09/18/1985 Meeting (2) - Laserfiche WebLink

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,.. M I NUT E S - Eugene City Council Capital Project/Revenue Work Session McNutt Room--City Hall September 18, 1985 5 p.m. COUNCILORS PRESENT: Cynthia Wooten, Richard Hansen, Emily Schue, Freeman Holmer, Ruth Bascom, Debra Ehrman, Roger Rutan, Jeff Mi 11 er . Mayor Brian B. Obie called the work session to order. I. REVENUE/EXPENDITURE PROJECTIONS Finance Director Warren Wong discussed the Revenue/Expenditure Projections material the council received. He reviewed three "Schedule of Projects to be Constructed" cha rts. The schedules indicated the airport expansion, library expansion, and Capital Improvement Program (CIP) projects that could be con- structed with revenue based on: 1) an income tax of 1/2 percent; 2) an income tax of 4/10 percent; and 3) an income tax of 45/100 percent. The revenues - were based on adjusted gross income. He also discussed a chart of Net Income Tax Revenues which indicated credits people with low incomes might receive and a Schedule of Income Tax Costs for Selected Incomes. He said about $250,000 (about 4.2 percent of the projected revenue) of a city income tax would not be collected if the suggested credits were included in the proposal. Answering questions, Mr. Wong said the projected cost of the library before debt service is $8.8 million although the total debt cost is over $22 million. The projected cost of the airport is $17.1 million. Discussing the difference in the project schedules, Mr. Rutan said the CIP projects might be difficult to accomplish if a 45/100 percent income tax is approved. Mr. Wong explained that both principal and interest on the library debt will be paid from the sixth year when construction begins if 1/2 percent income is approved. If the 4/10 income tax is approved, only interest on the library debt will be paid from the sixth year when construction begins until the 11 th yea r . More CIP projects can be accomplished if a 1/2 percent income is approved. Ms. Bascom said a 45/100 percent income tax would be more difficult to explain to the public than the other two possibilities. Mayor Obie was comfortable with the credit impact on the 1/2 percent tax. He was concerned about the few CIP projects that could be accomplished with the 4/10 percent tax. - "