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
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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 **