11/16/1988 Meeting - Laserfiche WebLink

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e Mr. Bennett expressed concern about creating a new tax for this purpose, which he feels does not take into account the future operating and capital needs of the City. He said if such a tax is created, it will put the City in a position which makes it difficult to argue for additional revenue to meet operating and capital needs. Mr. Bennett felt that if this tax is taken before the public, the council should consider raising the tax rate to generate additional revenue to help meet future operating and pursue in the near future. Ms. Ehrman said she would not be proposing a tax at this time unless it was for a specific project. Ms. Ehrman said that at the EWEB Board meeting she attended, the merits of the targeted library project were not discussed; the board discussed the legal issues and inequities that might stem from a utility consumption tax. She felt the City should be prepared for the EWES Board to take a position against the utility consumption tax. Ms. Ehrman pointed out that EWEB and the City represent the same constituency and have the same population's interests in mind. Answering a question from Ms. Wooten, Ms. Ehrman said the EWEB Board opposed the proposed tax for several reasons. EWEB has been considering a rate increase and also does not want to play the role of tax collector. In addition, Ms. Ehrman said EWEB Board members seemed to be genuinely concerned about the rate payers and felt the proposed tax is regressive. Ms. Wooten said in the past she had not favored a utility tax because they are regressive and unfairly impact elderly and lower income rate payers. She e said she feels using a utility tax for the library would be different. Mr. Rutan said the City can afford a library without imposing a utility tax and he distributed a proposal demonstrating how this would be possible. He reviewed his proposal which included dedicating a portion of the CIP, using tax increment flow, fund-raising, and the sale of the existing library building and the surrounding parking lot. To meet the operation costs of the library, Mr. Rutan suggested phasing use of the library, generating additional capital from land underneath the building, and instituting a user fee program. Mr. Rutan also recommended that the council put a five-year serial levy for $500,000 on the ballot in March. Mr. Rutan said he believes community members will be willing to pay a minimal fee for a library card. He felt that it is unrealistic to expect the City to build a major library without instituting library fees. Mr. Rutan said the community is willing to help finance the library but only if the council can exhibit that it has considered every possibility for reducing the costs of the library. Mr. Rutan recommended that the council commit to a portion of the Pankow development at this time, realizing that it may have to find another use for the space if attempts to finance the library fail. Mr. Rutan did not feel the council should proceed with a public hearing on the utility tax. He said the council does not really know what it needs in the way of financing. e MINUTES--Eugene City Council November 16, 1988 Page 6