Agenda Packet 7-24-19 Work Session

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July 24, 2019, Work Session – Item 1 During the first two years, CET charges will be offset by a reduction in System Development Charges and permit fees so that additional costs are not added to improvements subject to the tax. A fact sheet has been developed to educate the public about the tax and its implementation and is included as Attachment B. The CET is one of many strategies to address barriers to housing affordability, availability and diversity of type identified through the Housing Tools and Strategies initiative. The first quarterly update on progress implementing other strategies will be provided to Council via memo before Summer break. PREVIOUS COUNCIL DIRECTION April 12, 2017, Work Session - City Council received an introductory presentation on Senate Bill 1533 and directed staff to pursue development of policy options for a CET in collaboration with the Housing Policy Board. December 13, 2017, Work Session – City Council reviewed a set of recommendations from the Housing Policy Board for implementation of a CET. Council directed staff to continue engaging community stakeholders on implementation of a CET. April 9, 2018, Work Session – City Council continued discussion of options for a CET and directed staff to return with a process for council consideration that would identify existing barriers to housing affordability, availability, and diversity of type. January 14, 2019, Council Meeting – City Council directed City staff to create a draft CET ordinance and to schedule a public hearing. February 19, 2019, Public Hearing – Thirty-four people testified at the public hearing on an ordinance imposing a construction excise tax on residential and commercial improvements. April 8, 2019, Council Meeting – City Council adopted an Ordinance Concerning Imposition of a Construction Excise Tax on Commercial and Residential Improvements and Adding Sections 3.730, 3.732, 3.734, 3.736, 3.738, 3.740, 3.742, 3.744, 3.746 and 3.748 to the Eugene Code, 1971. COUNCIL OPTIONS Provide input into proposed timeline, advisory committee structure, and desired outcomes for the Affordable Housing Trust Fund. CITY MANAGER’S RECOMMENDATION City Manager currently has no recommendation.