HomeMy WebLinkAboutItem 3: Resolution 4890 Expressing Support for Measure 20-114, a Measure to Change the Charter of Lane County Government
EUGENE CITY COUNCIL
AGENDA ITEM SUMMARY
c
Action: Resolution 4890 Expressing Support for Measure 20-114, a Measure to Change
the Charter of Lane County Government
Meeting Date: September 25,2006
Department: Central Services
www.eugene-or.gov
Agenda Item Number: 3
Staff Contact: Jim Carlson
Contact Telephone Number: 682-5010
ISSUE STATEMENT
This agenda item asks for City Council support for Lane County's Charter Amendment that goes before
the voters in November 2006. Measure 20-114 has its roots in the Public Safety Task Force (PSTF)
which met for about seven times near the end of2005. The measure amends the county's Charter and
activates a county public safety income tax ordinance. The issue before the council is whether to pass a
resolution expressing support for Measure 20-114.
BACKGROUND
Representatives from the City actively participated in the County's Public Safety Task Force which
completed its work in late 2005. The Task Force accomplished a number of tasks:
. Analyzed needs, problems, and issues within the public safety system
. Established a focus and goals for the system for at least the next five years
. Reviewed a list of new, restored, or enhanced programs and services that would help achieve goals
. Chose a budget level that would improve the public safety system in Lane County
. Made recommendations on the above items to the Board of Commissioners
Analysis
Measure 20-114 amends the County Charter and activates a county public safety income tax ordinance.
Specifically, the measure:
1. Amends the County Charter to limit the commissioner's existing authority to impose an income tax
in the following ways:
. Caps the rate of any County income tax at 2% of net income.
. Restricts use of a County income tax to funding Public Safety (see definition in ballot title).
. Requires Public Safety to be budgeted separately from the rest of County government.
. Establishes a reserve to stabilize Public Safety services during economic downturns and
unforeseen events.
. Requires that any income tax include property tax relief equivalent to $.95 per thousand of
assessed value.
If the Charter Amendment passes, the above provisions can be changed only by another vote of the
people.
LICMOl2006 Council AgendasIM060925IS0609253.doc
2. Activates an income tax ordinance already passed by the Board of Commissioners. The provisions of
this income tax are:
. Rate is 1.4% on net income of businesses operating in Lane County. Businesses with gross
income less than $25,000 need not file.
. Rate is 1.4% on resident's county taxable income. Persons with adjusted gross income less than
$20,000 (Joint) or $10,000 (Single) are exempt.
. County taxable income is "Oregon taxable income" (see line 28 on Oregon Form 40 or line 12
on Form 40S) minus $15,000 (Joint or Head of Household) or $7,500 (Single or Married Filing
Separately) County taxable income excludes Social Security, State and federal pension income,
standard or itemized deductions, and the Oregon deduction for federal tax.
. Nonresident taxable income is the sum of County taxable income from wages earned in the
county, plus net county asset income.
. Real property owners, including businesses, will receive a tax credit equivalent to $.95 per
thousand of assessed value.
. Occupants of rental housing will receive a tax credit of $30 per unit.
. Non-residents and residents reporting no income in Lane County will receive no tax
credit/property tax relief.
. Any county income tax paid by individuals will qualify as an itemized deduction on both state
and federal returns.
3. Adds $23.1 Million in county spending on Public Safety with an emphasis on combating
methamphetamine use and related crime - including funds to restore sheriff s deputies, staff and
open existing adult jail and juvenile detention beds, hire prosecutors and juvenile officers, improve
victim support, enhance crime prevention and expand drug treatment. See attached fact sheet for
more information.
4. If Measure 20-114 is not approved, the commissioners will retain authority to impose an income tax
without restrictions as to rate or purpose, but subject to possible referendum vote.
RELATED CITY POLICIES
There are no City policies directly related to this item.
COUNCIL OPTIONS
The council has the option of passing the attached resolution, amending the resolution, or not taking any
action on it.
CITY MANAGER'S RECOMMENDATION
The City Manager has no recommendation on this item.
SUGGESTED MOTION
Move to adopt Resolution 4890 expressing support for Measure 20-114, a measure to change the Charter
of Lane County Government.
LICMOl2006 Council AgendasIM060925IS0609253.doc
ATTACHMENTS
A. Resolution of Support
B. Charter Amendment Language
C. Ballot Title
D. Fact Sheet
FOR MORE INFORMATION
Staff Contact: Jim Carlson
Telephone: 682-5010
Staff E-Mail: james.f.carlson@ci.eugene.or.us
LICMOl2006 Council AgendasIM060925IS0609253.doc
ATTACHMENT A
RESOLUTION NO.
A RESOLUTION EXPRESSING SUPPORT FOR MEASURE 20-114, A MEASURE TO
CHANGE THE CHARTER OF lANE COUNTY GOVERNMENT
Whereas, the Lane County Public Safety Task Force (PSTF) consisted of
elected officials from Lane County, from the 12 cities in Lane County, the District
Attorney, and the Sheriff, and
Whereas, the Task Force analyzed needs, problems, and issues within the
public safety system, established a focus and goals for the system for at least the next
five years, reviewed a list of new, restored, or enhanced programs and services that
would help achieve goals, and chose a budget level appropriate to improve the public
safety system in Lane County, and
Whereas, the Board of Commissioners of Lane County has adopted virtually all
of the recommendations of the Task Force, and
Whereas, the Board of Commissioners considered a variety of methods to
finance the programs and services recommended by the Task Force, and
Whereas, the Board of Commissioners believes that: 1) an income tax is the
fairest and most likely financing method that would be supported by the people of Lane
County; 2) that compromise is sometimes necessary to achieve goals and an income
tax is a reasonable choice compared to other financing techniques; and 3) cities
specifically requested that property taxes not be considered as the primary financing
technique, and
Whereas, the proposed Charter Amendment to limit the Board of
Commissioner's authority would: 1) cap the rate of any income tax at 2 percent of net
income; 2) dedicate the revenue only to public safety purposes; 3) require property tax
relief equal to 95 cents/$1 000 of assessed property value; and 4) establish a reserve to
stabilize services during economic downturns and unforeseen events, and
Whereas, if passed, no changes to these Charter limitations could be made
without another positive vote of the people, and
Whereas, the Board of Commissioners would appreciate a Resolution of Support
from each city in the county to pass Measure 20-114, a measure to change the Charter
of Lane County government,
NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE CITY COUNCil OF
THE CITY OF EUGENE, AS FOllOWS:
1
1. The City Council supports the recommendation of the Public Safety Task
Force that the focus of the public safety system for at least the next five years should be
on illegal drugs and the abuse of alcohol-especially methamphetamine.
2. The City Council supports the recommendation of the Public Safety Task
Force that the public safety system should concentrate on achieving four goals, all
related to illegal drugs and the abuse of alcohol, over at least the next five years: 1)
Target these Groups for Special Action--lllegal Drug Producers, Dealers, and Users and
Target Property Criminals; 2) Reduce Family Violence; 3) Enhance Treatment
Programs; and 4) Provide Prevention Programs.
3. The City Council believes that the new, restored, or enhanced public safety
programs and services, totaling $21.130 million annually, recommended by the Public
Safety Task Force, will improve the county's public safety system.
4. The City Council believes that the proposed Charter Amendment to limit the
authority of the current Board of Commissioners, or any future Board, should be passed
because only through a Charter Amendment can voters control the most important
elements of an income tax ordinance.
5. The City Council supports the passage of Measure 20-114 and urges a Yes
vote on the Charter Amendment.
Approved by the City Council of the City of Eugene, Oregon, at its regular
meeting on the 25th day of September, 2006.
Mayor
City Recorder
2
ATTACHMENT B
CHARTER AMENDMENT FOR NOVEMBER 7, 2006 BALLOT
Section 38. INCOME TAX LIMITATION
(1) Rate Limitation. Any income tax imposed by the Board of County
Commissioners shall not exceed a tax rate of two percent (2.0%) of net
income without an affirmative vote of the residents of Lane County,
effective and applicable to tax years beginning on or after January 1,
2007.
(2) Dedication for Public Safety. The revenue from any Lane County income
tax, less costs of collection and administration, shall be dedicated for
public safety purposes. Public safety purposes are defined for any income
tax as those programs designed to protect citizens from the effects of, or
to reduce, criminal activity. They include preventive and reactive public
safety services, such as adult and youth corrections, crime prevention,
prosecution, detention, supervision, mental health services, alcohol and
drug treatment, victim services, drug court, interagency narcotics
enforcement, patrol, investigation and arrest, and related support services.
They also include the programs and services provided by the departments
of the Sheriff, District Attorney and Youth Services. Through 2012, Lane
County shall focus increased revenue on significantly reducing illegal drug
production, dealing and use (especially methamphetamine), reducing
family violence, enhancing drug and alcohol treatment programs for
addicted adult and youth, and providing prevention programs to reduce
future crime.
(3) Property Tax Relief. The Lane County permanent authorized property tax
rate is $1.2793 per $1000 of assessed value. As part of any income tax,
the County shall provide property tax relief to the income taxpayer for
property tax paid during the income tax year at a rate that the Board of
Commissioners determines is equivalent to reducing that property tax rate
by $0.95.
(4) Special Dedicated Fund and Reserve. The County shall create and
maintain a Public Safety Dedicated Fund. All revenue collected from any
Lane County income tax shall be credited to the Public Safety Dedicated
Fund, after payment of expenses of collection and administration. Interest
earned on the Fund shall be credited to it. Beginning not later than two
years after enactment of any income tax, the County shall provide for
adequate reserves within the Fund of at least 10% of annual income tax
revenues to provide a cushion against unforeseen events and economic
downturns. The County shall also establish policies for use of the reserves
during such events or downturns and for replenishing them within a
reasonable period.
ATTACHMENT C
BALLOT TITLE
Caption: Lane County Charter Amendment to Limit Income Tax
Question: Shall County Charter limit income taxes, dedicate revenues to public
safety, and provide property tax relief and a reserve?
Summary: This Home Rule Charter Amendment:
· Limits County income tax authority.
· Requires voter approval for any rate higher than 2.0 % of net income.
· Applies to tax years starting January 1, 2007.
· Dedicates income taxes (after collection expense) to public safety only.
Public safety is defined as programs to protect citizens from the effects of,
or to reduce, criminal activity. Includes adult and youth corrections, crime
prevention, detention, supervision, and patrol. Includes mental health and
crime victim services, alcohol and drug treatment. Includes Sheriff, Youth
Services and District Attorney departments, related support services.
· Through 2012, focuses increased funds on reducing illegal drug activity
and family violence, enhancing treatment and prevention programs.
· Requires any income tax provide property tax relief to income taxpayers.
· Requires dedicated fund for income tax revenues and a reserve of 10%
of annual income tax revenue.
The Commissioners have enacted an income tax ordinance within these limits on
residents, nonresidents and businesses. It takes effect only if this measure
passes.
PUBLIC INFORMATION
- - -
',. II The Lane County Board of Commissioners has unanimously
I 'J IV forwarded this measure to voters for the Nov. 7, 2006 ballot.
If passed, it would amend the Lane County Charter to limit the
Board's authority regarding an income tax.
Lane County's Charter serves as its constitution. It can only be changed by a public vote. This charter amendment
would limit the Board's authority regarding the income tax. It would:
. Dedicate the revenue from the income tax to public safety
. Provide property tax relief through an income tax credit equal to 95 cents/$1 ,000 of assessed property value.
. Establish a reserve to stabilize services during economic downturns and
unforeseen events
. Limit the income tax rate to a maximum of 2 percent of net income
If not approved by voters, the Board would retain authority to modify the tax rate and to allocate the
revenue produced for public purposes.
. .~
The Lane County Board of Commissioners unanimousl~ enacted a 1.4
· · · . percent income tax that will apply to personal income, business income
and non-resident income earned in Lane County, effective Jan. 1, 2007, if
voters approve the Ballot Measure 20-114 on Nov. 7, 2006. The income tax would raise about
$68 million per year dedicated by Charter to fund public safety programs and services.
The tax applies to personal income, business income and non-resident income earned in Lane County. The Board
adopted a rate to cover enhanced programs, and the costs of the tax credits and deductions listed below:
. Tax credit of $30/year for income taxpayers who rent their home
. Tax credit of about 95 cents per thousand on assessed value on property for Lane
County's portion of the property tax
. Personal deduction of $7,500 for single taxpayer and $15,000 for those filing a joint or
head of household return
. A low-income exemption of $1 0,000 adjusted gross income for single tax filer or
$20,000 AGI for joint filers and head of household return
The income tax goes into effect if voters approve the charter amendment.
LANE COUNTY MADE BUDGET REDUCTIONS in 12 out of the last 15 years.
This has come about through forest policy changes that decreased
the County's timber receipts and through measures 5 and 50 that froze the county property tax rate. Public safety
services, which comprise about 65-70 percent of the County's general fund, have received many of the cuts made
during the past 15 years, resulting in decreased service and increased risk throughout Lane County.
· Lane County's officers per 1,000 persons is half the United State's average.
· The District Attorney's Office crime caseload has doubled since 1980, while criminal prosecution staff has
been reduced by 30 percent; the investigator staff has been reduced from 11 to 1. One hundred misdemeanor
crimes-such as misdemeanor theft and forgery-are no longer prosecuted due to lack offunding for staff in the
DA's office.
· The Sheriff's Office has 96 unused jail beds due to lack of funds for staffing. In 2005, there were more than
3,700 early releases from jail. About 200 property crimes were reported to the Sheriff's Office each month in 2005.
There is no longer an Interagency Narcotics Enforcement Team. There are half the detectives as five years ago. ...+
· Parole and Probation officer caseloads average more than 100 criminal offenders each.
· Youth Services has 32 out of 96 possible detention beds in use because of a lack of funds for staffing. Each year,
over 1,000 juvenile offenders are released from detention early; 32 percent of juvenile offenders are girls and there
are no county-funded drug treatment beds for them.
· Substance Abuse and Mental Health Treatment - About 25 to 40 percent of inmates at the County jail have a
diagnosable mental health disorder. Lane County Mental Health staffing has been reduced by 30 percent over the
past three years. There are long waiting lists to enter substance abuse programs.
After considering a report by a joint City/County Public Safety Task Force comprised of elected officials
from 12 cities, the Board referred the Charter Amendment to the ballot and enacted an income tax
-- to address the use and criminality related to illegal drugs (especially methamphetamine) and alcohol
I~ ~I ) abuse. The tax would expand the public safety system's capacity in the following ways (For a full list see
. l, (0 I <http://www.lanecounty.org/documents/BCCPSafetyreport.pdb) :
· ~ $15.28 MILLION - Dedicated to targeting the illegal drug producers, dealers and users as
~ well as property criminals. Examples include: Fund staff to open 96 jail beds; double-bunk to
add another 79 beds; Open 32 more juvenile beds and enhance central control (adds about 38
staff for three shifts to cover 24 hours/day); Add staff for more supervision of juveniles not in
detention
$2.88 MILLION - To reduce the incidence offamily violence, abuse and neglect. Examples include: Add Family
Violence Detective and Domestic Violence Prosecution Team in the DA's Office; Hire staff in Youth Services for more
family therapy for juveniles; more funding for crisis nurseries; Add staff to improve supervision of family violence and
sex offenders
$2.19 MILLION - To enhance access to treatment for offenders in the adult and juvenile criminal justice systems.
Examples include: Staff for more intensive supervision of juveniles with drug or alcohol problems; Contract for
intensive alcohol and drug treatment for juveniles; Staff to expand mental health crisis response for about 200
additional adults/year; More drug court funding
$1.62 MILLION - To expand prevention programs that serve children, families and at-risk youth to reduce future
crime. Examples include: Support and Connections for Families-support for rural families for whom child abuse/
neglect is a concern; Increased capacity within Family Resource Center Network; Staff for Healthy Start program
$1.16 MILLION - To improve court facilities and construct child advocacy center.
The combined cost of new or expanded public safety programs is $23.1 million a year. The balance of the estimated
$45 million derived from the County income tax funds existing county Public Safety operations currently in the
County general fund and the tax code, exemptions, deductions and credits. The operations of the Sheriff, District
Attorney and Youth Services will move to the new fund dedicated to public safety.
The amount of net, additional taxes paid by
individual taxpayers will vary widely depending
on variables such as income level, assessed
valuation of property, filing status, and whether
or not the individual or household itemizes
deductions on state and federal income tax
forms.
To get a rough idea, there is a tax estimator
on the county's Website at www.lanecounty.
org. Look under Quick Links and 'Income Tax:'
There are also examples online at http://www.
la neco u nty.o rg/ docu ments/I nternet_Posti ng.
pdf.
HOW TO FIGURE OUTVOUR
INCOME TAX
~
---.....
I
~ Joint tax return, Oregon taxable income of
$38,400, and property assessed value of
$ 123,600= $214 County income tax
~ Single return, Oregon taxable income of
$32,500, and a property assessed value of
$ 123,000 = $236 County income tax
~ Joint return, Oregon taxable income of
$ 100,000, and a property assessed value of
$250,000 = $960 County income tax.
~ Joint return, Oregon taxable income of
$ 12,000 = no County income tax.
~ Single return, Oregon taxable income of
$8,237 and a renter = no County income
tax.
Lane County Government .125 E. 8th Ave., Eugene OR 97401 . Phone: (541) 682.4203