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<br />,.. <br /> M I NUT E S <br />- Eugene City Council <br /> Capital Project/Revenue Work Session <br /> McNutt Room--City Hall <br /> September 18, 1985 <br /> 5 p.m. <br /> COUNCILORS PRESENT: Cynthia Wooten, Richard Hansen, Emily Schue, Freeman <br /> Holmer, Ruth Bascom, Debra Ehrman, Roger Rutan, Jeff <br /> Mi 11 er . <br /> Mayor Brian B. Obie called the work session to order. <br /> I. REVENUE/EXPENDITURE PROJECTIONS <br /> Finance Director Warren Wong discussed the Revenue/Expenditure Projections <br /> material the council received. He reviewed three "Schedule of Projects to be <br /> Constructed" cha rts. The schedules indicated the airport expansion, library <br /> expansion, and Capital Improvement Program (CIP) projects that could be con- <br /> structed with revenue based on: 1) an income tax of 1/2 percent; 2) an income <br /> tax of 4/10 percent; and 3) an income tax of 45/100 percent. The revenues <br />- were based on adjusted gross income. He also discussed a chart of Net Income <br /> Tax Revenues which indicated credits people with low incomes might receive and <br /> a Schedule of Income Tax Costs for Selected Incomes. He said about $250,000 <br /> (about 4.2 percent of the projected revenue) of a city income tax would not be <br /> collected if the suggested credits were included in the proposal. <br /> Answering questions, Mr. Wong said the projected cost of the library before <br /> debt service is $8.8 million although the total debt cost is over $22 million. <br /> The projected cost of the airport is $17.1 million. <br /> Discussing the difference in the project schedules, Mr. Rutan said the CIP <br /> projects might be difficult to accomplish if a 45/100 percent income tax is <br /> approved. Mr. Wong explained that both principal and interest on the library <br /> debt will be paid from the sixth year when construction begins if 1/2 percent <br /> income is approved. If the 4/10 income tax is approved, only interest on the <br /> library debt will be paid from the sixth year when construction begins until <br /> the 11 th yea r . More CIP projects can be accomplished if a 1/2 percent income <br /> is approved. <br /> Ms. Bascom said a 45/100 percent income tax would be more difficult to explain <br /> to the public than the other two possibilities. <br /> Mayor Obie was comfortable with the credit impact on the 1/2 percent tax. He <br /> was concerned about the few CIP projects that could be accomplished with the <br /> 4/10 percent tax. <br />- <br /> " <br />