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new tax immediately would solve the long -term problem given the recessionary conditions that continued to exist. He advocated for creating a stronger economy and a better school system. He said the governor had directed the legislature not to send him short-term tax increases because they were not the long -term solution the state needed. Mr. Clark agreed and thought the direction appropriate in this situation. Mr. Zelenka said that schools and education were very important to the community and to the community's economic health. He believed that Ballot Measure 47/50 had many little understood consequences, including the elimination of local control. He also agreed with Mr. Clark that the City did not know what the legislature or governor would do yet. Mr. Zelenka liked what the governor had to say at the Eugene City Club regarding his education policy and plans for reform, and he thought the council needed to hear more about that and incorporate it into its thinking. Mr. Zelenka was concerned about the potential of competing education revenue measures. He asked about the impact of the proposed school measures on the average homeowner. Superintendent Russell said the board was considering a May 2011 measure because its current bond was expiring and a new bond would not raise property taxes. Superintendent Gill indicated there would be no increase as a result of the Bethel bond for the same reason. Ms. Taylor thought the council should do what it could for the schools. However, she did not support imposing a tax without a vote of the people. She did not favor a tax on restaurants. She supported asking people if they wanted to pay a surcharge on their income tax, but she did not support taxing the low - income. She asked if Eugene could tax people who did not live in Eugene. City Attorney Glenn Klein indicated that Eugene could place a "work privilege tax" on nonresidents who worked in Eugene. Ms. Taylor thought such a tax sounded like a good idea. She further determined from City Attorney Klein that the City could tax incomes above $100,000, and indicated it was her preference to tax such residents. Mr. Brown believed the City should pursue a new revenue source for the schools. He said every economic development meeting he attended included an emphasis on the importance of a healthy school system to attract businesses. The City could not attract technology companies without a good school system. Eugene's system was slipping. Class sizes were growing and the districts had lost instructional days. He thought it was important to address those problems. New revenue would not improve the situation but would just "stop the bleeding." Mr. Brown favored a surcharge on the State income tax, and advocated for the council to direct the manager to explore that option. He also favored a graduated straight income tax. He opposed a business or restaurant tax as he thought it unfair to target one segment of the community. The tax needed to be a shared burden. Mr. Brown believed that Eugene residents would be happy to pay such a tax. Mr. Poling said he had grandchildren in the Eugene system and was supportive of the school districts. He would be willing to pay some sort of tax but he represented other people as well. He did not think the City needed to act as quickly. He suggested that a good public relations firm could be engaged to do a public opinion survey that asked people the type of tax they favored. He said that depending on the outcome of the survey, he might or might not support a measure. Mr. Poling said he would oppose a restaurant or business tax. He was particularly opposed to a restaurant tax because the restaurant industry was one of the hardest hit industries in the current economy. He suggested any measure the City Council referred to the voters should be very specific about what would be funded with the revenues that were realized and should include an accountability element similar to what the council did with the road preservation bond. Mr. Poling was concerned about putting too many measures before the voters at one time. MINUTES— Eugene City Council January 11, 2010 Page 8. Regular Meeting