Fee Discussion_Charter Committee_August 2023 Charter Review Committee Meeting
August 7, 2023
Today's Discussion
• Review Charter Review Committee Questions for Meeting
• Discuss Oregon Property Tax System
• Review Tigard's Budget Committee Process
• Share Historic Revenue Practices and Examples
CITY OF
it Tigard
— Committee Questions
1 . Does the Committee recommend that the current limitations
and processes regarding levying fees and taxes are sufficient?
2. If not, what Charter provisions would the Committee
recommend?
— Responsible Stewards of Public Funds
• Tic and is a recipient of the prestigious Triple Crown Award from the Government Finance
Oficers Association.
• Certificate of Achievement for Excellence in Financial Reporting (27 consecutive years)
• Distinguished Budget Presentation Award (27 consecutive years)
• Popular Annual Financial Reporting Award (3 consecutive years)
• Only 331 governmental entities in the United States received the Triple Crown Award in 2021 .
• Tigard maintains a AAA bond credit rating from S&P, the highest possible rating. For
comparison, the US Federal Government and the State of Oregon maintains an AA+ rating.
I City Bond Rating
Indicates financial hefth_
Mk Is the top rating.
AAA $ f5
CITY OF
" Tigard
Oregon Property Tax System
• Oregon Constitution and Oregon Statutes both limit the
amount and type of taxes a local government may impose
• Taxes within a permanent rate limitation
• Local option levies
• Voter approved General Obligation Bonds
Oregon Property Tax System
• Ballot Measure 5 - 1992
• Taxes from 1991 -92 to 1995-96 were increasingly limited until $ 10
per $ 1 ,000 of Real Market Value was reached
• Ballot Measure 50 — 1997
• Rolled 1997 assessed values back to 90% of 1995 assessed values.
• Established permanent rate limits
• Allowed voters to approve local option levies
• Limited growth of assessed value to 3% maximum annually
CITY OF
a Tigard
Where Do Your Property Tax Dollars Go?
430 170 120 - 40 30 30
Tigard-Tualatin I Washington Tualatin Valley I Portland Metro Other
School District County Fire & Rescue Community
I
College
1 1 Tigard's Permanent
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� ;`'' , Frili tat ATE` I ! � 1t ,4�, Property Tax Rate of
ygr qq�� YN,3 xtlTE,9 LECAt rExoew -.--
E �I FOR ALL OEBTS,PUBLIC ANO PRIVATE r to 2 5131 1 000 of
`' B O 3 5 4 2 7 5 4 F r.� 4,•, ` ?
111'�[fa .a�'>k wArair vc--Lox,L >.C. itll - •
3r to . 'j° 2 4 �a �� - 2 N assessed value is
{ � r' 1� m= one of lowest in
41111
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City of Tigard
• Police • Library
• Parks & Recreations . Infrastructure • CITY OF
Tigard
— Tigard Budget Committee
Community Members
Jake Schlack, Chair Kelli Pement
Clarissa Benfield Leah Voit
Timothy Cadman Jim Knowlton, Alternate
City Council
\ - t I -7', ( ,,, s
•
i 1A
ii - i , If;f G•4iA
Heidi Lueb Yi-Kang Hu Jeanette Shaw Jai Raj Singh Maureen Wolf Aishiki Nag
Mayor Council President Councilor Councilor Councilor Youth Councilor
CITY OF
m. — - - Tigard
— Fiscal Year 2024 Public Budget Committee Process
January 2 " — Reviewed budget process
April 22 — Presented and Discussed Proposed Budget
May 1 - Town Center Development Agency Budget and Committee Follow-Up Itemc
May 6 — Committee Follow-Up Items and Budget Approval
June 13 — City Council Adopted ����i4+
areatizailve
• All meetings held in public (in-person and virtually)
• All information posted on City website
• Public input and comment an important and required part of process
CITY OF
lit Tigard
— Annual Revenue
Interest 0nings / ANNUAL REVENUES
Fines& °
Forfeitures Property Taxes 25,185,100
1.41%
Franchise Fees 7,570,700
Property Taxes
16.94% Franchise Fee License & Permits 18,779,650
Eigigt 5.09% Intergovernmental 20,377,256
Charges for Total Annual
Charges for Services 65,689,614
44.18% License
Services Revenue
$148,677,920 & Permits Fines & Forfeitures 2,103,000
12.63% Interest Earnings 8,493,000
Intergovernmental Miscellaneous 479,600
13.71°lo TOTAL $148,677,920
Miscellaneous J
<1%
Tigard c'
— History of Fees ik Charges
• With Tigard 's low permanent tax rate, property taxes make
up less than 17% of the city's total revenue.
• State Law only allows governments to increase property
tax rates through bonds and levies that must be approved by
voters.
• In order to adequately support city services, fees
and charges have been passed by City Council by ordinance.
- ' °`
a Tigard
Permanent Tax Washington County Permanent Tax Rates
$7.0000
Rate $6.0000
--nn
Tigard 's permanent tax
g .
rate of $2. 5131 /$ 1 ,000 of $3.0000
assessed value is $;����
$ .0000
amongst the lowest in $_ ■
the County and the State � ., y .,,y „§- `a o06' .k°
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cc,
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o �`� �O�` � VyresZ ey0Q° sae
wFY <(°0 <6\L-
FY
2022-23 AV Rolls • • • • Washington County Average • • • • State Average
Source:Washington County Summary of Assessment and Tax Roll for Tax Year 2022-2023
CITY OF
" Tigard
— Library and Parks General Obligation Bond
• General Obligation Bonds, generally referred to as GO bonds,
are debt obligations typically used for capital projects that the
voters must approve.
• On May 21 , 2002, Tigard voters approved a $ 13M GO bond for
the purchase of a 14.7 acre parcel and construction of the
47, 500 square foot Tigard Library that is used today.
• On November 2, 2010, Tigard voters approved a $ 17M GO bond
for the acquisition of Park land and development.
- ' °`
a Tigard
— Local Option Levy
• Local option levies are temporary increases to property taxes
that must be approved by voters. Local option operating levies
cannot exceed 5 years.
• In May 2020, Tigard voters approved a five-year Police Services
Levy, allowing the Tigard Police Department to hire critically-
needed patrol officers.
• Local Option Levy are not a permanent funding source and
must be renewed by the voters every 5 years for operating
levies.
- a Tiga°rd
— Fees Passed by Ordinance
• On November 18, 2003, City Council unanimously passed an
ordinance (03 - 10) to establish the Street Maintenance fee to maintain
the City's street infrastructure.
• On August 14, 2007, City Council unanimously passed an ordinance
(07- 15) to change to the City's business license fee structure to
establish the Commercial Crimes Unit to address the growing need
for dedicated police officers for Tigard businesses.
• On February 9, 2016, City Council unanimously passed an ordinance
(16-06) to establish the Parks and Recreation Fee to fund a portion of
Parks operations and maintenance and Recreation programming.
CITY OF
— : " Tigard
— Enterprise Funds / Utility Rates
• Revenue from utility rates (water, stormwater, and sewer) can
only be used to support their respective utility system,
commonly referred to as Enterprise Funds.
• For example, water revenue cannot be used to purchase police
vehicles.
• Each utility system, water, sewer, and stormwater undergo a
community involved system plan development process to
determine the infrastructure and operation needs of each utility
system.
- ' °`
a Tigard
— Conclusion
• The City has one of the lowest permanent tax rates in the State
and region.
• The City's practice for adjusting fees & charges have all included
public involvement.
• Inability to raise revenues could lead to a reduction of
services and potentially unreliable service delivery for utility
systems.
•
•
•
4-
•
Questions? _.,..,„
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C TIGARD 1
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- App
CITY OF
Tigard
— FY 2024 Adopted Budget Summary
$457.9M - Total Resources
$293.9M - Total Appropriations
$43.1M - General Fund
$276.4M - Six-year Capital Improvement Plan
$87.7M — FY 2024
Fund Types
General Fund
• Revenue Sources: Property Taxes, Right-of-Way Fees, Charges for Service
• Service Examples: Police, Library, Community Development
Central Services Fund
• Costs Allocated Across All Funds
• Information Technology, Human Resources, Finance
Special Revenue Funds
• Gas Tax, Street Maintenance Fee, Parks and Recreation Fee
• Street Infrastructure and Maintenance, Parks Maintenance, Rec Events
Enterprise Funds
• Customer Rates
• Utility Services Including Water, Sewer, Stormwater
tiY
CITY Tiga°rd
— Where the Money Comes From
Transfers
$90,397,067
20% Beginning
Fund Balance
$218,871,000
Total Resources 488,0
Annual $457,945,987
Revenues
$148,677,920
31%
Tiçja°rd
- App
Total Requirements
$457,945,987
Reserve
for Future
Total Expenditures
Appropriations $153,997,048
$293,948,939
360/a
64°/u
• CITYOF
T
d
g
- App
REQUIREMENTS
(
Current Expenditures
Fund Operations 110,414,824
Transfers Debt Service 9,896,133
29% Operations Capital Improvements 87,2,69,156
Total
Appropriations 38% Contingency 900,000
$293,948,939 Subtotal Current Expenditures 5208,479,113
Fund Transfers 85,469,826
Total Appropriations $293,948,939
Capital Reserve for Future Expenditure 5153,997,048
Contingency Improvements
<1% 30% ,, Debt TOTAL $457,945,987
Service
3Q/o
g" Tigard
- Operations Capital Outlay
51/0
By Category
1
Personnel
Services Total
44.2% Operating
Budget by
Category
Materials &
Services
21.0%
e, CITY OF
Tigard
City Policy&
Administration
Operations 1% Fleet& Facilities
By Department
Finance
6%
Community
Public Works Development
33% 7%
Total Operating Library
Budget by 8%
Department
City Management
80/0
Information
Police Technology
24% 8%
CITY OF
1111 " Tigard
Pub
Enterprise Funds Colla Engamnt level I
_ Collaborate The Budget[dmmittee reviews
Advice and feedback cram the d j and Fecommends the proposed CIP
community is Incorporated into rd / based on stall reCommendalipiis
Ii t ty Rates system goals and priorities. . ,.„k
+O# and community feedback.
Co A
• Utility rates are driven by ° CAPITAL okdt
cost of capital improvement PLANNING
p p
projects included in each PROCESS
system plan as well as on- 2,
going operating costs. ,y .
Maintain and Repair r{s •SON Design and Deliver
Taking care of what We have: G1 Prove/managers deliver indivtdusl
• The budget committee is 0,,employees 2r the pre Sting l*PC
projects.Each protect typica�y
stewardship v has a design and construction phase.
infrastructure.
responsible for reviewing . Public Engagement Levet: . Putalic Engagement Levee;
capital improvement FlesOur
Consrd,
Our po n d Works team Is ava lahte Puhllr 2ngagem2nl Flores Created
at projects based on staff around the clock torespondto ththeoutsetofaCIP agertset
service requests.pay in and dal' I the Iralnework for en�agemerrt-
recommendations
and community feedback.
III II CITY OF
Tigard