10/25/1978 Meeting - Laserfiche WebLink

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,- " . This would be the largest single non-local resource for a tax base~ She said. the expenditure limitation, tied to population and price changes, e would result in a rate of growth of the City operating budget less than . - I that experlenced over the last several years, unless the voters approve a growth rate outside the State 1 imitation. Mr. Obie wondered if the State could apply the same potential relief for Ballot Measure 6 as is proposed for Ballot Measure 11. Ms. Engen said the State does not have enough money to replace all of the revenues that would be lost under Measure 6. Regarding the effect on budget and policy-decision making, Ms. Engen said this was the most difficult to deal with as there were so many combinations of strategies that might be considered. However, one of the first important things for Council to consider would be to assess and interpret the vote of the citizens in Eugene on the ballot measures. She reviewed some of the policy decisions that had been made in the past that attempt to hold property taxes as low as possible, and setting fees and charges for services. However, if either ballot measure were to pass, she sai~ a $5-7 million cut will require some major changes. Some of those changes might include a major cut in services. She noted this would involve at least 100 positions; or more probably 300 to 400 positions. She said there were $3.5 million that could be used for transition purposes. However, this would be a one-time-only resource. As Measure 11 is now stated, it leaves more local control available than Measure 6. However, it is not known how the 1979 Legislature will enact Ballot Measure 11, and she felt it would not be entirely free of some e strings attached by the State Legislature. In response to a question from Mr. Lieuallen, Manager said other possi- bilities for property tax relief would be such things as the systems development tax, or additional charges such as in parks and recreation programs. Assistant Manager said the Council and Budget Committee have been relatively aggressive in presenting to the community alterna- tives for property tax relief, such as a local income tax, a sales tax, and local business license fees. In response to a question from Mr. Bradley, Ms.. Engen said the state-wide tax increase to the Federal statewide would be: Under Ballot Measure 6, $130 million; under Ballot Measure 11, $70 million. Mr. Bradley then wondered if,it would be possible to request the local representa- tives to U.S. Congress to pass a bill requesting that money remain in the state. Manager noted such an attempt had been made in California, with very little response from the Federal government. Mr. Delay commented that Council should be aware of the many strings attached by the Federal government if such a program were to succeed. Manager noted, as reported at the ICMA meeting, the result of Proposition 13 was to send the special interest groups moving to the State capital away from local Council meetings. A further discussion on the ballot measures will be held Wednesday, November 1. e 10/25/78--9 101