6.10.2019 City Council Work Session Minutes

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• Councilor Taylor - said that the big objection is taxing low-income people and if City Council exempted people making less than $25 an hour from the tax, it may not get referred to the ballot by the people. • Councilor Clark - said he was certain that this tax will get voted on by the public and it's more likely to pass if it gets referred by City Council; said that if it were to get public support, 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 to inform the public about the need for and impacts of the tax whether it goes on the ballot or not. • Councilor Syrett - asked if there was information about the rate change on others if minimum wage employees were excluded and those making less than $15 an hour had a lower rate. • Councilor Z elenka - asked if all potential motions could be put on the table at this time for everyone to mull over. • Councilor Clark- said that if Councilor Zelenka's second motion passes, he intended to put a motion to remove the seven-year vote because the public would have already shown their support; said that he does not believe it is fair for people who live outside the urban growth boundary to be paying the public safety tax. • Councilor Taylor - proposed exempting anyone from paying the tax who makes less than $25 an hour. • Councilor Clark- talked about annual payroll numbers and the total of government entities and non -profits; shared concerns that less than half of the people would be subject to the tax if people who make less than $15 an hour are excluded, making it hard to argue that this is a broad-based tax. • Councilor Zelenka - pointed out that the handout with proposed motions included a motion to address the effect on small business owners, intending to give them a discount on the first $100,000 of payroll. • Councilor Syrett - expressed intention to modify the motion to exempt minimum wage workers and reduce the rate for anyone making less than $15 an hour. • Councilor Taylor - suggested postponing the vote to get more information, including the impacts 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 tax rate from 0.0040 to 0.0044. 2. Add a new subsection (3) to section 3.724 that state: 'Notwithstanding subsection (2) of this section, the tax rate imposed on every non -minimum wage employee making a wage of $15.00/hour or less working at an employer located in 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 in section 3.726. 5. Amend new subsection (4) to make the rate 0.0000 for minimum wage employees. MINUTES - Eugene City Council June 10, 2019 Page 3 Work Session