04/22/1985 Meeting - Laserfiche WebLink

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- e - Mayor Obie discussed the possibility of using a gas tax or a utility tax to raise $5.7 million. If the council approved a gas tax, Mr. Obie suggested asking the Springfield City Council and the Lane County Board of Commissioners to approve the same tax. If the council approved a utility tax, Mayor Obie suggested the voters be asked to approve an additional three-percent in-lieu- of tax. In that case, EWEB users inside and outside the city would pay it. The $5.7 million would provide the "up-front" money needed for the Riverfront Science Park and the Downtown Revitalization. Tax increment funds would then pay it back and resources could be shifted. Mr. Wong discussed major alternative revenue sources and estimated how much they would yield. Answering questions, he said a tax base would have to be approved to levy a property tax if the State sales tax is approved. The City will be able to levy a specific service tax, such as a restaurant tax, even though a sales tax is approved. An income tax would generate more income than a payroll tax because it would also tax unearned income. Self-employed people were not included in the estimated income from a payroll tax. Commenting on the alternative revenue sources, Mr. Hansen and Ms. Ehrman said they would prefer a payroll tax on employees rather than on employers. Mr. Hansen said an employee would pay less than one percent if a one-percent payroll tax was approved because State and Federal taxes would be deducted. Ms. Ehrman and Ms. Schue said funds are needed for more than just the Eugene Agenda. Ms. Schue noted that the airport, the library, and a swimming pool are things the public likes. Mr. Rutan said perhaps everything cannot be funded at once. Mr. Rutan asked the staff to provide, at another time, a comparison of what a Eugenean pays in taxes to what residents of other cities pay in taxes. Mr. Gleason said the taxes levied by the City are comparatively low. One reason is that salaries in California and Washington are 15- to 25-percent hi gher. Mayor Obie suggested the voters be given an opportunity to fund the Eugene Agenda, revenue sharing, and part of the Capital Improvement Program. In that case, tax increment funds will permit additional funding of the Capital Improvement Program in later years. Responding to a question from Ms. Wooten, Mr. Gleason said a new library or an addition to the existing one will cost about $10 million. Mr. Hansen pointed out that the cost of many of the projects was only an estimate and might vary a great deal. However, the $17.1 million estimate for the airport expansion is quite definite. Responding to Mr. Hansen, Ms. Wooten said the Riverfront Science Park will cost $5.7 million to $11 million and $2 mill i on wi 11 be needed "up front. II She recommended the fi gures be fi ne- tuned and a package including the Eugene Agenda, library improvements, and an inner-city swimming pool be referred to the voters for a general obligation bond. Mr. Holmer was not sure the community was ready to support the kind of package Ms. Wooten suggested and he did not think the library and a swimming pool have as much support as some of the items in the Eugene Agenda. MINUTES--Eugene City Council Work Session April 22, 1985 Page 3