09/25/1985 Meeting - Laserfiche WebLink

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Ms. Wooten moved, seconded by Mr. Hansen, to present to the e voters on November 5, 1985, a proposal for a personal income tax of four-tenths of one percent with a $7,500 low-income exclu- sion, progressive tax credits for incomes of $7,500 to $10,000, and a decrease in the rate to two-tenths of one percent in 25 years when the airport and the library expansions are paid in full. Mr. Miller moved, seconded by Ms. Ehrman, to amend the motion to provide for a decrease in the rate to one-quarter of one percent in 25 years when the airport and the library expansions are paid in full. Discussing the amendment, Ms. Ehrman said she favored a one-quarter of one percent income tax when the airport and library are paid in full in order to fund CIP projects. She emphasized that even an income tax of one-quarter of one percent would not replace the Federal Revenue Sharing funds. Roll call vote; the motion to amend carried, 5:2. Ms. Schue and Mr. Hansen voted against it. Mr. Gleason recommended that a date certain for the decrease in the rate of the income tax not be included in the charter amendment because it would affect the bonding capabilities of the City. He recommended the charter amendment indicate that the tax will be decreased when the airport and library e expansion are paid in full. Mr. Hansen would support the motion so that Eugene citizens can vote on the matter. He said he had expressed his viewpoints. Mr. Wooten encouraged other councilors to support the motion. She said it is a fair compromise and respects the comments from the public. Answering questions from Mr. Miller and Mr. Rutan, Mr. Gleason said the word- ing of the motion was acceptable. The "25 years" did not have to be deleted and a dedication to specific projects did not have to be stated. The ordi- nance will state specifically what projects the income tax will fund. Mr. Rutan would support the compromise. Ms. Ehrman said the proposal probably is not the first choice of any of the councilors, but it is important for the council to be united. She hoped the public would see that the council had tried to develop the best, reasonable solution to important capital needs. She would support the motion. Ms. Bascom noted that the proposal will provide for the expansion of the air- port and library, and only replace a part of the Federal Revenue Sharing Funds. She also noted that the city is falling behind about $3 million each year in the street program. The proposed income tax will not solve all the city's financial problems, but it will be an important first step. - MINUTES--Eugene City Council September 25, 1985 Page 6