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

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Ms. Bascom noted the schedules could be changed in several ways. For example, - the library could be paid for in 20 years. Answering other questions, Mr. Wong said a city income tax will be withheld by employers without regard to credits. The tax including the credits will be figured on a separate form when other income tax forms are filed. Mr. Gleason said about $2.5 to $2.7 million annually has been spent on capital improve- ments in the past. If $3.5 million is available (1/2 percent income tax), projects such as streets overlays, building maintenance, and replacement of fire equipment could be accomplished. Mr. Whitlow emphasized that street overlays have been neglected and they would have a high priority. If the money is used for fire and police equipment, it may decrease operating expenses which come from the General Fund. He said a 1/2 percent income tax will pay for all the projects on the current CIP. Mr. Wong said no general fund money has been spent for the CIP recently. Answering a question from Mr. Hansen, Mr. Gleason said he would like to put increased operating revenues into the Police Department first and then into the Police and Fire Departments. Discussing the increase in library operating expenses after the expansion, Mr. Gleason said it is comparatively low because of automation. The expansion will not be completed for at least six years, and, in that time, the money for operating expenses probably can be found. In that time, also, operating methods may change. Perhaps expenses can be shared on a regional basis. ~~ Mr. Holmer is worried about increased library operating expenses. He said the $450,000 needed by the Hult Center is an example of the risk when a clear and defensible program is not presented to the voters. II. DRAFT LEGISLATION A. Personal Income Tax Mr. Wong said the new city personal income tax material sent to the council contained only a few changes. B. Ballot Measure and Charter Amendment Mr. Wong distributed drafts of a Charter Amendment Limiting Income Tax Rate and Dedicating Revenues and a Charter Amendment Authorizing Revenue Bonds. He said the statutes require that revenues from projects, such as a sewer plant, be used to pay for revenue bonds. He had been advised that income tax cannot be used to pay a revenue bond. Therefore, a charter amendment will be needed to authorize the City to use income tax funds to pay for revenue bonds. T~t charter amendment does not have to be on the same ballot the income tax is on. Mayor Obie noted that the draft ballot measure and charter amendment indicated that the income tax will be used for capital improvements. He suggested it also indicate that the income tax will be used for the airport and library. -