05/26/1969 Meeting - Laserfiche WebLink

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~ e O~~.87 5/26/69 _ _~_u________. __._~ _____~ - -- . - ~ - ----- ._- -----------------~-- __ - __ _u ___ .____ ___._____ _ I chairman of the Lane County Auditorium Association. The Auditorium'Association has earned more than $50,000.00 and is requesting that, the budget committee earmark $50,000 ,of this tax money for p:lanning studies, so that, they can start to 'build. The association is ready to make a decision about architects, but wants to be sure financing is assured before taking definite steps. Mrs. Hayward said there is an item in the budget which will permit the Council to make a decision about this money, and when the ordinance is adopted, they will make that decision. In answer to a question from Mr., Ragozzino, Mr. Gause said it would take a month to six weeks to implement the ordinance, after passage. Mr. Mohr asked Mr. Hendershott for an opinion on Monday night on the possibility, after passage of a state sales tax, of the city, at a local level to assess an additional tax, and whether there is authorization fOL such a proposal. e Mrs. Hayward moved seconded by Dr. Purdy that the City adopt an administrative ordinance to implement a 3% Transient Room Tax, and to provide a 5% deduction to cover the .administrative costs of the Hotel-Motel operators. In answer to a question from Mrs. Beal, the City Attorney said the city could arrange for the State Ta~ Commission to collect this tax in addition to a sales tax, if such a state tax we~e levied, but regardless of whether the state sales tax passes, the Ordinan~e provides for, collection of .the tax by the City. It is a very comprehensive ordinance. I Mrs. Catherine Lauris reiterated pleas of the Auditorium Association that funds be earmarked for selection of an architect so that they can go ahead with plans for a Civic Auditorium. Mr. Mohr said he was inclined to withhold consent to a second reading of the Ordinance until the results of the genera 1 3.% sales, tax election are known. . Mrs. Jean Ware will be spent. This will be up and. the Charter asked whether something should not be written into' the ordinance as, to how the money Mrs. Hayward said a determination had not been made how the money will be spent. to the budget committee. People in ;the community voted authoriza,tion on a tax Amendment outlines what kinds of things the money can be spent for. Mr. McKinley said there was a strong representation on the part of the; committee for hotel-motel owners that the ordinance should include an indication .of the way the money should .be spent. The staff recommends tnat this not be a part of this a~ministrative ordinance,. because expenditure of funds could vary from time to time, depending on changing conditions, resources and the needs of the community. Appropriations from any fund are the prerogative of the budget committee, and the City Council to determine from year to year. Funds woula be set aside in a separate account and . could be used only for those purposes outlined in the Charter Amendment" To provide assurance that these monies be used for definite 'purp'os'es', a separa.teordinance or resolution could be adopted. The Manager read a letter from the Chamber of Commerce requesting specific allocation of funds: 25%, to be used for convention facilities, 25% for financing tourist facilities and the remainder to be used for cultural and recreational facilities and related services. I Councilman Purdy said it was his feeling selection of an archLtect should come from the Council, so that there would be no question in the future in this regard. Mrs. Lauris said she was sure the committee planned on reporting to the Council, but they had spent a year working on ~hese plans. They are prepared to come each year and negotiate for needed funds. Mrs. Hayward felt the Council shou14 adopt the ordinance so that mechanics for collection could be set in motion. Then a public hearing should be held to permit the people to come and talk about ways to spend. the money. There was a discussion concerning relation of this tax to a possible 3% State Sales Tax. e Mr. Otto Vonderheit said he had been working with hotel and motel. operators in connection with this ordinance, and wanted to express th~ir appreciation to the city administration. for the fine cooper- ation that was given to them in tpying to work out an administrative ordinance. The ordinance is acceptable to motel-heteboperators with the exception of use of .the funds.. S:i,.nce this is a. special and discriminatory tax, it seemed proper that the uses for funds should be made known. The Charter Amendment wording is: too broad. For 'example, under recreation, the. money could be uS'ed .to pay the park director's ffilary. If funds are not earmarked, they could go into the general fund. The Hotel- ' Motel owners have two proposed ordinances, one somewhat similar to what the Chamber of Commerce has propesed~ The other ordinance suggests that a committee be established .to advise the Council on specific uses of tax funds and suggests composition of such committees. He asked to submit the two proposed ordinances for consideration. I Mrs. Beal said ,it is difficult to earmark funds.' ;If necessary to use this money to pay the Park Director. be tied to specific uses for this money. the City budget should go down; it might be She did. nO.t.: feel the Council's: hands should Mr. Ed Adkins suggested that tliis money be, put in a 'fund to bui1d'~a center, that c'ould be utilized for minority groups. e Dr. Purdy reminded the Council that when this tax was originally brought up, the.Hotel-Motel opera~ tors were promised that the Council would assist them in some type, of tourist promotional program, in order to cover losses which might occur as a result of the 3% tax. Dr. Purdy felt it should be spelled out that they receive a certain sum, if only to prevent it from being said the Council brought forth an unjust and selective tax. Mayor'Anderson agreed, saying the Council was. quite specific as to what general needs ,should be taken ca.re of. I if 5/26/69 - 6 .....