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2006-707-Order No. 2006-117 Recorded 7/13/2006REVIEWED DESCHUTES COUNTY OFFICIAL RECORDS OJ 1006.101 ` NANCY BLANKENSHIP, COUNTY CLERK COMMISSIONERS' JOURNAL 07/13/3006 01;57;34 PM LEGAL COUNSEL 1111111111111111111111111111111 2006-707 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON Order Accepting Petition and Setting Date For Public Hearing for Petition for Incorporation of * ORDER NO. 2006-117 the City of La Pine WHEREAS, a petition proposing the incorporation of the City of La Pine was duly filed with the Deschutes County Clerk ("Clerk") on or about June 20, 2006; a copy of which is attached hereto as Exhibit "A" and by this reference incorporated herein, and WHEREAS, the petition signatures were duly filed with the Clerk on or about July 6, 2006, and WHEREAS, on or about July 11, 2006, the Clerk certified the signatures as valid, and WHEREAS, ORS 221.040 requires the Board of County Commissioners to set a date for a public hearing on the petition, to publish notice of the hearing once each week for two successive weeks and to post the notice in three public places, and, WHEREAS, under ORS 197.175(1), Board decisions authorizing an election on the incorporation of a city is a land use decision and ORS 197.763(3)(f)(A) requires at least twenty days notice prior to the hearing, and, WHEREAS, ORS 221.040(3) requires the final Board order calling the election on the incorporation to be signed no later than 90 days prior to the election, and WHEREAS, ORS 221.040(3)(a) requires the County Surveyor or Assessor to prepare the metes and bounds or legal description of the exterior boundaries of the proposed city, and WHEREAS, maps of the proposed city boundaries meeting the Oregon Department of Revenue standards in ORS 308 must be provided before final approval of the incorporation by the Board, and WHEREAS, August 7, 2006 is the only available date to accommodate all statutory requirements; now therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, HEREBY ORDAINS as follows: Section 1. The petition proposing the incorporation of the City of La Pine, a copy of which is attached hereto as Exhibit "A," is hereby accepted for filing. Section 2. The proposed City of La Pine, if formed, will have a permanent rate limit for operating taxes of $1.98 per $1,000 assessed value that will raise an estimated $60,000 in operating funds for the District in the 2007-2008 fiscal year. PAGE 1 OF 2- ORDER No. 2006-117 (07/12/06) Section 3. A hearing regarding proposed annexation shall be held on Monday, August 7, 2006, at 9:00 a.m. in the Justice Courtroom in the South County Deschutes Services Center at 51340 Highway 97, La Pine, Oregon, 97736. Section 4. Notice of Hearing shall be given in substantially the form set forth in Exhibit "B," attached hereto and by this reference incorporated herein. Legal Counsel shall cause the notice to be published in The Bulletin on July 18, 2006 and July 25, 2006. Section 5. Notice of Hearing shall be posted on July 18, 2006, in three public locations within the County as follows: One notice shall be posted on or near the doors of the meeting room of the Board of County Commissioners; one notice upon any official bulletin board customarily used for the purpose of posting public notices within the county; and one notice shall be posted upon any official public bulletin board at the South County Deschutes Services Center. Notices posted shall be for not less than five (5) consecutive days. Section 6. The County Surveyor shall prepare or cause to be prepared the metes and bounds or legal description of the exterior boundaries of the proposed city and shall file such description with the Board prior to the hearing. Section 5. The County Legal Counsel shall prepare the appropriate maps of the proposed city boundaries and shall file such maps with the Board prior to the hearing Dated this ~oL of , 2006 BOARD OF COUNTY COMMISSIONERS OF DESCHU,T+S COUNTY, OREGON r--W- n R. LUKE, i ATTEST: Recording Secretary BEV CLARNO, VICE CHAIR r MICHAEL M. DALY, CO MISSIONER PAGE 2 of 2- ORDER No. 2006-117 (07/12/06) June 19, 2006 Nancy Blakenship Deschutes County Clerk 1300 NW Wall St Ste 200 Bend OR 97701 Re: La Pine Political Comnnitte(,, - Incorporation of the Qj) of La Pine Formation Our File No. 49482-35644 Dear Ms. Blakenship: Enclosed for filing are the following pursuant to OAR 165-004-0005: 1. Completed SEL Form 701, Prospective Petition for Incorporation of a City, including instructions for circulations and signers; 2. SEL Form 702, signature sheet,, 3. SEL Form 301, statement that no petition circulators will be paid; 4. Cover sheet from chief petitioners; 5. Map showing exterior boundaries of the proposed city; 6. Narrative of exterior boundaries of the proposed city; and 7. Economic Feasibility Statement, including a first through third year budget, demonstrating the economic feasibility of incorporation. Please date and time stamp the prospective petition so that the pegoong lay be circulated for signatures. Thank you for your assistance with this matter. .P Since ely, r r Bob Cox Chairman of the La Pine Political Action Committee Enclosures cc: Jordan Schrader PC L xhrlDrT ~ fl r~Q.e.r ~ o, 2 0 0 6 1 1 l 49483-35644 709?0AxWDWr,,/!4.%?0W A 13 Q k m n m O cz ~o o 0 z 0 Q a r- H m O z 0 0 m 0 m m b fl. Y 8. 5 y txrf z z~ m U ee n m~ < l a Q°z O ze~' .h ►n. r H n~ Y O z z o a o Q A d a. N b a m rA lb z j'I a g IT m &J o a~ 0 O Wo ~ A a N b m ro M' .m c m n. 0 n m ~a d rA ° a G1 z z 09, y C ~ n 0 O z O O y z° yO •J O d i- i Prospective Petition for Incorporation of a City SEL 701 i ,....~o»$n,.art Name of Proposed City:..... CITY OF LA PINE To the County Elections Filing Officer/City Recorder (Auditor), We, the undersigned, chief petitioners, swear or affirm we are legal voters residing within the boundaries of the area proposed for incorporation. Further, it is estimated that a permanent rate limit for operating taxes of $ 1.98.__...... . Is sufficient to support an adequate level of municipal services. A map is attached to this petition indicating the exterior boundaries of the proposed city. please type or print legibly In black Ink designating chief petitioners Everypetition must designate not more than three persons as chief petitioners, who shall be registered voters within the boundaries of the ro osed cit p p y, setting fort organization) ofeach. h the naive, residence address and title !if officer of sponsoring 0 name print signature Katherine Shields j/ 51540 Shields Drive, La Pine OR 97739 mailinpaddressild+fferent " ' ' PO Box 931, La Pine OR 97739 emailaddresaand/orwebsite__.... . dav phone number _ . „ _ (541) 536-3462 sponaoringorpanizatiort irany 0 name i iirit nature Luang Damerval : signature residertceaddress 52410 Doe Lane, La Pine OR 97739 • mailinpaddreas irdrf%rent _ i emait address an Wor webshe " - daypiiononumber (541)536-3476 sponsoring organization irony nanta print signature • Brian Earls 51511 Hwy 97, La Pine OR 97739 mailing address rrdiMirent ' PO Box 2753, La Pine OR 97739 email addiessand/ori ebiiia ;(541)536-2131 sponsonngorganization ilanv please read the Instructions for circulators and signers on the reverse side SEL 701 Instructions for Circulators -Only active registered voters of the area proposed for incorporation are eligible to sign an incorporation petition.. -All signers on any one signature sheet must be active registered voters of the same county. -*It is advisable to have signers use a pen for signing petitions or for certifying petitions. Only one circulator may collect signatures on any one sheet of a petition. -*Each circulator must personally witness all signatures the circulator collects. -Circulators shall not file a petition knowing it contains a false signature. .-+Circulators shall not knowingly make any false statement to any person who signs it or requests information about it. -Circulators shall not attempt to obtain the signature of a person knowing that the person signing the petition is not qualified to sign it +Circulators shall not offer money or anything of value to another person to sign or not sign a petition. Circulators shall not sell or offer to sell signature sheets. Warning Violations of the circulator requirements may result !n conviction of a felony with a and/or prison for up to S years. one of up to S125,000 Instructions for Signers -Only active registered voters of the area proposed for incorporation are eligible to sign an incorporation petition. Sign your full name, as you did when you registered to vote. -4Please fill in the date that you signed the petition, your printed name and your residence address in the spaces provided. -lt is advisable to use a pen for signing petitions. -it is unlawful to sign any person's name other than their own. Do not sign another person's name under any circumstances. -It is unlawful to sign a petition more than once. -it is unlawful for a person to knowingly sign a petition when hefshe is not qualified to sign it. PETITION FOR INCORPORATION OF THE CITY OF LA PINE To the Board of Commissioners Deschutes County, Oregon The undersigned Petitioners hereby request that proceedings be taken for the incorporation of the City of La Pine, and in furtherance thereof do hereby join in this petition. 1 • This petition is for the incorporation of a city pursuant to ORS Chapter 221. The area proposed area for incorporation is shown in the map which is attached hereto and incorporated herein by reference. A narrative description of the area proposed for incorporation is provided. 2. The area proposed to be incorporated is located entirely within a designated rural unincorporated community and contiguous land subject to an exception to statewide planning goals related to agricultural lands or forestlands, as such terms are defined by Oregon law. No portion of the area proposed to be incorporated lies within 3 miles o a neighboring city as provided in ORS 221.034(x). 3. A proposed economic feasibility statement is filed with the Deschutes County Clerk pursuant to ORS 221.031(1). The economic feasibility statement required by ORS 221.035 addresses the criteria therein and is attached hereto and incorporated herein by reference. 4. As required by ORS 221.040, this petition will be signed by at least 20 percent of the electors registered in the area proposed to be included in the area proposed for incorporation. 5. The current tax assessed value of the affected territory is $76,000,000. Exhibits: A. Boundary Map B. Narrative Description C. Legal Description D. Economic Feasibility Statement Chief Petitioners Katherine Shields Brian Earls a , mad Luana Damerval Page 1 - PETITION FOR INCORPORATION I94824S644 7064!docl yJ.a! MJ91JW6 Statement One or More Petition Circulators Will Be Paid SEL 307 Initfative/Referendum Only •Prospective Petition lnirialfffing with riling oflleer ORS M"5, ORB n5.+26 I/We hereby declare one or more petition circulators will be paid money or other valuable consideration for obtaining signatures of active registered voters on the attached petition. I/We understand the filing officer must be notified not later than the 10th day after I/we first have knowledge or should have had knowledge that no petition circulator will be compensated for obtaining signatures. By signing this document, I hereby state that no circulators will be compensated on this petition based on the number of signatures obtained by the circulator. p Completed Petition sigmaturessubmittedlorverificadon z By signing this document, l hereby state that no circulators have been compensated on this petition based on the number of signatures obtained by the circulator. subjut of initiative or roferand'um petition signed signed. . ~~•datesigned ' • - signed • V date signed ' Al! chiefpetltfoners foram fnitiatlve or+efvrendum petition mustsfgn this statement. Warning Supplying false information on this form may result in conviction ofa felony with a fine of up to $125,000 end/or prison for up to 6 years, Statement No Petition Circulators Will Be Paid Initiative/Referendum only SE~ 3©7 w 1,041 onno ac. p Prospective Petition oaya:ne.oasaso y,. initial fling With rr~ng ofrreer 011S256 35 I/We hereby declare no petition circulators will be paid money or other valuable consideration for obtaining signatures of active registered voters on the attached petition. I/We understand the filing officer must be notified not later than the 10th day after Uwe first have knowledge or should have had knowledge that any petition circulator will be compensated for obtaining signatures. By signing this document, I hereby state that circulators - writ c mpensated on t t atitipn. p Completed ' µ e Petition signatumssubmhtedforvefrraWon M By signing this document, I hereby state that no circulators were compensated for obtaining signatures on the attached petition. subject orinitiaiiveorrefereedumpetiittion - signed _ _ date signed _ 691 id date signed . signed _ . ...._w date signed ' ' All chief petitioners for an Initiative er referendum petition must sigh this statement. ® Warning gosupplylpq n for up to false 6 years information and/or prison for up on this form may result in conviction of a felony with a fine of up to $125,000 Narrative Boundary Description for the City of La Pine The intended boundaries are meant to follow the property lines, roads and Section lines. While every effort was made to be as precise as possible in drawing the map, there could be some very slight discrepancies between the boundary that was drawn and the actual property or section line. An excellent example of this is the fact that some of the section lines on the map appear to have very slight curves in them and don't appear to be always parallel or perpendicular to each other. Every effort was made to follow every section line, property line and road as precisely as possible. The boundary description is as follows: Beginning at the northwest corner, at Huntington Road at the northwest corner of the Cagle Subdivision, following that property line east and crossing Highway 97 to the northeast corner of section 36 of Township 21 S., Range 10 E., which borders the Drafter Subdivision. Then south to include all of the BLM Community Expansion land, by following the eastern line of section 36 south to the common point between sections 1 and 12 of T22S, R10E and sections 6 and 7 of T22S., R1 1E.. Then east following line between sections 6 and 7 to the midpoint of section 7 in T22S., RI IE., where it turns south and bisects section 7. Only the western half of section 7 is Community Expansion land and to be included in the boundaries. However, the cemetery is also to be included, which is within the eastern half of section 7. The boundary line heads west following Reed Road. Then the boundary turns south and then west to include all of the industrial area of La Pine according to the exact specifications of the La Pine Urban Unincorporated Community map. This is the western portion of section 13 of T22S., RIDE., parts B and C. This southernmost boundary of La Pine then continues straight west along the southern edge of T22S., RI OE., sections 13 and 14 across to a point just east of Highway 97 that would then include 1/4t` of the southern line of section 15. This is the point where Bogue Street would cross the southern edge of section 15 if Bogue Street were continued straight south to the southern edge of section 15. The line then turns north, following this extended line of Bogue Street up to meet modern day 6t' street. At this point the boundary line turns west to include all of the lots along the south side of 6d' street up to and including Pengra Street, which marks the western extreme of the City of La Pine. The line continues north to include all of Pengra Street to its northernmost end which is just north of Beech Street. This corner can be easily seen on map T22., R10., Section lODC. The line then turns east and follows this property line to the Bend La Pine School district property. The boundary jogs north and east to include the 4 new lots donated by Jim Young recently, which are numbered as lots 1 and 2 in section 10, and 16 and 17 in section 11 of T22S., R10E., which brings the line to Huntington Road. The line proceeds north on Huntington Road to Glenwood Drive. Here the line goes west, following and including Glenwood drive, but then extends straight west along the lot lines to include all of Rosland Park. Then the line turns north and then east to follow Burgess Road to encompass Rosland park and goes nearly all the way back to Huntington Road again. However, the line turns north from Burgess Road at the point where the boundary can then include the western half of the parcel identified in map T21S.5R10., 35D Turning east brings the line back to Huntington Road at a point that is just north of Burgess Road. From here the line follows Huntington Road north to the beginning point, which is the northwest comer of the Cagle Subdivision. Important note: The only non-contiguous boundary is the rectangle surrounding the well currently owned by the La Pine Water District. This is located all by itself in. the lower right comer of the map. Economic Feasibility Statement City of La Pine Deschutes County, Oregon June 19, 2006 > Q : 494&"-J-%44 709116 ,MV61/9,2w6 INTRODUCTION A new city, to be known as the City of La Pine, in Deschutes County ("City") is proposed to be formed for the purpose of providing municipal services to the residents of the proposed City. The City is proposed to allow cost effective provision of urban services at the minimum level required to meet the needs of current residents, and projected population growth. The City will be located in south central Deschutes County, providing services to approximately .1,700 - 2,000 residents and covering 4.5 square miles. The City will be established under the procedures of Oregon Revised Statutes chapter 221, with boundaries as shown on the attached map and legal description. The City will include all of the existing special districts of the La Pine Water District, La Pine Special Sewer District and a small portion of the La Pine Rural Fire Protection District, Bend La Pine School District and the La Pine Park and Recreation District. Deschutes County is experiencing the fastest county growth in the State of Oregon and is one of the fastest growing counties in the nation according to a U.S. Census Bureau report released in March 2006. The County also has one of the fastest median household income growth rates in the state, according to the some census report. Demands for housing and urban services will continue to increase in the La Pine area. Development within the proposed boundaries of the City includes approximately 850 existing residences, with at least 2400 more proposed to be constructed within the next few years. The incorporation of La Pine is responsive to area growth and development. PROPOSED MUNICIPAL ACTIVITIES The need for municipal services in the La Pine area has increased in recent years. The County and special districts currently serve the area, but have not been able to respond to increasing local demands for the variety of services needed. There has not been adequate funding for road maintenance, nor for planning services. Not-for-profit organizations have been successful in addressing some of the issues, but the community needs an increased level of service. Page 2 - ECONOMIC FEASIBILITY STATEMENT 49492.3s644 70030AWu1JA1/6//W.1M The incorporation of the City of La Pine is proposed in order to develop and maintain a municipality that is safe, attractive, has up-to-date facilities and can provide local control over government services. The proposed City will provide much needed services such as (1) road paving and maintenance; (2) planning and zoning; (3) coordinating law enforcement services by contract; (4) water service; (S) sewer service, as well as provide the ability to respond to future residents' needs as the population in the area grows. Once incorporated, the City is expected to eventually grow to exceed the size of Sisters, Oregon, also in Deschutes County. Factors that stimulate the demand for additional facilities and services are residential development, area population growth and increases in assessed property value. The Deschutes County Assessor has assessed the collective properties within the proposed City boundaries at seventy-six million dollars. After additional building and development, that collective value will increase. Incorporation will provide the City with resources not currently available to it and the ability to pave and maintain roads which are currently in need of repair. Many populated areas of the proposed City do not currently have any road or neighborhood facilities at all. The City will be able to initiate road improvements and maintenance projects and provide the local control needed to direct funds to the necessary projects. The proposed City will also be able to acquire property to construct roads and other needed facilities. The City will have further ability to enter into agreements to provide services such as law enforcement on a scale appropriate to the number of residents. Other services and functions to be performed by the proposed City of La Pine will include services provided by the three existing special districts. The La Pine Water District and La Pine Special Sewer District currently provide water and sewer services to area residents on a fee basis. The La Pine Mural Fire Protection District provides fire protection. There is no projected change in these services. The City intends to enter into other contractual arrangements for any other necessary services on an appropriate scale.for the community. Additional services may be added as the community grows or if needs are brought to the attention of the city council through the ordinary political process. LEGAL AUTHOWTY The City of La pine is to be formed as a municipal corporation established under the authority of Oregon Revised Statutes chapter 221. The City will be governed by a council and mayor, pursuant to statute. The council will be comprised of five members elected at-large by the registered voters of the City. Page 3 - ECONOMIC FEASIBILITY STATEMENT e9oasaseu ~a~ao.~~tiw.unvivnoou AREA TO BE SERVED The City boundaries will be as described on the map and description attached as Exhibit A. The City will include two special districts and be approximately 4.5 square miles in size. The City will serve approximately 2,000 residents in an area in south central Deschutes County. Proposed funding is planned to serve the needs of a growing population consistent with the Comprehensive Plan of Deschutes County. SOURCES OF REVENUE Revenue for municipal services will be derived from sources such as state and federal funds, gas taxes, franchise fees paid by utility providers, including natural gas, cable and telecommunications. Development fees, building permits and property tax assessments will also provide revenue. Additional revenue will be available to the City in the form of system development charges. Commencing in the second year of City operation, the City will receive a portion of the taxes on gasoline sales collected by the State of Oregon, as well as cigarette and alcohol taxes. Ordinary property taxes ( ad valorem property taxes) will be assessed and collected, and the City intends to minimize property taxes. As set forth in the budget, the proposed permanent tax rate is $1.98 per $ 1,000 of assessed valuation. However, certain other property taxes may not be collected by the county, and may reduce the net increase in property taxes to $1.20 per $1,000. Specifically the current sheriff's levy of $0.78 per $1,000 may not be charged by the County, and a contract for sheriff's services will be negotiated and paid for within the City budget. System development charges ("SDCs") require developers of new development to pay a fair share of the cost to provide five types of services: streets and transportation, water service, sewer service, storm water drainage and treatment, and parks/recreation. SDCs may be imposed to cover the cost of constructing facilities to provide each of the described services. SDCs may be charged either to pay the value of facilities that have already been constructed and paid for by taxpayers, or to pay for future facilities if additional facilities are required, as the case may be. In this way, new development pays its share of the costs imposed on the City by the development. In other cities, SDCs for all five services can total as much as $20,000 or more per residential unit with similar amounts for commercial and industrial developments. The amount of each SDC must be fixed as required by law, after a determination of the cost (or value) of facilities to provide city services. The amount of SDCs charged must be proportionate to the amount of each service that arises from each development. The SDC is paid at the time a building permit is issued. Revenue from SDCs will vary, depending on the number of pen-nits issued each year. SDCs may be spent for capital improvements, but not for operations. Page 4 - ECONOMIC FEASIBILITY STATEMENT (9483-3.1"4 709J0.doc1AUAV&19,'.0O6 Because the initial stated property tax rate represents a permanent maximum rate, and the City is unable to make future increases to the rates, a rate of $1.98 per $1,000 is proposed as the maximum rate. Simultaneously, County taxes are projected to decrease by approximately $ 0.78 per $1,000, for a net increase of $1.20 per $1,000. While the City will have authority to collect this property tax, it should not need to actually assess more than a portion of the proposed rate. The election to form the City will include approval of a permanent tax rate of $1.98 per $1,000 of assessed property value. The proposed rate of $1.98 will not create compression under Measure 5. It is projected that property tax revenue will become one of the resources of revenue for the City. If additional funds are needed, funding sources that are available to other cities may also be available to the incorporated City of La Pine. Many major banks and the Oregon Economic Development assist cities and special districts with loans to finance large projects. The Oregon Department of Transportation facilitates transportation projects and coordinates them with state and federally fimded projects. The League of Oregon Cities has membership comprised of over 200 Oregon cities of a wide range of population and geographic sizes and should prove to be a helpful and reliable, information resource for other sources of funding. Page 5 - ECONOMIC FEASIBILITY STATEMENT 44-W-5644 109.?Q.duciA1JA!/6114i2006 PROPOSED BUDGET ! State law requires that a draft budget be proposed for the first and third fiscal years ofa proposed City's operations. The proposed City would begin o erati ft p ons a er the county court certifies the election results, (although the City would not receive funds until fi l I members take office within 10 days budget proposal is outlined below. sca year 2007). The council after the election certification. The first through third years' CITY OF LA PINE - ANNUAL BU DGET PROJECTI ONS INCOME FY 2007 FY 2408 FY 2009 over Pro Tax 0 60 000 59,100 179,110 Bldg Permits, 80,000 102,480 86,400 ' 170 480 1 94 100 Ins ections , State Revenue 14,500 15,600 17 240 SDC Revenue 0 12,300 , 19 600 Judicial fees Ci Water 129000 12,600 13 700 Ci Sewer 821,000 842 000 869,200 907,300 Franchise fees: , 889,500 927,900 Telephone Cabel 20,000 21,300 22,500 . Electric 9,700 100,00) 10,450 107 300 11,100 Business Licenses 15,000 , 15,900 114,900 17 00 Tobacco tax 29600 2,900 3 500 Alcohol tax Gas Tax l 7 800 18,900 , 19 700 Room Tax 84,500 100 000 87 300 107 000 90.200 112,300 Pro'ected Incm 2,179 1 00 2,418 230 2 720 890 EXPENSES Bldg permits, outsource fee Cit Wate 68 000 78,200 89,600 r Ci Sewer 821000 842,000 869,200 889 500 921,300 Road Maintenance 84,500 , 87,300 942,800 92 200 Tourism Promotion 100 000 107 00 , 112 300 Ci Admin/Planner 2 39,000 42,170 50,850 art time clerical 16,200 17 800 23 000 Pa 11 Ex Em to ee E 16,000 17,500 19 300 x Acct al 2 600 95,000 4200 95,000 6,700 95.000 Page 6 - ECONOMIC FEASIBILITY STATEMENT . 49432-3560 7093pdx1AfJa11N191-7oa6 GENERAL FUND: The General Fund is the main fund for the receipt of funds and the expenditure of non-capital dollars. The following describes the anticipated resources and proposed expenditures for the first three fiscal years. A. GENERAL FUND RESOURCES: 2007-2008 2008-1009 2009-2010 1. Proms Taxes S 60.000 S 166,100 $ 365,510 2. Previous Year Taxes $ 0 - 0 6,700 3. System Development Charge $ 0 - $ 12,300 $ 19,600 4. Bldg Permitllnspecdans $ 80,000- $ 86,400 $ 94,100 5• Franchise Fees $ 129,700 $ 139,050 $ 148,500 6. Other income $1,939,100 $2,319,530 $1,104,600 7. Carryover $ 0 - $ 166,100 $ 610,040 TOTAL S 2,208,800 $2,889,480 $2,349,050 EXPLANATION OF RESOURCES BY FUND ITEM NUMBER: L Property taxes are based on several assumptions. These amounts are based on a rate of $1.98/thousand, a collective property assessed value of $76,000,000 in FY 2004-05, annual growth of 6.5% and a non-payment rate of 3.7%. 2. Previous year tax collections are expected in the second year and thereafter. 3. The City will be empowered to collect a System Development Charge ("SDC") after completing a study. Revenues from SDCs not expected until the second year. Page 7 - ECONOMIC FEASIBILITY STATEMENT 4-0482-35644 7093V.duc6llJiy 61jq/1/06 4. Housing, and some business space, is increasing at a dramatic rate. A conservative estimate of 30 new homes with a $200,000 value, is likely low. The new Crescent Creek housing development which is within th , e proposed city limits, built and sold 46 homes in the past year. Phase.U of that development is in pro ress I ddi i f j g . n a t on, our other nearby housing developments are experiencing rapid growth. 5. Franchise fees are based on similar fees budgeted for like-population cities of Sisters OR , and John Day, OR 6. The primary volumes under this category are City Water and City Sewer. These numbers are based on existing bud ets d g , approve or ready to be submitted. The Special Water District and the Special Sewer District will b i e ncorporated into the City of La Pine and will operate as City services. 7. Funds remaining from the previous Fiscal Year. B. GENERAL FUND EXPENDITURES: Personal Services 2007-2008 2008-2009 2009-2010 1. Administrator/Planner $ 39,000 $ 42,170 $ 50,850 2. 3. Two part time clerical $16,200 - $ 17,800 $ 23,000 Payroll Expense (Benefits and Tax, Wk Comp) $ 18,600 $ 21,700 $ 26 000 , Total Personal Services S 73,800 $ 81,670 S 99,850 Materials and Services 5. Professional Services (legal/acctg) 3,000 5,900 6,400 .6. 7 Insurance: Liability, Property, Auto, Crime 8,500 8 850 9 700 . , , Utilities, Rent (covered in City Water/Sewer ' Budget 0 0 0 8- Building Permit (outsource fee to County) 68,000 78,200 89,600 9. Office Supplies 1,300 1,400 1,600 10. Road Maintenance 84,500 87,300 92,200 1.1. Tourism Promotion 100,000 107,000 112,300 12. Travel, Training, Memberships 900 1,000 1,200 13. Telecommunications (in Water Budget) 0 0 0 14. Full Water Service budget expense 821,000 869,200 921,300 15. Full Sewer Service budget expense 842,000 889,200 942,800 Total Materials and Services 2,003,000 2,516,120 2,652,160 21. Capital Outlay $ 0 $ 0 $ 0 Page. 8 - ECONOMIC FEASIBILITY STATEMENT 49483-35644 7( MJ.?0APcWH/6/19/.7W Page 9 - ECONOMIC FEASIBILITY STATEMENT a94r~~-3.S6rd 70930.~Joc4~fJM/a.'!4n_aUb EXPLANATION OF GENERAL FUND EXPENDITURES BY FUND ITEM NUMBER: 1. An Administrator/City Planner maybe hired midway through the first Fiscal Year at a salary of approximately $39,000 per year. Initially, the city would prefer a 32-hour week employee until workload would require increase to full time. 2. The budget is drawn to provide two half-time clerical personnel, which works well in the La Pine area for families with small children, or high quality retirees who desire only part time. This staff may be hired midway through the second year at a salary of approximately $16,200 divided by two employees. 3. Payroll expense is estimated at 30% of payroll. 4. Workers Compensation Insurance premiums increase as staff is hired. 5. Professional services include legal, accounting and administrative support. 6.. Insurance premiums are expected to increase naturally as the City grows and adds more services/employees. 7. Utilities and rent are not broken out, as we plan to utilize the existing La Pine Water/La Pine Sewer District offices and add our staff. Those expenses are included in the water and sewer budgets which are shown as line items in our proposed budget. 8. Building permits shall be outsoumed, likely to Deschutes County, and the expense is calculated as 75% of the fees to be collected 9. City office supplies will be added to the existing Water/Sewer supplies, but are not expected to be very high as staffing the first year will not be full time. .10. Road maintenance shall be expended as the gas tax funds permit. Road grading, snow clearing, etc. will likely be hired through local providers. 11. Tourism will equal transient room tax collections and will likely be outsourced to the La Pine Chamber of Commerce/Visitors Center. 12. Costs related to Travel, Training and Memberships will grow as staff increases. 13. Telecommunications, including phone and intemet connections, are in Water/Sewer budgets. 14. The full Water budget, income and expenses, are incorporated in the City budget. ..15. The full Sewer budget, income and expenses, are incorporated in the City budget. 16. Election expense of $15,000 is included to cover the cost of the Nov. 2006 election. Page l0 - ECONOMIC FEASIBILITY STATEMENT eswsj-3ses:7a93aeac►w,, N9r.= 17. No capital outlay is currently anticipated. 18. Net from prior year. 19. Contingency costs are approximate and are estimated at a percentage of annual revenues, outside the existing sewer and water budgets. C. CAPITAL IMPROVEMENTS In preparing this projected budget, the decision was made to not include an allowance for capital improvements. The desire of the citizens of the area, per our survey, indicate keeping the small town feel is of primary importance. The current facility housing the La Pine Special Water District and La Pine Special Sewer District will serve as a City Hall initially. Furnishing for a City Manager/Planner and part time clerical help, can be handled through excess office equipment from local employers, likely from a community bank which will be upgrading furniture in the local branch in 2006. Since road maintenance will be hired from local providers, equipment and vehicle expenses are not anticipated in the near future. Should something : unforeseen occur, the contingency fund could be used for small items, such as a desk computer. D. CAPITAL RESERVE FUND: 2007-2008 2008-2009 2009-2010 RESOURCES: 1. Carryover $ 0 - 166,100 375,210 2• Transfer from General Fund 0 0 3. Interest 0 0 p 0 TOTAL RESOURCES 0 EXPENDITURES: 1. Transfer to Capital Improvement Fund p 2. Reserve for Future Expenditures 0 166,100 375,210 TOTAL EXPENDITURES EXPLANATION OF CAPITAL RESERVE FUND BY FUND ITEM NUMBER: The Capital Reserve Fund holds monies intended to be held for future capital expenses. RESOURCES: 1 • Funds remaining from the previous Fiscal Year. Page I 1 - ECONOMIC FEASIBILITY STATEMENT . 1948?-1564,1 ?(193orkc:~IM/1YIy/±Olf6 2. Funds transferred from the General Fund to be reserved for future operating or capital expenses. The fast year will have low operating expenses due to the fact that many expenses will not be incurred the entire year, and no capital expenses. General revenues can be diverted into the Capital Reserve Fund the first year. .EXPENDITURES: I. Remaining funds to be reserved for future operating and/or capital expenses should the need arise. . i I a Page 12 - ECONOMIC FEASIBILI'T'Y STATEMENT 49483-3$64470930.daru►f MI6119120M Exhibit B NOTICE OF PUBLIC HEARING ON THE PROPOSED INCORPORATION OF THE CITY OF LA PINE The Deschutes County Board of County Commissioners will hold a quasi-judicial public hearing on MONDAY, August 7, 2006 at 9:00 A.M. in the Justice Courtroom in the South County Deschutes Services Center at 51340 Highway 97, La Pine, Oregon, 97736 to take testimony on the following items: FILE NO.: PA-06-04 SUBJECT: A petition for the proposed incorporation of the City of La Pine was submitted to the Deschutes County Clerk. The Board shall receive testimony regarding the boundaries of the proposed city, the feasibility of the city and proposal's compliance with the Oregon Statewide Planning Goals, the Deschutes County Comprehensive Plan and zoning regulations. The proposed City of La Pine, if formed, will have a permanent rate limit for operating taxes of $1.98 per $1,000 assessed value that will raise an estimated $60,000 in operating funds for the District in the 2007-2008 fiscal year. You may download the Petition, narrative description of the boundaries, a map and the economic feasibility statement at www.deschutes.org under Quick Links as "La Pine Incorporation." APPLICABLE CRITERIA: ORS 221.005-221.106, ORS 197.175, 197.757 and ORS 197.763, OAR 660, including specifically 660-004 and 660-014, Statewide Planning Goals 1-19, Deschutes County Code ("DCC") Titles 18, 22, and 23. STAFF CONTACT: Laurie Craghead, Assistant Legal Counsel, (541) 388-6623 ANY INTERESTED PERSON MAY APPEAR, BE REPRESENTED BY COUNSEL, OR SUBMIT WRITTEN SIGNED TESTIMONY. ALL WRITTEN TESTIMONY MUST BE RECEIVED BY THIS DEPARTMENT PRIOR TO THE HEARING DATE OR BE SUBMITTED AT THE HEARING. Seven (7) days prior to the public hearing, copies of the revised Economic Feasibility Statement, the land use Burden of Proof Statement and staff report will be available for inspection at no cost at the Deschutes County Community Development Department at Legal Counsel Offices at1300 NW Wall Street, Suite 200, Bend, Oregon. Copies of the listed documents can be purchased at the office for (25) cents a page. They will also be available on-line seven (7) days before the hearing at www.deschutes.ora under Quick Links as "La Pine Incorporation." Deschutes County conducts public meetings in locations which are wheelchair accessible. Deschutes County also provides reasonable accommodations for persons with disabilities. For persons who are deaf, or who have hearing or speech impairments, dial 7-1-1 to access the State transfer relay service for TTY. At meetings of the Board of County Commissioners, the County will provide an interpreter for hearing impaired persons who give at least 48 hours notice of the request. Written information will be made available in alternate formats with 48 hours notice. To request these services, please call (541) 388-6571. BOARD OF COUNTY COM ONERS FOR DESCHUTES COUNTY, E ON Dennis R. Luke, Chair To be published in The Bulletin: July 18, 2006 and July 25, 2006 IL EXHIBIT B - Order 2006-117 (07/12/06)