Sean C. Morgan
Sweet Home voters approved local option levy renewals for the Police Department and the Public Library during the election on Nov. 3.
The police levy passed 926, 60.29 percent, to 600, 39.06 percent. The library levy passed 887, 57.75 percent, to 642, 41.8 percent.
“It’s a relief, quite honestly,” said Police Chief Jeff Lynn. Many officers are relieved the process is over at this time.
“I think they were encouraged and honored by the support the community showed toward law enforcement,” Lynn said. “I know it was difficult in the backs of a lot of officers’ minds. They have families to support as well.”
“Sincere gratitude and appreciation to the voters for approving the levy,” said City Manager Craig Martin. “It’s always a challenge asking for money or asking for more money to essentially try to keep things at the same level of service.”
It also indicates that 60 percent or so of voters “are appreciative of the services they’re getting from the police and library,” Martin said. It’s a kind of report card from the voters every five years.
“The other group to thank is obviously the volunteer (campaign) group for their support,” Martin said.
The renewed levies take effect on July 1 and continue for five years. The police levy increases from $6.40 to $7.85 per $1,000 of assessed property value, a difference of $1.45. The library levy increases from 82 cents to $1.17 per $1,000 of assessed property value.
The levies likely will have limited direct impact on most property in Sweet Home. Most property in Sweet Home is in a state of “compression.”
Property taxes are limited to $10 per $1,000 of real market value for general government and $5 for education. Property tax rates are applied initially to assessed values. The total tax is then compared to real market values and decreased to $10 per $1,000 of real market value. The difference between the two figures is called compression.
While property is in compression, property tax bills increase when real market value rises regardless of the tax rate.
Compression is applied first to local option levies, which are temporary levies renewed periodically by voters for specific purposes, like law enforcement. Permanent rates, which are constitutionally set tax rates for districts, are not impacted until revenue from local option levies is reduced to zero.
In Sweet Home, due to an effect of property tax limitations, most of the city’s tax rate, used by law enforcement, is in local option levies, which are affected by compression. The city’s permanent rate is $1.42 per $1,000.
When other districts increase the size of their option levies, the compression effect limits immediate and direct increases. Money essentially shifts from one taxing authority to another.
City Finance Director Pat Gray compares it to a pie. Tax increases change the size of the pieces. Since 2007, Sweet Home has steadily received a smaller share as other districts increased tax rates.
The City Council sought a relatively large increase to help recover Sweet Home’s share of local option levy funds.