Agenda Packet 7-22-19 Meeting - Laserfiche WebLink

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MINUTES – Eugene City Council Work Session June 10, 2019 Page 3 •Councilor Taylor – said that the big objection is taxing low-income people and if CityCouncil exempted people making less than $25 an hour from the tax, it may not getreferred to the ballot by the people. •Councilor Clark – said he was certain that this tax will get voted on by the public and it’smore likely to pass if it gets referred by City Council; said that if it were to get publicsupport, the seven-year vote stipulation would be unnecessary. •Mayor Vinis – talked about the costs for putting the tax on the ballot in time,momentum, and certainty with moving forward; said that she and City Council need toinform the public about the need for and impacts of the tax whether it goes on the ballotor not. •Councilor Syrett – asked if there was information about the rate change on others ifminimum wage employees were excluded and those making less than $15 an hour had alower rate. •Councilor Zelenka – asked if all potential motions could be put on the table at this timefor everyone to mull over. •Councilor Clark – said that if Councilor Zelenka’s second motion passes, he intended toput a motion to remove the seven-year vote because the public would have alreadyshown their support; said that he does not believe it is fair for people who live outsidethe urban growth boundary to be paying the public safety tax. •Councilor Taylor – proposed exempting anyone from paying the tax who makes lessthan $25 an hour. •Councilor Clark – talked about annual payroll numbers and the total of governmententities and non-profits; shared concerns that less than half of the people would besubject to the tax if people who make less than $15 an hour are excluded, making it hardto argue that this is a broad-based tax. •Councilor Zelenka – pointed out that the handout with proposed motions included amotion to address the effect on small business owners, intending to give them adiscount on the first $100,000 of payroll. •Councilor Syrett – expressed intention to modify the motion to exempt minimum wageworkers and reduce the rate for anyone making less than $15 an hour. •Councilor Taylor – suggested postponing the vote to get more information, including theimpacts of exempting everyone making under $25 an hour. MOTION: Councilor Taylor, seconded by Councilor Semple, moved to adopt Attachment B, an Ordinance to Fund Community Safety Services with a Payroll Tax, and Adding New Sections to the Eugene Code, 1971. MOTION TO AMEND: Councilor Syrett, seconded by Councilor Semple, moved to 1. Amend subsection (2) of section 3.724 to increase the overall employee taxrate from 0.0040 to 0.0044.2. Add a new subsection (3) to section 3.724 that state: “Notwithstandingsubsection (2) of this section, the tax rate imposed on every non-minimum wageemployee making a wage of $15.00/hour or less working at an employer locatedin the city is 0.0030 of the employee’s wages.”3. Renumber subsections (3), (4) and (5) of section 2.724 as subsections (4), (5)and (6).4. Update the cross reference in new subsection (6) of section 3.724 and insection 3.726.5. Amend new subsection (4) to make the rate 0.0000 for minimum wageemployees. July 22, 2019, Meeting – Item 2A