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General Obligation Bonds <br />The property tax is a proportional tax on the value of real and personal property for both <br />Fairness/Equity <br />businesses and residences. It does not take into account the ability of the taxpayer to <br />Issues <br />pay the tax. There are numerous exemptions from the property tax designed to promote <br />a variety of policy goals, including some designed to lessen the impact on low-income <br />owners and tenants. Bond financing is a way to more closely match the users of a <br />capital project with those that must pay for the project. <br />This funding source would generate a lump-sum, which would be spent over a period of <br />Assessment of <br />several years on various projects. <br />Financial <br />Stability and <br />The property tax is understandable to the voters (as opposed to a new form of user fee or <br />Political <br />taxes), making it politically feasible from that standpoint. G.O. bond proposals have <br />Feasibility <br />had mixed success in the Eugene area in recent years. There have been six G.O. bond <br />proposals on the ballot from Eugene 1990, and two of those have passed (Public Safety <br />and Parks & Open Spaces). Council members have expressed dissatisfaction with <br />heavy reliance on property taxes in various forums in recent years. <br />This tax would increase the cost of owning a home or business, and potentially increase <br />Potential <br />the cost of leasing or renting a home or business, if the property owner passes on the tax <br />Economic <br />increase. <br />Impacts <br />Council has two financial policies around capital funding and debt issuance, both of <br />Consistency with <br />which are consistent with the use of G.O. bonds for funding transportation projects. <br />Council Goals <br />Policy C.4 states that the City will secure a dedicated revenue source to fund general <br />and Policies <br />capital projects to the extent possible. Policy D.3 states that the use of G.O. bonds will <br />be limited to major capital construction or improvements in support of general <br />municipal services. <br />Council goals include a desire to foster affordable housing. An additional property tax <br />levy would be contrary to that goal, as it would raise the cost of housing. <br />Several cities had G.O. bond proposals on the November ballot and none of them were <br />Other <br />successful. The City of Salem had the largest proposal, at $12 million for restoration <br />Jurisdiction <br />and resurfacing projects. They have been successful in the past in securing voter <br />Experiences <br />approval for $62 million of G.O. bonds for a variety of transportation projects. <br />I6 <br />