09/18/1985 Meeting (2) - Laserfiche WebLink

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III. COUNCIL DISCUSSION e Mayor Obie suggested the discussion would proceed best if it was based on a motion. Ms. Wooten moved, and Mr. Hansen seconded, to adopt to forward to the voters Table 1 as presented which is revenue based on one-half of one percent income tax, a $5,000 income exclusion, and progressive tax credit. Several councilors expressed concerns about the CIP list of projects. Ms. Ehrman said the council must be careful about what is included in the list. She said the voters did not favor entrance beautification. She supports giving street overlays a priority. Mr. Miller pointed out that many projects can be included in the CIP list during the budget process. He thought the councilors should be frank and tell the voters about the budget process. Ms. Wooten said voters will want answers to such question as: Where will the 1 ibrary be? Ms. Schue said the income tax revenue for the CIP is replacing Federal Revenue Sha ri ng funds. Voters should be told that. They should also be told the City has not been taking care of capital assets at a replacement rate. She added tha t the counci 1 ca n a 1 ways lower the income ta x ra te. Mr. Hansen pointed out that funds from several sources may be received for the airport expansion. If that is the case, some of the revenue from the income - tax will not be needed for the airport. Mr. Holmer said dedicating revenue from the income tax to capital projects may present problems. There is a relationship between operating and capital expenses. Sometimes money spent for one will reduce the other. He sa i d a n income tax is a general tax and, therefore, should go into the General Fund. He supported the charter amendment for specific projects, but he also thought it should be available for operating expenses. Mr. Miller favors dedicated revenues. He noted that the proposed income tax will not fund all the capital needs of the city. He suggested the 1/2 percent income tax could be reduced to 1/4 percent in 25 years when the airport and 1 ibrary are paid for. He favored addressing immediate needs. Mr. Miller moved, and Ms. Bascom seconded, to amend the motion to provide for a reduction of 1/4 percent in the income tax in 25 years. Mr. Rutan would like to present a clear proposal and a price tag to the com- munity. Responding to a question from Ms. Schue, Mr. Wong said a reduction in the income tax could be included in the measure, but it would have an effect on revenue bonds. The reduction would have to take effect after the maturity of any bonds. It decreases the flexibility of financing plans, not only for the airport and the library but also for other projects for which the revenue e might be needed.