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HomeMy WebLinkAbout09/23/1985 Meeting (2) M I NUT E S - Eugene City Council City Council Chamber September 23, 1985 7:30 p.m. COUNCILORS PRESENT: Cynthia Wooten, Richard Hansen, Emily Schue, Ruth Bascom, Debra Ehrman, Roger Rutan, Jeff Miller. COUNCILORS ABSENT: Freeman Holmer. The adjourned meeting from September 18, 1985, of the City Council of the City of Eugene, Oregon, was called to order by His Honor Mayor Brian B. Obie. 1. PUBLIC HEARING: RESOLUTIONS AND ORDINANCES ADOPTING CITY PERSONAL INCOME TAX; REFERRING CHARTER AMENDMENTS TO A NOVEMBER 5, 1985, SPECIAL ELECTION, AND CALLING FOR AN ELECTION ON THE ISSUANCE OF GENERAL OBLIGATION BONDS (memo; ordinances, resolutions distributed) City Manager Micheal Gleason introduced the agenda item. Finance Director Warren Wong gave the staff report. He said the council adopted the Eugene Agenda of five projects in the spring and then added the library expansion, a - sWimming pool, and the replacement of Federal Revenue Sharing Funds to the Agenda when public discussion was requested. He said the City will not receive any Federal Revenue Sharing Funds after September of 1986. They have been used for the City's Capital Improvement Program (CIP). The projects and a proposal for a personal income tax were discussed at many public meetings during the summer. The airport expansion, the library expansion, and the CIP received the most support at the meetings. Mr. Wong said the councilors decided to include the projects with the most support--the airport expansion, the library expansion, and the replacement of Federal Revenue Sharing Funds (CIP)--in a package to be funded by a personal income tax. The package could be referred to the voters on November 5, 1985. The rate of the income tax would be fixed by a charter amendment and could not be changed without voter approval. The revenue received from the income tax would be dedicated to capital projects. Mr. Wong reviewed the proposed pro- visions for an exclusion and credits for people with low incomes. He said the Oregon Department of Revenue would administer the city income tax. Employers would withhold the tax which would be paid by Eugene residents and non- residents who work in the city. Non-residents would pay the city income tax only on income earned within the city. Mr. Wong recommended that the council postpone action on the income tax ordi- nance until after the election. He recommended the council refer a charter amendment to the voters on November 5, 1985. He recommended the amendment - MINUTES--Eugene City Council September 23, 1985 Page 1 propose a personal income tax of one-half of one percent and indicate the - revenue will be dedicated to the administration of the tax act, the replace- ment of Federal Revenue Sharing Funds, the expansion of the airport terminal, and the replacement or expansion of the library. Mayor Obie opened the public hearing. A gentleman in the audience asked if the meeting was dedicated to hearing the general public or to hearing people on the City, County and State payroll. Mayor Obie said the council would listen to anyone who wished to speak. Thomas Gilbert, 1451 Waite, said passage of the income tax will demonstrate that Eugeneans place the common good above individual differences and are willing to contribute to the community's quality of life. He said a new city library must be in the package. A new library closer to the downtown mall will stimulate business. A wait of seven years for the new library will deprive the mall of many customers. The library has proved to be a very popular City service. The population has doubled since its construction and book circulation has increased five times. He said there is no safety hazard at the airport now. If the airport expansion is delayed, more Federal funds may be available. Construction of a new library closer to the downtown will ensure passage of the income tax which is critical to the city, Mr. Gilbert said. Liz Cawood, 34496 McKenzie View, lives outside the city limits. She has a business in the city. She and the employees use the airport and the library e which she would like to see upgraded. Her clients depend on the City's public facilities, she said, and she supports the Eugene Agenda. Bill Peckham, 597 East 39th Place, favored the CIP. He is in the construction business. He said the city.s infrastructure needs to be repaired. The streets, alleys, sidewalks, and parks need well-planned, regular repair which is a good investment. He said funding for the CIP should be as high as pos- sible. Peggy Mulder, 970 East 44th, is Vice President of the Friends of the Library. She sald the organization favored including the library expansion on the ballot because a new library or an expansion of the existing library is an over-due community project. Anticipating a vote on the Eugene Agenda, the Board of Directors of the Friends of the Library committed the membership to work for passage of the income tax. Charles Stephens, 360 East 48th, is chairer of the Eugene Public Library Board. He was gratified that a new library is one of the community's top priorities. He said an adequate library is needed by Eugeneans. He thought the many people who use the library will support the necessary taxes. Jim Saul, 2780 Elinor, endorsed the council's proposal because continuing and recognlzab1e funding is needed for the CIP, the proposal indicates the commu- nity's priorities and provides funds for them, and the community has supported carefully considered positions in the past. Mr. Saul said the proposal recog- nizes that the community.s priorities will change. - MINUTES--Eugene City Council September 23, 1985 Page 2 Carroll Fentress, 3883 Blanton, supported the one-half of 1 percent, piggy- - back tax on the Oregon adjusted gross income tax. He commended the council on the public meetings it held to discuss the Eugene Agenda. He said Eugene has received millions of dollars in Revenue Sharing Funds, other Federal funds, and State funds. They have been used for many civic purposes, but they will not be available in the future. Some essential City services, such as the Fire and Police Departments, have already been cut below safe levels. Facil- ities must be repaired. The airport is inadequate. The citizens need an enlarged library. Eugeneans will have to pay their own way or do without, he said. They will have to pay more taxes or receive fewer services. He said he relied on the councilors' judgment that the income tax proposal is the best financing available at this time. Scott Benge, 1010 Forrester Way, represented the Associated General Contrac- tors (AGC) of America. He said the members are concerned about the deterio- rating infrastructure everywhere. Nationally, spending for public works has declined by 44 percent since 1965. Governor Atiyeh said local governments will need about $2 billion by 1989 to prevent additional deterioration of the infrastructure. Eugene needs additional revenue to maintain the current infrastructure, Mr. Benge said. The AGC supports the income tax proposal and the use of the funds for maintenance of the infrastructure first and then for capital improvements. Harold Hyman, 415 Brae Burn Drive, represented the Eugene Area Chamber of Commerce. He said members realize money must be spent to maintain existing facilities and to get what is needed to attract new jobs. Members have stud- e ied the council proposal. Mr. Hyman said the Chamber of Commerce supports an income tax to fund much needed projects, but asked the council to consider the following suggestions: 1) The tax should be a permanent one because capital projects should be maintained; 2) The rate of the tax should be one-third of 1 percent. The $4 million annual revenue will provide for maintenance of the CIP and the airport expansion; 3) The community should participate in plans for a library expansion and the plans should be completed before regional funding is sought; and 4) A long-term, regional financial and managerial arrangement should be sought for Mahlon Sweet Field. Bruce Chase, 3 Chevy Chase Lane, is on the Mahlon Sweet Airport Commission. He discussed needed projects at the airport. He said the airport expansion is critical. Robert Moulton, 294 Sterling, endorsed the council's proposal. He said streets, parks, and other CIP projects are needed and the airport needs to be expanded for economic development. He said the expansion of the library should be studied, but its inclusion in the package presented to the voters is appropriate. Dorothy Anderson, 939 East 21st, testified as an individual. She was not representlng any official body. She said the community has many needs and very few options. She was pleased with the council's proposal and the inclusion of the CIP in it. e MINUTES--Eugene City Council September 23, 1985 Page 3 Ellen Maddex, 2570 Van Ness, testified at the end of the hearing. She sup- e ported the income tax, but she recommended the exclusion for people with low incomes be more than $7,000. She preferred an income tax to additional prop- erty taxes. She said people with $25,000 incomes and $60,000 homes cannot afford higher property taxes. She recommended a permanent income tax because capital improvements will continue to be needed. Jim Hale, 4064 Meredith, was the first of those who testified in opposition to the income tax. He lives outside the city, but works inside the city. He supported the Eugene Agenda. He said the community needs all the projects in the Agenda, but he did not support the income tax. He discussed four other ways to accomplish the projects. They were: 1) A county-wide property tax of 20t per thousand should fund the necessary airport improvements. Mr. Hale thought the Lane County Commissioners would cooperate with the City Council in approving such a property tax; 2) A county-wide gas tax of 4t or 5t a gallon should fund the arterial and collector streets in Eugene, Springfield, and Lane County; 3) An effort should be made by Eugene, Springfield, and Lane County to consolidate and re-assign services. Mr. Hale said Eugene has not cut costs as much as Springfield and Lane County; and 4) After the first three suggestions have been implemented, an income tax should be proposed for all residents within the urban growth boundary of Eugene. Mr. Hale said people who pay for the airport should have a voice in its man- agement. He said the expansion of the airport is necessary. Floyd Summers, 2860 Mill, said the taxpayers. money is wasted. For example, e the 30th Avenue overpass goes to only a few residences, the dump is poorly managed, and the downtown mall is being torn up. Mr. Summers said the airport is adequate. He did not favor construction of the Hult Center. He said only a few people, such as the landowner, will benefit from the Van Duyn factory. He is tired of paying taxes. Bessie Ridenour, 36861 Parsons Creek Road, was insulted by the construction of the Hult Center. She said people do not need more taxes. She pays $16,000 in taxes each year. Some people considered buying a business from her last year, but they wanted to know about the income tax before they would buy in Eugene. She did not want to pay more taxes for the airport and the library. She does not like the flower boxes in the middle of the Eugene roads although the boxes were paid for by federal funds. Ms. Ridenour said she grew up in the depression and missed a year of school because she could not afford books. She said citizens would benefit from additional funds for the Police Department. Police officers have to face bad situations. She said public officials need common sense. Business people do not want to pay more taxes and fill out lots of forms. The library is plenty good enough for her. Jon Silvermoon, 2441 Madison, did not think the voters will approve another tax. He sald Federal Revenue Sharing Funds are about 12 percent of the cost of the first three years of the CIP. A one-half of 1 percent income tax will raise six times what is needed to replace Federal Revenue Sharing Funds. - MINUTES--Eugene City Council September 23, 1985 Page 4 Discussing the expansion of the airport and the library, Mr. Silvermoon said e $6.8 million is included in the three-year CIP for the expansion of the air- port. He did not know why $17.1 is now quoted as the cost of the expansion. He said the Raleigh/Durham airport which serves Research Park in North Carolina was not expanded until the research park was well developed. Mr. Silvermoon said a library/office space feasibility study and construction are included in the CIP. It indicates the library is to be included in a new City office building. Mr. Silvermoon said a new City office building will result in the City vacating many offices in the downtown, and, consequently, will harm the economic health of the downtown. Because the income tax is to pay for projects in the CIP, it will pay for a new City office building which is not needed, he said. Mr. Silvermoon said the hours of the existing library are not convenient for people who work from 8 a.m. to 5 p.m. He will not vote for a new library if he cannot get to the existing one. He said voters must now approve local funds for each large capital improvement project and, therefore, voters can examine each project. A city income tax will take that opportunity away from the voters. He did not think the result will be good democratic government. W. H. Oldaker, 741 East 24th, said City funds are not used properly. For example, hlS street has not been swept for two-and-a-half months. James Bitle, 4428 Ryan, lives in the Santa Clara area. He works in Eugene. He is concerned because he will not be able to vote on the income tax. e John Bauguess, 364 East Broadway, #4, said the income tax proposal indicates the dlvlslons in the community. He cited the Hult Center and the private downtown health club as divisive projects. He said the political atmosphere in the community does not allow personal attacks on people, and he feels a need to make them. He did not want non-residents to pay a city income tax. He does not believe that some of the income tax will pay for the library expansion because no plans are available. He said people who supported the state sales tax also support a city income tax. Frank Soifer, 1344 Lawrence, said an income tax will decrease the purchasing power of Eugeneans because they will have less money to spend. He said many taxes are taken out of a wage earner's check. Someone who earns $7,000 a year cannot afford to pay $30 a year in City income tax. Federal funds which are now spent on defense should be transferred to the cities and states. He said American Airlines spent $600 million to buy Pan American Far East routes. He suggested American Airlines should pay for the expansion of the Eugene air- port. He will work against an income tax. Joseph Dehn, 5340 Saratoga, said an income tax would be bad for Eugene. It will not be collected efficiently. It will be costly to taxpayers and busi- ness managers because they will have to fill out more forms. He said the tax will be raised later. He said Eugene would be the only city in the state with an income tax and business owners will not want to locate here. He was not sure how much expansion is needed at the airport. He said airport users should pay for the expansion. e MINUTES--Eugene City Council September 23, 1985 Page 5 Mr. Dehn said the CIP includes ongoing costs. If they are funded by the e income tax, citizens will not be able to examine the City's expenses well. In addition, the library expansion will increase the operating costs of the City. If the purpose of the income tax is to fund specific projects, there should be a "sunset" provision. He said funds will be found for critical projects if the income tax is not approved. He said "capital improvements" should be defined in the ordinance. Several people who neither favored nor opposed the tax spoke. Bill Kittredge, 1459 B Street, Springfield, said he pays for the library in Sprlngfield. He uses the airport often. His tax accountant said a city income tax will place the largest burden on citizens with middle-sized incomes although business people use the airport most often. Mr. Kittredge said user fees or a regional authority for the airport would be appropriate. He urged the council to consider the alternatives suggested during the evening. Bob Fauvre, 2979 Maranta, asked if the City can issue revenue bonds to be retired by an income tax. He wondered if an income tax could fund the pro- posed projects. Mr. Fauvre said a councilor was quoted as saying the coun- cilors want to decide what projects will be accomplished. Peter DeFazio, 739 South 4th, Springfield, distributed two pages titled "Examples of Comparative Burden with Proposed Commuter Tax. II He i s a La ne County Commissioner. Mr. DeFazio reviewed the comparison between a city income tax and a county-wide bond election. He said the airport expansion - should be financed by users. He suggested Senators Packwood and Hatfield be asked to work on approval of an airport departure tax. He said the financial burden of the airport expansion could also be spread more evenly by the creation of an airport port district. Mr. DeFazio said he supported a regional library. He hopes the cooperation evidenced by the Chambers Connector will continue. Robert Ruunslee, 476 East Broadway, said the voters will not approve a city income tax. He said many people who earn wages in the city live outside the city, and, if the income tax is approved, they will have to pay it. He said the downtown mall is being torn down for commercialism, the councilors do not listen to their constituents, the councilors should learn to budget, the city is still in a recession, unemployment ;s high, and the income tax will not create jobs. Mr. Ruunslee said city employees are on a form of welfare. Thomas G. Stedman, 1510 Villard, asked about cost overruns or allowances to avold delays on the projects, how the projects will be maintained, if the income tax could be referred to the voters again when the airport and library expansions are paid, and if plans for the airport and the library could be made public. He has worked in the library. There being no more requests to testify, Mayor Obie closed the public hearing. He said some councilors had indicated they wanted an opportunity to think about the testimony. Therefore, the council will not take action on the proposal until September 25, 1985. e MINUTES--Eugene City Council September 23, 1985 Page 6 Mayor Obie recessed the meeting at 9:15 p.m. and reconvened it at 9:30 p.m. e Responding to questions asked during the testimony, Mr. Wong emphasized that the proposed tax would be on the Oregon adjusted gross income. It would be consistent with Federal and State programs. In the proposal, construction at the airport would begin in June or July of 1986 and construction at the library would begin in the sixth year of the program. Before construction started at the library, there would be an extensive public process to decide whether the library should be expanded at its present location or constructed somewhere else. Funds for the CIP would begin the first year. The effective date of the tax would be January 1,1986. Reciprocity with other cities that have an income tax would be included in the ordinance. The Budget Committee deleted all references to a City office building from the CIP this year. Mr. Wong reviewed the CIP process and said it includes much public input. He said the Oregon statutes indicate that revenue bonds are authorized only if the debt service is paid by user fees generated by the facility. A Deputy State Treasurer indicated that an income tax could not support revenue bonds for the airport or library, but the City Charter could be amended to provide local authorization for revenue bonds to pay for the airport and library expansion. Mr. Wong said the total cost of the airport expansion will be $17.1 million. The City has applied for $2.6 million in FAA grants and $4.5 million will be supported by user fees initially. The income tax will provide $10 million for the expansion, and user fees will eventually assume 60 percent or more of the e cost of the bonds. City officials have discussed legislation which would permit user fees at the airport with the Oregon Congressional Delegation. Contingency funds have been included in the project cost estimates for cost overruns. The council could reduce the amount of the income tax funds that would be used for the CIP to be sure the projects are completed. The oper- ating costs of the airport expansion will be supported by user fees. Oper- ating costs caused by the library expansion will have to come from the general fund. Mr. Wong said the council has considered a termination of the income tax when the airport and library expansion are paid. Drawings of the airport expansion are available. Mr. Gleason said the comparisons distributed by Mr. DeFazio were taxes on gross income. The proposed city income tax would be on Oregon adjusted gross income. Ms. Wooten said the city does not have a dump. The dump belongs to Lane County and the 30th Avenue overpass was constructed by Lane County. She said the City of Eugene has not foreclosed on any owner-occupied homes. She empha- sized that the voters would have to approve an increase in the rate of an income tax. She said the City is encouraging a transfer of Federal funds to state and local governments. Eugene and Springfield officials are working on combining the delivery of basic services. She said the opening of Willamette Street is being funded by the property owners in the Downtown Development District. e MINUTES--Eugene City Council September 23, 1985 Page 7 Ms. Schue said some good comments were made during the testimony. She favored e a county-wide library district and a regional airport district, but a regional airport district would require the approval of people who now use the airport free. Ms. Schue said the council has the authority to levy an income tax now, but the council has proposed a charter amendment which would limit the author- ity. The council proposal would give the voters a chance to control the coun- cil. Voters would have to approve a raise in the rate of the tax. Ms. Ehrman aSKed Mr. Wong to provide information on September 25 about the percentage of homeowners and renters in the city. II. CONSIDERATION OF FINDINGS/LEVYING ASSESSMENT A. Findings Concerning Sanitary Sewers on Lone Oak Drive from Division Avenue Pump Station to Zona Avenue (Job # 2l52) (#85-23) (memo, findings distributed) City Manager Micheal Gleason introduced the agenda item. He said the council is being asked to approve the findings at this time. The council will be asked to levy an assessment for the sanitary sewers on Lone Oak Drive from the Division Avenue Pump Station to Zona Avenue at a later time. Ms. Wooten moved, seconded by Mr. Hansen, to approve the findings. Roll call vote; the motion carried unanimously, 7:0. e I I I. ORDINANCE. CONCERNING ELIMINATION OF DOWNTOWN DEVELOPMENT DISTRICT PROFESSIONAL TAX (memo, ordinance distributed) (- City Manager Micheal Gleason introduced the agenda item. Greg Byrne of the Eugene Development Department gave the staff report. He said the Downtown Commission recommended the elimination of the professional tax which has been used by the Downtown Development District because it seems to be a detriment to professional office development in the district. The Eugene Downtown Association also recommended elimination of the professional tax and has taken a dollar for dollar cut in funding to offset the loss of revenue. CB 2857--An ordinance regarding the Downtown Development District taxation; repealing the professional tax; amending Section 3.700 of the Eugene Code, 1971; and declaring an emergency. Ms. Wooten moved, seconded by Mr. Hansen, that the bill be read the second time by council bill number only, with unanimous consent of the council, and that enactment be considered at this time. Roll call vote; the motion carried unanimously, 7:0. Council bill 2857 was read the second time by council bill number only. e MINUTES--Eugene City Council September 23, 1985 Page 8 Ms. Wooten moved, seconded by Mr. Hansen, that the bill be e- approved and given final passage. Roll call vote; all coun- cilors present voting aye, the bill was declared passed (and became Ordinance No. 19355). IV. ORDINANCE CONCERNING SUSPENSION OF PARKING FEES FOR THE EUGENE CELE- BRATION (memo, ordinance distributed) City Manager Micheal Gleason introduced the agenda item. He said the City Manager does not have authority to suspend parking fees for City-sponsored events. This ordinance would grant him that authority. He recolllllended approval of the ordinance. CB 2858--An ordinance concerning off-street parking facility fees; amending Section 5.285 of the Eugene Code, 1971; and declaring an emergency. Ms. Wooten moved, seconded by Mr. Hansen, that the bill be read the second time by council bill number only, with unanimous consent of the council, and that enactment be considered at this time. Answering questions from Ms. Ehrman and Mr. Hansen, Mr. Gleason said the council will not have to consider suspending parking fees for City-sponsored events, if the ordinance is approved. Scott Lue11 of the Eugene Development e Department said a "celebration" is defined in the City Code as a City- sponsored event. Roll call vote; the motion carried unanimously, 7:0. Council bill 2858 was read the second time by council bill number only. Ms. Wooten moved, seconded by Mr. Hansen, that the bill be approved and given final passage. Ro 11 ca 11 vo te; all councilors present voting aye, the bill was declared passed (and became Ordinance No. 19356). V. ROUTINE ITEMS FOR COUNCIL APPROVAL A. City Council Minutes of September 9, 1985, (minutes distributed) City Manager Michea1 Gleason introduced the agenda item. Ms. Wooten moved, seconded by Mr. Hansen, to approve the City Council minutes of September 9, 1985. Roll call vote; the motion carried unanimously, 7:0. e MINUTES--Eugene City Council September 23, 1985 Page 9 B. Call for Public Hearing (Williams Bakery) (SV 85-3) (map distributed) e City Manager Michea1 Gleason introduced the agenda item. He said the City Code requires that the council call a public hearing for a street vacation. He recommended approval of the ordinance. CB 2859--An ordinance calling a pUblic hearing for October 28, 1985, to consider vacation of an 80-foot-wide public right-of-way. Mr. Gleason moved, seconded by Mr. Hansen, that the bill be read the second time by council bill number only, with unanimous consent of the council, and that enactment be considered at this time. Roll call vote; the motion carried unanimously, 7:0. Ms. Wooten moved, seconded by Mr. Hansen, that the bill be approved and given final passage. Roll call vote; all coun- cilors present voting aye, the bill was declared passed (and became Ordinance No. 19357). C. City Council Meeting Schedule (memo, 1986 calendar distributed) City Manager Micheal Gleason introduced the agenda item. He said the schedule may be changed later in a public meeting. Ms. Wooten moved, second by Mr. Hansen, to approve the October, e November, and December 1985 and January through December 1986 City Council meeting schedule as proposed. Roll call vote; the motion carried unanimously, 7:0. VI. APPOINTMENTS: CONSIDERATION OF COUNCIL SUBCOMMITTEE NOMINATION TO COMMISSION ON THE RIGHTS OF MINORITIES (memo distributed) Ms. Wooten moved, seconded by Mr. Hansen, to appoint the following to the Commission on the Rights of Minorities: Sharon Woods, 195 West 40th Term to expire (replacement for Ruben Sho1ander) January 1,1988 Roll call vote; the motion carried unanimously, 7:0. - MINUTES--Eugene City Council September 23, 1985 Page 10 VII. EUGENE CELEBRATION PROGRAM e Mayor Obie postponed discussion of the Eugene Celebration to Wednesday, September 25, 1985. The meeting was adjourned at 9:50 p.m. - (Recorded by Betty Lou Rarick) 1879C e - MINUTES--Eugene City Council September 23, 1985 Page 11