07/13/1981 Meeting - Laserfiche WebLink

Home Browse Search

. e owners were objecting strenuously to an increase in the room tax. However, she could find no evidence that a six or seven percent rate would turn away business. She said she would not be opposed to an increase of one percent in the room tax. Ms. Smith said the council would have that prerogative. She said the task force and Room Tax Committee were trying to present to the City Council a report that reflected strong concensus in support of the proposals. Ms. Smith said part of the concern regarding an increase in the room tax was because of the County also considering a room tax increase. She said the full committee report would probably come before the council in six to eight weeks. She said no tax would be popular; however, the council has long recognized the importance of funding cultural activities. Mr. Gleason said there was no way to avoid controversy when discussing new or increased taxes. He said the council was involved in a major economic diversi- fication activity regarding the Performing Arts Center and the figures presented in Ms. Smith's memorandum were only the best estimates. He said there was no way to know the exact costs but he was confident it would payoff in terms of the whole economy. He said the council would have to consider all the recommen- dations, determine what revenues were needed, and come to some consensus on how the revenues would be raised. He said a decision was needed by September or October. He said there was no way the general fund could support the Performing Arts Center without a major overhaul. Ms. Smith said her vision of Eugene Summer in the future was for a coordinated e promotional program working with the Convention Bureau to put together a strong package to attract people to Eugene. She said an increase of $100,000 in the Convention Bureau's budget would do a great deal in terms of additional staff and additional promotion. She said compared to other major cities in the Northwest, Eugene's Convention Bureau was seriously underfunded. Mr. Obie said the proposals would affect a specific segment of the economy and he would not be opposed to that as long as that segment was receiving value in return. He said cultural activities were part of economic diversification and he would like the council to consider them in those terms. He said if the council did that he felt the proposals would seem more reasonable to those affected. He said the council would need to be very sensitive to the feelings of those who were paying or collecting the taxes so that they would feel they were receiving value in return. Mr. Obie said he would like the council to consider a sliding scale on the patron user fee on tickets. He said he would also favor applying the fee to all theaters in town, including movie theaters. He said a room tax increase and a half-percent restaurant tax could be accepted by those affected if they felt it was reasonable. He said the council had also discussed a business license tax. Ms. Smith said it was her understanding from discussions with the Finance Division that businesses were already licensed. Mr. Obie said the only licenses were for taverns and sign companies. Ms. Smith said the idea could be pursued further with the Finance Division. She said the task force had discussed patron e MINUTES--Eugene City Council July 13, 1981 Page 3