AMENDED Agenda Packet 6-10-19 Work Session

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June 10, 2019, Work Session – Item 2 Advisory Board that will conduct an annual performance audit and ensure that payroll tax revenue will be maintained in a separate fund and will not replace existing dedicated funds. After considering three payroll tax rate options for inclusion in the proposed ordinance, on May 8 council decided to include in the proposed ordinance a 0.0040 tax rate on employees (except for minimum wage employees which had a reduced tax rate of 0.0020) and a 0.0020 tax rate on employers. Council directed the City Manager to schedule a public hearing on the Community Safety Payroll Tax ordinance for May 28. At the May 28 public hearing, 29 people provided testimony. Between May 9 and May 31, 88 emails on the topic were received via the online form and the Mayor, City Council and City Manager public email address. Revised Ordinance The ordinance that was the subject of the May 28 public hearing has been revised to address some of the verbal and written public testimony, to respond to feedback from council, and to reflect input recently received from the Oregon Department of Revenue. Attached to this agenda items summary as Attachment A are the proposed revisions to the May 28 ordinance, shown in track changes. The clean ordinance attached to this AIS as Attachment B incorporates all of the proposed revisions shown in Attachment A. The proposed revisions shown in Attachment A include: 1) changes that will facilitate smoother administration of the payroll tax by the Oregon Department of Revenue; 2) corrections to cross-reference errors; and, 3) changes intended to provide clarity regarding tax implementation. Additionally, in response to Council and community feedback, Attachment A shows proposed revisions to the following uncodified sections of the ordinance: • Section 3 – Revision to further clarify that the council will use the payroll tax revenues to supplement, not replace, funding used in FY18 for Community Safety Services. • Section 5 – Revision to specify that the FY27 comprehensive report will include an analysis of the economic impacts of the payroll tax on businesses in the city. • Section 5 – Revisions to specify that the FY27 comprehensive report will include an analysis of progress made toward achieving the following system outcomes: o Increase the number of minutes per hour officers are available for community policing; o Reduce the number of calls for service per day to which no city personnel are dispatched to respond; o Reduce the number of minutes it takes city personnel to respond to non-emergency requests for service. • Section 6 – Revision to provide that in seven years the City Council must refer the payroll tax to the voters in order for the tax to continue; if not referred by the council or not approved by the voters, the payroll tax ends in 2028.