02/01/1988 Meeting - Laserfiche WebLink

Home Browse Search

e C. Notebook Material 1. Service Impact Statements Mr. Wong reviewed information in notebooks. He said that because of further analysis and adjustments for department overhead, service impact statements included, on the second page, all programs of the ballot results. 2. Revenue Statements Mr. Wong said revenue impact statements had been prepared for four preferred sources--a utility tax, a restaurant tax, a real estate transfer tax, and a service fee, which was analogous to a business and occupation tax but could apply to targeted segments. a. Real Estate Transfer Tax e Mr. Wong said the real estate transfer tax was being considered by Lane County. He said staff recommended that, because of extreme fluctuation in revenue, if this source was used, only a base amount be put into operations, and any balance be put into services that could be cut quickly or into the capital budget. He added that the County would administer the tax for the City and was considering a tax of .2 percent. Responding to Mr. Holmer's question, Mr. Wong said he was not aware that the County was considering any type of moratorium on property sales occurring within two or three years of a previous sale. b. Service Fee Mr. Wong reviewed the service fee. He said the City would attempt to identify a service or a business activity for which the City provides services and would charge an assessment for that. He said fees might be charged, for example, for maintenance of the downtown mall, or a tax on establishments serving alcohol might be used to fund law enforcement or social services. Mr. Wong added that Eugene was one of only a few cities that had neither a business and occupation tax nor a business registration program. Mr. Rutan asked how Eugene compared to other cities in terms of total City tax burden. Mr. Wong said staff would research that and should have a response in two or three weeks. Ms. Ehrman asked how a service fee would be collected. Mr. Wong said there would be administration costs because the City would have to establish a business registration or collection program. He added that the size and cost of the program would depend on the type of fee. He said a tax on serving alcoholic beverages would not be difficult, a restaurant tax was estimated to cost about $150,000 to set up, and a general business and occupation tax would be more complex. e MINUTES--Eugene City Council February 1, 1988 Page 2