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delinquencies in property tax payments. The funding need under any of the potential operations <br />and maintenance scenarios would be phased in over time, so the $2.4 million existing operations <br />and maintenance gap is the amount, in current dollars, that would be needed once six additional <br />parks are built. Costs in future years will be affected by inflation in materials and supplies, as well <br />as increased personnel costs. Finally, property taxpayers can take advantage of the 3% discount <br />for paying their taxes in November, and some taxpayers do not pay their taxes when due, so a <br />discount and delinquency factor needs to be included. Attachment D provides a breakdown of the <br />funding amounts, as well as the cost to the average homeowner. It should be noted that with the <br />retirement of the 1998 Parks and Recreation bond phased over 2018 and 2019, the average <br />homeowner will see a reduction in their tax bill of approximately $30 per year for Parks and <br />Recreation bonds over the next couple of years. <br />If funding for additional capital projects is identified, the accompanying levy would need to be <br />increased to fund the operations and maintenance of some improvements. Currently, it is <br />estimated that a $31.1 million bond would require an increase of $800,000 in operations and <br />maintenance expenses (in today's dollars) over the existing funding gap. <br />The following accountability and transparency plans are recommended to accompany any <br />successful Parks and Recreation funding measure: <br />• Separate budget and accounting for the operations and maintenance levy (as per state law) <br />• Annual audit of capital bond expenditures <br />• Annual staff summary of spending and performance measures <br />• Annual review by a Citizen Advisory Board <br />• An annual City Manager's report to City Council <br />RELATED CITY POLICIES <br />Council goal for Accessible and Thriving Culture and Recreation (a community where arts and <br />outdoors are integral to our social and economic well-being and are available to all). <br />Council goal for Fair, Stable and Adequate Financial Resources (a government whose ongoing <br />financial resources are based on a fair and equitable system of revenues and are adequate to <br />maintain and deliver municipal services). <br />COUNCIL OPTIONS <br />A. Refer to Eugene voters, a $2.63 million operations and maintenance levy on the May 2018 <br />ballot, to fund the existing budget gap to maintain parks trails, natural areas, rivers and <br />recreation facilities, including increased security patrols. <br />B. Refer two measures to Eugene voters on the May 2018 ballot, the first a $3.12 million <br />operations and maintenance levy to maintain parks trails, natural areas, rivers and recreation <br />facilities, including increased security patrols; and the second a $31.1 million capital funding <br />bond measure package to improve parks, trails, natural areas, community centers and pools. <br />January 22, 2018, Work Session - Item B <br />