08/13/1992 Meeting - Laserfiche WebLink

Home Browse Search

e approximately ten cents per $1,000. Mr. MacDonald asked if the ballot measures for the general obligation bond and increase in property tax could be designed so that, were one to fail, the council would not implement the other measure. City Attorney Glenn Klein said yes. Ms. Ehrman said she was opposed to any property tax increase. Mr. Miller said there was a sizeable number of property owners who benefit from, but pay no taxes for, fire protection services. Mr. Miller suggested that those costs could be captured more equitably by a utility tax. Mr. Nicholson called the utility tax cumbersome and said that enhancements in services should be paid for through an income tax only on upper bracket income citizens. Mr. Green said he opposed an increase in property tax. The motion failed, 5:3. Mr. Nicholson moved, seconded by Mr. Rutan, to fund the $2.8 base services shortfall and all enhancements, with the excep- tion of the library, through a combined corporate/personal income tax. e Responding to questions from councilors, Mr. Nicholson said he believed the council should compute the total dollar amount required to fund the package and discuss further the split between the two funding sources. Mr. Boles asked if Mr. Nicholson wanted to split the total dollar value of the base shortfall and enhancements between the two sources, or establish the same percentage rate for both sources. Mr. Nicholson said he supported a tax of approximately .5 percent on both sources. Responding to a question from Mr. Boles, Mr. Mounts said that a .5 percent corporate income tax would raise about $750,000, and a .5 percent personal income tax would raise about $5.8 million. Responding to a question from Ms. Bascom, Mr. Nicholson said that the personal income tax had a low-income cutoff and would be assessed against the upper income bracket only. The cutoff was $17,000 for a family. Mr. Rutan referred the council to the corporate income tax analysis, which he believed indicated that it was logical and reasonable to tax corporations at a higher rate than individuals. He said Mr. Nicholson's proposal put the preponderance of the tax burden on individuals. Mr. Nicholson responded that the State corporate tax rate was lower than the personal income tax rate. However, he indicated he was open to argument regarding the rate, and request- ed that the council commit to the general principle of raising $6.5 million e MINUTES--City Council Work Session August 13, 1992 Page 6 5:30 p.m.