The requested five-year property tax levy will add $1.55 per $1,000 assessed value to the Citys permanent tax rate. The money will help pay for police and 9-1-1 emergency services. The levy will maintain Sublimitys current service levels in future years.

HOW MUCH PROPERTY TAX DOES THE CITY COLLECT?

The Citys permanent tax rate is approximately $0.71 per $1,000 assessed value. The tax base was last updated in 1980. The permanent tax rate now generates about $54,000 in property taxes for the City. The new tax would raise about $120,000 in the first year. This would grow to about $133,000 in the fifth year of the levy. Even with the new levy, Sublimitys tax rate will be much lower than neighboring cities.

Salem $5.83

Silverton 3.67

Aumsville 3.63

Turner 3.51

Stayton 3.33

Sublimity $2.26 (current rate of $0.71 plus addition of $1.55)

WHAT ARE THE REASONS FOR THE REQUEST?

Measure 50 caps assessed valuation increases at three percent (3%) per year. This limits growth in property tax revenues. The Marion County Assessors Office estimates the Citys valuation growth will add about $1,300 in property tax revenues for the next budget year.

For 1998-99, the City expects to pay $120,000 for the police contract with the City of Stayton and over $15,000 for 9-1-1 emergency services. Current property taxes cover less than half of these costs.

The current three-year police contract allows for annual cost increases. The Citys revenues will not grow at an adequate rate to cover these increases. When the current contract expires, the Citys costs will be higher. This is true whether Sublimity renews the current contract, finds another service provider, or establishes a police department of its own.

The City negotiated a reduced police contract this year due to a lack of revenue. There are no funds to pay for unexpected public safety costs, such as for a lengthy criminal investigation. If Sublimity should set up its own police department in future years, there is no money for start-up costs and unexpected 9-1-1 cost increases could not be funded.

WHAT SHOULD CITIZENS KNOW ABOUT THE LEVY?

Under current law, the City cannot increase its permanent tax rate. It may ask voters to approve temporary tax measures. The revenues from the measure must be put into a separate fund and can only be used for the purposes stated in the measure.

If the recommended measure is approved now, the City would collect the first years increased revenues in November 1999. The levy would continue for five years. The new revenues would cover the Citys police and 9-1-1 costs during the next five years.

The impact of the measure on an individual homeowner would vary by the value of the home. Property taxes on a $100,000 home would increase by $155 a year (about $13 a month).

Submitted by:

City of Sublimity

No arguments in favor of or opposed to this measure were filed.