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Agenda Packet - 1999-05-05 L�Sy co SAKE OSk4CO CITY OF LAKE OSWEGO CITIZENS' BUDGET COMMITTEE City Council Chambers 380 A Avenue oeEGON Lake Oswego, Oregon Wednesday, May 5, 1999 7:00 p.m. For information call 635-0260 Council Members: Citizen Members: Bill Klammer, Mayor Gene Arnold Bob Chizum Eric H. Carlson, Chair Jack Hoffman Jeff Gudman AGENDA Thomas Lowrey Chip Pierce Craig Prosser Tom Ruttan,Vice Chair Karl Rohde, Pres. Lisa Strader, Secretary Bill Schoen Patt Thomas NOTE NEW TIME! NOTE: THIS MEETING WAS ORIGINALLY SCHEDULED FOR MONDAY, MAY 3 AT THE FIRE STATION ESTIMATED CLOSURE I. CALL TO ORDER I. ROLL CALL III. PUBLIC COMMENTS IV. ISSUES& OPTIONS PAPER No. 3: LOCAL OPTION LEVY 7:15 P.M. V. HOTEUMOTEL TAX DISCUSSION 7:45 P.M. VI. DECISION ON ISSUES& OPTIONS PAPERS 8:15 P.M. VII. NON-ISSUES& OPTIONS PROPOSALS • PILKINGTON PARK • INDOOR PARK VIII. FUND BY FUND COMPARISON IX. FRANCHISE FEE INCREASE X. ISSUES & OPTIONS PAPER NO. 5: CITY/SCHOOL PARTNERSHIP XI. ADJOURNMENT 9:00 P.M. City of Lake Oswego - Distribution of Net Property Taxes (current only) Over the Last Five(5)Years Prior,in Five(5)Year Increments Fund 1999-00 % 1998-99 % 1997-98 % 1996-97 % 1995-96 % 1990-91 % 1985-86 % 1980-81 % General $ 1,620,066 9% $ 1,242,891 8% (1) $ 588,661 4% (1) $ 108,492 1% (1) $ 88,610 1% $ 247,388 3% $ 174,668 4% $ 123,000 4% Library Fund 773,220 4% 659,518 4% (2) 679,206 4% (2) 879,206 6% (2) 789,646 6% (3) (3) (3) Adult Community Center Fund 412,069 2% 392,697 2% (2) 296,707 2% (2) 321,715 2% (2) 307,800 2% (3) (3) (3) Public Safety Fund 8,990,106 51% 7,227,708 45% 8,907,799 56% 8,725,995 64% 8,068,041 64% 5,676,384 69% 3,114,184 65% 2,191,572 66% Parks&Recreation Fund 2,371,468 14% 3,426,027 21% 2,370,537 15% 2,263,353 17% 1,970,653 16% 1,563,742 19% 809,875 17% 814,332 24% City/School Partnership Fund 1,000,000 6% 1,000,000 6% 1,041,500 7% - 0% - 0% - 0% - 0% - 0% Sub-total,from permanent rate $15,166,929 86% $13,948,841 86% $13,884,410 88% $12,298,761 90% $11,224,750 89% $7,487,508 91% $4,098,721 86% $3,128,898 94% Bonded Debt Service Fund $ 2,369,000 14% $ 2,195,500 14% $ 1,883,520 12% $ 1,402,641 10% $ 1,449,009 11% $ 705,534 9% $ 690,096 14% $ 216,817 6% Total $17,535,929 100% $16,144,341 100% $15,767,930 100% $13,701,402 100% $12,673,759 100% $8,193,042 100% $4,788,817 100% $3,345,715 100% Explanatory Notes: 1997-98 _ 1996-97 1995-96 (I) The amounts to the right were taken out of General and added to Public Safety $ 644,784 $ 821,205 $ 822,995 as they were transferred from General in lieu of property taxes. (2) The"boldface"amounts under Library and ACC were also taken out of General as they represent transfers in lieu of property taxes. (3) The Library and ACC for these three fiscal years were a part of the General Fund. $4,000,000 - ------- — — — —.._-.— S20,000,000- --- - — $3,500,000 $18,000,000 $16,000,000 — —. .. $3,000,000 '±EI3HI. H —X—Parks&Rec $2,500,000-_.......... ..... .. —0—Bonded Debt $12,000,000 —4—General S10,000,000 ----- — ---------... ._. 0-Total $2,000,000 - Public Safety �E—CitylSchool $1,500,000 _..._.. - Library ::::: i — — — $1,000,000 � terra $4,000,000 ----- -- — ----- --- $500,000-.....-..__. ._ ._.. ... G A--_fr.-------A p $2,000,000- ---- — $0 SO , 1995-96 1996-97 1997-98 1998-99 1999-00 1995-96 1996-97 1997-98 1998-99 1999-00 •ti OE LAKE Os kfCO ADMINISTRATIVE SERVICES OREGON To: Douglas J. Schmitz, City Manager FROM: Robert A. Kincaid,Assistant City Manager SUBJECT: Telephone Franchise Fees DATE: February 5, 1998 ACTION Should the City increase the telephone franchise fee from 4.3%to 7.0%of gross revenues? BACKGROUND A number of years ago,the State of Oregon changed its regulations regarding telephone franchise fee rates and raised the ceiling on the rates from 3%to 7%. In addition, it changed the method of calculating gross revenues for the purpose of calculating the fee. City's were given the opportunity to adjust their fees accordingly. The City of Lake Oswego decided to adjust the fee percentage so that it received approximately the same amount of revenue as it did before the State regulations were changed. This resulted in an increase in the percentage from 3%to 4.3%. The franchise between the City and GTE has expired. It was last negotiated in 1990. ANALYSIS When the State changed the regulations on the revenue calculation, most cities increased their franchise fee to the maximum 7%. Some of that fee appears on the customer bill as a City tax. In Lake Oswego's case, a very small amount appears on the customer bill. Currently,the GTE franchise fee is estimated to raise approximately $40,500 annually. If the fee is raised to 7%, the fee would bring in $65,326. When the City last negotiated the USWest franchise, it reserved the right to increase the franchise fee to 7%. This was done in case the City increased the GTE rate at a later date. If the USWest franchise fee is raised to 7%the estimated annual fee would increase from $201,533 to 325,072. This is a net increase of$123,539. Combined, increasing both franchises to a 7% fee would increase revenues to the City by approximately $148,365 annually. If this entire amount appeared on the customer bill, it would be in the neighborhood of an additional $1.00 per month based upon a customer based of 12,000. Attached is a listing of the franchise fee rates charged by other cities in the State. As you will note,most cities are charging the 7%rate. U5W PUBLIC POLICY 503 242 8589 TO 96997457 P .01 /01 9'9.7 r R4t C f(S 11c4-'5 � 5j �aes+1 7o , ADAIR :(:LAGE 5.0% METOUUS 7.0% D MS 5.0% MILLERSBURG 7.0% NUE143ff 7.0% MILTON-FREEWATER 5.0% ASHIAAD 7.0` MILTON-FREEWATER 7.0% .ASTORPA 7.0% MILWAUKIE 7.0% iikIlicEM 5.0% MONMOUTH 7.0% BAKER 7.0%i NEWPO 4.0% BEAVERTON 5.9 h, NORTH PLANS 4.(154 BEND 7.0% OAKLAND 6.0% CANNON BEACH 4.0% OAKRIDGE 5.0% CENTRAL 7-'1P'I('T 7.0% OREGON CITY 7.0% COBURG 5.0 PENDLETON 7.0% COLUMBIA CITY 4. _ PI OENIX COS CORVALLIS ?.0if) PRESCOTT 5-5% COTTAGE GROVE 7.CM MieRVILLE Y.0% CULVER 7.0% RAIMIER 1.0% DALLAS 7.0% (RE0MON® 7.0% DUNES CITY 5.0% ROGUE RIVER 4.0% DUNES arr 7.0% "OSEBURG Y.0% EUGENE 7.0% siotum 7.0% FALLS CITY 5.0% SEASIDE 7.0% FLORENCE 4.0% SILETZ 4.5% GEARHART 4.0% SISTERS 7.0% GLADSTONE 7.0% SPRINGFIELD 7.0% GOLD HILL 7.0% ST. HELENS 7.0% GRANTS PASS 7.0% STANFIQQ 7.0% GRESHAM 7.0% SUMPTER 6.0% NAPPY VALLEY 5.0% SUTHERUN 7.0% HARRISBURG 7.0% TALENT 5.0% HERMISTON 5.0% TALENT 7.0% HUBBARD 7.0% TANGENT 5.5 , INDEPENDENCE 7.0% TICARD 5.0% IRR%GON 7. , TOLD 5.0% JACKSONVILL.E 5.0% TIiAtATIR 4.0% JEFFERSON 7.0i5 UIElIATIII 7.0% JOHNSON CITY 4.3ck VH A 4.0% JUNCTION CITY 4.0 5 WARRENTON a 7.0% KEIZER 4. WEST UNN 7.0% I `14 FALLS 7.0% WESTFIR 3.2% LAKE OS1ii GO 4.� WESTFIR 7.0% • LOWELL 7.0` STON 4.0% MADRAS 7.0% VilI NSTON 7.0 MAW�iOOD PARK 7.0% ? ODBURN 5.0% MEI�F 7.0% V ODBURN 7.0% ** TOTAL PAGE .001 **