05/01/2000 - Packet Tigard Budget Committee 2000
(Note: Items not completed at scheduled time will be held over to following meetings)
May 1, 2000
6:30 p.m.
Water Building Auditorium
■ Election of Officers
■ Deliver Budget
✓ Budget Message
✓ Vision Statements
✓ Council Goals
■ Financial Environment
✓ Financial Plan
✓ Upcoming Ballot Measures
■ Major New Initiatives
✓ Photo Radar
✓ Library
✓ Water Rates
✓ Building Funds Condition/Fees
✓ Urban Services Fund Condition
✓ Computer Systems Reserve
■ Public Comment
BUDGET COMMITTEE MEETING
May 1 , 2000
CITIZEN SIGN-IN
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FY 2000 - 01
Budget
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• Operating Budget Up 1 . 9%
• 2 . 05 Additional FTE
• No Operating Property Tax Increases
• Assumes 3 % Water Rate Increase (FY
1999-00) recommended by plus
IWB
_
potential 10% increase in FY 2000-01
• Potential 5 1 % Building Fee increase
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3 fi
a4, k di
�wo,
d �
F}
i
• Adds 2 . 5 FTE
— 1 position to serve Walnut Islands
— 1 position to maintain staffing ratios
— .5 position for Photo Radar enforcement
• • • • • • • •
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v
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Maintainsprograms at FY 1999-00 level
• . 3 FTE increase for Volunteer support and
computer services
• Contributes $400,000 to reserve for new
Library
. . . . . . 0 0
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R 3 'A"',
- r3c1?N
3 H,
b 5 X
-ell
• Position reductions to reflect downturn in
building activity (3 FTE)
• Second year of planned fee increases to
maintain services at reduced level
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•
� 3
ti
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3 % Rate increase as recommended by the
IWB
• Potential additional 10% rate increase under
review
• 1 additional Water Conservationposi ion
• 1position transferred to Finance
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•
'Bee
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1position added mid-year FY 1999-00
• . 75p osition transferred from Water
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Iposition for Municipal Court. for Photo
Radar
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Total OBudget
By Category
30,000,000
25,000,000
20,000,000
Cn
` 15,000,000 - -
0
10,000,000
5,000,000
0
Actual Actual Budget Proposed
1997-98 1998-99 1999-00 2000-01
��—PersonaI Seryices Materials& Seryices Capital Outlay Cotal
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•
Total FTE
255.00
250.00
i
245.00
240.00
235.00 -
230.00 -- — - - �
225.00 -
220.00
215.00
210.00
Actual Actual Budget Proposed
1997-98 1998-99 1999-00 2000-01
• . . . •
•
•
i
Community Services Operating Budget
By Department
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000 —
2,000,000 -
1,000,000
0
Actual Actual Budget Proposed
1997-98 1998-99 1999-00 2000-01
�-Police -9—Library --A—Social Services/Community Events --X—Parks and Grounds
•
•
•
Community Services HE
80.00
70.00
60.00
50.00
40.00
30.00
20.00 '
10.00
6.5 8:5 9:5 9.50
0.00
Actual . Actual Budget Proposed
1997-98 1998-99 1999-00 2000-01
Police Library ❑ Social Services/Community Events �[] Par�ksand
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•
Public Works Operating Budget
By Division
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Actual Actual Budget Proposed
1997-98 1998-99 1999-00 2000-01
-4-PW Administration -*-Sanitary Sewer --A-Storm Sewer Street Maintenance
�Fleet Maintnenace ♦-Property Management �—Water
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•
Public Works FTE
18.00 1 1
16.00 1
14.00 '
12.00 1 1
10.00
8.00
6.00 7. 0=r T 0 7. 0 `
4.00 ,7
2.00
0.00
Actual Actual Budget Proposed
1997-98 1998-99 1999-00 2000-01
PW Administration ■ Sanitary Sewer ❑ Storm Sewer ❑ Street Maintenance
Fleet Maintnenace 0 Property Management ■ Water
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Development Services Operating Budget
By Division
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Actual Actual Budget Proposed
1997-98 1998-99 1999-00 2000-01
�--CD Administration —*—Building Inspection Current Planning
—X—Long Range Planning Engineering —+-Street Lights
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Development Services FTE
20.00
18.00
16.00
14.00 1
12.00
10.00
8.00
6.00 ' 6.6 6. 6. 6.
4.00 0' .0 0 .0
2.00
0.000.00
Actual Actual Budget 0.00 Proposed 0.00
1997-98 1998-99 1999-00 2000-01
CD Administration Building Inspection ❑ Current Planning ❑ Long Range PlanningEngineering I Stre=Ughts
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Council & Administration Operating Budget
By Divisionf
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Actual Actual Budget Proposed
1997-98 1998-99 1999-00 2000-01
-4—Mayor & Council —I—City Management --A—Human Resources —X—Network Services —�K—Risk Management
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Council & Administration FTE
6.00
5.00
--- 4.5 4.5 4.5.
4.00
3.5 3.503, 3.5
3.00 ' 3.5
2.00 `
1.00
0.00
Actual Actual Budget Proposed
1997-98 1998-99 1999-00 2000-01
Mayor & Council 11 City Management 0 Human Resources ❑ Network Services III Risk Management
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Finance Operating Budget
By. Division
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Actual Actual Budget Proposed
1997-98 1998-99 1999-00 2000-01
-4-Finance Administration -2-Financial Operations -.A-Office Services --X-Records -IE-Municpal Court
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Finance FTE
12.00
10.00
8.00
6.00
I
4.00
4.0 4.0
4.0 4. 3.0
3.0
2 2:5
2.00 .5 _
0.00
Actual Actual Budget Proposed
1997-98 1998-99 1999-00 2000-01
Finance Administration Financial Operations 0 Office Services 0 Records III Municpal Court
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General Government Operating Budget
By Function
300,000
250,000
200,000
150,000
100,000
50,000
0
Actual Actual Budget Proposed
1997-98 1998-99 1999-00 2000-01
�—�—Citywide Support —�—City Attorne�
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e e
Financial a
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• Forecast for the next five years
• Applied standard growth assumptions:
Personal Services 5%
Materials & Services 2.5%
Capital Outlay 3%
• Departments projected program changes/additions
• Updated forecast with FY 2000-01 Proposed Budget
• Focus on General Fund
2
• General Fund fund balance strong over the forecast period,
though declining
• Water Fund fund balance declining, though remains
positive
, Assumes regular rate increases
• Sewer and Storm Fund strong
• Development Funds (Building, Electrical Inspection, &
Urban Services) precarious
3
M
tion to
Taxpayer Protection Initiative
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• The following information is based on our current
understanding. Interpretations may change with
further legal review.
• The Measure is poorly drafted
• Blends the terms "taxes" and "fees"
• Other terms are unclear or undefined
• Based on incorrect assumptions about existing laws and
requirements
• Overlaid on existing law (Measure 50, Measure 5, etc.)
• Will require legislative action or court interpretation
to clarify
2
sy y
• Filed by Bill Sizemore March 10, 1999 as Initiative #47
• Certified Ballot Title reads "Amends Constitution :
Requires voter approval of most new and increased
taxes, fees."
• Similar to Measures 5 (1994), 20 (1996), and 1-695
recently approved in Washington.
• Main differences from previous measures:
— retroactive to December 6, 1998
— inappropriate tax or fee increases subject to refund
— raising percentage required for voter approval of measures.
3
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• People's right to approve all taxes
"The purpose of this 2000 Amendment is to ensure that new taxes and
tax increases, which further deprive citizens of income and property
(emphasis added), are hereafter directly approved by the people. . .”
• No fee increases without vote
— No new tax or fee, or increase in any tax or fee (with certain exceptions)
unless approved:
• at an election in November of an even numbered year
• or at any other election date which the legislature designates for
approval of initiative measures.
• Increased voter approval percentage
— Tax or fee increases must be approved by not less than the percentage
of participating voters who voted "Yes" on this 2000 Amendment.
4
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• Public Safety and Gas Tax Exempted from Super Majority
— The following shall require only approval by a majority of those voting in
the election:
• a measure to renew an expiring tax levy, which levy solely funds
police, fire, or 911 emergency services, the rate or amount of which
levy is not greater than the rate or amount of the expiring levy.
• a measure to increase the state motor vehicle fuel tax.
• Removal of tax credits or exemptions considered an increase
— Elimination of existing tax exemption, credit, deduction, exclusion, or
cost-of-living indexing shall be considered a tax increase and shall be
subject to this measure.
• Double majority still applies
— If the legislature designates additional election dates (i.e. allows
additional election dates for initiative measures), double majority
provisions of Measure 50 will apply. 5
Ki• Issues/Comments:
• Subjects all obvious taxes, fees and charges to voter- approval with new
percentage requirement, including local option taxes, utility rates and
charges and permit and planning fees.
• Unclear whether increased property tax revenues due to increases in
value are subject to measure.
• Unclear whether increases in taxes paid by property owners for levy-
based taxes due to differential growth rates in valuation are covered by
this measure.
• Currently, measure allows votes only at general elections. Legislature
would need to establish an annual date for approving statewide
initiatives for more frequent election opportunities to exist.
Continued
6
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• Issues/Comments (continued)
• Public Safety is viewed as the primary mission of government, hence
the exemption from the super-majority provision for renewal at the
same rate or amount. Public Safety measures are still subject to the
super majority if they are new or if they increase the rate or amount.
• Exemption for gas tax is inconsistent with the rest of the measure.
Why is it here?
• If new elections granted, Measure 50 double majority provisions
would still apply to new property taxes.
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• Ballot Title and Ballot Question Contents
— The ballot title for a measure to adopt a new tax, fee, or charge; to
approve a bond measure; or to increase an existing tax, fee, or charge,
shall begin with the words:
• "A `Yes' vote on this measure is a vote to increase taxes"
— If the measure is a bond measure, the ballot question must contain a
projection of the total cost of the bond, including interest thereon.
8
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• Issues/Comments
• Language required specifies increasing "taxes," even in cases where
measures addresses fees and charges. Governments will be
required to tell voters something that is not true.
• Projection of bond "cost" may be wildly inaccurate, especially if
bonds are not to be sold for an extended period of time or are to be
sold in series.
• Will the size of the bond measure be limited by the total cost
projection? (i.e. If interest rates increase dramatically, the total cost
of the bond measure will increase. Will the size of the bond have to
be lowered to keep within the total cost projection?)
9
ORNMIFIF 4,1"
• Existing General Obligation Bonded Indebtedness Exempt
— "Nothing in this section shall affect taxes levied for the repayment of
bonded indebtedness approved by voters in an election held prior to
Nov. 7, 2000, or the issuance of refunding bonds to pay such bonded
indebtedness."
10
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• Issues/Comments
• The measure clearly exempts general obligation bonds approved
prior to November 7, 2000, but. . .
• It raises questions about validity of bonds approved at November 7,
2000 election by less than required percentage or without the proper
ballot title wording.
• Exemption only applies to "taxes levied for... bonded indebtedness".
May not apply to revenue bonds, even if they have been previously
approved by the voters.
11
• The following revenues shall not be considered new or increased
taxes, fees, or charges. . .
— user fees charged by Peoples' Utility Districts or port districts;
— mass transit fares;
— college or university tuition and fees;
— incurred charges and assessments for local improvements (Measure 5);
— pass through costs of wholesale inputs that are not government
employee labor costs, or otherwise under the charging government's
control;
— fines or forfeitures for violation of law;
— lottery revenue;
— fees paid to official business and trade associations by those engaged in
that business or occupation;
— earnings from interest, investments, donations, or asset sales; and
— competitively priced fees or charges for products or services which may
be legally obtained from a reasonably available source other than
government.
12
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• Issues/Comments
• Incurred charges exemption may be helpful for some fees
(development-related, possibly utilities).
• Fines/Forfeitures exemption may give incentive to modify charges
into fines.
• Pass-through of increased wholesale costs -- may allow increases
without a vote for costs "passed through" from one government to
another (i.e. Portland water).
• Exemption for "legally obtained from a source other than
government" should apply to some park and recreation services
(e.g., swimming pools).
13
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• Retroactive Provision
— Measure retroactive to December 6, 1998
— Any taxes or fees imposed or increased more than 3% during that time
must be repealed or referred to a vote of the people "at the next election"
— Past elections would now be subject to the new super-majority
requirement.
— Past elections may be subject to the new Ballot Title and Ballot Question
wording requirements.
• Refund Provision
— If a tax or fee was imposed or increased more than 3% and not
subsequently approved by the voters in conformance with this measure,
the amount collected must be refunded "to the payer"
14
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• Issues/Comments
• Local option levies approved after December 6, 1998 and that
increased taxes by more than 3% must be refunded unless originally
approved by new percentage or subsequently re-approved.
• Unclear if previous approval had to use new ballot title language.
• Election to validate previous increase may be at. any election, not
just general election. Not clear whether double majority provisions
apply to re-approval.
continued
15
• Issues/Comments (continued)
• How will governments refund money to "the payer" when that
information is not currently maintained (i.e. water billings, parking
meters, etc)?
• If revenue bonds are outstanding, increases in rates required by
bond covenants to meet coverage ratios may be protected by
contracts clause. However, funds collected over what is necessary
to meet coverage may be subject to refund provisions.
16
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• Inflationary Increases
— Increases since December 6, 1998 okay if they did not exceed 3%
— Future increases are allowed "at a rate not greater than the rate of
inflation" without a vote of the people.
17
• Issues/Comments:
• With 3% provision, essentially allows for increase of approximately
1 .5% per year during period between December 7, 1998 and
December 7, 2000.
• Fees may be increased after December 7, 200 by the rate of inflation
without a vote of the people.
• "Rate of Inflation" is not defined. Depending on index used, this may
be more or less useful.
18
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• Increased Taxes as a Result of Changes in Federal Law
Increased Income Not Affected
— This section shall not require a vote of the people when increases in
government revenue occur solely due to:
• a change in federal tax law,
• increases in income,
• or other changes in the circumstances of individual taxpayers
• Existing Property Tax Limitations Still Apply
— Nothing in this section shall be construed as authorizing an increase in
the tax on a property tax in an amount greater than allowed under
Article XI of this Constitution.
• Government may temporarily suspend or lower a tax or fee, and
then later increase it to the level allowed by this measure
without a vote. 19
i
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• Issues/Comments
• Exemption for increases in revenue due to increases in income
should allow State to collect income tax based on current system.
• Not clear whether increases in local government property taxes due
to growth in value is exempt under this section. They may not be
"change in the circumstances of an individual taxpayer."
• Measure does not address change in taxes attributable to
annexations.
20
~� WIN
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• 55014' 1 M MI
State Authority to Override
— The Legislature and Governor may:
• Override this section and call for a special election date other than
the date(s) set forth in this section, or
• Enact by law particular taxes, or authorize particular local taxes,
fees, or charges without a vote of the People.
IF
• Such taxes are approved by a three-fourths vote in each house and
signed into law by the Governor.
• The tax authorized is designated for a specific purpose.
• The tax shall be in effect no longer than twelve months.
• The tax will be subject to referendum. 21
• Issues/Comments:
• Ability to achieve 3/4 majority plus Gubernatorial approval seems
remote.
• Best case is one year tax.
• Impractical timing: No provision for dealing with years when
Legislature not in session. Section 1 a of Article IX requires waiting
90 days after sine die for a tax measure to be effective. Therefore,
delays in collection of additional revenue, may be substantial.
• Local tax may be approved, but not clear on collection mechanism
and how it is coordinated with other constitutional provisions.
Measure 50 limitations still in effect for property taxes.
• If the measure is subsequently referred to voter and not approved,
the tax or fee will be subject to refund provisions.
22
• Local Authority to Override
— A city county, or local taxing district may override this section for a period
not exceeding twelve months,
— IF
— A local emergency is declared by the Governor
— The override is approved by not less than a three-fourths vote of the
members of the local governing body,
— The continuation of the tax for any remainder of the twelve months is
approved by voters voting in an election held within ninety_ (90) days of
the date the emergency is declared,
— The tax or fee is otherwise adopted in conformance with this section.
23
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• Issues/Comments
• Election problems - may not be able to -hold an election within 90
days under current law or in an emergency situation.
• Voter approval subject to adoption "in conformance with this
section," which probably means both the higher percentage and
possibly requiring voting at a general election, which would render
the local override provision mostly meaningless.
• If measure is subsequently not approved by voters, the tax or fee will
be subject to refund provisions.
24
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• Penalties - 6% Interest, Plus Cost of Living
— Amounts collected in violation of this measure shall be refunded, along
with:
• Interest, computed as the cost of living change plus six percent per
year, compounded
• In some cases, credits may be substituted for refunds
— If the cost of issuing the refund is more than 20% of the amount of the
refund, a credit may be issued to the appropriate taxpayers.
25
• Issues/Comments
• "Cost of living change" undefined.
• Would penalty be assessed for refund of fees, taxes collected during
retroactive period when when the collection was allowed?
• Issuing credits to taxpayers may not be an option.
— If the inappropriate fee is one-time or periodic rather than on-
going, how would a credit be issued?
— What happens if the payer has moved out of the jurisdiction and
will, therefore, have no future charges to credit against?
• The money for paying the costs of the refunds or paying the
penalties cannot be netted out of the refund. This creates an
additional burden on other revenues.
26
• "Other Financing Mechanisms" that do not increases taxes or
fees may be subject to a vote
— "Because governments have at times been creative at redefining
terms, or otherwise creating new funding mechanisms in order to
circumvent limitations (emphasis added)... the legislature...and
the courts...shall apply the strictest scrutiny to any new or
renamed government funding mechanism. . ."
— "Certificates of participation and all such funding mechanisms
shall be subject to the same limitations and requirements as a
bond measure"
27
6
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• Issues/Comments
• Certificates of Participation and "other financing mechanisms" are
used by governments to finance major equipment and capital
facilities at advantageous interest rates over time without increasing
taxes.
• Does "other financing mechanisms" include revenue bonds?
• Suggests that even if certificates of participation, or other "funding
mechanisms," have no impact on increasing taxes, fees or charges,
still subject to voter approval.
28
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• Standing to bring suit
— Any Oregon taxpayer affected by a new or increased tax, fee, or charge
has standing to challenge it or the election authorizing it.
— Such an action must be started within ninety (90) days after the
earlier of
• (i) the date on which the election approving the tax, fee, charge or
bond is held; or
• (ii) the date on which the tax, fee, or charge is first imposed or the
bond is approved for issue.
• Award of attorney's fees
— The court shall award attorney fees to the prevailing taxpayer, or
— If the action is found to be frivolous, to a prevailing government party.
29
• Issues/Comments
• Language of the measure is unclear. This creates a large potential
for suits.
• The 90 day provision for legal challenges may cause delay in the
issuance of bonds, as issuers may want to let period run after
obtaining voter approval before the bonds are issued.
• Unequal treatment of attorney's fees encourages citizen litigation.
Citizen receives attorney's fees if they prevail; governments receive
fees only if the citizen suit is "frivolous."
30
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Jul
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• The retroactive & refund provisions are a major problem area.
— Money was collected legally (under rules that currently exist) and has
been spent.
— Refunds may be payable from any source — e.g., even if the fee or
charge came from the Sewer Fund, the General Fund might have to
provide the reimbursement if there are insufficient dollars in the Sewer
Fund to do it.
— Difficulty in identifying "payer."
— Local option taxes approved at any election between December 1998
and December 2000 that increased taxes more than 3% will invalidated if
they were not approved by at least the percent that the measure was
approved by.
31
d
• Typical result: library fines, cafeteria increases, parking meter increases
and/or placement of new parking meters; planning fees; permitting fees — are
all potentially subject to voter approval.
• November 7, 2000 general obligation bond elections may also be invalid
— if they are not approved by the same percentage as the measure itself
— if measure does not contain the appropriate wording
Most bond counsel think that bond measures will be OK if the bonds are
sold prior to prior to December 8. However, best case is that
municipalities will have to sell all bonds in one month period of time -- a
practical impossibility.
• Exemption for "incurred charges" may exempt some fees and some utility
charges. Under Measure 5, a property tax was exempt from the limits if it
could be classified as an incurred charge (avoidable, equal to the actual cost
of providing the service). Requires a legal interpretation.
32
)J I I,in l
P! I 1 f;F! i i t!:.3AXPAYER PROTECTION INITIATIVE
Be it enacted by tie Fseo�eo( the State oCOiegon:
The Constitution of the State of Oregon is amended by creating a new, Section 32a in Article 1, which section shall read_
Section 32a. People's right to approve all tames.The purpose of this 2000 Amendment is to ensure that new taxes and tax
increases, which further deprive citizens of income and property, are hereafter directly approved by the people. Therefore, except
as provided in Section 6 of Article IX,any new tax,fee, or charge,or increase in an existing tax, fee,or charge,shall require
approval by the people, as follows:
(1)(a) No new tax,fee,or charge shall be imposed, assessed or levied,and no existing tax,fee or charge shall be increased by the
state or any local government or taxing district,unless the new tax,fee, or charge,or increase thereof is first approved in an
election held on the fust Tuesday after the first Monday of November of an even numberled year,or any other election held on a
date which the state legislative assembly has designated as an annual election date on which measures may be placed on the
statewide ballot by initiative petition,and the new tax,fee,or charge,or increase thereof is approved by not less than the
percentage of participating voters who voted"Yes"on this 2000 Amendment For purposes of this section and subject to
subsection(5)of this section,the following shall require only approval by a majority of those voting in the election: (i)a measure
to renew an expiring tax levy, which levy solely funds police,fire,or 911 emergency services,the rate or amount of which levy is
not greater than the rate or amount of the expiring levy,and(ii)a measure to increase the state motor vehicle fuel tax.
(b)The ballot title and official voters pamphlet explanatory statement for a measure to adopt a new tax,fee,or charge;to approve
a bond measure;or to increase an existing tax,fee,or charge,shall begin with the words: A"Yes"vote on this measure is a vote
to increase tames. The question submitted to voters also shall clearly describe the proposed new tax, fee;or charge,or increase
thereof, if the measure is a bond measure,a projection of the total cost of the bond,including interest thereon;and revenue the
measure would produce annually.
(c)Nothing in this section shall affect taxes levied for the repayment of bonded indebtedness approved by voters in an election
held prior to Nov.7,2000,or the issuance of refunding bonds to pay such bonded indebtedness. This section does not require
voter approval for the issuance of,or the levy of taxes to pay,bonds issued to repay bonds issued prior to the effective date of this
section or issued in conformance with this section.
(2)For purposes of this section,any elimination,limitation, or reduction of a tax exemption, credit,deduction,exclusion,or cost-
of-living indexing shall be considered a tax increase.
(3)The following revenues shall not be considered new or increased taxes,fees,or charges for the purposes of this section: uses
fees charged by Peoples' Utility Districts or port districts;mass transit fares;college or university tuition and fees;incurred
charges and assessments for local improvements as defined by Article X1 Section l lb of this Constitution; increases in charges for
government products and services solely to pass through increased costs of wholesale inputs that are not government employee
labor costs, or otherwise under the charging government's control;fines or forfeitures for violation of law, lottery revenue;fees
paid to official business and trade associations by those engaged in that business or occupation;earnings from interest,
investments, donations,or asset sales; and fees or charges for products or services which may be legally obtained from a
reasonably available source other than government, provided that the new or increased fee or charge for the product or service is
not greater than the average private sector charge for the same product or service in the same market-
(4)(a)
arket(4)(a) If in the two years previous to the effective date of this section, an existing tax,fee, or charge was increased more than three
percent(3%), or a new tax, fee, or charge was adopted or first imposed, the increase in the existing tax,fee, or charge, to the extent
it exceeded a three percent increase,and any new tax,fee, or charge, shall be either repealed or submitted to the voters for approval
at the next election, if the new or increased tax,fee or charge was not approved by at least the percentage of voters required in
paragraph(a)of subsection(1)of this section. If a new tax fee or charge was imposed, or an existing tax, fee, or charge increased
in the two years previous to the effective date of this section, and the new tax,fee, or charge or increase in an existing tax, fee, or
charge, was not approved in conformance with this section, and not approved by voters at the next election, the amount of the new
tax, fee, or charge or excessive increase collected shall be refunded to the payer. Taxes to pay voter appsuved bonded
indebtedness, and taxes,fees, and charges listed in subsection (3) of this section are exempt from the requirements of tlus
paragraph(a) of this subsection (4).
(b) Provided that the amount of a fee or charge does not exceed the acetal cost of providing the product or service the following
fees and charges may be increased at a rate not greater than the rate of inflation since the effective date of this section,without a
public vote: (i)charges and fees in effect on or before December 6, 1998; (ii)charges and fees first adopted or first effective after
December 6, 1998, if adopted in accordance with this section_
(5)Nothing in this section shall be construed as nullifying the requirement in Section 11 of Article XI of this Constitution that
elections for property tax measures,which are voted on in an election held on a date other than the general election,achieve not
less than fifty percent(50%)voter participation to be valid
(6)(a)This section shall not require a vote of the people when increases in government revenue occur solely due to a change in
federal tax law, increases in income,or other changes in the circumstances of individual taxpayers. Nothing in this section shall be
construed as authorizing an increase in the tax on a property tax in an amount greater than allowed under Article)a of this
Constitution.
(b) If,after the effective date of this section,a government temporarily suspends or voluntarily lowers a tax,fee,or charge;the tax,
fee or charge may be increased later,without a public vote,to the rate or amount it would have been under this section had the
suspension or reduction not occurred
(7)(a) Subject to Section la of Article IX,the Legislative Assembly and Governor may override this section and call for a special
election date other than the date(s)set forth in subsection(1)of this section,or may enact by law particular taxes,or authorize
particular local taxes,fees,or charges without a vote of the People if such taxes are approved by a three-fourths vote in each house
and signed into law by the Governor. Any tax authorized or enacted by such action shall be designated for a specific purpose and
shall be in effect no longer than twelve months.Any tax,fee,or charge imposed under this subsection shall be subject to
referendum
(b) Subject to Section la of Article 1X of this Constitution,if a local Emergency is declared by the Governor,the affected city,
county,or local taxing district may override this section for a period not exceeding twelve months,if: (i)the override is approved
by not less than a three-fourths vote of the members oethe local governing body,,and(ti)the continuation of the tax for any
remainder of the twelve months is approved by voters voting in an election held within ninety(90)days of the date the emergency
is declared,and otherwise adopted in conformance with this section.
(8) The public shall be given reasonable opportunity to comment on the proposed ballot title for any measure to create a new tax,
fee,or charge or increase an existing tax,fee,or charge. The ballot title may be challenged in court;and shall be rejected if it is
biased,inaccurate,not easily understood,or does not comply with paragraph(b)of subsection(1)of this section.
(9)A government that levies taxes,fees,or charges in violation of this Section 32a shall refund the amount of any tax, fee,or
charge collected in violation of this section,plus interest,to taxpayers in the twelve months following the determination of
violation. Interest paid shall be computed as the cost of living change plus six percent per year,compounded for the period from
collection of the tax,fee,or charge to payment of the refunds. if the cost of issuing the refund is more than twenty pm=nt(201/o)
of the amount of the refund,a credit may be issued to the appropriate taxpayers.
(10) Because governments have at times been creative at redefining terms,or otherwise creating new funding mechanisms in
order to circumvent limitations placed upon them by the people,the legislature,in implementing this section,and the courts in
interpreting it,shall apply the strictest scrutiny to any new or renamed government funding mechanism;and shall require in every
reasonable circumstance voter approval as required in this section for new or increased taxes,fees,or charges,regardless of the
creativity used by the government in designing or naming the funding mechanism. Under this section,certificates of participation
and all such funding mechanisms shall be subject to the same limitations and requirements as a bond measure.
(11)Any Oregon taxpayer affected by a new or increased tax,fee,or charge or bond issue subject to this Section 32a has standing
to challenge it,and/or the election authorizing its imposition,by court action commenced in any county-in which the taxing entity
is located If the election is held,a tax,fee,or charge is imposed,or a bond is approved,in material violation of this section or any
implementing legislation,the court shall declare the tax,fee,charge or bond void Such an action shall be commenced within
ninety(90)days after the earlier of(i)the date on which the election approving the tax,fee,charge or bond is held;or(ii)the date
on which the tax,fee, or charge is first imposed or the bond is approved for issue. The court shall award reasonable attorney fees
and costs to the prevailing taxpayer,or if the action is found to be frivolous, to a prevailing government party.
(12) If any phrase,clause,or part of this Amendment is invalidated by a court of competent jurisdiction, the remaining phrases,
clauses, and parts shall remain in full force and effect. If any provision of this Amendment is found to violate or infringe upon a
right of any person or group under the U.S. Constitution,the provision shall remain in full force and effect for all other persons or
groups for which no infringement has been found
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