Item 4: Adoption of Resolution 5023 Calling a City Election on May 17, 2011, on a Temporary City Income Tax to Raise Funds for Local Schools

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One factor that has been discussed frequently is the cost difference between May and November elections. The cost to the City of an election this year, whether it be in May or November, will depend on what else is on the ballot. We don’t know yet what is on either ballot, because the deadlines for placing measures on the ballots haven’t arrived and the legislature hasn’t concluded its session. We do know that the May ballot includes board positions for several special districts, and that will bring the costs down for any May measure that is put forth. Election costs include Lane County expenses for putting on the election, City costs for advertising the election, and printing and mailing for voters’ pamphlets and neutral information statements. Eugene has not had a May special election since the 1990’s, but we have had some November special elections recently. A May election would be estimated to cost between $50,000 and $100,000, assuming that a voters’ pamphlet and neutral information statement are prepared, and the County assesses some amount for administering the election process. If the City had the only measure on the ballot, which could occur in the November election, the bill for an election could be as high as $290,000 for all of the various costs involved, including a voters’ pamphlet and neutral information statement. If other items are referred to the November ballot, then the cost would be lower. Some recent experience with costs for odd-year November ballot measures: $113,000 for the November 2007 election and $77,000 for the November 2005 election. Voters’ Pamphlet and Information Statement: EC 2.993 (2) requires the City Manager to publish and distribute a local voters’ pamphlet for elections in which a City measure is on the ballot. EC 2.996 (1)(b) establishes that for council-referred measures, the argument in favor and the rebuttal to the opposition argument are to be prepared by one or more of the councilors who voted in favor of the measure. Production of a voters’ pamphlet is not a regular budget item and requires the expenditure of contingency funds. Production costs, including mailing, for the voters’ pamphlets the past few years, after into account increased costs for postage and labor, are estimated at approximately $25,000. The City has prepared neutral information tabloids for some of the previous bond measures, such as the street bonds. Staff proposes in this case, however, that any tabloid for this measure be prepared by school districts and/or advocates. The cost of printing and mailing the tabloid is estimated at $25,000. The council could cover a portion of the election costs through council contingency, which has a balance of $100,000 at the current time. Other funding would need to be determined to cover the additional costs. The council could also ask the school districts to cover the election costs, since this measure benefits the school districts and not the City directly. Development of Ordinance: If the council votes to send a measure to the May ballot, staff will return to the council to discuss an ordinance to implement the tax. The ordinance will include specifics such as definitions of who is subject to the tax and what income is taxable, details about how the tax will be imposed, how the tax revenues will be dedicated, withholding (if desired), payments, refunds, time and place for filing returns, penalties for failure to file or pay taxes, and \\Cesrv500\cc support\CMO\2011 Council Agendas\M110214\S1102144.doc