09/25/1985 Meeting - Laserfiche WebLink

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Mayor Obie said a rate of one-half of one percent is easier to explain than e other rates, but it would raise more than the minimum needed for the three projects. He thought a commuter differential is unnecessary because non- residents are getting a bargain. Non-residents do not share in any other way in the city's costs now. Even if they pay equally for CIP projects, they will still get a break because they will not contribute to the operational expenses of the city. An income tax of four-tenths of one percent would be tight. It would provide about $2 million for the CIP annually. An income tax of one- third of one percent will not provide enough to achieve the projects the community wants. He favored a decrease to one-quarter of one percent in 25 years to provide for on-going CIP projects. Mr. Hansen agreed with Mayor Obie's statements about non-residents. He felt strongly about his suggestions, but realized other councilors did not agree with him. Responding to a question from Ms. Schue, Mr. Rutan said he did not know exact- ly where the costs of the airport and library could be cut, but he thought some opportunities exist. Mayor Obie and the councilors agreed to a series of motions (straw votes) which would indicate what a tax package should include. Ms. Wooten moved, seconded by Mr. Hansen, to cut a personal income tax in half in 25 years when the airport and library are constructed. Roll call vote; the motion carried, 6:1. . Ms. Ehrman voted nay. Ms. Wooten moved, seconded by Mr. Hansen, to include a $7,500 low-income exclusion and progressive tax credits for people with annual incomes of $7,500 to $10,000. Roll call vote; the motion carried, 6:1. Ms. Bascom voted nay. Ms. Wooten moved, seconded by Mr. Hansen, to include a commuter differential so that the income tax for non-residents would be less. Roll call vote; the motion failed, 2:5. Ms. Schue and Ms. Ehrman voted aye. Ms. Bascom, Mr. Rutan, Ms. Wooten, Mr. Hansen, and Mr. Miller voted nay. Ms. Wooten moved, seconded by Mr. Hansen, to present a proposal to the voters on November 5 for an income tax of four-tenths of one percent. Replying to a question from Ms. Ehrman, Mr. Obie said an income tax of four- tenths of one percent without the exclusions and progressive tax credits would expand the airport as planned, expand the library in the sixth or seventh year, and provide about $2 million annually for the CIP. The low-income exclusions and progressive tax credits approved by councilors would decrease the revenue about $500,000. Roll call vote; the motion passed, 4:3. Ms. Bascom, Mr. Miller, Ms. Wooten, and Ms. Ehrman voted aye. Mr. Hansen, Ms. Schue, - and Mr. Rutan voted nay. MINUTES--EugeneCity Council September 25, 1985 Page 5