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Agenda - 12/16/1996 Workshop AGENDA WOODBURN CITY COUNCIL WORKSHOP SESSION - BALLOT MEASURE 47 December 16. 1996 - 7:00 p.m. 1 . WELCOME/CALL TO ORDER (Nancy A. Kirksey, Mayor) 2. OVERVIEW OF MEASURE 47 (Chris Childs, City Administrator) 3. REVIEW OF LEGAL IMPLICATIONS (N. Robert Shields, City Attorney) 4. REVIEW OF PROGRAMS & SERVICES (Chris Childs, City Administrator) 5. COUNCIL DISCUSSION/POLICY DIRECTION 6. ADJOURNMENT T' MEASURE 47 RESULT CITY OF WOODBURN Precinct Ward ~ ~ % in Favor 124 1 712 342 67.6% 125 3 341 191 64.1 % 126 2 335 213 61.1 % 127 5 705 423 62.5 % 128 1 362 159 69.5% 129 6 181 130 58.2% 130 4 ~ 2aa .6j .6% 3,116 1,757 63.9% 'i :u CD (") ""5 CD Q) ..... 0 r ::J C" Qo -a ""5 Q) -0 < Q) ;u ""5 ..-.. " 0 ~ C/'J --i (J1 ..-.. ""5 00 I'V -a Q) ::J 0 (J1 C/'J '::R. w m 0 ..... --- 0 ..-.. '::R. ;u ~ 0 --- -I -< -I )> >< c - en -I G) ;u CD :J - CD OJ ""5 Q) - c ,., -0 c: -I ::J c: a. C" - -. ..-.. 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LIBRARY DIRECTOR . DIRECTOR OF RECREATION & PARKS ~ PLANNING FUNCTION [Mandated by State Law] 1 . Current Planning - Individual site specific land use decisions must be made in 120 days or city is subject to legal liability for costs and attorney fees of developer. 2. Long-Bange eJanning - Many specific requirements and deadlines including comprehensive plan. transportation plan. periodic review process. inc. 1'" [Numerous State/Federal Requirements/Deadlines] 1. Wastewater Treatment (Stipulated Final Order - SFO). 2. Storm water runoff Regulations. 3. Cross Connection Requirements. 4. Mandated Industrial Pre-Treatment Program. "'" , . Municiapl audits, investment rules and other standards mandated by state law. 9::1.::.1..S.EI . Mandated by State law. Issue is Imw it is provided. .,. Program: Municipal Court Total Budget (96-97): $76,575 (a) Property Tax Dollars: ?? (Correlates to Police Dept.) Other Revenues: $128,763 (FY 1995-96) (b) "Turnstile Count": 2,457 (1995 Infractions/violations processed) Core Patronage: 1,221 (1995 - # Maste 1 r Files) Notes/Remarks: (a) Total budget includes all other City Recorder activities not related to Municipal Court. (b) Includes revenues returned from District Court for city- generated citations ($3,600 $9,600/year) l' Program: Library (All Programs) Total Budget (96-97): $647,550 Property Tax Dollars: $492,043 Other Revenues: $50,400 (a) "Turnstile Count": 11,674/mo. (11/96) Core Patronage: 6,256 (b) Notes/Remarks: (a) Includes: $15,000 - Fines/Rural Reader Fees $28,000 - CCRLS Subsidy Offsets (b) Number of Library card holders active since 1/1/96. (Total library cards outstanding = 12,991 - last purged in 1993). 'f' Progra m: Total Budget (96-97): Property Tax Dollars: Other Revenues: "Turnstile Count": Core Patronage: Notes/Remarks: Fixed Route Transit Bus $87,528 $22,306 $32,550 (a) 37 , 244/yr . (FY 95-96) 250 - 300 (a) Includes: $11 ,000 - Transit fares (budgeted) $1 5,800 - Operating Grant 'I' Program: Dial-A-Ride Van Service Total Budget (96-97): $39,841 Property Tax Dollars: $14,751 Other Revenues: $19,026 (a) "Turnstile Count": 4,961/yr. (FY 95-96) Core Patronage: 75 - 100 Notes/Remarks: (a) Includes: $ 4,200 - Fares $12,500 - STF Grant (Grant also supports volunteer driver program) 'r.' Program: Dial-A-Ride/ Volunteer Driver Program Total Budget (96-97): $25,726 Property Tax Dollars: $9,511 Other Revenues: $2,800 (a) "Turnstile Count"': 2, 142/yr. (FY 95-96) Core Patronage: 40-60 Notes/Remarks: (a) Donations from riders ~ Program: R.S.V.P. Total Budget (96-97): $85,224 Property Tax Dollars: $22.458 Other Revenues: $50.541 (a) "Turnstile Count": 8,932/Qtr. (# volunteer hours) Core Patronage: 232 (active volunteers reported) Notes/Remarks: (a) Includes: $43,562 - Recurring Federal Grant $6.479 - Special (one-time?) State Grant 'i Program: LEISURE SERVICES - YOUTH Total Budget (96-97): $121,696 Property Tax Dollars: $ 79,300 Other Revenues: $ 42,396 (a) "Tumstile Count": 11,533/yr. Core Patronage: Approximately 2,152 + Notes/Remarks: (a) Indudes: $25,000 - Youth Drop-In Center Grant $17,396 - Recreation Program Revenues T' Program: LEISURE SERVICES - ADULT (a) Total Budget (96-97): $66,024 Property Tax Dollars: $43,829 Other Revenues: $22,195 (b) "Turnstile Count": 11, 120 (c) Core Patronage: Approximately 1, 1 50 + Notes/Remarks: (a) Also includes Community Center builing management. (b) Includes: $15,195 - Program Fees & Revenues $ 7,000 - Building Leases & Rentals (c) Includes: 5,700 - Program Participation 5,420 - Community Center uses "" Program: Woodbum Memorial Aquatic Center Property Tax Dollars: $309.094 $131.642 Total Budget (96-97): Other Revenues: $177.452 (as budgeted) "Turnstile Count": 64.998 (13 100.-11/95 thru 11/96) Core Patronage: N/A (estimate only = 4.200) Notes/Remarks: 'I" AQUATIC CENTER REVENUE/EXPENSE RATIO Underlying principles: "Other successful pools receive 70-85% in user fee revenues" (3/23/95). .The first year is generally the best year. " 1995-96 Target Level = 68% 1996-97 Target Level = 56% Percent Ooeratino Exoense Revenue Self-Suooortino Caoital Outlav 10/95 17,769 14,303 80.5 + 2,515/- 1 ,053 11/95 31,026 1,405 4.5 +6,500/- 8,869 12/95 28,311 7,395 26.1 - 18,402 1/96 27,931 12,585 45.1 - 16,222 2/96 25,835 10,242 39.6 3/96 28,657 12, 183 42.5 4/96 26,380 10,366 39.3 5/96 24,448 10,684 43.7 - 78 6/96 28,017 12,032 42.9 + 7,500/ - 910 7/96 19,568 19,118 97.7 8/96 29,776 14,525 48.8 9/96 30,045 8,712 28.6 10/96 30,045 7, 1 94 23.9 11/96 27.922 5.836 ~ $ 376,173 $146,580 39.0% * + 16,515/-45,534 '14 mo. deficit = $229,593 * Adjusted for Capital Outlay Deficit = 38.7% Does not include incidental costs of: . Custodial Staff . Parks Maintenance Staff . Administrative Oversight . Engineering . Builcflflg Inspector . Code Enforcement . Faci&ties Maintenance . Parks Maintenance . Vehicle & Equipment Maintenance . Misc. Projects & Expenditures ''J'" BALWT MEASURE 47 Woodburn City Council Special Meeting December 16, 1996 The purpose of this outline is to offer some initial observations on Ballot Measure 47. These observations, however, should be kept in perspective. First, in my opinion, the Measure is poorly drafted and open to various interpretations on important points. Legal opinions on certain aspects of the Measure are still in the process of evolving. Second, the 1997 Legislature has the legal responsibility of implementing the Measure with legislation. Finally, the constitutionality of the Measure is already being litigated and the rmallegal outcome will be undetermined for some time. I. BASICS OF BALWT MEASURE 47 A. Amends Oregon Constitution B. !dI1s 1997-98 tax on each property to its 1994-95 tax or 10% less than 1995-96 tax, whichever is lower. C. !dlm future growth to 3% per year D. Allows certain very narrow exceptions to tax limit E. Special voter approval is required for new or additional property taxes. This is dermed as approval at a general election or an election where at least 50% of all registered voters cast a ballot. ll. FEE SHIFTING A. Retroactively (to June 30, 1995) prohibits fee and revenue increases to make up for the tax limitations imposed by the measure, without a vote B. Oreeon Attorney General has concluded: "Accordingly, government action increasing fees, assessments or other charges (other than state income taxes) for goods and services that offset tax reductions resulting from the Measure would violate the rmance "shifting" prohibition of the Measure. Such deliberate action could include, but would not necessarily be limited to: a) Increasing the amount of a fee used to rmance the service; b) broadening the category of persons to 'f BALWT MEASURE 47 December 16, 1996 Page 2 which the service fee applied; or c) increasing how often the service fee was due." C. Examples given by the Attorney General include increases in tuition. library rmes. buildin~ permits. lunch fees and athletic fees. D. Bond Counsel has advised that vote required for fee shift 6 only approval at any valid election ("not special voter approval") Attorney General did not make this distinction. ill. ROLE OF THE LEGISLATURE A. Measure directs to "prioritize public safety and education" B. Measure also directs to "minimbe any loss of local control of cities and counties" C. Legislature delegated legal authority to adopt implementing legislation IV. THE LITIGATION A. ...flkd December 4, 1996 in Marion County Circuit Court B. Parties are WC, Beaverton, Eugene, Pendleton, Salem, and various special districts and individuals against the State of Oregon C. Declaratory Judpnent action raising various constitutional arguments 1. More than a sin&le subject is addressed. This is prohibited for ballot measures or legislation (i.e. Court found north-south light ran to be legislation embracing more than one subject.) 2. Is a "revision" and not merely an "amendment" A revision must be approved by a 2/3 vote of the legislature. 3. Violates the federalparanty clause which requires each state to have a republican form of government D. Time frame for a rmal judicial determination will probably be two years (perhaps six months less if legislation is passed to bypass Court of Appeals) ~ BALWT MEASURE 47 December 16, 1996 Page 3 V. PRACTICAL LEGAL ADVICE A. Guideline No.1: Ask the question, What are the ~pacts of Measure 471 when addressing any piece of city business. 1. If you cannot determine if Measure 47 has an impact, ask the City Attorney. 2. In certain cases, it will be necessary for the city to consult with bond counsel to determine the impact. B. Guideline No.2: Pay particular attention to actions by the city that could constitute fee shifting, without voter approval. C. Guideline No.3: Within legal limits, do not encourage annexations of new property, at least until the 1997 Legislature addresses Measure 47's impact on annexations. Explanation: One "trouble area" where the Measure is horribly drafted is in regard to annexations. There is a good argument that, without an election, the city would be entitled to collect only a share of what was levied by other taxing entities prior to annexation. This is because approval of a "double majority" annexation does not require a vote. Prior to the passage of Measure 47, the Oregon Constitution would automatically apply the city's full tax rate to apply to newly annexed areas. However, passage of the Measure means that application of the full tax rate is probably unconstitutional because it conflicts with the "cap". D. Guideline No.4: Stay current on the 1997 Legislature's mammoth task of implementing Measure 47 and how these measure effect cities. Communicate with you representatives and participate in the process in order to achieve a more positive outcome. '1"