ANNEXATION TO CFD1 AND REDUCTION OF CITY TAX CERTIFICATION
QUESTION: Shall Milwaukie annex to CFD1 for fire and emergency medical services and reduce City tax certification to prevent tax increase?
SUMMARY: If approved this measure will annex the territory within the City to Clackamas Fire District No. 1 (CFD1). City residents will continue to receive fire and emergency medical services from CFD1. CFD1 is a service district governed by an elected Board of CFD1 residents; it provides fire and emergency medical services. The City will continue to provide all other services it currently provides. The measure also requires that the City reduce its property tax rate certification so that the total rate levied by the City and CFD1 is no more than the total rate they currently levy. Voter approval at a future election would be required to increase the City’s tax rate.
If the annexation is approved, CFD1’s permanent tax rate (2.4012 per $1000 of assessed valuation) is assessed on real property within the City effective July 1, 2005, and the City will reduce its tax rate certification by the same amount. Taxes cannot be increased without voter approval.
EXPLANATORY STATEMENT
The measure, if approved will annex the territory within the City of Milwaukie to Clackamas Fire District No. 1 (CFD1) effective July 1, 2005.
Upon annexation, property within the City will be subject to CFD1’s property tax, which is 2.4012 per $1,000 of assessed value. The measure, if approved, will require the City to reduce its tax rate in the same amount when it certifies its taxes to the County Assessor. The result is that total property tax rates of the City and CFD1 within the City will not change.
Voters must approve any increase in the City’s taxing authority.
Annexation of the territory of the City to CFD1 will allow City residents to fully participate in CFD1 elections for Board members and money measures such as serial levies and bond measures. If the annexation is approved, City residents are eligible to run for and serve on the CFD1 Board.
CFD1 has provided fire suppression and emergency medical services to the City since 1998 pursuant to a contract. Approval of the annexation will make provision of fire suppression and emergency medical services by CFD1 permanent so that continued service is provided to the City. It fixes the cost of fire protection and emergency medical services at no more than the CFD1 permanent rate of 2.4012 per $1000 of assessed value and enables CFD1 to better plan for long-range capital expenses and service requirements. Any increase in CFD1’s taxing authority requires voter approval.
The measure, if approved, will incorporate the following provisions into Milwaukie Municipal Code.
- All territory within the City of Milwaukie is annexed to Clackamas County Fire District No. 1 effective July 1, 2005.
- Except as provided in Section 3 below, in order to avoid an overall property tax increase on property within the City, the City shall adjust the property tax rate it certifies annually to the County by reducing the City tax rate by 2.4012 per $1000 of assessed valuation for any year in which property with the City is required to pay property tax to CFD1.
- The City may certify a property tax rate higher than the rate resulting from application of Section 2 only if the voters of the City approve the higher rate.
Submitted by:
James M. Bernard
Milwaukie Mayor
No arguments FOR or AGAINST this measure were filed.