HomeMy WebLinkAboutRes 025 - Local Option Tax Levy - BBRits
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Deschutes County Board of County Commissioner
1300 NW Wall St., Ste 200, Bend, OR 97701-1960
(541) 388-6570 — Fax (541) 385-3202 — www.deschutes.org
AGENDA REQUEST AND STAFF REPORT
For Board Business Meeting of March 17, 2010
Please see directions on the next page for completing this document
DATE: March I I, 2010
FROM: Mark Pilliod Legal Counsel 541-388-6625
TITLE OF AGENDA ITEM:
A Resolution Submitting to the Voters in the Black Butte Ranch Service District an Election on a
Five -Year Local Option Levy to Fund Law Enforcement Services
PUBLIC HEARING ON THIS DATE? YES
BACKGROUND AND POLICY IMPLICATIONS:
See Resolution 2010-025. Passage of this measure at this election will not require a 50 percent
voter turnout. The District would use the five-year local option tax revenue to maintain 24-hour
patrols, 7 days a week.
FISCAL IMPLICATIONS:
None
RECOMMENDATION & ACTION REQUESTED:
Consideration and signature of Resolution 2010-025, submitting to Voters in a District -Wide
Election a Five Year Local Option Levy to Fund Law Enforcement Services; as the governing
body of the Black Butte Ranch Service District.
ATTENDANCE: Mark Pilliod
DISTRIBUTION OF DOCUMENT:
Mark Pilliod, Legal Counsel
Black Butte Service District
Deschutes County Clerk
For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCI-IUTES COUNTY, OREGON
A Resolution Submitting to the Voters in the
Black Butte Ranch Service District an Election on RESOLUTION NO. 2010-025
a Five -Year Local Option Levy to Fund Law *
Enforcement Services
WHEREAS, the Governing Body of the Black Butte Ranch Service District ("Governing
Body'), has determined that a five year levy should be submitted to the qualified voters of the Black
Butte Ranch Service District ("District) as established by Section 11, Article XI of the Oregon
Constitution in order to permit the proper operation of the District; and
WHEREAS, the Governing Body considers adequate funding to maintain law enforcement
services in the District as necessary and in the public interest; and
WHEREAS, the Governing Body finds that anticipated revenues are insufficient to provide
adequate services without the funds generated by a special tax levy; and
WI-IEREAS, the Governing Body determines that a levy with $0.55 per $1,000 of assessed
value levied within the District is necessary to maintain current service levels; and
WI-IEREAS, it is necessary to submit the question of authorizing a five-year levy to the
registered voters of the District, now, therefore,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES
COUNTY, OREGON, as the GOVERNING BODY OF THE BLACK BUTTE RANCH SERVICE
DISTRICT, as follows:
Section 1. Findings. The Governing Body makes the findings set forth in Exhibit "A,"
attached hereto and by this reference incorporated herein.
Section 2. Form of Question. The County Clerk shall submit to the registered voters of
Black Butte Ranch Service District, Deschutes County, Oregon, for their approval or rejection, the
measure set forth in Exhibit "B," attached hereto and by this reference incorporated herein.
Section 3. Date of Election. The measure set forth in Exhibit "B" shall be submitted in the
manner prescribed herein to the qualified voters of the District, at the general election to be held May
18, 2010,
PAGE 1 OF 2— RESOLUTION NO. 2010-025 (03/17/10)
Section 4. Ballots. The County Clerk shall clearly and boldly print the words
"CONTAINS VOTE ON PROPOSED TAX INCREASE" in red ink on the outer envelope of ballots to
be nailed to registered voters.
Dated this of March, 2010
ATTEST:
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON, as the
GOVERNING BODY OF TI -IE BLACK BUTTE
RANCH SERVICE DISTRICT
DENNIS R. LUKE, Chair
ALAN UNGER, Vice Chair
Recording Secretary TAMMY BANEY, Commissioner
PAGE 2 of 2 — RESOLUTION NO. 2010-025 (03/17/10)
EXHIBIT "A"
ARGUMENT
The current assessed value of Black Butte Ranch is $523,365,210. The District's current
tax levy has a cap of $1.0499 per $1,000 assessed value. In 2005 the voters approved a
local option levy of an additional $.40 which expires this year. State law limits increases
in assessed valuation to 3% per year. In addition, the assessed value of houses that are
upgraded by remodeling may go up more than 3% and newly constructed houses are
added to the tax base. Since Black Butte Ranch is nearly built out, assessed values are
limited to 3% plus an amount based on remodels and new construction. The expected
increase in assessed value is anticipated to be approximately 3.25% per year. Once the
current local option levy expires this year, revenues would no longer cover operating
expenses at current service levels.
In addition, the District has a five year contract with the police officer's union that
expires on June 30, 2010. By state law, police are not allowed to strike, but in return, they
must be compensated commensurate with other departments of similar size located in
similarly populated communities. A new contract based upon an increase in
compensation levels would increase the cost of operations. An increase in tax revenues is
necessary in order for the department to sustain its current police staffing level.
Approximately 150 of the 1251 home sites are occupied year round. That leaves
1100 vacant homes during much of the year. Vacant homes are vulnerable to theft,
burglary or persons who unlawfully take up residence and occupy them.
The District's population is aging and its patrol officers are usually first on the
scene in the event of a medical emergency. They are equipped with, and are trained to
use, defibrillators which may be needed by a resident placing an emergency call. During
the busy months, Black Butte Ranch also has many children using its recreational
facilities and a police presence is necessary to discourage those who may harm these
children.
Since approximately 77% of the District budget relates to payroll items, if
revenues are not increased, a reduction in personnel may be necessary. Currently the
District provides 24-7 patrols, but if this levy does not pass, there may be periods of time
when no officer is on duty. A reduction of police presence on The Ranch might result in
unacceptable delays in response time and increased risk of injury to persons and property.
Passage of the tax measure would enable the District to maintain around the clock
patrols, and current levels of security service on behalf of Black Butte Ranch
homeowners, guests and their property.
Exhibit "A" -Page 1 of 1 -Resolution 2010-025
Secretary of State Elections Division 1255 Capitol St. NE, Suite 501, Salem, OR 973101 p.503.986.151811503.373.7414 I www.ora9onvotes.or9
Notice of District Measure Election SEL 803
District and Notice Information
Notice is hereby given on May 18
located in Deschutes
Name of County or Countio
rev oven ORS 2f,11035.
2110
, 20 10 , that a measure election will be held in Black Butte Ranch Service District
Name of District
County, Oregon on May 18 , 20 10 .
Date of Election
The following shall be the ballot title of the measure to be submitted to the district's voters:
Caption 10 words
Butte Ranch Service District Five -Year Local Option Levy
Question 20 words
Shall The District impose a five-year local option tax at $.55 per $1,000 for general operations starting
in 2010-2011?
This measure may cause property taxes to increase more than three percent.
Surnmary 175 words
The District would use the five-year local Option tax revenue to maintain 24-hour patrols, 7 days a
week. The District's current yearly revenue increases are approximately 3-31/2% per year. The
proposed rate would generate approximately $282,100 in 2010-2011, approximately $291,000 in
2011-2012, approximately $300,100 in 2012-2013, approximately $309,500 in 2013-2014, and
approximately $319,100 in 2014-2015. On a $500,000 home, the assessment would be $22.92 per
month or $275 per 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 the estimate.
The following authorized district official hereby certifies the above ballot title is true and complete.
Signature of Authorized District Official not required to be notarized Date Signed mm/dd/yy
DENNIS LUKE
Printed Name of Authorized District Official
Exhibit "B" -Page 1 of 3 -Resolution 2010-025
Chair. Deschutes County Board of County Commissioenrs
Title
EXPLANATORY STATEMENT FOR COUNTY VOTERS' PAMPHLET (2010)
Ballot Title Caption: Black Butte Ranch Service District Five -Year Local Option Levy
Measure Number: Word Total (500 Maximum): 240
(Explanatory Statement Shall Be Typed)
The Black Butte Ranch Service District (the "District") provides police services to its
residents. The District's current tax levy is $1.0499 per $1000 of the assessed value of
property in the District.
The District has requested a local option tax to increase the budget for operations. The
local option tax would be $0.55 per $1000 of assessed value of property. On a $500,000
home, the assessment would be $22.92 per month or $275 per year. The proposed levy
would generate approximately $282,100 in 2010-2011, approximately $291,000 in 2011-
2012, approximately $300,100 in 2012-2013, approximately $309,500 in 2013-2014, and
approximately $319,100 in 2014-2015.
Approximately 77% of the District's budget is spent on payroll and related costs. The
District currently has six sworn law enforcement officers and one administrative person
on staff. Currently, there is at least one officer on patrol at all times. Although the Oregon
Constitution allows for a 3% increase in the maximum assessed value for each property
each year, because Black Butte Ranch is almost completely built out, that 3% increase
in valuation results in only a 3-3'/2% increase in revenue. That revenue would not be
sufficient to cover all the costs associated with all six law enforcement officers. The
District currently has a $.40 local option tax that expires this year. If this local option tax
is not approved, there would be a budget shortfall. One option to address the shortfall
would be a reduction in patrol hours.
Person responsible for the content of the Explanatory Statement:
(Typed) DENNIS LUKE, CHAIR
(Signed) X
Board of County Commissioners of Deschutes County, Oregon, as the Governing Body of the
Black Butte Ranch Service District
Name of the Governing Body the person represents.
Exhibit "B" -Page 2 of 3 -Resolution 2010-025
Instructions
1. The Explanatory Statement shall be typed. The text of the Explanatory Statement will
be printed as submitted.
2. The word total shall not exceed 500 words.
3. The Explanatory Statement shall be signed by the person responsible for the content of the
statement and include the name of the governing body that person represents.
4. The Explanatory Statement shall be filed with the County Clerk of the county in which the
administrative office of the electoral district is located.
5. The Explanatory Statement shall be filed by 5:00 p.m. on the filing deadline for the notice
of measure as shown in the table below.
ELECTION:
March 9, 2010
May 18, 2010
September 21, 2010
November 2, 2010
Deadline:
January 7, 2010
March 18, 2010
July 22, 2010
September 2, 2010
Return this completed form to:
Exhibit "B" -Page 3 of 3 -Resolution 2010-025
Nancy Blankenship
Deschutes County Clerk
1300 NW Wall Street, Suite 202
Bend, OR 97701
Phone: 541-388-6544