AMENDED Agenda Packet 5-28-19 Meeting

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May 28, 2019, Meeting – Item 4 EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Public Hearing: An Ordinance to Fund Community Safety with a Payroll Tax and Adding New Sections to the Eugene Code, 1971 Meeting Date: May 28, 2019 Agenda Item Number: 4 Department: Central Services Staff Contact: Kristie Hammitt www.eugene-or.gov Contact Telephone Number: 541-682-5524 ISSUE STATEMENT The City Council is scheduled for a public hearing on an ordinance to fund Community Safety with a Payroll Tax. The provisions contained in sections 3.720 to 3.738 of this code are for the purpose of providing funding to increase community safety services through the adoption of a dedicated tax on wages. BACKGROUND As a short-term plan to begin addressing the $23.6 million gap in public safety services, at the September 26, 2018, Community Safety System work session, Council unanimously passed a motion approving $8.6 million of one-time funding for an 18-month Community Safety service strategy. The 18 months of funding ends June 30, 2020. Council directed staff to immediately begin work to find a long-term funding solution. A Community Safety Revenue Team was formed to develop a recommendation for the City Manager. The Community Safety Revenue Team began reviewing funding options in November 2018 and completed their report in February 2019. The Community Safety Revenue Team report to the City Manager recommended a payroll tax as the ongoing funding mechanism for the Community Safety Initiative. The group was reconvened in April 2019 to do further revenue analysis on an income tax and River Road/Santa Clara annexation funding options. The team completed this work on April 19, 2019. Further evaluation of the income tax and annexation funding options did not change the Community Safety Revenue Team’s original recommendation of a payroll tax. However, the team did support giving consideration to structuring the payroll tax in a manner that lessens the burden on businesses. Following the April analysis by the Community Safety Revenue Team staff prepared, for Council review and discussion, a draft ordinance to Fund Community Safety Services with a Payroll Tax. The draft ordinance included input and feedback received from City Council, the Community Safety Revenue Team, and community outreach. Specifically, the proposed ordinance includes the following: