Agenda Packet 4-15-19 Public Hearing AMENDED

Home Browse Search

April 15, 2019, Public Hearing and Meeting – Item 3 revenue requirement for the upcoming fiscal year by the total number of FTE reported, and bill accordingly. In 2004, a state-imposed fee cap of $2,000 per entity took effect (in accordance with ORS 453.370(2)(b)). Since that time, businesses are still polled for their FTE figures, the program’s revenue requirement is still divided by the total number of FTE reported, and businesses are still billed accordingly, with payment due May 1 each year as provided by the Charter. Additionally, the state-imposed fee cap of $2,000 per entity is taken into account. However, because of the state-imposed fee cap, those with a high number of FTE now pay a smaller amount per FTE to support the program. This has resulted in fee reductions for larger businesses, and fee increases for businesses that have not reached the $2,000 state-imposed fee cap. To date, efforts to address this perceived inequity, both locally and before the State Legislature, have been unsuccessful. Therefore, the recommendation before council at this time is to adopt a similar fee, similarly calculated, to those adopted in each of the past fourteen years. It is important to note that the state-imposed fee cap of $2,000 per entity has remained the same since taking effect in 2004. This state-imposed fee cap, coupled with rising program costs as well as inflation (all of which are beyond the Toxics Board’s scope of control), have created a very serious structural funding issue for the program. In a continued effort to balance the financial impact—especially for businesses that have not reached the $2,000 state-imposed fee cap—with maintaining staffing at a reasonable level, the Toxics Board voted unanimously to recommend a fee of $62.230 per FTE, which covers a budget of $130,610.10 to support the program for FY20. To calculate the fees for FY20, the total number of 4,652.306 FTE reported was used in conjunction with the revenue requirement of $130,610.10; then considering the maximum of $2,000 per entity as provided by state law, resulted in a fee of $62.230 per FTE, up to the state-imposed fee cap of $2,000 per entity. Compared to last year’s fee of $65.43 per FTE, this is a decrease of $3.20 per FTE. Any business with more than 32.13 FTE would pay the state-imposed fee cap of $2,000 per entity. In consideration of the Triple Bottom Line, the Eugene Toxics Right-to-Know Program and the work of the Toxics Board supports valuing all people and assists City Council, staff and the public to be responsible stewards of our physical assets and natural resources. Section 54, Article I of the City Charter reads as follows: The people of Eugene do hereby find that: A. Exposure to toxic chemicals can damage human health and the environment; and B. Citizens have a fundamental right to know the identity and amounts of toxic chemicals that are released into the workplaces, air, water, soil, and environment of their community. The Eugene Toxics Right-to-Know Program requires businesses who meet certain criteria to provide information to the public concerning the use and disposition of federally-listed hazardous substances. The program is overseen by the Toxics Board who makes policy recommendations governing the program, and is authorized to enforce the reporting requirements and impose penalties. The Toxics Board is comprised of seven members: three members who are employed by