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Councilor Clark said he learned at the Eugene Area Chamber of Commerce's Economic Summit that <br />Oregon had the highest rate of income tax in the country. If the tax passed, Eugene would be the only <br />city in Oregon with an income tax, giving it the distinction of being the city with highest income tax rates <br />in the United States. He did not want that distinction. <br />Councilor Zelenka did not think that Oregon's income tax made it a high tax state. Because of a lack of a <br />sales tax, Oregon was right in the middle of the states in regard to the tax burden placed on residents. The <br />State's other taxes had to "make up" for the lack of a sales tax. <br />Councilor Zelenka pointed out that such a new had been imposed in Portland and a mechanism existed to <br />collect it. He liked the motion and planned to support it. <br />Councilor Farr believed unanswered questions remained about how the tax would be collected. He had <br />raised the same questions the previous week and continued to be concerned about that issue. He also <br />continued to believe November would have been a better time to place the proposal on the ballot because <br />it would have provided time for such questions to be answered. <br />Councilor Farr also continued to be concerned that the City had to pay the costs of placing the measure on <br />the May ballot. He did not think the City had a way to pass those costs along. <br />Councilor Farr favored exempting people with incomes below the poverty line from the tax. He did not <br />think that income taxes were a sustainable way to fund services. People below the poverty line were <br />having difficulty putting food on their tables and he was challenged to ask them to pay more in taxes. For <br />that reason, Councilor Farr said he would support the motion. He continued to dislike the taxing <br />mechanism involved. <br />Mayor Piercy said everyone cared about the schools and the future of children. The income tax was <br />suggested because many residents had asked the council to help. She did not see it as a solution to the <br />school funding issue but rather as a bridge to a State solution. She appreciated Councilor Brown's <br />attempt to make the tax more progressive. <br />Regarding the taxing mechanism, Mayor Piercy said the City had a report from an economist who <br />believed that the tax was positive overall. In regard to timing, she recalled that the school districts <br />supported a May 2011 election date as being more helpful. <br />Roll call vote: The motion passed, 6:2; councilors Poling and Clark voting no. <br />PUBLIC HEARING: <br />Envision Eugene <br />City Manager Ruiz introduced the item, reminding the council that Envision Eugene was a planning <br />process intended to guide the development of the community's future. The hearing was an opportunity to <br />hear public reaction to the proposal published February 2, 2011. The council would hold a second public <br />hearing later in the spring. <br />Mayor Piercy opened the public hearing. <br />Elaine Zablocki, 3470 Ferry Street, supported the concept of a denser core to reduce travel times in the <br />community. She endorsed the concepts of 20- minute neighborhoods, transition zones, the use of <br />MINUTES — Eugene City Council February 22, 2011 Page 4 <br />Public Hearing <br />