 citizens. Lane County's tax rate, even when the revenue from Secure Rural Schools is added in, is 35 out of 39 (three counties have different rates between cities and rural areas). See chart. Lane County is significantly below comparable counties, and within Lane County its rate is more appropriate for a limited purpose special district than a general purpose government charged with providing critical life, health and safety services. See chart. The bottom line is that how Oregon finances general purpose governments has changed drastically since 1984. Lane County now needs to find a permanent source of sufficient revenue with which to provide critical public safety services. What the amendment does is allow Lane County to propose a new financing vehicle without altering the compact urban growth policies in the Metro Plan. Once this plan amendment is approved, Lane County can proceed to file its formation petition with the Boundary Commission. As a matter of that process, if the new district's tax rate is to apply inside a city, that city's city council must adopt a resolution approving the petition.