09/25/1985 Meeting - Laserfiche WebLink

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II. RESOLUTIONS AND ORDINANCES ADOPTING CITY PERSONAL INCOME TAX; REFERRING '- CHARTER AMENDMENTS TO A NOVEMBER 5, 1985, SPECIAL ELECTION AND CALLING FOR AN ELECTION ON THE ISSUANCE OF GENERAL OBLIGATION BONDS (memo, ordinances, resolutions distributed) City Manager Micheal Gleason introduced the agenda item. Finance Director Warren Wong gave the staff report. Responding to a request Ms. Ehrman made Monday night, he said the 1980 census indicated that 50.1 percent of the people in Eugene rent their homes and 49.9 percent own their homes. Mayor Obie noted that he and the councilors had received a letter dated Sep- tember 25, 1985, from the Lane County Board of Commissioners. The cOllll1is- sioners asked the City Council to delay action on an election. Mayor Obie said the City Council and mayor have a responsibility to the citizens of the community. Councilors have spent much time studying the issues. The commu- nity has been involved in the process for months. There are always people who want to slow things down, but the public has had a lot of opportunities for involvement. Mayor Obie said the time for a decision has come. The needs of the community are demanding and the council should provide leadership. There will be time to work with the Lane County Commissioners and understand their problems later. He said a "commuter tax" does affect the residents of the county. However, they use the services and assets of Eugene and they should be invited to participate in the costs. It is one of the most attractive things about the proposal. He asked the councilors to comment. e Councilor Schue appreciated the Mayor's statement. She said the council must be practical about what the voters will pass. Councilors must be responsible to the perceived needs of the community and balance them against financial obligations. She would like to discuss such things as the "commuter differen- tial" that would make the package a good one. She said it is necessary to keep the library and airport in the package because they fill the needs of different groups. The package should be broad-based. She favored giving the people in the River Road area a free library card if they help pay for the library. She also wanted to be sure the Capital Improvement Program (CIP) projects are funded adequately. She would vote for a .045 income tax if other councilors wanted it. Councilor Rutan said the councilors had done their homework. After spending much time with constituents, the councilors had decided on three good projects that must be paid for. He favored a one-third of one percent personal income tax that would end in 25 years. He said a one-third of one percent tax would fund the airport expansion, the library expansion, and the CIP, although changes would have to be made in the plans. The termination of the income tax would assure the citizens that they will not be paying for the airport and the library after they are completed. He said everyone knows the CIP costs will be on-going, but Federal and State tax structures will be different in 25 years. The city will have experience with an income tax in 25 years and can plan for funding the CIP then. He emphasized that all three projects should be included in the proposal although detailed plans for the library are not available now. He said people will have many opportunities to participate '" with the council in developing the plans. MINUTES--Eugene City Council September 25, 1985 Page 2