FOUR-YEAR OPERATING LOCAL OPTION TAX FOR GENERAL GOVERNMENT OPERATIONS
QUESTION: Shall Milwaukie tax an additional $1.10 per $1,000 (maximum) for general operations for four years starting FY 2003/04?
SUMMARY: This measure authorizes the City of Milwaukie to levy an additional $1.10 per $1,000 of assessed valuation on real property in the City for four years, beginning with fiscal year 2003-04. This local option tax will be used to provide general city governmental services. The City has estimated a shortfall of $1,200,000 if the local option tax is not passed. This is a local option tax, and it is not subject to the limitations in Article XI, section 11, of the Oregon Constitution. The City estimates that the local option tax, less uncollectible taxes, will raise the following:
FY 2003-04
FY 2004-05
FY 2005-06
FY 2006-07
$1,265,081
$1,296,708
$1,329,126
$1,362,354
These amounts are estimates; actual amounts depend on the total value of property in the City. If the measure passes, the Council may authorize that any amount up to $1.10 per $1,000 be imposed as a local option tax for each year it remains in effect. The Council may choose to levy less than the full amount based on budget estimates.
EXPLANATORY STATEMENT
The fiscal year 2002-03 City of Milwaukie budget was balanced without reducing services by using cash reserves. However, the City anticipates a General Fund shortfall of $1,200,000 for fiscal year 2003-04 if the present level of services is maintained. Similar shortfalls will occur in the following years.
A $1,200,000 shortfall will probably require lay-offs of up to 30 percent of the City’s General Fund employees, with a resultant decrease in municipal services. The General Fund provides the following core municipal services: Police, Municipal Court, public involvement programs such as Neighborhood Services and the Public Access Studio, Code Enforcement and Planning. The City Library receives approximately 49% of its funding from the General Fund.
The proposed local option tax, if approved, would provide additional income to the City to allow it to maintain approximately the same level of service and staffing as that currently provided by the General Fund.
The total amount anticipated to be raised, less uncollectible taxes is:
FY 2003-04
FY 2004-05
FY 2005-06
FY 2006-07
$1,265,081
$1,296,708
$1,329,126
$1,362,354
If the local option tax is approved, it would add $165 per year to the property tax on real property valued at $150,000; $220 to the property tax on real property valued at $200,000; and $275 to the property tax on real property valued at $250,000.
If the measure passes, the City Council could increase property taxes up to the amount authorized. However, the City Council could choose to actually impose less of an increase if budget projections change.
Submitted by:
James Bernard
Milwaukie Mayor
No arguments FOR or AGAINST this measure were filed.