11/01/1978 Meeting - Laserfiche WebLink

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. I 2. Payment for that debt would have to come within the City's share of $15 per $1000 limitation. - 3. It would require two-thirds vote of the qualified electors (a question still remains as to what is meant by two-thirds). In regard to revenue bonds, she said the City has never issued them, but this would effect EWEB. However, neither ballot measure would jeopardize their legality. In regard to serial levies, a question is involved as to whether they are indebtedness in the sense that Ballot Measure 6 exempts prior indebtedness. Under Ballot Measure 6, tax is collected from existing approved serial levies and probably would be included in the City's portion of the $15 per $1000 maximum rate, unless an actual debt had already been incurred~ Future serial levies would probably be defined as special ad valorem taxes on real property and would be prohibited. There was also some question as to whether the Council would have any option as to whether or not it wanted to levy serial levies. Ballot Measure 6 would also affect tax increment funding. Because of the roll back of assessed values, it would reduce the urban renewal increment. The roll back of actual tax rates would also reduce the annual revenues available to urban renewal agencies. Ms. Engen then reviewed the effect of some of the public projects. She noted the Civic Center bonds would not be affected since they had been - sold today. However, she noted, future capital improvements under Ballot Measure 6 will have to be financed by some other means. Mayor Keller wondered about the hotel/convention center and whether it would still be possible to use tax increment funding. Mr. Kupper said under Ballot Measure 6 the potential revenues would decrease for any given development. Also, the national rating services have withdrawn the rating, making sale of bonds on a national market nearly impossible. He said only a few tax increment bonds were not being sold in California at 9 percent plus interest rates, as the rating had been withdrawn there too. Mr. Delay said it seemed new ways of financing would be needed for public improvements as well as consideration that use of the traditional ways will be more expensive for the City. Assistant Manager said there will continue to be a market for governmental securities, and the scarcity of those may drive interest rates down at some time in the future. Manager noted that at a recent leMA meeting, people from California were saying that in two years a revised Constitutional Amendment will be offered. The purpose would be to clarify and to allow cities to issue tax increment and GO improvement bonds. However, he noted in Oregon this would take four years as it could only be done at the general election in 1982. He also noted an increase in the levying of user and service charges in California. . 11/1/78--10 "8