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