Item 4: Adoption of Resolution 5023 Calling a City Election on May 17, 2011, on a Temporary City Income Tax to Raise Funds for Local Schools

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Possible Action: Adoption of Resolution 5023 Calling a City Election on May 17, 2011, on a Temporary City Income Tax to Raise Funds for Local Schools Meeting Date: February 14, 2011 Agenda Item Number: 4 Department: Central Services Staff Contact: Sue Cutsogeorge www.eugene-or.gov Contact Telephone Number: 541-682-5589 ISSUE STATEMENT The council will consider whether to place a measure on the May 2011 ballot authorizing a City income tax to fund local schools. BACKGROUND As the magnitude of the budget shortfall facing the Eugene School District has become clearer in recent months, a community discussion has emerged around the possibility of the City of Eugene enacting a tax on behalf of the local public school systems. On December 14,2010, Mayor Piercy held a public forum on the topic to hear from concerned citizens and a citizen group was formed to explore the idea further. On January 11, 2011, the council met to discuss a possible new revenue for schools. Several key questions were posed in order to provide direction on whether to move forward, and if it was decided to move forward, what the revenue package should look like. As a result of their discussion, the council created an education subcommittee that would include representatives of the City of Eugene, the Bethel and 4J school districts, Stand for Children and the business community, and to return to the council with recommendations. On January 18 and January 20, the Subcommittee on Education Funding met to discuss an income tax proposal for education funding. Subcommittee materials are available on the City’s website at www.eugene- or.gov/schooltax. On January 24, 2011, the council discussed the subcommittee’s recommendations and the potential for a City income tax for schools. As a result of their discussions, the council directed the City Manager to bring back for council consideration on February 14, a proposed ballot measure for the May ballot that: 1.Approves a local income tax on Eugene residents that would sunset after six years; 2.Is designed to raise revenue sufficient to (a) allow the two school districts to reduce or eliminate furlough days and keep average class size from increasing to the extent possible; and (b) to cover the costs of implementing the measure; \\Cesrv500\cc support\CMO\2011 Council Agendas\M110214\S1102144.doc