08/13/1992 Meeting - Laserfiche WebLink

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e Ms. Ehrman moved, seconded by Mr. Boles, to increase the gas tax by two cents to fund the street tree program. Responding to a question from Mr. Rutan, Mr. Mounts confirmed that the local option gas tax would be restricted to the city of Eugene and would realize about $1.14 million each year. That amount would pay for the street tree program as well as the shortfall in the Road Fund. Mr. Rutan said the council needed to consider the implications of a gas tax unique to Eugene. He did not believe the public would understand or appreci- ate its link to the Road Fund. Mr. Miller agreed with Mr. Rutan's remarks, saying that the tax would put the city at a competitive disadvantage with adjoining communities. He suggested that the council recommend a local increase in the gas tax to the City of Springfield and Lane County for further consideration at a metropolitan level. Mr. MacDonald suggested that a one-cent gas tax would not be sufficient to put the city at a competitive disadvantage. Further, he said that the council needed to maintain responsibility for moving the street tree program into the Road Fund. He recommended a one-cent, rather than two-cent, increase. Regarding Mr. Miller's comments about interjurisdictiona1 cooperation, Mr. MacDonald pointed out that Lane County had $50 million in Road Funds and did not need a local option gas tax. He suggested the basic service government approach of Springfield's City Council might preclude metropolitan-level discussion of taxes. e Ms. Bascom said she found Mr. Miller's arguments for interjurisdicational cooperation convincing and urged the council to take that approach. Ms. Ehrman reminded the council that it had received no indication of interest on the part of Lane County or Springfield in efforts to solicit an intergov- ernmental approach to service delivery and anticipated budget shortfalls on a metropolitan basis. She recollected council discussion regarding the link between peripheral development and increasing infrastructure costs and suggested that the gas tax was an appropriate way to support such services. Mr. Robinette indicated his support for a one-cent gas tax. Mr. Boles suggested that revenues realized from a two-cent gas tax could be used to support the low-income program for improvement of substandard streets. He further suggested that the council could implement a one-cent gas tax and seek a second one-cent increase at the metropolitan level in conjunction with Springfield and Lane County. The motion passed, 5:3. The council took a ten-minute recess at 7 p.m. Mr. Robinette moved, seconded by Mr. MacDonald, to fund fire operations ($500,000) with an increase in the property tax of e MINUTES--City Council Work Session August 13, 1992 Page 5 5:30 p.m.