03/15/1978 Meeting - Laserfiche WebLink

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Mr. Lieua11en was interested in knowing the nature of the construction and type of building permits issued. He wondered what the effect of 4It the exemption would be on the inner-city and the net effect on total revenue. He said if the type of permits issued in the central area were ones that put new demands on the systems, then that would be sub- sidizing this area. However, if it were not putting demands on the systems, then he felt there was a good reason to exempt that area. However, he felt there was a need for more specific information in order to make that judgment. Manager said that information would not be avail- able as staff would have to be predicting for the next 20 years. Mr. Lieuallen said then the basis should not be building permits, but the issue should be if the City wants to levy a new tax. He considered the information on the map to be worthless information. Manager said Council would at least know in terms of the number of permits, noting 13 percent of the building permits were issued for the proposed exempt area. He said the numbers show the vast majority of the tax would be collected outside of the inner core. Also, Manager noted the substantial share of the inner-city would be permits for maintenance and would not be affected by the tax. Another consideration Manager noted for the core area was that some dwellings may be replaced with other dwellings and would not have an affect on on the systems as there would be the same number of dwelling units. Mr. Lieuallen felt strongly the central area should be exempt. He requested staff prepare a resolution for Council action defining the inner area to be exempt. Mr. Haws asked for a definition of "tax". Don Gilman said the use of the term "tax" would provide a type of collection system that would not necessarily establish a lien on property in the beginning. This was the major reason for changing the name. Also, it would allow establishment of various types of prepayment process; and the federal government defines such a charge as a tax. Another advantage would be the possible revenue sharing funds for the City. He said there seemed to be no disadvantage in calling it a tax, and changing the name would not change anything in terms of how the amount is computed. Stan. Long, City Attorney, explained how a lien shows up on a title report when a person is trying to secure financing for a new home. The lending institution usually would make the individual payoff such a lien before allowing financing. This would be inconsistent if the individual wished to payoff the tax in five to ten years. The proposed draft ordinance does not impose a lien inmediately, but would become a .lien at some later date if it were not paid. However, it would not be a lien at the beginning when the house is being financed. ,e e 3/15/78--8 '15