MEASURE NO. 24-37 City of Stayton Ballot Title: Referred to the People by the City Council Five-year Local Option Tax For City Operations Question: Shall the City of Stayton implement a $500,000 operating tax annually for five years, beginning in Fiscal Year 2001-2002? This measure may cause property taxes to increase more than three percent. Summary: The City of Stayton is asking voters to approve a five-year local option tax of $500,000 per year, beginning in Fiscal Year 2001-2002, to help fund General Fund operations and to offset loss of certain revenues. This tax would raise $2.5 Million over the five year period. Fiscal Year 2001-2002 is the final year for an existing $100,000 per year local option tax which supports library and pool operations, as well as approximately $41,000 in federal grant funding for two police officers. The proposed tax offsets those lost revenues and provides fiscal stability to the City’s General Fund, ensures adequate funding of mandated programs and allows for activities directed toward providing desirable levels of City services to Stayton residents. Other uses specifically proposed for local option tax proceeds include deferred maintenance on city buildings and facilities, information technology upgrades, grant matching funds and deferred personnel-related costs. It is estimated that this tax will result in a rate of $1.61 per $1,000 of assessed value in the first year. The estimated tax cost for this measure is an ESTIMATE ONLY based on the best information available from the county assessor at the time of estimate. Explanatory Statement: The City of Stayton is seeking a 5-year local option tax of $500,000 per year to support General Fund programs. Basic and/or mandated General Fund programs include Administration, Police, Finance, Land Use Planning and related “costs of doing business”. Other programs serving Stayton citizens include the Library, Parks, Community Center and the Stayton Family Memorial Pool. Numerous factors prompt the City to submit this measure. Those include a continuing rapid population growth demanding municipal services, cumulative effects of statewide property tax limitation initiatives, the impending loss of certain revenue sources and several unanticipated costs incurred over the past several years. Stayton’s population has grown from 5,040 in 1990 to 6,710 in 1999 (PSU data), a total increase of 33% (average annual increase of some 3.7%). Between 1991 and 1999, the Portland/Salem CPI-W increased by 30.3%. To accommodate the increased growth and inflationary pressures, the City’s General Fund expenditures during the same period increased 28% from $219 to $281 per capita. Property Tax revenues increased from $123 to $136 per capita, representing a comparative increase of 10.6%; reflecting the fact that the City has increasingly relied on General Fund resources other than taxes. An existing 3-year local option tax for partial support of library and pool programs will end at the conclusion of FY 2001/2002 (i.e. – June 30, 2002), resulting in a net revenue loss of approximately $93,000 annually. A Federal COPS Grant for two police officer positions will end at the same time, with a revenue loss of approximately $41,000 annually. To maintain consistent service levels, both of those revenue losses must be made up from other sources. The first year of the proposed tax will overlap the final year of the two revenue sources described in the preceding paragraph. To keep faith with Stayton citizens, if this measure is approved, the City intends to set aside a portion of the first year’s proceeds, in an amount at least equal to those two revenue sources, as a contingency or unappropriated balance to strengthen the City’s reserves. Stayton’s Reserves have decreased from some $538,076 in 1996 to $98,251 in the adopted 2000-2001 General Fund budget. The City is presently unable to accomplish many fundamental tasks inherent to fostering operational efficiencies and, ultimately, quality service to citizens. Those include the ability to upgrade and better utilize information technology, the ability to afford necessary matching funds to be more competitive for grants (which could further maximize existing budget resources), the ability to provide necessary cost of living incentives to employees or to provide desirable training and professional development for staff, councilors or board and committee members. Based on the most current Marion County Assessor’s information, the proposed tax would represent a first-year rate of approximately $1.61/$1,000. Together with the City’s existing 1999-2000 $3.66/$1,000 rate, TOTAL first-year City tax cost for a $100,000 residence would be approximately $527. That will be reduced upon the June 2002 expiration of the library/pool levy. Submitted by: Chris Childs, City Administrator City of Stayton No arguments opposed to this measure were filed. Back to the November 7, 2000 Voter Pamphlet Main Page