CC Minutes - 04/13/09 Meeting - Laserfiche WebLink

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Mayor Piercy surmised that the bill was not moving in the Legislature. She commented, for the record, that she did not like either one of the ballot measures that had been submitted to the popular vote. She thought they did “a big disservice to the State.” While she wanted people to be held accountable, she felt the measures were a drain on resources. Councilor Zelenka concurred. He thought it was internally inconsistent to say on one hand that we should not support a bill because of a lack of jail space and, on the other hand, to oppose the repeal of a bill that would jail more offenders. Roll call vote; the motion passed, 5:3; councilors Brown, Zelenka, and Taylor voting in op- position. House Bill 2875 – Would allow a taxpayer to elect to defer payment of increased property taxes attributable to annexation of property by a city. Ms. Wilson said the bill would allow for deferral of taxes for a ten-year period after the effective date of annexation. She stated that staff had recommended adoption of a Priority 2 Oppose position, which was in line with adopted legislative policies. She related that Councilor Taylor had made a motion to change the position to Support, but had not received a second. Councilor Zelenka, seconded by Councilor Clark, moved to adopt a position of Priority 2 Oppose on House Bill 2875. Councilor Clark asked who sponsored the bill. Ms. Wilson replied that Senator Vicki Walker and Representatives Chris Edwards and Mitch Greenlick had sponsored it. Mayor Piercy did not believe it was necessary to take a position on the bill. Councilor Taylor thought they should support it because she believed “it was only fair.” She averred that a person who was annexed should not have to be subjected to an increase in property taxes. Councilor Ortiz pointed out that the City of Eugene did not annex people against their will. She preferred adoption of a neutral stance on the bill. Councilor Clark, seconded by Councilor Taylor, moved to substitute a motion to adopt a Priority 2 Support position on the bill. Councilor Clark believed that the way the ‘190 agreements’ were set up with the County, someone who wanted to build substantially, was forced to annex to the City. He said it was a difficult choice. He commented that he would prefer that the County resume responsibility for permitting for county residents. He thought the bill would provide a reasonable way to help such construction be more affordable. Councilor Poling could not support the substitute motion. He read staff comments provided by Senior Management Analyst for the Finance Division Larry Hill which indicated that the bill would allow any owner of recently annexed property to defer City property taxes for up to ten years, and the state would have a lien against the property. He related that after ten years or when the property was sold, the deferred taxes plus interest would be payable to the Oregon Department of Revenue. He stated that no additional money would be appropriated to cover the bill’s financial impact to the County and City. He considered the bill to be bad legislation. MINUTES—Eugene City Council April 13, 2009 Page 14 Regular Meeting