08/26/1968 Meeting - Laserfiche WebLink

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~ ~48 - 8/26/68 !i that similar legislation in other states has been declared unacceptable where it involved a decision by' . , the voters on one measure which is contingent upon the decision on amother measure. If the l~% measure is approved, and there is a question about the legality of the serial levy, the Ci-tywo~ld experience a major financial blow. The City Manager recommended 'that the 'measure be 'submitted as a four-year serial levy only, dropping the tax base alternative. He said the serial levy would provide more money than anticipated .to be needed for operating expense, so if the l~% measure fails the Council would have the obligation of levying a lesser amount in accordance with the measure's intent. Mr. Anderson moved seconded by Mr. Lassen to submit the measure on the November 5, 1968 ba llot as a four-year serial levy only to provide operating funds through 1972-73. Councilman McDonald asked if the levy would affect the $7;7 million sewer bond sale and how it would affect the tax rate. The Manager said the levy, will not affect the sewer bond sale, norwi~l the sale affect the levy. The levy simply provides funds which can be used for debt service, but this would not be manadatory. There will be a slight rate increase; but the City's indebtedness will not be jeopardized. A rollcall vote was taken on the ,motion as stated, and motion carried, all councilmen present voting . aye. 1 b. Room Tax - The City Manager explained adoption of the proposed Charter amendment would enable the,Council by ordinance to establish a tax on transient rooms. The Charter , , .~ amendment itself does not adopt the tax, 'does not ,set an amount, nor .does it indicate use of the monies which would be der.ived from such a tax. Letters were presented from Local No. 643 of the Hotel and Restaurant Employees and Bartenders.and from the Eugene .. Chamber of Commerce objecting to the proposed Charter revision. The City Manager said '= the Charter amendment could be taken to the voters at either a general or special election since there is no time element involved so far as the l~% limitation measure is concerned. He said that any ordinance considered by the Council under this Charter authorization would have full study with regard to its effect on convention and tourist facilities, discussion, hearings, and be subjectto referendum. ~ Paul Lansdowne; speaking for the Hotel-Motel OWners Association, sai~ the Association objects to the measure on the basis that it is being submitted to the voters too quickly, that it is discriminatory, that travelers will bypass Eugene to avoid pay- , ment of the tax, and that the measure does not spell out the amount of the tax nor for what purpose the funds will be sp~nt. Some discus.siontook place with regard to r, the possibility.of the State's enacting enabling legislation to all~w cities and counties to levy a room tax, and the flexibility of the proposed Charter amendment whereby any later change in amount or use of funds would not have to be referred to the voters as the amendment is now written. Other members of the Hotel-Motel Owners Association objected to the amendment as written and,suggested more specific language' with regard to use of funds. Mr. Anderson moved seconded by Mrs. Lauris to write into the measure that the funds would be used for cultural, ro nven t ion, and tourist related facilities. Motion carried. The City Manager read the revised draft of the proposed measure which would authorize the Council by qrdinance to levy a room tax for cultural, convention, and IDurist related facilities and services. . Mr. Anderson moved seconded by Mrs. Lauris to approve submission of the measure, changing'it to read " ... for cultural, convention, recreational, and tourist related facilities'and services." Lee Bishop read a statement on behalf of the Lane County Auditorium Association endors'ing .the measure and urging its adoption. Paul Lansdowne, Hotel-Motel Owners Association;, Lyle Swetland, Lane County Labor Council; Joe Cover, ,4i 7 Hotel-Restaurant Employees and Bartenders Union; Rube Ross, City Center Lodge; and a representative of the Associated Students of the University of Oregon opposed submission of the tax measure~on the basis that it is untimely, a regressive and discriminatory tax, some tourists are not interested in conven- tion type facilities, it would make it difficult to raise wages of employees in the hotel-motel in- dustry, and it would result in salesmen bypassing Eugene as ~ stopover place. " Councilman McDonald suggested the amendment be filed for the present in view of the objection received from the Chamber of Commerce.. Councilman Anderson pointed out that the proposed amendment in itself does not establish the room tax; it is merely enabling legislation, so that the hotel-motel industry ',would have ample ti~e _ to gather information and would enter into any .de1iberations of the Council in formulating an ordinance to implement a room tax. Councilman Wingard said he felt the amendment should be more specific with regard to amount ,of tax. The . Manager explained the intent of a broadly worded amendment was to allow more flexibility through use of an ordinance. He said that if the'tax should prove unworkable, the Council could repeal it without ~. 'going back to the voters to have it removed from the Charter. :Mrs. Lauris moved seconded by Mr. Wingard to amend the motion to include the words "...not to exceed 3%." The City Manager expressed concern about writing limitations into the Charter. He said all measures v receive sufficient debate before being enacted, and these protections should be in ordinance form so that they can be amended as changes occur. \ '. ~ 8/26/68 - 16