04/23/1992 Meeting - Laserfiche WebLink

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e e e Mayor Miller moved, seconded by Mr. Boles, to approve a .15- percent personal income tax and a 2-percent corporate income tax, thus achieving nearly a SO/50 split. Mr. Nicholson said that this concept is simple and would be easy to present to the public. Mr. Boles said that the total corporate income is $150 million. Mr. Mounts added that the total personal income is $2.9 billion. He said that figure includes wages, salary, and other income. The council briefly dis- cussed the fairness of this tax strategy. It was noted that these are not actions to be taken, but suggestions to be presented to the public. The motion passed, S:2 (Ms. Bascom and Mr. Green opposed). Regarding public safety, Mr. Mounts said that staff has suggested two serial levies: a $1.4 million capital levy for ten years, and a $2.75 million operating levy for three to five years. The latter includes $.5 million for fire redeployment, and initially $1.7 million for community police services. He said that the programs would be phased in, over the five-year period, and the proposed levy would be sufficient to cover the needs for those two programs for a five-year period. After five years, another five-year serial levy would be required. In response to a question from Mayor Miller, Mr. Mounts said that the primary risks involve maintaining the bond obligations while being faced with possible layoffs and service reductions. Mr. Robinette pointed out that the projected costs will increase after the fifth year. Mr. Mounts said that the entire program will be implemented in phases. Mr. Robinette expressed concern about whether the two serial levies would fund the program for the entire ten-year period. Mr. Boles said that if the sunset constraint were removed, staff should be able to craft a sustainable package. Mr. Mounts said that if the entire amount were levied through the tax base, sustainability would still not be guaranteed. Mr. Nicholson expressed concern about the amount that taxes would be raised. Mr. Gleason said that the tax percentage will not be known until the results of the Eugene Decisions process are clearer. Mr. Nicholson expressed concern that property owners may end up paying more taxes than if Ballot Measure S had not passed. The council agreed that if the programs cannot be sustained over a ten-year period, either the funding mechanism or the program must be changed. Mr. MacDonald moved, seconded by Mr. Nicholson, to direct staff to generate a package based on a GO bond to fund fire station construction. In response to a question from Mr. Boles, Mr. Gleason said that a bond is usually 20 years. Mr. Wong added that the property tax levy for General Obligation debt service is decreasing. He said that it is currently approxi- mately $.57 per $1 of assessed value, and in three years, will be reduced to $.25 (solely for the Hult Center bond). Mr. Wong said that a bond could be structured whereby only the interest was paid during the early year of debt repayment. Mr. Boles pointed out that the voters may only approve one package. He said that capital and operating budget should be linked. Mayor Miller said that MINUTES--Eugene City Council 5:30 p.m. April 23, 1992 Page 3