01/10/1979 Meeting - Laserfiche WebLink

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Mr. Delay moved, seconded by Ms. Smith, that the bill be read the second time by council bill number only, with unanimous consent of the Council, and that enactment be considered at ~ this time. Motion carried unanimously and the bill was read the ,., second time by council bill number only. Mr. Delay moved, seconded by Ms. Smith, that the bill be approved and given final passage. Roll call vote. All Councilors present voting aye, the bill was declared passed and numbered 18321. VI. Consideration of Systems Development Tax Amendments--Memo Distributed Manager said staff feels the proposed amendments are focused on serving the purposes of raising revenue to finance public facilities which are needed because of new developments other than through property taxes. The proposed exemptions also take into account and minimize conflicts with what appear to be actions for implementing important community objectives and policies. He then reviewed the amendments as proposed in the memorandum. Staff had recommended that Council exempt local government agencies, such as the City, school districts, Lane County, LCC, Metro Wastewater Management, from the full Systems Development Tax (SOT). It also was previously recommended that the Council be in a position to consider granting exemptions for reductions from the SOT for developments by other governmental agencies, such as Federal, State, University of Oregon, etc., when it is determined such reductions are in the best interest of the City. - Some concerns were raised at the November 22 discussion about the logic of granting full exemption to some non-City governmental agencies. Manager noted alternatives to that recommendation had been outlined in the memorandum. The alternatives included providing complete exemption from the SOT for agencies which are part of the City government, or created by the City government. This would include EWEB, Metropolitan Wastewater Management, and all City agencies. The logic of these exemp- tions is that a municipality usually does not tax itself. The creation of the MWMC involved very intense negotiations on distribution of funds and benefits among the three governmental agencies. The SOT would substantially alter those funding agreements. He noted the City may have to come up with 62-72 percent of such a charge because it would not be a federally- subsidized fee. In the case of exempting EWEB, which is a part of the City, Manager said it was more a matter of the City cooperating with EWEB in many business matters, such as determining who pays for various improve- ments, i.e., rights-of-way, relocation of water mains, etc. The alternative for exemption for other local government agencies, such as the school district, LeC, and the County, would be based on a percentage reduction for each agency equal to the percentage of the agency's total property tax revenue obtained within the City. He noted the interchange between the City and these groups in various ways, such as property exchanges, and lending facilities for use. He gave the example of the . 1/10/9--8 18