04/22/1992 Meeting (2) - Laserfiche WebLink

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e e e Mr. Nicholson proposed to include a two-percent restaurant/entertainment tax in Strategy Package B to support the Library. Mr. Rutan indicated his continued opposition to the proposal. He believed the tax would have an adverse effect on businesses in that it would add to the price of a product and put Eugene at a competitive disadvantage. Mr. Boles said he supported the proposal due to the discretionary nature of the expenditures involved and the community's continued desire for a new library. He did not think that residents would leave the community to go to restaurants because of a two-percent tax. Mr. Nicholson's proposal received sufficient support from councilors to include in Strategy Package B. Ms. Ehrman suggested that the proposed tax be increased to three, rather than two, percent, to support the remaining enhancements. Ms. Ehrman's proposal failed to garner sufficient support for inclusion in the strategy package. Mr. Robinette suggested an increase in the proposed personal and corporate income taxes sufficient to support the additional enhancements. The suggestion received adequate support for inclusion in Strategy Package B. Mr. Miller proposed to raise the Transient Room Tax by one percent to offset property taxes currently being used to support the Hult Center for both strategy packages A and B. Mr. Boles argued that the amount to be raised by such an increase was inadequate to address Hult Center needs and would not sufficiently supplant General Fund support. Mr. Rutan indicated his opposition to such an increase as it would place Eugene at an economic disadvantage with other Oregon communities along the Interstate 5 corridor. He agreed with Mr. Boles that the increase would not raise sufficient funding for the proposed purpose. Mr. Miller withdrew his proposal for an increase in the room tax. Mr. Boles suggested that any revenue source proposed by the council have an automatic sunset date attached to it, requiring a vote by the electorate for continued use of the revenue in the future. Ms. Ehrman said that a sunset date did not address the question of sustainability that was a keystone of the Eugene Decisions process. She suggested that a sunset would pass the community's revenue problems onto future councilors. In response, Mr. Boles pointed out that a sunset date would give the City an incentive to perform. Mr. Nicholson said that the council should ensure that the revenue sources do not sunset at the same time to avoid the concerns raised by Ms. Ehrman. MINUTES--Eugene City Council 5:30 p.m. April 22, 1992 Page 8