03/14/1984 Meeting (2) - Laserfiche WebLink

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III. ALTERNATE SOURCES OF REVENUE e Mr. Wong reviewed the findings of staff and the Bureau of Governmental Research and Service in projecting the yields on commonly used municipal revenue sources. Mr. Wong said that the report was in draft and would be available within the next month. There is an initiative petition circulating for a 1.5 percent limitation on property taxes. Mr. Wong explained how they calculated the number and the loss to the City. In the worst case scenario, $15 million would be lost by the City. In the best case scenario, it would be a loss of $10 million. This would be the equivalent of one-third the revenue, or the amount of the public safety budget. Mr. Gleason added that the tax increment district would also be affected. IV. METROPOLITAN MOTOR VEHICLE FUEL TAX (memorandum distributed) Mr. Wong explained the proposed three-cent-per-gallon fuel tax as outlined in the distributed memorandum. This tax had been proposed by the Springfield City Council. Mr. Wong reviewed the cost of street overlays which should be $765,000/year, and is presently $500,000/year, and last year was $160,000/year. He introduced Mr. Guenzler to answer questions. e Mr. Holmer was told by Mr. Burkett that the fuel tax would be used to release resources for other uses. Mr. Hansen asked about the bulk oil dealer being taxed and was told a business license tax would be the taxing device. He was told it was collectible. Mr. Holmer asked why send business to Glenwood. He was told there would be a six-cent difference. Mr. Burkett did not see it as a problem. There is presently quite a range in prices in the metropolitan area. Mr. Gleason reported his research on the county-wide tax indicated that the county road fund was not in need of money; therefore, they could not see the need to tax fuel. Creating special districts caused annexation problems and should be reviewed along with the whole urban growth policy. Mr. Hansen asked if the City Charter provided for taxing goods brought into the city. Mr. Long said that he had researched this question and the city has broad authority. Mr. Gleason concluded the presentation by asking if they could agree on the numbers presented. The council direction given to the manager was to neither cut nor add to the budget. In 1986 there will be a $2.5 million problem if services are restored and a $1 million problem with just the services presently offered. The choice is a tax or a decrease in service. Mr. Keller declared a ten-minute recess. e MINUTES--Eugene Council Work Session March 14, 1984 Page 2