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Agenda Packet 4-8-19 Meeting
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Agenda Packet 4-8-19 Meeting
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4/8/2019
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<br /> <br />MINUTES – Eugene City Council Workshop February 23, 2019 Page 3 <br /> <br />• Councilor Clark – asked what level of analysis was done on the possible negative repercussions of a payroll tax; expressed concern that implementing the proposed tax could damage Eugene’s relationship with Springfield since it will affect non-residents who work in Eugene. <br />• Mayor Vinis – asked about the preliminary reaction of non-profits to the proposed tax. <br />• Councilor Zelenka – said it was counterproductive to reduce the discussion to only one recommended option; supported further consideration of its effect on workers who don’t live in the city, ways to make the tax more progressive, possible exemptions of reductions for non-profits and low-income workers, and tying the tax to economic prosperity. <br />• Councilor Semple – asked for information about the impact on the revenue generated if non-profits are exempted; said that everyone should contribute at some level to the costs of improved public safety. <br />• Councilor Syrett – spoke to the regressive vs progressive issue, noting that a flat fee is regressive; said public safety improvements will benefit everyone, including Springfield residents. <br />• Mayor Vinis – cautioned that many of the area’s largest employers are non-profits; said Eugene is the hub of the region and carries a larger burden in terms of social service and public safety needs; said the process for arriving at the committee recommendation was faithful to council direction. <br />• Councilor Clark – noted that residents of unincorporated River Road/Santa Clara don’t currently support public safety through taxes; encouraged further consideration of annexation as a potential revenue source; supported an increase to the transient room tax. <br />• Councilor Semple – agreed that there is a direct benefit to Springfield residents of improved public safety services, particularly Eugene Springfield Fire service; supported an increase in the room tax. <br />• Councilor Pryor – said the process included conversations with representatives from other communities; expressed concern about the ease of the mechanism for reporting and collecting; noted that if more people are brought into the population through annexation, the need for service will increase. <br />• Councilor Syrett – suggested that more analysis would be needed if the council is interested in pursuing annexations as means to generate public safety revenue. <br />• Councilor Taylor – said that annexation of River Road/Santa Clara properties wouldn’t require infrastructure tax dollars, noting that money is currently being spent on public safety in that area. <br />• Mayor Vinis – reminded council that their goal for any new revenue source is to provide a seamless transition from the bridge funding. <br />Revenue Requirement <br />• Councilor Clark – suggested consideration of a revenue source that starts small and increases as need grows. <br />• Councilor Zelenka – asked for more information about the components of the five percent inflation rate. <br />Payroll Tax Assumptions <br />• Councilor Zelenka – asked for information about the data on the percentage of agencies and the non-compliance collection rate. <br />• Councilor Clark – noted that many who live in Eugene are part of the gig economy, consultants, or self-employed; asked what their impact would be on the tax assumptions. <br />Same Rate <br />• Councilor Taylor – asked if consideration was given to exempting those who make under a certain amount. <br />• Councilor Syrett – asked questions about the presentation of the data. <br />April 8, 2019, Meeting – Item 2A
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