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HomeMy WebLinkAboutItem B: Sequencing of Financial Measures ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Sequencing of Financial Measures to Present to Voters Meeting Date: November 28, 2007 Agenda Item Number: B Department: Central Services Staff Contact: Jim Carlson www.eugene-or.gov Contact Telephone Number: 682-5524 ISSUE STATEMENT The purpose of the work session is to provide information for the council discussion regarding the timing and sequencing of proposed local option levies, general obligation (G.O.) bonds and other measures to be presented to the voters. Developing a tentative election schedule provides direction to staff on where and when to focus their efforts in terms of ballot measure preparation. BACKGROUND The City has a number of unfunded financial challenges and opportunities. Those financial challenges and opportunities arise through a number of avenues, such as council goals, planning documents, and other community priorities. On February 12, 2007, the council adopted 10 goals. A summary of those goals is included in Attachment A. On January 17, 2007, staff presented the Multi-Year Financial Plan to the Budget Committee. This plan identifies both the capital and operating needs of the entire organization for a six-year period. The plan incorporates unfunded projects and revenue shortfalls from other planning documents such as the Capital Improvement Plan and the General Fund Six-Year Financial Forecast. A summary of the Multi-Year Financial Plan is included as Attachment B. The complete Multi-Year Financial Plan was included in the Budget Committee materials distributed for the January 17, 2007, meeting and is available on the City internet site as part of the published budget document. An updated Multi-Year Financial Plan will be presented to the Budget Committee in early 2008. There are limited opportunities to ask voters to approve money measures, and the City should be strategic about what it places on the ballot to ensure that those measures address the highest priority council goals. The objective of this work session is to get feedback from the council about the strategy for making the best use of available election dates given the currently identified needs of the City. That means that this information does not focus on the financial feasibility or financing plan for each of the proposed local option levy measures. The history of all City revenue measures presented to the voters since 1990 is included as Attachment C. F:\CMO\2007 Council Agendas\M071128\S071128B.doc Proposed 2008 Measures: There are two property tax measures proposed to go before voters during 2008: ?Property tax levy (could be G.O. Bond measure or capital local option levy) for transportation system capital preservation projects in May 2008. This item is scheduled for council discussion on December 10, with follow-up discussion on January 14 and council action on February 11. ?City Hall and Police Patrol Facility G.O. Bond measure in November 2008. This item is scheduled to be discussed by the council on December 12, and on several additional dates during 2008. Future election cycles could include G.O. bond measure proposals for parks, recreation and open space projects and items related to the council’s goals or in the Multi-Year Financial Plan. Discussions with the City’s intergovernmental partners indicate that the 4J School District and Lane Community College have thought about placing measures on the ballot in 2008. The County does not have any plans to do so, and Bethel School District has no plans during 2008 or 2009, but may have a measure in future years. In order to think strategically about opportunities for asking voters for additional funding, staff used the following set of questions to develop the tentative election schedule: 1.If applicable, what is the likelihood of a 50 percent turnout of registered voters? 2.At the time of the election, will voters have had the opportunity to consider the benefits and financial impact of the measure? 3.Will the proposed City measure(s) compete with each other or with measures offered by other jurisdictions? 4.Is the measure politically feasible? 5.When are the funds needed? 6.Is there an optimal timeframe in advance of needed funding in which to ask voter approval in order to provide for multiple attempts, if necessary? 7.Are there any alternate funding mechanisms that could be used to pay for the service? Timing: The May 2008 election is the presidential primary, along with the primary for some council seats. It is possible that this election could exceed the 50 percent required turnout to approve property tax measures. The May 2000 primary election had a 60 percent turnout and the May 2004 primary turnout was 56 percent. The Council Subcommittee on Transportation Funding recommended consideration of this election date for a property tax for transportation needs. Any measure placed on the May 2008 ballot must be approved by the council by February 18. The November 2008 election is the next opportunity to ask voters to approve a property tax measure without a double-majority requirement. Planning and preparing to place measures on the November 2008 ballot will take a significant period of time. The council must take action before going on break in early August of 2008 for a November 2008 ballot measure. Attachment D includes a proposed election calendar for the next six years, including potential ballot measures by other governmental partners. F:\CMO\2007 Council Agendas\M071128\S071128B.doc RELATED CITY POLICIES The Budget Committee has adopted financial management goals and policies that guide financial decisions of the organization. The policies include statements related to the appropriate level of property taxes, such as the policy on diversification of the General Fund revenue base, the level of unappropriated ending fund balance, and the use of G.O. bonds to finance capital improvements. In addition, there is a policy on serial tax levies that states that, to the maximum extent possible, serial tax levies will be used only for time-limited operating services or for capital improvements subject to the rate limitation for non-school governments. COUNCIL OPTIONS 1.The City Council may provide direction to approve the tentative election schedule as presented. 2.The City Council may provide direction to staff on modifying the tentative election schedule. CITY MANAGER’S RECOMMENDATION The City Manager recommends approval of the tentative election schedule. SUGGESTED MOTION Move to approve the tentative election schedule. ATTACHMENTS A. Summary of Council Goals B. Summary of the Multi-Year Financial Plan C. Summary of Revenue Measures Election Results – 1990 to Present D. Tentative Election Schedule FOR MORE INFORMATION Staff Contact: Jim Carlson, Executive Director, Central Services Telephone: 682-5524 Staff E-Mail: James.R.Carlson@ci.eugene.or.us F:\CMO\2007 Council Agendas\M071128\S071128B.doc Attachment A Summary of 2007 Council Goals Race Enhance understanding of race issues and improve community relationships. Homeless Initiative Continue to work collaboratively with our community partners to end chronic homelessness in 10 years. - Blue Ribbon Committee - Youth - Women and children City Hall Adopt implementation plan for parallel process for City Hall and Patrol Facility construction. Neighborhood Empowerment Redesign the neighborhood initiative to support the neighborhoods which includes public participation in the livability and protection of neighborhoods and identifies specific redevelopment strategies that preserves the integrity of residential uses, including design standards, site review, down zoning, infill regulation, and bolstering and empowering neighborhood associations to get more involvement. Arts and Outdoors Strengthen our commitment to community arts and outdoor assets. Hospital Facilitate the development of a full service hospital in Eugene. Sustainability Initiative Develop Office of Sustainability and Sustainability Commission that supports broad sustainable practices and create a tool chest of things needed to support businesses that produce sustainable products or provides or utilizes sustainable practices. Downtown Initiative Facilitate significant revitalization of downtown core. Police Initiative Increase police staffing with a special focus on supporting community policing and reducing property crime. Transportation Initiative Develop mechanisms to adequately fund our transportation system for cars, trucks, bikes and pedestrians including maintenance and preservation and capital re-construction. Attachment B Summary of Multi-Year Financial Plan Presented to the Budget Committee January 17, 2007 Attachment C Summary of Revenue Measure Election Results 1990 to present Election DateDescription Results May 1990 Downtown Development District Tax Passed March 1993 City Restaurant Tax Failed May 1994 $19.0 Million of G.O. Bonds for Library Construction, Failed Emergency Equipment and Facility Repair November 1994 $26.1 Million of G.O. Bonds for Library Construction Failed March 1995 Tax on Retailers’ Video Poker Revenues Passed (subsequently pre-empted retroactively by Legislature) September$19.1 million of G.O. Bonds for Emergency Medical Passed 1995Services and Fire Station Construction March 1996 Affordable-Housing Utility Consumption Tax Failed May 1997 $32.7 Million Serial Levy to Partially Restore Measure Failed* 47 Losses Over Three Years November 1998 $25.3 Million of G.O. Bonds for Parks and Open Passed Space Projects November 1998 $8.7 Million Local Option Levy for Library Purposes Passed Over Four Years May 2000 $36.6 Million of G.O. Bonds for Downtown Police and Failed Fire Stations November 2000 $3.5 Million Local Option Levy for Youth Activity Passed Programs Over Two Years November 2000 $25.1 Million of G.O. Bonds for Downtown Police and Failed Fire Stations May 2002 $8.7 Million of G.O. Bonds for Downtown Fire Station Passed and Training Facility May 2002 $19.5 Million Local Option Levy for Library Purposes Passed Over Four Years November 2002 $0.86 per $1,000 of AV Local Option Levy for Passed Youth/School Based Services Over Four Years November 2004 $6.79 Million G.O. Bond for Civic Center Projects Failed November 2006 $27.490 Million G.O Bond for Parks and Open Space Passed November 2006 $10.750 Million Local Option Levy for Library Passed Operations Over Four Years November 2007 3¢ Per Gallon Gas Tax Increase Failed *Received a majority YES vote, but did not receive 50% voter turnout. Attachment D Tentative Election Schedule Tentative Election Date AgencyDescription May 2008 City of Eugene Pavement Preservation Capital Projects Property Tax Levy (10-Year Capital LOL or G.O. Bond) November 2008 City of Eugene City Hall and Police Patrol Facility Bonds 4J School District G.O. School Construction Bonds or Local Option Levy Lane Community G.O. Construction Bond College 2010 2012 City of Eugene G.O. Bonds for Parks, Recreation and Open Space Projects 2014 4J School District G.O. School Construction Bonds Other possible ballot measure proposals: No specific proposals for City measures to fund any of the Council priority items (besides City Hall/Police Patrol Facility and Pavement Capital Preservation) have been identified at this time. Bethel School District may present a General Obligation Bond measure to voters for future school construction sometime after FY09. 4J School District has been on a 6-year cycle for General Obligation Bond requests to voters. If they stay on this schedule, the next 6-year request would be in 2008, then 2014. 4J School District received approval of a 5-year local option levy in November of 2004, which would cover FY06 through FY10. If levy funding is to continue in FY11, voter approval would be needed no later than the May 2010 election.