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This new value is deemed the jurisdiction's "assessed value". After the resulting tax levy and assessed value were „~ determined, a"permanent ta~c rate," representin; the prod~ct of di~~iding the tax levy by the assessed value, was calculated. The new tax rates are set as the permanent constitutional rate limit for each jurisdiction and will be used to calculate future revenues. As a result of the establishment of permanent tax rates, the pre-existing levy based tax system has effectively been replaced by a rate based tax system. Permanent Tax Rates. Each local taxing district which imposes operating ad valorem taaces in fiscal yeaz 1997-98 will receive a permanent tax rate. The permanent tax rate will be calculated by dividing the total operating ad valorem taxes imposed by the County in fiscal yeaz 1997-98 (reduced by an average of approximately 17 percent statewide) by the assessed value of that property. Measure 50 prohibits increases in permanent tax rates. Permanent tax rates are subject to Measure 5's $5/$1,000 and $10/$1,000 limits. The County's permanent tax rate was $2.0083/$1,000 in the 1997-98 fiscal year, which generated $31,961,230.47 million in 1997-98. Limitation on Growth Provisions. Measure 50 limits increases in the assessed valuation of each property to three percent per year for tax years after 1997-98, with speciai exemptions for property that is improved, rezoned, subdivided, or ceases to qualify for exemption. In combination with the fixed permanent rate, the limitation on the growth in assessed value will limit the growth of ta~ces on individual properties to an average of 3% per year (excluding exempt levies-see below). Bonded Indebtedness. Any portion of a local taxing district lery will not be subject to the reduction provisions of Measure 50 if that portion of the levy is used to pay: (1) Principal and interest for bonds issued, or any other formal, written borrowing of moneys, executed before December 5, 1996, and secured by ad valorem property taxes (including refundings thereo~. (2) Local government pension and disability plan obligations that commit ad valorem property taxes and ad valorem property taxes imposed to fulfill those obligations. (3) Principal and interest on bonded indebtedness secured by urban renewal taxes issued under urban renewal plans in existence on or before December 5, 1996. (4) However, these levies will be subject to the limitations imposed under Measure 5(see "Measure 5" herein), unless the bonds or debt were Exempt Bonded Indebtedness (see below). F~emptions. (1) Exempt Bonded Indebtedness. Bonds issued as general obligation bonds (or bonds to refund them) prior to the passage of Measure 5, in accordance with its provisions (see "Measure 5" herein), or in accordance with the capital construction and improvement definitions added under Measure 50 (see "Capital Construction and Improvements Definition" below) aze exempt from both the rollback of taxes and the limitations on growth, and are exempt from the limitations of Measure 5. Under Measure 50, taxes imposed to pay principal and interest on bonded indebtedness are not subject to constitutional limits, provided such bonds are (1) authorized by a specific provision of the Oregon Constitution, or (2) incurred for capital construction or improvements (see "Capital Construction and Improvements" herein) and approved by the voters in accordance with applicable voting requirements. (2) Certain Levies. Operating and serial levies that were first imposed for the 199Cr97 or 1997-98 tax years and received a majority of the votes from voters voting either (i) at a general election in an even numbered yeaz, or (ii) at any other election in which not less than fifty percent of the registered voters eligible to vote on the question cast a ballot in an election held before Mazch I5, 1997, aze exempt from Measure 50's initial "cuP' and are added to the base. They are, however, subject to a"supplemental" average reduction of 1.4 percent. Other levies are included in the base for purposes of calculating the permanent rate but are subject to the 17 percent reduction. Still others are not subject to reduction, but are not included in ~ calculating the permanent rate (see "Local Option Provisions" below). 35