09/22/1986 Meeting - Laserfiche WebLink

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M I NUT E S e Eugene City Council Dinner/Work Session Bon Sai Restaurant September 22, 1986 5:30 p.m. COUNCILORS PRESENT: Debra Ehrman, Emily Schue, Ruth Bascom, Roger Rutan, Jeff Miller. COUNCILORS ABSENT: Cynthia Wooten, Richard Hansen, Freeman Holmer. City Council Vice President Debra Ehrman called the meeting to order in the absence of Mayor Brian B. Obie and County President Richard Hansen. 1. STATE BALLOT MEASURES City Manager Micheal Gleason introduced Tony Mounts of the Finance Division. Mr. Mounts said 22 measures will be on the November ballot. Sixteen of them are State measures, four are Lane County measures, and two are City of Eugene measures. The City of Eugene measures concern the West Eugene Parkway and a nuclear-free zone. He said five of the State measures would have significant financial impacts on the services the City provides. He introduced Kathy Field of the Finance Division who discussed the five measures. A. Ballot Measure 7--Constitutional 5 Percent Sales Tax -- Ms. Field said Measure 7 would impose a five percent sales tax. The measure is sponsored by the Oregon Education Association (OEA). The measure would be effective no later than January 1, 1988. It has a special funding provision for basic school support and community colleges. It would retain the present tax base system for property taxes. Ms. Field said Measure 7 has a 1.5 percent property tax limitation for owner- occupied, principle housing only. It is a constitutional amendment and does not provide for voters to override the 1.5 percent property tax limitation. Consequently, the constitution would have to be amended to change the property tax limitation. She said the sales tax would be on tangible goods only and some specific things, such as food and prescription drugs, would be exempted. The measure would prohibit local sales taxes. It provides a rebate for people with low incomes and would continue the existing Homeowner And Renter Relief Program (HARRP). Ms. Field said approval of the measure would have a long-term effect on Eugene because the city would reach the 1.5 percent property tax limitation in three to five years. The time it would take to reach the limitation would depend on actions of other jurisdictions such as the school district and Lane County. She said revenue from the Urban Renewal District would be decreased about 27 percent if Measure 7 passes because the property tax rate would be decreased. e MINUTES--Eugene City Council Dinner/Work Session September 22, 1986 Page 1