CC Minutes - 12/12/05 Work Session

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Mr. Kelly said that he would be unable to support the motion because of the failure of his amendment. He thought deviating from the street tree policies was a very bad precedent for a City that “pretends” to pride itself on its standing as a Tree City USA. The main motion passed, 4:3; Ms. Taylor, Mr. Kelly, and Ms. Ortiz voting no. C. WORK SESSION: Telecommunications Tax Fund The council was joined for the item by Assistant City Manager Jim Carlson. He noted that Information Services Director Randy Kolb and Franchise Manager Pam Berrian were also present for the item. He called attention to the background materials provided in the meeting packet and reviewed the history of the fund, which was initially established in 1997 following passage of Ordinance 20083 establishing a two percent telecommunications business privilege tax. Assistant City Manager Carlson recalled the litigation that occurred following the implementation of the ordinance, which was finally resolved in the City’s favor. The City received arrears payments of fees and taxes that were directed to the General Fund and Telecommunications Tax Fund. The money had been used to repay the General Fund for the City’s court costs and administration of the program during litigation. Assistant City Manager Carlson said that when a large amount of arrears was received in FY2005, the council directed it to the Facilities Reserve, consistent with the council’s policy that one-time funds be used for one-time purposes. Assistant City Manager Carlson said that a regular payment stream had not yet been established, but he estimated about $2.2 million in revenues per year to the Telecommunications Tax Fund. That fund supported related administrative costs, projects, and equipment replacement. The projects are cable or telecommunications-related projects of benefit to the community. A list of the projects was included in the meeting packet. Each year, department proposals are reviewed by the executive managers and forwarded to the City Manager for a final decision. Assistant City Manager Carlson noted that much of the funding collected as a result of the telecommunica- tions tax had been used for public safety services. The revenues funded mobile date terminals in all police and fire apparatus and would fund video cameras in police cars. Assistant City Manager Carlson also noted the funding that had gone to improve the City’s Web portal, which would allow more e-government activities to occur on line. The City would seek public input on how that would occur. Assistant City Manager Carlson reported that there continued to be legislative assaults on the City’s ability to charge a telecommunications tax and even a franchise fee. Until the City had a clear understanding of the federal legislation to be proposed, he recommended the program be continued in its present form before seeking input from the public regarding possible new services and the use of the money. Assistant City Manager Carlson said the Equipment Replacement Fund was an issue identified in the multi- year financial fund for several years. The fund was established because of the short life expectancy of some equipment and the need to replace it over time. Staff was looking at a more comprehensive way to replace equipment such as radios. It could be that the telecommunications revenues can be used to replace both radios and radio system components such as towers and repeaters. MINUTES—Eugene City Council December 12, 2005 Page 7 Work Session