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Questions and Issues from September 29, 2004 Meeting: 1. Is there an alternative form of property tax exemption, other than the State's Enterprise Zone program, that could be used to redefine the types of companies that qualify, and broaden our ability to condition the tax exemption? No. Property tax exemptions are authorized by the State of Oregon-Department of Revenue. The City of Eugene does not have the authority to initiate tax exemptions locally. Existing tax exemption programs, including the Multiple Unit Property Tax Exemption (MUPTE), Vertical Housing Development Zone, Historic Property Tax Exemption, and Low-income Housing Tax Exemption are all authorized under state statutes. These programs are not applicable to traditional job-creation/economic development activities. 2. What is the definition of "family wage job" and "living wage"? These two terms are typically used synonymously, but there is no single, universally accepted definition. The State of Oregon typically considers "average annual wage" to be the benchmark for family/living wages. The average annual wage in Lane County is currently $30,311 ($14.57/hr.). The Economic Policy Institute considers the annual family/living wage to be $31,383 ($15.09/hr.) for a family of three (average household size in Eugene) in the Eugene-Springfield area. 3. What are the "community standards" that were referenced at the previous meeting; and, given the state Enterprise Zone statutes and rules, is it possible for these standards to be incorporated into locally adopted conditions? The Eugene-Springfield Solidarity Network has developed a community standards policy for economic development subsidies provided to business. The following is a description of the standards and an analysis of the City's ability to condition the enterprise zone tax exemption on each standard: Transparancey and Disclosure - Open and pubfic accounting of how money will be spent and what it will provide to the local community. Tax exemptions granted in the enterprise zone program are matters of public record. Because the program only offers tax exemptions, there is no money "spent" in the program, and therefore no ability for companies to utilize funds inappropriately. The County Tax Assessor requires companies to demonstrate annually that they are in compliance with the program requirements. Accountability- Employers who do not observe these community standard; will be required to pay back any public money or tax breaks/incentives that they have received and will not be eligible for further subsidies until they guarantee compliance. Establishment of independent commission to oversee and monitor compliance with community standard,'. L:\CMO\2005 Council Agendas\M050216\S050216A. doc