05/21/1979 Meeting - Laserfiche WebLink

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Due to recently-voted bonds, debt service is added to the property tax levy in the amount of about $1,600,000. So, when debt service is combined with the operating levy (without the supplemental taxes), there is a $3.5-million addition to the levy which is a 30-percent .. increase for the City part, which constitutes about one-third of the property tax bill. If non-property tax levies were to pass and were to be subtracted from the property tax, the transfer tax would result in a 12.4-percent property tax increase. The business tax would result in a 16.2-percent increase in the property tax levy. If both non-property tax levies were enacted, there would be only a 4.7-percent increase in the total property tax levy. Manager compared the various tax options on a $50,000 house ($65,000 with increase in assessment of property value); whereas the property owner paid $364 last year, their bill would be $449, an $85 increase (23 percent) if no non-property tax measures were authorized. With the transfer tax, the owner would pay $399, a $35 increase (9.6 percent). With the business tax, the owner would pay $409, a $45 increase (12.4 percent). With both taxes, the owners would pay $359, a decrease in property tax over the previous year. Manager noted that May 22 is the last day to submit to the County what is to be on the June 26 ballot. Mr. Obie presented the minority report from the Budget Committee to the City Council and the citizens of Eugene. It was from Boyd Engelcke, chairman of the Budget Committee, Joe Soderburg, Jack Pyle, lay members; D. W. Hamel, Betty Smith, Brian Obie, City Councilors. They ~ objected to the request from the Budget Committee to a 23-percent ,.., increase in the property tax. They further objected to the haste and lack of study on the part of the Budget Committee in recommending the transfer and business gross receipts tax. They felt these taxes take away from the voter their right to approve the City expenditures beyond the six-percent limitation and this right would be gone forever. They urged reduction of the property tax levy using ability, to pay as the criteria and to reject the two new forms of taxing. Public hearing was opened. Ron Schmaedick, 1742 West 34th Place, said 1978 was a record year for building in Eugene. There are more properties to share the burden. Assessments are increased. The citizen's tax bill has not gone up that much unless the house was recently sold or reappraised. The increases are not as great as the income of the people who own those houses. This year is a greater increase, but the City has kept spending down for the past three or four years. Public hearing was closed, there being no further testimony. 5/21/79--2 '~ Z82