09/23/1985 Meeting (2) - Laserfiche WebLink

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Mayor Obie recessed the meeting at 9:15 p.m. and reconvened it at 9:30 p.m. e Responding to questions asked during the testimony, Mr. Wong emphasized that the proposed tax would be on the Oregon adjusted gross income. It would be consistent with Federal and State programs. In the proposal, construction at the airport would begin in June or July of 1986 and construction at the library would begin in the sixth year of the program. Before construction started at the library, there would be an extensive public process to decide whether the library should be expanded at its present location or constructed somewhere else. Funds for the CIP would begin the first year. The effective date of the tax would be January 1,1986. Reciprocity with other cities that have an income tax would be included in the ordinance. The Budget Committee deleted all references to a City office building from the CIP this year. Mr. Wong reviewed the CIP process and said it includes much public input. He said the Oregon statutes indicate that revenue bonds are authorized only if the debt service is paid by user fees generated by the facility. A Deputy State Treasurer indicated that an income tax could not support revenue bonds for the airport or library, but the City Charter could be amended to provide local authorization for revenue bonds to pay for the airport and library expansion. Mr. Wong said the total cost of the airport expansion will be $17.1 million. The City has applied for $2.6 million in FAA grants and $4.5 million will be supported by user fees initially. The income tax will provide $10 million for the expansion, and user fees will eventually assume 60 percent or more of the e cost of the bonds. City officials have discussed legislation which would permit user fees at the airport with the Oregon Congressional Delegation. Contingency funds have been included in the project cost estimates for cost overruns. The council could reduce the amount of the income tax funds that would be used for the CIP to be sure the projects are completed. The oper- ating costs of the airport expansion will be supported by user fees. Oper- ating costs caused by the library expansion will have to come from the general fund. Mr. Wong said the council has considered a termination of the income tax when the airport and library expansion are paid. Drawings of the airport expansion are available. Mr. Gleason said the comparisons distributed by Mr. DeFazio were taxes on gross income. The proposed city income tax would be on Oregon adjusted gross income. Ms. Wooten said the city does not have a dump. The dump belongs to Lane County and the 30th Avenue overpass was constructed by Lane County. She said the City of Eugene has not foreclosed on any owner-occupied homes. She empha- sized that the voters would have to approve an increase in the rate of an income tax. She said the City is encouraging a transfer of Federal funds to state and local governments. Eugene and Springfield officials are working on combining the delivery of basic services. She said the opening of Willamette Street is being funded by the property owners in the Downtown Development District. e MINUTES--Eugene City Council September 23, 1985 Page 7