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Councilor Clark supported the committee recommendation but he acknowledged why staff supported the legislation in question. It was reasonable to seek mechanisms that allowed the City to realize more money without raising property tax rates. It seemed like an easy fix, but Councilor Clark considered it a back -door tax increase. The bill changed the rules in the middle of the game and affected the timing of how people paid their taxes. The proposed change took away the discount for people who paid their property taxes early and eliminated their ability to save a little money in return for paying in a timely way upfront. Councilor Zelenka asked the purpose of the discount. Ms. Wilson responded that the original policy purpose of the discount was to provide government entities, particularly smaller cities, with cash flow, by giving residents an incentive to pay their taxes early. She did not think the original legislation was intended to provide a benefit for citizens. Councilor Zelenka supported the proposed legislation because of the funding shortfall faced by State and local government. Councilor Clark pointed out that local government would have gotten more money if the discount was not in force but local taxpayers would have had to pay that much more. Councilor Pryor believed there were arguments in support of both sides. He said that the discount for early cash payment of property taxes had been in force for a long time and Oregon residents were used to it. However, given the relatively small amounts involved for most people and the shortfalls faced by State and local government, he was willing to support the bill. Councilor Farr determined from Ms. Wilson that there was no corresponding senate bill. The bill had been put forward by the House Interim Revenue Committee chaired by Representative Phil Barnhart and had enjoyed a hearing. Ms. Wilson believed that the co- chairs of the committee both favored the concept. Because the bill was a Revenue Committee bill, it was not subject to the same deadlines as other bills. City Manager Ruiz indicated that the legislation was a significant funding issue for the City. He pointed out that the bill merely asked people to pay their taxes. He expressed cautious optimistic about the City's budget but said there was still some financial uncertainty that lay ahead. He recommended the council support the original staff position of Priority 1, Support. Councilor Taylor believed if the law was changed no one would pay their property taxes early. She determined that Ms. Wilson that there was still benefit to early payment, and the bill was drafted to change the payment dates for property taxes to make half the tax bill due on November 15 and the other half due on May 15. Governments would be receiving half of the taxes owed rather than a third. Speaking to the remarks of Councilor Pryor, Councilor Taylor observed that even small amounts were challenging for some residents to afford. Councilor Farr agreed a few dollars could mean a lot to some residents. However, he favored the legislation because of the original intent behind the discount. Councilor Taylor, seconded by Councilor Poling, moved to support the CCIGR position of Priority 3, Oppose on House Bill 3167. The motion failed, 5:3; councilors Taylor, Poling, and Clark voting yes. MINUTES— Eugene City Council April 11, 2011 Page 8 Regular Meeting