06/26/1985 Meeting - Laserfiche WebLink

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WORK SESSION - VI. CAPITAL FINANCING DISCUSSION Using flipcharts, Finance Director Warren Wong discussed the estimated revenue from a city income tax. He noted the City will loose about $3 million in Federal Revenue Funds which have been used for the capital budget. He said a city income tax of 1 percent would produce about $12 million annually. It would provide $5 million for the capital budget and $7 million for the Eugene Agenda projects and operations. It would finance all the Eugene Agenda projects, the library expansion, a swimming pool, provide funds for operating and maintenance costs for the Eugene Agenda, provide for operating deficits projected in the Six Year Financial Forecast, and provide for the workload increase due to population growth. A city income tax of three-quarters of 1 percent will produce about $9 million annually. It would produce $4 million for the capital budget and $5 million for the Eugene Agenda projects, the library expansion, and a swimming pool. A city income tax of one-half of 1 percent would produce about $6 million annually. It would produce $3 million for the capital budget and $3 million for other projects. It would fund the airport expansion, the Riverfront Science Park, the downtown revitalization, and the library. Transportation system improvements and entrance beautification could be funded when money is available in the capital budget. The pool would not be funded. e A city income tax of one-quarter of 1 percent will produce about $3 million annually, Mr. Wong said. One way of spending it would be to fund the capital budget with $3 million. The transportation system improvements and entrance beautification could be funded when money is available in the capital budget. Other projects would not be funded. Another way of spending it would be to fund the airport expansion, the Riverfront Science Park, the downtown revital- ization, and the library expansion. In that case, Federal Revenue Sharing funds would not be replaced. The transportation system improvements and entrance beautification would not be funded. Answering a question from Mr. Hansen, Mr. Wong said the council could decide which projects will be funded. For example, the library expansion and swimming pool could be funded and other projects dropped. Mr. Hansen said the income tax estimates are interesting. He would like to use them when talking to people. He suggested the costs of the projects in the Eugene Agenda be included so that people can suggest different ways of spending the new income. Responding to questions from Mr. Miller and Ms. Bascom, Mr. Wong said the estimates are based on adjusted gross income. They do not include any exemp- tions. Mr. Miller would like to have estimates of revenue from a city income tax which would exempt some people with low incomes. e MINUTES-Eugene City Council June 26, 1985 Page 8 ,-