07/11/1984 Meeting - Laserfiche WebLink

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In response to a question by Mayor Keller, Mr. Wong stated that the property e tax limitation and assessed value provisions would become effective on July 1, 1985, while the remaining provisions would become effective immediately fOllowing the passage of the measure. He explained that the assessed property value would go to the FY81 level and then be adjusted for a two-percent growth for each year. He added that any construction performed after 1981 would be adjusted based on FY81 estimated costs. In response to another question by Mayor Keller with regard to the estimated loss of revenue, Mr. Wong stated that 50 percent of the the current General Fund budget was $20 million in property taxes. He said the range in the estimated loss reflected the extremes of how the tax limitation could be applied. In response to another question by Mayor Keller, he said that the State Legislature could cover the possible shortfall if it took action to implement a new tax by July 1, 1985; however, he said that any traditional type of tax had a lengthy implementation period. Mr. Gleason added that the State would probably focus on the effect of the measure on school systems, thus leaving the cities and counties to their own devices in dealing with the impact. Councilor Schue, referring to Item 6 in the memorandum~ asked if the 50 percent turnout for any local election also applied at the state level. Mr. Wong responded that this issue was also being investigated by the State Attorney General. Councilor Holmer commented that the City should not depend on assistance from the State Legislature because the emergency clause could not be included in any revenue measure and the referendum policy would schedule any measure for the Spring 1986 election. Councilor Obie agreed that the community must realize e that it should not depend on the Legislature for a solution to the proposed measure. Responding to the comments of Mayor Keller, he said the impact of the ballot measure on the University of Oregon would permanently damage the University and would result in a greater exodus from a community that was already economically damaged. He stressed that the citizens of Eugene must realize that their participation would greatly affect the outcome of the election. Mr. Gleason commented that $11 million was equivalent to approximately 400 City employees. He did not foresee how staff could make the City system work under such a constraint. He said a special session of the City Council would be called to possibly cut whole programs to save the public safety system if the measure passed. He added that the $11 million estimated loss would not be easily replaced by another revenue source. Councilor Obie said the council must work to understand the possible damage that would be done to the community by the proposed measure, to include working with other groups that would be affected, as well as discussing what actions should be taken should the measure pass. Councilor Schue felt that Mr. Obie's comments were appropriate in that the council must presently address the issue and inform the public of the possible effects on City services. While she recognized the limitations placed on public employees with regard to working to oppose ballot measures, she said those limitations did not apply to the councilors. Mayor Keller agreed that the council should e MINUTES--Eugene City Council July 11, 1984 Page 6