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HomeMy WebLinkAbout09/25/1985 Meeting M I NUT E S e Eugene City Council City Council Chamber September 25, 1985 Noon COUNCILORS PRESENT: Cynthia Wooten, Richard Hansen (12:00-1:31 p.m.), Emily Schue, Ruth Bascom, Debra Ehrman, Roger Rutan, Jeff Miller. COUNCILORS ABSENT: Freeman Holmer. The adjourned meeting of September 23, 1985, of the City Council of Eugene, Oregon, was called to order by His Honor Mayor Brian B. Obie. 1. ITEMS FROM MAYOR AND COUNCIL, APPOINTMENTS, ANNOUNCEMENTS, AGENDA ADJUSTMENTS A. Eugene Celebration Councilor Wooten noted that the Eugene Celebration is this weekend, September 27, 28, and 29. She said more than 800 volunteers are working on the Celebra- e tion and more than 500 businesses are participating with cash sponsorships or "in kind" donations. She introduced Councilor Ehrman, vice chair of the Cele- bration, Al Denfield, coordinator of the Celebration, and several volunteers who were present. Ms. Wooten said over one-hundred groups will perform at the Celebration, the Jazz Festival has been expanded, and a Film and Video Festival will be held for the first time. Each councilor received a bag of Celebration souvenirs. Mr. Fenstermacher said many bands and choirs will be in the parade. Ms. Cox said a good sign is that some people are consulting the Celebration schedule before planning their own activities. Ms. Ehrman said a non-profit corpora- tion is being formed to pursue funding and give stability to revenue sources. Mayor Obie thanked Ms. Wooten and Ms. Ehrman for their work on the Celebra- tion. He emphasized that the Celebration celebrates Eugene. B. Miss America Councilor Miller said he will greet Miss America this weekend on behalf of the mayor. - MINUTES--Eugene City Council September 25, 1985 Page 1 y II. 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. Responding to a request Ms. Ehrman made Monday night, he said the 1980 census indicated that 50.1 percent of the people in Eugene rent their homes and 49.9 percent own their homes. Mayor Obie noted that he and the councilors had received a letter dated Sep- tember 25, 1985, from the Lane County Board of Commissioners. The cOllll1is- sioners asked the City Council to delay action on an election. Mayor Obie said the City Council and mayor have a responsibility to the citizens of the community. Councilors have spent much time studying the issues. The commu- nity has been involved in the process for months. There are always people who want to slow things down, but the public has had a lot of opportunities for involvement. Mayor Obie said the time for a decision has come. The needs of the community are demanding and the council should provide leadership. There will be time to work with the Lane County Commissioners and understand their problems later. He said a "commuter tax" does affect the residents of the county. However, they use the services and assets of Eugene and they should be invited to participate in the costs. It is one of the most attractive things about the proposal. He asked the councilors to comment. e Councilor Schue appreciated the Mayor's statement. She said the council must be practical about what the voters will pass. Councilors must be responsible to the perceived needs of the community and balance them against financial obligations. She would like to discuss such things as the "commuter differen- tial" that would make the package a good one. She said it is necessary to keep the library and airport in the package because they fill the needs of different groups. The package should be broad-based. She favored giving the people in the River Road area a free library card if they help pay for the library. She also wanted to be sure the Capital Improvement Program (CIP) projects are funded adequately. She would vote for a .045 income tax if other councilors wanted it. Councilor Rutan said the councilors had done their homework. After spending much time with constituents, the councilors had decided on three good projects that must be paid for. He favored a one-third of one percent personal income tax that would end in 25 years. He said a one-third of one percent tax would fund the airport expansion, the library expansion, and the CIP, although changes would have to be made in the plans. The termination of the income tax would assure the citizens that they will not be paying for the airport and the library after they are completed. He said everyone knows the CIP costs will be on-going, but Federal and State tax structures will be different in 25 years. The city will have experience with an income tax in 25 years and can plan for funding the CIP then. He emphasized that all three projects should be included in the proposal although detailed plans for the library are not available now. He said people will have many opportunities to participate '" with the council in developing the plans. MINUTES--Eugene City Council September 25, 1985 Page 2 Councilor Hansen had received a call from a Springfield councilor who asked e the Eugene council to delay a vote on the income tax until the three jurisdic- tions could agree on a way to pay for the three projects. However, Mr. Hansen thought a delay would not decrease the difficult choices. He favored giving the citizens a chance to vote. He said a new income source was first consi- dered to fund the CIP. The library expansion was then included in the pack- age, but the expansion would necessitate an additional $350,000 in operating funds for the library. Mr. Hansen did not think a commitment to expand the library should be made until funding for its operation is assured. He noted that the school districts, the University of Oregon, and Lane Community College have libraries. He said a commitment to expand the library would indicate that the library has a higher priority than the police and fire departments. He favored an income tax of one-quarter of one percent which would pay for the airport and provide some funds for the CIP. It would mean the community would have to seek funds from other sources such as the Federal government and the State lottery. He said some bonds will be paid off in six years and then property taxes should go down. Perhaps a library could be financed then. Mr. Miller said Eugeneans place a higher priority on capital investments than some people in other cities do. The capital investments make the city a good place to live. He could support an income tax of one-third to one-half of one percent. He emphasized the importance of terminating part or all of the income tax in 25 years. He said the council should present a proposal to the community for a vote because the community has indicated it wants the airport and library expanded and the CIP projects maintained. He said the citizens of e the metropolitan area benefit from capital projects of the city, and people who benefit should help pay for them. Therefore, he had no problem with the cummuter tax. Ms. Wooten said her experience this summer talking to constituents, social service agencies, and members of clubs was good. Councilors had responded to comments received from the public. She had been influenced by the testimony before the council and other councilors' thoughts about the best package to refer to the voters. She said some people in her ward have lower incomes than people in other wards. She said regional capital projects benefit people who work in the city but live outside the city. She suggested a commuter differ- ential so that those people would pay one-quarter of one percent income tax. She agreed they should receive free library cards. She had proposed an exclu- sion for people earning $5,000 a year or less, but she thought that exclusion should be raised to $7,500. She favored an income tax of four-tenths of one percent. She said the airport, library, and the CIP may have to be cut back to permit the low-income exclusion and the commuter differential. Ms. Ehrman said Mayor Obie's five point Eugene Agenda enabled the council and the community to focus on the future. The council added three projects for public consideration. Councilors attended many meetings to learn what the citizens wanted. The airport and library expansion and the CIP program emerged with most support. Commenting on the testimony at the council's pub- lic hearing, Ms. Ehrman discussed user fees for the airport and the library, an increase in property taxes, and the gas tax. She said federal laws pro- hibit fees for airline passengers. Efforts to change the federal laws e MINUTES--Eugene City Council September 25, 1985 Page 3 will continue. User fees for the library would keep patrons who most need and - use the service from it. An increase in property tax would increase the bur- den on the 50 percent of city residents who own their homes. Even a maximum gas tax would not fully fund the needed road improvements. A metropolitan gas tax has been considered for many years, but no action has been taken. Ms. Ehrman said a tax paid by all people who work in the city would broaden the base of contributors. She would support a commuter differential and free library cards for non-residents. She noted that an income tax is progres- sive. A low-income exclusion would respond to the needs of people with low incomes. She said an income tax will be a stable source of revenue and will minimize the administrative costs. It is the council IS best solution to the problem of a new revenue source. The proposed ordinance would authorize a maximum personal income tax of one-half of one percent. Only the voters could change the maximum. She is concerned about waste in government, future impacts on the operating budget, and the cost-effectiveness of the projects. She is also concerned that there is only a month to get information about the proposal to the voters. Ms. Ehrman is very concerned about replacing the Federal Revenue Sharing Funds that the City will lose. She emphasized that the CIP projects to be paid for by the income tax should be defined. Projects such as a new City office building are included in the CIP, and, because of that, some people testifying thought a new City office building would be constructed with income tax funds. If the income tax passes, she would like to see councilors and/or other citizens oversee the projects so they can tell the community what is e happening. There will have to be much community discussion about the library expansion. If the costs of the projects are reduced, she will try to have the income tax reduced. Stating that the CIP costs will continue, she said she will tell the voters the new revenue source should be permanent. Eugene cannot count on the State and Federal governments to help in the future. It comes down to asking the citizens of Eugene to invest in Eugene. Councilor Bascom said she is committed to asking the voters for a new revenue source on November 5. She is also committed to working with other councilors on the package. She emphasized that the city is clean and well run. Its services are good. She would like the spirit of support for the services to continue. She would like the campaign for the income tax to indicate that city services are good and a new revenue stream is needed to pay for them. Replying to questions, Mr. Wong said a ballot measure for a November 5th elec- tion must be filed by 5 p.m. October 2, 1985. Oregon Department of Revenue representatives indicated that the administrative costs of a commuter differ- ential would be horrendous. A rebate system for non-residents would be less expensive. He repeated Ms. Wooten's suggested package and said $3.8 to $4.2 million would be collected annually. It would be $1.8 to $2.2 million less than would be collected by a one-half of one percent income tax. Mr. Gleason said a .045 percent income tax with a 15 percent rebate to non- residents, a $7,500 annual exemption, and credits for annual incomes of $7,500 to $10,000 would fund the CIP at about $2.4 million annually. - MINUTES--Eugene City Council September 25, 1985 Page 4 Mayor Obie said a rate of one-half of one percent is easier to explain than e other rates, but it would raise more than the minimum needed for the three projects. He thought a commuter differential is unnecessary because non- residents are getting a bargain. Non-residents do not share in any other way in the city's costs now. Even if they pay equally for CIP projects, they will still get a break because they will not contribute to the operational expenses of the city. An income tax of four-tenths of one percent would be tight. It would provide about $2 million for the CIP annually. An income tax of one- third of one percent will not provide enough to achieve the projects the community wants. He favored a decrease to one-quarter of one percent in 25 years to provide for on-going CIP projects. Mr. Hansen agreed with Mayor Obie's statements about non-residents. He felt strongly about his suggestions, but realized other councilors did not agree with him. Responding to a question from Ms. Schue, Mr. Rutan said he did not know exact- ly where the costs of the airport and library could be cut, but he thought some opportunities exist. Mayor Obie and the councilors agreed to a series of motions (straw votes) which would indicate what a tax package should include. Ms. Wooten moved, seconded by Mr. Hansen, to cut a personal income tax in half in 25 years when the airport and library are constructed. Roll call vote; the motion carried, 6:1. . Ms. Ehrman voted nay. Ms. Wooten moved, seconded by Mr. Hansen, to include a $7,500 low-income exclusion and progressive tax credits for people with annual incomes of $7,500 to $10,000. Roll call vote; the motion carried, 6:1. Ms. Bascom voted nay. Ms. Wooten moved, seconded by Mr. Hansen, to include a commuter differential so that the income tax for non-residents would be less. Roll call vote; the motion failed, 2:5. Ms. Schue and Ms. Ehrman voted aye. Ms. Bascom, Mr. Rutan, Ms. Wooten, Mr. Hansen, and Mr. Miller voted nay. Ms. Wooten moved, seconded by Mr. Hansen, to present a proposal to the voters on November 5 for an income tax of four-tenths of one percent. Replying to a question from Ms. Ehrman, Mr. Obie said an income tax of four- tenths of one percent without the exclusions and progressive tax credits would expand the airport as planned, expand the library in the sixth or seventh year, and provide about $2 million annually for the CIP. The low-income exclusions and progressive tax credits approved by councilors would decrease the revenue about $500,000. Roll call vote; the motion passed, 4:3. Ms. Bascom, Mr. Miller, Ms. Wooten, and Ms. Ehrman voted aye. Mr. Hansen, Ms. Schue, - and Mr. Rutan voted nay. MINUTES--EugeneCity Council September 25, 1985 Page 5 Ms. Wooten moved, seconded by Mr. Hansen, to present to the e voters on November 5, 1985, a proposal for a personal income tax of four-tenths of one percent with a $7,500 low-income exclu- sion, progressive tax credits for incomes of $7,500 to $10,000, and a decrease in the rate to two-tenths of one percent in 25 years when the airport and the library expansions are paid in full. Mr. Miller moved, seconded by Ms. Ehrman, to amend the motion to provide for a decrease in the rate to one-quarter of one percent in 25 years when the airport and the library expansions are paid in full. Discussing the amendment, Ms. Ehrman said she favored a one-quarter of one percent income tax when the airport and library are paid in full in order to fund CIP projects. She emphasized that even an income tax of one-quarter of one percent would not replace the Federal Revenue Sharing funds. Roll call vote; the motion to amend carried, 5:2. Ms. Schue and Mr. Hansen voted against it. Mr. Gleason recommended that a date certain for the decrease in the rate of the income tax not be included in the charter amendment because it would affect the bonding capabilities of the City. He recommended the charter amendment indicate that the tax will be decreased when the airport and library e expansion are paid in full. Mr. Hansen would support the motion so that Eugene citizens can vote on the matter. He said he had expressed his viewpoints. Mr. Wooten encouraged other councilors to support the motion. She said it is a fair compromise and respects the comments from the public. Answering questions from Mr. Miller and Mr. Rutan, Mr. Gleason said the word- ing of the motion was acceptable. The "25 years" did not have to be deleted and a dedication to specific projects did not have to be stated. The ordi- nance will state specifically what projects the income tax will fund. Mr. Rutan would support the compromise. Ms. Ehrman said the proposal probably is not the first choice of any of the councilors, but it is important for the council to be united. She hoped the public would see that the council had tried to develop the best, reasonable solution to important capital needs. She would support the motion. Ms. Bascom noted that the proposal will provide for the expansion of the air- port and library, and only replace a part of the Federal Revenue Sharing Funds. She also noted that the city is falling behind about $3 million each year in the street program. The proposed income tax will not solve all the city's financial problems, but it will be an important first step. - MINUTES--Eugene City Council September 25, 1985 Page 6 Ms. Schue said she would support the motion, but she was not approving the e figures proposed for the expansion of the airport and library. She did not want the expansions to be more than necessary. She would like more capital funds. She wants to be very cost conscious in planning the expansions. Mr. Miller hoped at least one-quarter of one percent of the income tax will be spent for the CIP. He emphasized it is an important replacement of federal funds. He emphasized that passage of the motion did not mean the projects would be constructed as planned. Answering a question from Ms. Wooten, Mr. Gleason said the proposal will pro- vide for the expansion of the airport as planned, an expansion of the library, and between $2 and $1.5 million annually for capital improvements. Mayor Obie said the council will decide details about the expansions later. He said the proposal is the least that will achieve the projects the council and voters want. It will motivate City officials to find other funding sources for the projects. Roll call vote; the motion carried unanimously, 7:0. Mayor Obie recessed the meeting at 1:20 p.m. and reconvened it at 1:25 p.m. Ms. Freedman distributed copies of a resolution and ordinance to the council- ors. Mr. Sercombe indicated the changes that should be made in Resolution No. 3942 to reflect the motion passed by the councilors. He said the low-income e exclusion, the progressive tax credits, and a definition of CIP projects will be in the tax ordinance itself which will be presented to the council on Octo- ber 9, 1985. The council will not consider adoption of the tax ordinance until after the November 5 election. Referring to the proposed resolution, Mr. Hansen asked if citizens could be assured in some way that the City will not borrow funds in 1995 for a major improvement in the airport. Mr. Gleason suggested the issue be addressed in the tax ordinance. Answering a question from Ms. Bascom, Mr. Gleason recommended that bonding provisions not be included in the ballot measure. The council will vote on the bond provisions when' it authorizes the projects. The public would vote on general obligation bonds. Mr. Hansen left the meeting. Res. No. 3942--A resolution directing that charter amendments concerning a City personal income tax be referred to the electors of the city of Eugene. Ms. Wooten moved, seconded by Ms. Schue, to adopt the resolu- tion. Roll call vote; the motion carried unanimously, 6:0. e MINUTES--Eugene City Council September 25, 1985 Page 7 CB 2855--0rdinances ordering a special City election to be e conducted by the Lane County Elections Department on November 5, 1985, regarding measures submitted by the City Council on City income tax, revenue bonding authority, and general obligation bonds and providing for all acts necessary for the carrying on of said election; and declaring an emergency. Ms. Wooten moved, seconded by Ms. Schue, 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, 6:0. Council Bill 2855 was read the second time by council bill number only. Ms. Wooten moved, seconded by Ms. Schue, that the bill be approved and given final passage. Roll call vote; all council- ors present voting aye, the bill was declared passed (and became Ordinance No. 19358). Replying to a question from Mayor Obie, Mr. Wong said an Oregon statute does not permit a city to repay bonds from income tax revenue. Eugene could issue bonds on which the debt service would be paid by airport user fees and charges. Other options are: (1) the City charter could be amended to create a local revenue bond authority (which would have to be approved by the e voters), and (2) a public building corporation could be formed to constuction and equipment a specific public facility. Income tax revenues could be used for lease payments to the public building corporation. Mayor Obie stated that bonds for each of the two projects could be sold using the full faith and credit of the City after voter approval. Mayor Obie adjourned the meeting at 1:35 p.m. ~~ Micheal Gleason Ci ty Manager (Recorded by Betty Lou Rarick) 1875C . MINUTES--Eugene City Council September 25, 1985 Page 8 }: ~ - . t " .' EUGENE CITY COUNCIL e Bri efi ng Sta tement September 25, 1985 11:30 a.m. EUGENE CITY COUNCIL LUNCH IN THE McNUTT ROOM Noon: CITY COUNCIL MEETING IN THE COUNCIL CHAMBER: I tern I: ORDINANCES ADOPTING CITY PERSONAL INCOME TAX Provldes opportunity for ~Byor and Council to further discuss and take action on proposal, if decision is not reached Monday evening; COUNCIL ACTION REQUESTED; memo attached to agenda; ordinances, resolutions previously distributed. CF:cj/1860C . , . ~ , ~ , ,. .~ ~ e - - M E M 0 RAN DUM . October 3, 1985 To: City Council From: Warren G. Wong, Finance Director Subject: PERSONAL INCOME TAX The attached ordinance implementing a City Personal Income Tax reflects changes made by Council at its September 25 meeting and is a revision to the draft distributed at your September 23 meeting. The changes include: 1. Rate -- Change rate to 0.4% during period in which debt service for Airport Terminal Expansion and New or Expanded Library is outstanding from 0.5%; and, thereafter, rate changes to 0.25% to support Capital Improvements Program. 2. Low Income Exclusion/Credits -- Provides for low income exclusion for taxpayers earning less than $7,500 taxable income and decreasing credits for taxpayers earning between $7,501 and $10,000. 3. Dedication of Revenue, Capital Project Definition -- Included acquisition of motorized vehicles and automated equipment. . 4. Employer Withholding -- Changed required withholding to Eugene based employers only. As indicated previously, we recommend that formal action on this ordinance take place after receipt of an affirmative vote on the ballot measure that imposes the City Personal Income Tax with the stipulated rate and use limitations. In addition to the revised Personal Income Tax ordinance, we are enclosing a copy of Resolution #3942, which contains the wording of the ballot measure. cc: M. Gleason D. Wh it 1 ow G . Lo n g Attachments -- 2 fnwgw749 . ORDINANCE NO. . AN ORDINANCE CONCERNING A CITY PERSONAL INCOME TAX; ADDING SECTIONS 3.600, 3.601, 3.602, 3.604, 3.606, 3.608, 3.610, 3.612, 3.614, 3.616, 3.618, 3.620, 3.622, 3.624, 3.626, 3.628, 3.630, 3.632, 3.634, 3:636, 3.638, 3.640, 3.642, 3.644, 3.646, 3.648, 3.650, 3.652, 3.660, 3.662, AND 3:998 THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Sect ion 1. The following caption and sections are hereby added to the Eugene Code, 1971, to read and provide: CITY OF EUGENE PERSONAL INCOME TAX ACT 3.600 Short Title. Sections 3.600 to 3.662 and 3.998 of this code shall be known as the city of Eugene Personal Income Tax Act, and may hereinafter be referred to as the "Act". 3.601 Policy., It is the intent of this Act, insofar as necessary and . consistent with this Act, to make the city personal income tax law identical in effect to the provisions of the Oregon personal income tax law for the taxable year for which a return is made, modified as necessary by the city's jurisdiction to tax; to achieve this result by the application of the various provisions of the Oregon personal income tax law in effect for the year in which the return is made; to impose a tax on residents of the city measured by taxable income as hereinafter defined, from wherever derived, and to impose a tax on nonresidents measured by the taxable income of non- residents derived from sources within the city. 3.602 Definitions. Except as specifically defined to the contrary in sections 3.600 to 3.662 of this code, as used in those sections, the following words and phrases mean: Business means an enterprise, activity, profession or under- taking of any nature conducted or ordinarily conducted for gain or livelihood by any taxpayer, including the operation of an unrelat- ed business by a charitable, religious or educational organization'. City means the City of Eugene, Oregon. Department means the Oregon Department of Revenue. Director means the Director of the Department of Revenue. Employer means a person who is in such relation to another person that the person may control the work'of that other person and direct the manner in which it is to be done; or an officer or employe of a corporation, or a member or employe of a partnership, . '0 who as such officer, employe or member is under a duty to perform Ordinance"" 1 e the acts required of employers under this Act. Individual means a natural person. Nonresident means an individual who is not a resident of the city. Part-year resident means a taxpayer who changes status during a taxable year from resident to nonresident or from nonresident to resident. Resident means: (a) An individual who is domiciled in the city unless he/she maintains no permanent place of abode in the city, and does maintain a permanent place of abode elsewhere, and spends an aggregate of not more than 30 days of the taxable year in the city; or (b) An individual who is not domiciled in the city but maintains a permanent place of abode in the city and spends an aggregate of more than 200 days of the taxable year in the city is presumed to be a resident unless he/she proves he/she is in the city only for temporary or transitory purposes. Taxable income means "adjusted gross income" as that term is defined in section 62 of the Internal Revenue Code of 1954, as amended, and limited by ORS 316.012, as amended from time to time. Taxable year means the period corresponding to the taxpayer's taxable year for federal income tax purposes. . . Taxpayer means any individual whose income is in whole or in part subject to tax under this Act. e Wages means remuneration for services performed by an employe for an employer, including the cash value of all remunera- tion paid in any medium other than cash, except that "wages" does not include remuneration paid: (a) For active service in the Armed Forces of the United States on which no withholding is required by the Internal Revenue Code.' (b) To an employe of a common carrier when such employe is not a resident of the city and regularly perf~rms services both within and without the city. (c) For domestic service in a private home, a local college club or a local chapter of a college fraternity or sorority. (d) For casual labor not in the course of the employer's trade or business. (e) To an employe whose services to the employer con- sists solely of labor in connection with the planting, culti- vating or harvesting of seasonal agricultural crops, if the total amount paid to such employe is less than $300 annually. (f) To seamen who are exempt from garnishment, attach-' ment or execution under Title 46, United States Code. (g) To persons temporarily employed as emergency forest fire fighters. (h) To employes' trusts exempt from tax under the Internal Revenue Code. - (1) For services performed by a duly ordained, commis- sioned or licensed minister of a church in the exercise of the minister's ministry or by a member of a religious order in the Ordinance - 2 exercise of religious duties required by' such order, which e duties are not commercial in nature. 3.604 Imposition of Tax. ( 1) A tax is imposed upon every resident of the city upon and with respect to his/her entire taxable income from sources both within and without the city. (2) Except as set forth in section 3.604(4), a tax is imposed upon every nonresident of the city upon and with respect to his/her entire taxable income derived from every business, trade, or occupation carried on in the city, including income from intangible personal property used by the taxpayer in the conduct of his/her business, trade or occupation within the city; and from ownership or disposition of all real or tangible personal property located in the city, including interest. or any amount received in lieu there- of upon the deferred payments of the selling price received in connection with the sale of such property. The determination of taxable income derived from or connected with a business, trade, or occupation carried on partly in and partly outside this city shall be made by apportionment and allocation under the provisions of section 3.634 and following of this Act. (3) A tax is imposed upon every part-year resident of the city -upon and with respect to his/her entire taxable income from sources both within and without the city for the portion of the year during which he/she is a resident, and upon and with re~pect to his/her entire taxable income subject to nonresident taxation under this Act for the portion of the year during which he/she is a nonresident. The provisions of this Act shall apply - as the context may require to accomplish the purpose of this section 3.604 (3). (4 ) If any other city ("enacting city") shall enact a tax on in- come, earnings or other form of compensation that would otherwise apply to residents of the city in any manner analogous to that of section 3.604(2), the city may, but is not required to, enter into an agreement with the enacting city providing for reciprocal exemptions, in whole or in part, from such tax, with the result that the tax imposed by section 3.604(2) may be mitigated or eliminated with respect to the residents of the enacting city. (5 ) Subject to the withholding provisions of section 3.618 et ~., the tax imposed by this Act shall be levied, collected and paid annu- ally on taxable income, as defined in this Act, after allowing the proper credits against the tax in accordance with this Act. The tax imposed by this Act shall apply to taxable years commencing on or after January 1, 1986. (6) The tax imposed by this Act may hereinafter be referred to as the "city personal income tax" or the "tax". 3.606 Rate of Tax. The tax rate shall be four-tenths of one percent (0.4%) of taxable income. The tax rate shall decrease to not more than one-quarter of one percent (0.25%) after obligations incurred by the city for airport expansion and library expansion or replacement are paid. 3.608 Credit Against Tax. (1) Except as provided in section 3.608(2), there shall be allowed - to each taxpayer (or to each married couple filing a joint return) as a credit against the tax imposed by this Act an amount determined in accordance with the following schedule: Ordinance - 3 , e (a) If taxable income is greater than $0 but less than or equal to $7,500, the credit shall be the lesser of the amount of the tax or $30. (b) If taxable income is greater than $7,500 but less than or equal to $8,000, the credit shall be the lesser of the amount of the tax or $24. (c) If taxable income is greater than $8,000 but less than or equal to $9,000, the credit shall be the lesser of the amount of the tax or $16. (d) If taxable income is greater than $9,000 but less than or equal to $10,000, the credit shall be the lesser of the amount of the tax or $8. (e) If taxable income is greater than $10,000, the credit shall be $0. (2) In the case of nonresident taxpayers, the credit allowed by section 3.608(1) shall be determined by multiplying the credit amount other- wise allowable under section 3.608(1) by a fraction, (i) the numerator of which shall be the amount of the taxpayer's taxable income derived from sources within the city; and (ii), the denominator of which shall be the amount of the taxpayer's taxable income derived from all sources. 3.610 Taxable Income of Nonresident From City Sources. (1) .Items of income, gain, loss and deduction comprising taxable income of a nonresident derived from or connected with sources within this e city are those items attributable to: (a) The ownership or disposition of any interest in r~al or tangible personal property in this city; and (b) A business, trade, or occupation carried on in this city. (2) Income from intangible personal property, including annuities, dividends, interest and gains from the disposition of intangible personal property, constitutes income derived from sources within this city only to the extent that such income is from property employed in a business, trade, or occupation carried on in this city. (3) Deductions with respect to capital losses, net long-term capital gains, and net operating losses shall be based solely on income, gains, losses and deductions derived from or connected with sources in this city, under regulations to be prescribed by the department. (4) Notwithstanding section 3.610(2), the distributed and undis- tributed taxable income of an electing small business corporation for federal income tax purposes derived from or connected with sources in this city does constitute income derived from sources within this city for a nonresident individual who is a shareholder of such a corporation, and a net operating loss of such corporation derived from or connected with sources in this city does constitute a loss or deduction connected with sources in this city for such a nonresident individual. 3.612 Dedication of Revenue. Revenue to the city derived from imposi- tion of the tax under this Act shall be applied to administration e of this Act, to any obligations incurred by the city for airport expansion, to any obligations incurred by the city for library expansion or replacement, and to capital expenditures of the city, which shall include, but not be limited to, discrete capital improvements and public facilities, motorized Ordinance - 4 < vehicles, automated equipment, and continuous capital expenditures pursuant e to the capital improvements program of the city, as well as related costs of project administration. The revenue shall not be applied to operating expenses of the city. 3.614 Department to Administer Tax. The city may enter into any agree- ment authorized by state law with the department to administer and enforce the city personal income tax. The department may be authorized therein to exercise all supervisory and administrative powers with regard to the enforcement, collection and administration of the tax pursuant to the contract, including but not limited to entering closing agreements, deter- mining and assessing deficiencies, waiving interest and penalties, imposing and releasing liens, and making refunds. 3.616 Income Tax Paid In Another City. Every individual taxpayer who resides in the city, but who receives taxable income from sources outside the city, if it be made to appear he/she has paid an income tax on said income in and to another city, shall be allowed a credit against the tax imposed by this Act in the amount paid by him/her or in his/her behalf in the other city. This credit shall be applied only to the extent of the tax imposed by this Act by reason of the individual's receipt of the income taxed in the oth~r city. 3.618 Withholding of Tax Required. It (1) Every employer within the city shall at the time of the pay- ment of wages to any employe who is also a taxpayer, deduct and retain from the total amount of the wages an amount determined, at the employer's elec- tion, either: (a) By a "percentage method" withholding table, or (b) By a "wage bracket" withholding table, prepared and furnished under the rules and regulations of the department. (2) Every employer who deducts and retains any amount under sec- tion 3.618(1) shall hold the same in trust for the city and for the payment thereof to the department in the manner and at the time provided in section 3.620. (3) The amounts deducted from the wages of an employe during any calendar year shall be considered to be in part payment of the city personal income tax on such employe's income for his/her taxable year which begins within such calendar year, and the return made by the employer pursuant to this Act shall be accepted by the department as evidence in favor of the employe of the amounts so deducted from his/her wages. 3.620 Payment to Department by Employer. (1) Except as may be specially provided by the department for the first six months of 1986, each employer shall pay over to the department within the time that each employer is required to pay over taxes withheld for state income tax purposes for any period the amount required to be with- held by this Act for the same period. e (2) With each payment made to the department, every employer shall deliver to the department a return in the form prescribed by the department Ordinance - 5 . e showing the total amount of wages, salaries, bonuses or other compensation paid to his/her employes, the amount deducted therefrom in accordance with this Act, and such other information as the department may require. The employer is charged with the duty of advising the employe of the amount of moneys withheld, in accordance with such regulations as the department may prescribe, using printed forms furnished or approved by the department for that purpose. At any time the employer fails to remit any amount withheld, the department may enforce collection in accordance with state law. Failure to file the return required by this section when due without reasonable excuse subjects the employer to the penalty described in section 3.998(1) (3) In addition to the returns required in section 3.620(2), the employer shall make an annual return to the department on forms provided or approved by it before February 16 of the year following that for which the report is made, summarizing the total compensation paid and the tax withheld for each employe during the calendar year. Failure to file the annual return without reasonable excuse on or before the 30th day after notice has' been given to the employer of his/her failure subjects the employer to the penalty described in section 3.998(1). 3.622 Refunds to Employes. (1) If the total amount deducted under the withholding requirement of.this Act exceeds the amount of tax on the employe's taxable income as com- puted under this Act, or if the employe's income or portion thereof is not taxable under this Act, the department, after examining the annual return e filed by the employe pursuant to section 3.624 and following of this Act, shall refund the amount of the excess deducted. No refund shall be made to an employe who fails to file an original return within three years after the due date of the return in respect of which the tax withheld might have been refunded. If the excess tax as deducted is less than $1, no refund shall be made unless specifically requested by the taxpayer at the time such return ;s filed. In no event shall the excess be allowed as a credit against any tax on a return filed for a year subsequent to the year during which the excess was withheld. (2) If a taxpayer who is entitled to a refund under this section dies, the department may issue a draft for payment of the refund under the terms and conditions set out in ORS 293.490 to 293.500, and exercise the same powers, subject to the same restrictions, pursuant to which the State Treasurer is authorized to pay the amounts of warrants, checks or orders under those statutes. 3.624 Persons Required to Make Returns. (1) An income tax return with respect to the tax imposed by this Act shall be made by every taxpayer. A husband and wife may make a joint return with respect to the tax imposed by this Act if they are permitted to file a joint return under the Oregon personal income tax law. (2) An income tax return for an individual who is unable to make a return by reason of minority or other disability shall be made and filed by his/her duly authorized agent, his/her guardian, conservator, fiduciary e or other person charged with the care of his/her person or property other than a receiver in possession of only a part of the individual1s property. (3) An income tax return, in the name of the decedent, for any deceased individual shall be made and filed by his/her executor, adminis- Ordinance - 6 trator or other person charged with the care of his/her property. and this e duty extends to any unfiled return prior to decedent's death. The tax shall be levied upon and collected from his/her estate. A final return of a dece- dent shall be due when it would have been due if the decedent had not died. 3.626 Time and Place for Filing Returns and Paying Tax. (1) The income tax return required by this Act shall be filed with the department on or before the 15th day of the fourth month following the close of the taxpayer's taxable year, except that the final return of a decedent shall be filed at any time following the decedent's death. to and including the fifteenth day of the fourth month after expiration of the decedent's regular tax year. An individual required to make and file a re- turn under this Act, without assessment, notice or demand, shall pay any tax due thereon to the department on or before the date fixed for filing such return (determined without regard to any extension of time for filing the return). (2) The tax may be paid with uncertified check during such time and under such regulations as the department shall prescribe, but if a check so received is not paid by the bank on which it is drawn the taxpayer by whom such check is tendered remains liable for the payment of the tax and, for all legal penalties the same as if ~he check had not been tendered. (3) A return filed before the last day prescribed by law for the filing thereof ~s considered as filed on the last day. ORS 305.820 applies to returns filed by mail and to due dates that fall on a Saturday, Sunday or legal holiday. e 3.628 Effect of Failure to File Return; Penalty Sum; Interest. (1) If a taxpayer: (a) fails to file a return of income at the time required by or under this Act, or (b) fails to pay the tax at the time the tax becomes due, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount of tax required to be shown as tax on the return a penalty of five percent of the amount of such tax if the failure is not for more than one month, with an additional five percent for each additional month or fraction thereof during which failure continues, not exceeding 25 percent of the aggregate. In addition, the tax- payer shall be subject to the penalty described in section 3.998(2). (2) Interest shall accrue and be collected on the unpaid tax at the rate of eighteen percent per annum or at the adjusted interest rate determined from time to time by the director pursuant to ORS Chapter 305, whichever shall be greater. (3) For the purposes of section 3.628(1), the amount of tax re- quired to be shown on the return shall be reduced by the amount of any part of the tax that is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be properly claimed upon the return. 3.630 Adjustment of Returns. Whenever for any reason the income tax e liability of any taxpayer to the State of Oregon for any particular tax year has been changed and the change would. if originally applied on the Ordinance - 7 e return for that year, have affected the tax payable to the city, or whenever for any other reason the liability of any taxpayer to the city under this Act for any particular taxable year has been changed, a report of the change shall be made to the department and payment of any additional tax liability, or refund of any overpayment, by reason thereof shall be made within 90 days of the time in which the adjusted tax is determined. 3.632 Form of Returns. (1) Returns shall be in such form as the department may, from time to time, prescribe. There shall be annexed to the return a statement veri- fied by a written declaration of the taxpayer making the return to the effect that the statements contained therein are true. (2) The department shall prepare blank forms for the returns and distribute them to taxpayers throughout the city. Failure to receive or secure a form shall not relieve a taxpayer from the obligation of making any return required by law. 3.634 Division of Income for Tax Purposes. Any nonresident taxpayer hav- ing income only a portion of which is taxable under this Act, other than income from activity as a public utility, shall allocate and apportion his/her income as provided in sections 3.634 to 3.650. e 3.636 Definitions for Sections 3.634 to 3.652. Definitions for sections 3.634 to 3.652 unless the context otherwise requires: Business income means income arising from transactions and activity in the regular course of the taxpayer's business and in- cludes income from tangible and intangible property if the acqui- sition, management, use or rental, and disposition of the property constitute integral parts of the taxpayer's regular business operations. Commercial domicile means the principal place from which the business of the taxpayer is directed or managed. Compensation means wages, salaries, commissions and any other form of remuneration paid to employes for personal service. Nonbusiness income means all income other than business income. Public utility means any business entity whose principal business is ownership and operation for public use of any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, oil, oil products or gas. Sales means all gross receipts of the taxpayer not allocated under sections 3.638 to 6.646. 3.638 Certain Nonbusiness Income to be Allocated. Rents and royalties e from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they consti- tute nonbusiness income, shall be allocated as provided in sections 3.640 to 3.646. Ordinance - 8 ~ 3.640 Allocation to this City of Net Rents and Royalties. e, (1) Net rents and royalties from real property located in this city are allocable to this city. (2) Net rents and royalties from tangible personal property are allocable to this city if and to the extent that the property is utilized iOn this city. . (3) The extent of utilization of tangible personal property in this city is determined by multiplying the rents and royalties by a frac- tion, the numerator of which is the number of days of physical location of the property in the city during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical loca- tion of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the city in which the property was located at the time the rental or royalty payer obtained possession. 3.642 Allocation to this City of Capital Gains and Losses. (1) Capital gains and losses from sales of real property located in this city are allocable to this city. (2) Capital gains and losses from sales of tangible personal property are allocable to this city if: (a) the pro,perty had a situs in ,this city at the time of the sale, or (b) 'the'taxpayer's commercial domicile is in this city and e the taxpayer is not subject to an income or earnings tax levied by the city or county in which the property had a situs. (3) Capital gains and losses from sales of intangible personal property employed in taxpayer's business, trade, or occupation carried on within the city are allocable to this city if the taxpayer's commercial domicile is in this city. 3.644 Allocation to this City of Interest and Dividends. Interest and dividends derived from property employed in taxpayer's business, trade, or occupation carried on within the city are allocable to this city if the taxpayer's commercial domicile is in this city. 3.646 Allocation to this City of Patent and Copyright Royalties. (1 ) Patent and copyright royalties are allocable to this city: (a) if and to the extent that the patent or copyright is utilized by the payer in this city, or (b) if and to the extent that the patent or copyright is utilized by the payer in a city or county in which the taxpayer is not subject to a local income or earnings tax, and the tax- payer's commercial domicile is in this city. (2) A patent is utilized in a city to the extent that it is em- ployed in production, fabrication, manufacturing, or other processing in that city or to the extent that a patented product is produced in that city, e even though sold or distributed outside of that city. (3) A copyright is utilized in a city to the extent that print- ing or other publication originates in that city. Ordinance - 9 ~ . e 3.648 Formula for Apportionment to this City of Business Income. All business income of a nonresident taxpayer shall be apportioned to this city by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is three. (a) Determination of "property factor": (1) The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangi- ble personal property owned or rented and used in this city during the tax period and the denominator of which is the average value of all the taxpayer's real and tangible person- al property owned or rented and used, regardless of location, during the tax period. (2) Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from sub-rentals. (3) The average value of property shall be determined by averaging the values at the beginning and ending of the tax period, but the department may require the averaging of monthly values during the tax period if reasonably required , to properly reflect the average value of the taxpayer's property. (b) Determination of "payroll factor": - (1) The payroll factor is a fraction, the numerator of which, is the total amount paid in this city during the tax period by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere by the taxpayer during the tax period. (2) Compensation is paid in this city if: a. The recipient's service is performed entirely within the city; or b. The recipient's service is performed both within and without the city, but the service performed without the city is incidental to the recipient's service within the city; or c. Some of the service is performed in the city and 1. the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the city, or 2. the base of operations or the place from which the service is directed or controlled is not in any city in which some part of the service is performed, but the recipient's residence is in this city. (c) Determination of "sales factor": (1) The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this city during the tax period, and the denominator of which is the total e o sales of the taxpayer everywhere during the tax period. (2) Sales of tangible personal property are in this city if: Ordinance - 10 '0 a. The property is delivered or shipped to a pur- e chaser within this city regardless of the f.o.b. point or other conditions of the sale; or b. The property is shipped from an office, store, warehouse, factory, or other place of storage in this city and 1. the purchaser is the United States Govern- ment, or 2. the taxpayer is not subject to an income or earnings tax by the city or county of the pur- chaser. (3) Sales, other than sales of tangible personal prop- erty, are in this city if: a. the income-producing activity is performed in this city or b. the income-producing activity is performed both in and outside this city and a greater proportion of the income producing activity is performed in this city than in any other city, based on costs of performance. 3.650 Additional Methods to Determine Extent of Business Activity in thi s City. If the allocation and apportionment provisions of sec- tions 3.634 to ~.648 do not fairly represent the extent of the taxpayer's business activity in this city, the taxpayer may petition for and the depart- ment may permit, ~r the' department may require, in respect to all or any -- part of the taxpayer's business activity, if reasonable: (a) Separate accounting; (b) The exclusion of anyone or more of the factors; (c) Th& inclusion of one or more additional factors which will fairly represent the taxpayer's business activity in this city; or (d) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income. 3.652 Allocation of Income of a Public Utility From Business Within and Without the City. (1) If a taxpayer has income from business activity as a public utility which is taxable both within and without this city, the determina- tion of taxable income shall be based upon the business activity within the city, and the department shall have power to permit or require either the segregated method of reporting or the apportionment method of reporting, under rules and regulations adopted by the de~artment, so as fairly and accurately to reflect the taxable income of the business done within the city. (2) The provisions of section 3.652(1) dealing with the apportion- ment of income earned from sources both within and without the city are de- signed to allocate to the city on a fai~ and equitable basis a proportion of such income earned from sources both within and without the city. Any tax- payer may submit an alternative basis of apportionment with respect to his/ e her own income and explain that basis in full in his/her return. If approved by the department that method will be accepted as the basis of allocation. Ordi nance - 11 ~ e 3.660 Procedural Matters. The provisions of ORS chapters 305, 314 and 316 (as amended from time to time), including but not limited to provisions pertaining to audit and examination of reports and returns, determination of deficiencies, interest, penalties, assessments, claims for refund, conferences, appeals to the director and appeals to the Oregon Tax Court, and the procedures relating thereto, shall apply to the determina- tion of taxes, penalties and interest under this Act, except where this Act provides, or the context requires, otherwise. A taxpayer may utilize the procedure respecting appeals to the small claims division of the Oregon Tax Court as provided in ORS Chapter 305. 3.662 Partial Invalidity. If any section of this Act or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceabl~, the remainder of this Act, or the application of such section to,persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby, and each sec- tion of this Act shall be valid and be enforced to the fullest extent per- mitted by law. 3.998 Personal Income Tax Act'- Penalties. (1) Any employer that fails to file the returns required by sec- tion 3.620(2) and section 3.620(3) when due shall be punished by fine of not to exceed $1,000, or confinement in jail not to exceed one year, or both e fine and imprisonment. (2) In addition to penalties and interest imposed pursuant to section 3.628, any taxpayer that fails to file the return required by sec- tion 3.626 when due shall be punished by fine not to exceed $1,000, or con- finement in jail not to exceed one year, or both fine and imprisonment. (3) The penalties provided herein shall be in addition to, and not in lieu of, any assessments, penalties or enforcement actions, civil or criminal, available to or undertaken by the department on behalf of the city in administering the tax imposed by this Act. Passed by the City Council this Approved by the Mayor this ____ day of October, 1985 ____ day of October, 1985 City Recorder Mayor e Ordinance - 12 . . tt RESOLUTION NO. 3942 A RESOLUTION REPERRING A CHARTER AMENDMENT CREATING INCOME TAX, LIMITING RATE AND DEDICATING REVENUES, TO THE ELECTORS OP THE CITY OP EUGENE. The City Council of the City of Eugene finds that: . The City Council is considering a Ci ty of Eugene Personal Income Tax Act which contains a limit on the tax rate and dedicates the revenue expenditure thereof. The Council has determined that a Charter Amendment creating a city income tax, limiting the tax rate, and dedicating revenues should be referred to the electors of the City. NOW, THEREPORE, BE IT RESOLVED BY THB CITY COUNCIL OP THE CITY OP EUGENE, 4It a Municipal Corporation of the State of Oregon, that the Measure hereinafter set forth be submitted to the legal voters of the City of Eugene, Oregon, at a special election to be held on Tuesday, November 5, 1985: MEASURE SUBMITTED TO THE VOTERS BY THE CITY COUNCIL Measure No. 51 Charter Amendment creating income tax, limiting rates and dedicating revenues. Should there be a City income tax for capital expenditures initially limited to 4/LO% of taxable income and later 1/4%? Charter Amendment'creates city income tax. Limits tax rate to 4/10% of taxable income. Limits tax rate to 1/4% of taxable income when final paymen t for ci ty airport and library improvements has been made. Dedicates income tax revenue solely to improvements to the city airport and library, e other city capital expenditures and administration of the tax. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: 1 - Resolution r . ~ - ., " - BE IT ENACTED BY THE ELECTORS OF THE CITY OF EUGENE, that the Charter of the City of Eugene is hereby amended e to add the following provision thereto: There shall be a city tax on the income of residents of the city from whatever source derived, and on the income of nonresidents of the city derived from sources within the city. The tax shall not exceed the rate of four-tenths of one percent of taxable income. When all financial obligations incurred prior to January 1, 1996 for capital improvements at the Municipal Library and Airport have been paid, the rate of City income tax shall not exceed 1/4% of taxable income. Revenue derived from the imposition of a city income tax is hereby dedicated exclusively to improvements to the municipal airport and library, other city capital expenditures and to administration of the tax. This Measure shall become effective upon its approval by the electors of the City of Eugene. The foregoing Resolution adopted the 25th day of September, 1985. 111"u~~,~ fl. (2/) ~?JVl'~ - D t' A t \ Ci t:y Recorder epu y 55. 0 e 2 - Resolution . Me.oraa... e October 3.198' To: Mayor and City Council Fro.: Fire and Emergency Services Department Re: Long Range Plan ud Redeployment Proposal Stafr in the Fire lAd Emergency Services Departmenl. have completed a long-range pluning process ud are bringing before the Council two items for Council consideration. The first is the cItaCt Long RAnge PlaA Cor Fin: ud Emergency Services, wbicb is elpected to provide cUtecUon and policy guidance for the department. over the nelt. l' years. The plan document. covers every phase of department responsibility, including fire suppression, fire prevenUon, emergency medical services, and related emergency ud support. activities. The draft. p!an is orguJzed into seven sections; four of these sections--Metro Services, Code Developme.at lAd Enforceme.at. Department. In r ra.st.ru cture, lAd Public Educatio.a--bave bee.a been before the PllUl.aing Commissio.a, wbicb amended ud .aow forward them to the Council. Three additional sections or the plaA--Emerge.acy OperatJo.as, Buman Resources ud Training. ud Department Administration--are being reviewed by the City's ezecutive JIluagen, but. are included in the dntt. docume.at to allow Cor public review ud comment. e The planning process begu in mid-1984. In order to give the department's employees a sense of ow.aership, SUld due to the technical aspects of masty of the department's operations, the initial step in developing the plan was the formation of a .aumbet of commiuees, made up of department members. The initial recommendations of these committees were plaCed into plaA format, at which point a Cit.ize.a Advisory Group 'VIIS formed to: 1) review the draft documeat. to easure that it. was complete. practical, ud understaDdable to the general public, 2) advise planning committees of community conceras not adequately addressed in the draft, SUld 3) inform their constituent groups of the pJanning process. solicit input, and support the ptan through adoptioa. After coasulting with staff in the City Manager's Office, the following groups/orguiZations were invited to provide representation on the CAG: Eugene Area Chamber of Comaerce. LAae CoUAty Board of Commissioaers. Emergency Medical Services Advisory Board. Lane County Chapter of the American Red Cross, Lane Community College Advisory Board, LaAe CoUAty IAsuraace Agents Association, Laae COunty fire Defe.ase Board, City of sprlllgCield, Lane COunty Medical Society, Neighborhood Leaden. the local chapter of the Americaa Associatioa of Retired Persons, and the League of Wome.a Voters. The CAG was chaired by Gerry Gaydos, the Chamber of Commerce represe.ataUve. and .. member of the PlaA.aing COmmission. FoUowlag the CAG's review SUld modification of the document, It was pUblicized through the aews JDed~ and presentaUo.as oa the proposed plan were made to the Neighborhood Leaders, the Chamber of COmmerce PlUning and Land Use Subcommittee, ud the Joint. ComJaiUH on ECOJlomic DevelopmeJ1t.. la additioa, the e 1'~ was the topic of a aumber of presentio.as made by department staff to various CJVJC groups. The ptanning CoJlUllissioa. following.. worksessioa oa the pJaa. held .. September 17 public hearing on the plSUl. receiving written testimony on the document from the Chamber of Commerce ud the laAe CoUJlty Homebuilders AssociatioJl. - , ~ _" J> OOUNCIL MEMD-Z At the conclusloA of the hearing. the COmmlSSiOA ameAded Policy 10.0 1a the Code Develop.meAland EJ1forcemeAt section of the p.laJl ud voted unuimously-IO approve e the pJaA as amended'lIAd forward it the Council for consideratioA. The secoAd item berore the CouAcil is a prol'osed redeploymeAt or the City's rue sUPl'reSSiOA resources. considered by staff 10 be an. iml'ort&D.t part or the del'utment's 10Ag nAge 1'1aluliAg effort. At present. the departmeAt is reduced 33 positions trom its former streAgth. two fire statloAS are. closed. a number of older statioAS&re iA deterloraW1g cOAdition. and several &teas- or the City have poor response times. while others are adequately coveted. While some of these l'toblems have been mitigated by code develol'ment and techAolosy. stalf feels that a. redel'loymeAt is Aecessary 10 provide a beuer level of fire protection. The proposal staff will be presentiAg to the CouAcil. while AOt restoriAg the department to full former capacity. would address immediate needs and tire suppression capabilities. The plaJl is, capital-inteAsive. iAvolviAg the closure &Ad Sale of three fire staUOJlS &Ad ~vera1 other pieces of property to' offset the 'cost of constructing two new. better-located stations ud purchasing several new pieces of rire equipment that ha.ve increased tactical capability over existing apparatUs. The plan would add only three positions to the department's roster. It is anticipated that the redeployment would be phased over four years. taking advantage of developments' such as the Chambers CoJlJl~ctor. Coupled with the adoption of new codes over the nen five to ten years. starr feels that the redeployment would provide an. acceptable level of protection. considering the economic realities or the City's current situation. - - - M E M 0 RAN DUM October 9, 1985 TO: Mayor and City Council FROM: Micheal D. Gleason, City Manager SUBJECT: RESOLUTION OF COOPERATION WITH SCHOOL DISTRICTS 4J AND 52 At your September 23 work session with the School District 4J Board of Directors, you directed staff to prepare a resolution of cooperation among the City, Eugene School District 4J' and Bethel School 8istrict 52. That resolution is attached to your agenda. Its adoption would serve as the policy basis for a series of cooperative projects on the staff level, the objective of which would be to increase public benefit by greater sharing ~f city-school facilities, equipment, and services. e Action Requested Adopt resolution to initiate City-School Districts cooperative process. eacd4jl e ... -- , RESOLUTION NO. 3943 A RESOLUTION OF COOPERATION AMONG THE EUGENE CITY - COUNCIL AND THE BOARDS OF DIRECTORS OF SCHOOL DISTRICTS 4J AND 52 The Eugene City Council finds that: 1. The Eugene City Council a~d the Boards of Directors of School Districts 4J and 52 recognize the importance of cooperation among the three agencies in the interest of greater sharing of public assets for the benefit of the citizens they serve. 2. A tradition of cooperation on facilities and program support already exists in various areas, among them Community Schools, Community Development Block Grants, teacher in-service training, neighborhood/community schools newsletters, Parks Department and School District agreements for facility use, Youth Job Faire co-sponsorship, and phone system acquisition. 3. Financial support for all public agencies has steadily declined over the last several years. e NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: It is in the best interest of the three agencies and the citizens they serve to further develop opportunities for cooperation and sharing of the respective public assets, thereby increasing the public benefits. To best accomplish the continuation and further expansion of cooperation, the City Council instructs City staff to explore with School District 4J and School District 52 staffs ways in which the agencies can offer the best possible 1 - Resolution . . - service to their mutual citizen customers at the lowest possible cost. The areas of cooperation should include, but not be limited to: school/park land acquisition, maintenance, and beautification; Community School program; use of facilities; automated technology; purchase and maintenance of equipment; and research and planning. rhe foregoing Resolution adopted the _____ day of October, 1985. City Recorder e e 2 - Resolution I M E M 0 RAN DUM October 2, 1985 TO: Mayor and City Council, acting as the Eugene Renewal Agency -- FROM: Downtown Commission SUBJ ECT: OVERPARK IMPROVEMENTS Issue The Overpark building in downtown provides public parking and commercial lease space, all in City ownership. Through a series of events, covered below, the financial condition of the facility has required extensive staff work in recent months. Current and projected revenues in the enterprise fund are inadequate to cover expenses. The proposed solution requires spending approximately $400,000 in Renewal Agency funds to upgrade the building and attract tenants to the commercial space. Background When the Overpark was originally constructed, ,inadequate funds were available to complete the commercial space in the building. Nils Hu1t provided funds through the vehicle of "prepaid rent" in exchange for an exclusive lease for the entire commercial floor. The City received a fixed rent, and Hu1t bore responsib1ity for all expenses, leasing, and taxes; in exchange, he received market rate lease income. This arrangement lasted for -- 12 years, until after Hu1t's death. Last year, Hu1t's business associates and the City mutually agreed to the return of control of the commercial space to the City. It was unprofitable for them, and the City was unable to upgrade the space to meet their needs. Nevertheless, the City was interested in regaining control of the building in order to upgrade it to the point where it, like the Parcade, would be a self-supporting structure with the commercial space subsidizing the parking function. Financial Details The commercial and parking functions in the building are combined into a single enterprise fund (524). Much of the operating and maintenance expenses of the facility were paid through interest income on the $2.5 million in cash reserves raised through the assessment district. When the council acted to dissolve the district and pay back the cash reserves in the fund, an operating shortage of approximately $56,000 was created. The fund was balanced by eliminating expenses in the Parks and Development Departments. However, with the return of the commercial space to City control, another negative cash flow situation was created. Current projected expenses exceed projected incom~ by $60,000. This negative cash flow could be exacerbated by the loss 'of any of the existing tenants in the building. (One currently faces eviction for non-payment of rent.) . OVERPARK IMPROVEMENTS October 2, 1985 ~~2 e In order to inc~ease the revenues through increased commercial lease income, the Downtown Commission has recommended a significant expenditure of tax increment (Renewal Agency) funds to: Make tenant improvements for new tenants; Upgrade the building exterior; Improve access to the parking decks; and Upgrade the parking decks. Since the Commi!sion's action, the staff has been marketing the building more aggressively, using the potential improvements as a selling point. There has been a positive response to the plans, both by current tenants and prospective tenants. We currently have written or verbal intents representing approximately $51,000 in additional annual revenue. These are contingent commitments, based on improvements occuring. With the improvements, the building could be on a cash-positive operating basis by the end of FY 87. In addition, it will make a more positive contribution to the downtown business community. e Proposed improvements and the cost projections are as follows: Lease Space Repair and Improvements $ 70,000 Store Front and Ground Level Renovation 60,616 Alley Improvements and Short Term Parking 32,494 Ground Floor Entries 80,189 Exterior Stairway 50,000 Parking Signing and Lighting 29,774 Stairwell and Upper Entry Renovation 50,446 Concrete Cutting on Parking Decks for Natural Light 39,524 TOTAL $413,043 Nearly half of these improvements can be covered by the existing capital appropriation in the tax increment fund, primarily savings on the opening of Willamette Street between lOth and 11th. The remaining funds will require a supplemental budget action in November. - Action The Downtown Commission recommends that the City Council, acting as the Eugene Renewal Agency, approve the improvements to the Overpark and direct staff to prepare a supplemental budget to increase the capital appropriation. GB:pv/0864S - October 3, 1985 To: City Council From: war~~~Wong, Finance Director e Subject: Compromise and Settlement of Claims The attached ordinance provides for delegation of expressed authority to the City Manager (Finance Officer) to compromise claims due the City. Staff and the City Attorney have previously assumed that the City Manager, as the City.s Business Agent, had authority to compromise claims due the City. Based on the recent issue concerning the Interest on Usegregated Taxes due the City from Lane County, the City Attorney has recommended that this authority be formalized. Further, this expressed authority will reduce the personal liability risk to Councilors. Staff will continue to pursue all claims 'due the City within a reasonable expenditure of resources, materiality limits and return on effort. You will note that in situations where the claim is supported by a lien against real property, such as in the case of a Bancroft Assessment, we will not compromise the claim since it will ultimately be paid by either collection or foreclosure and subsequent resale. cc: M. Gleason D. Whitlow G. Long , , D . L ill ey Attachment -- 1 e fnwgw750 e .- ORDINANCE NO. e AN ORDINANCE AUTHORIZING THE CITY FINANCE OFFICER TO MODIFY, COMPROMISE, OR CANCEL CLAIMS DUE THE CITY; ADDING SECTION 2.582 TO THE EUGENE CODE, 1971; AND DECLARING AN EMERGENCY. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Sect i on 1. There is hereby added to the Eugene Code, 1971, a new sec~ tion, to be numbered and provide: 2.582 Finance Department ~ Modification, Compromise or Cancellation of Claims. (1 ) As used in this section "claim" shall mean any sum due the city from another and includes but is not limited to taxes, assessments, fines, fees, charges, rents, penalties, payments, amounts due the city on contracts or arising from damages sustained by the city. It shall also in~ clude any interest due thereon. (2) Except as provided in subsections (3) and (4) of this section, it shall be the duty of the finance officer to collect all claims in full and to take all actions necessary in the discretion of the finance officer to collect the claims. (3) When in the discretion of the finance officer it appears in e the best interest of the city or it appears the cost of requiring timely pay~ ment is not justified, the finance officer may extend the time for payment of a claim or the rate of interest thereon, or both. In consideration for such a modification of the claim, the finance officer may require additional security to insure its payment. (4 ) The finance officer may compromise, settle, or cancel any claim when it is in the city's financial interest and: (a) Where litigation involving the validity of the claim is pending or seriously threatened and there is a grave legal ques~ tion as to the validity of the claim; (b) When, notwithstanding section 2.580, accepting payment in the form of property of equal or greater value than the claim insures payment of the claim that otherwise may be uncollectible or collectible at great expense to the city; (c) Where good and sufficient cause is shown and the amount of the claim is $10 or less; (d) When any claim has been delinquent for seven or more years and: 1. All reasonable efforts have been made to effect col~ lection, 2. The person against whom the city has a claim cannot be located or is dead, and 3. The claim is wholly uncollectible. (e) When the finance officer determines that the administra~ tion and collection costs involved would exceed the amount that e can reasonably be expected to be recovered; {o~} ( f) When the property against which a city lien exists is donated to the city, provided the city makes no payment for the Ordinance ~ 1 .. - property and the property is not pledged as security to the holders of any evidence of city indebtedness{~}i or e ill When the adjustment of the claim involves only interest or penalties which were imposed by a discretionary administrative decision. (5) The authority granted the finance officer in this section does not allow the waiver of any sum due the city under this code or state law the payment of which is a precondition to receiving a benefit, service, deci~ sion, permit or privilege issued or to be performed by the city. (6) Any modification, compromise, settlement or cancellation of a claim under this section shall be reviewed by the city attorney, reduced to writing, signed when possible by the parties thereto, and recorded when necessary. Such agreements shall provide that in the event the obligor has withheld or misrepresented material facts or committed fraud, a penalty in the amount of the original claim shall be added to the sums then due and the entire amount shall be immediately due and payable to the city, and such other provisions as may be required by the finance officer. Section 2. That the matters contained herein concern the public welfare and in order to insure the orderly implementation thereof, an emergency is hereby declared to exist, and this Ordinance shall become effective immedi~ atelj upon its passage by the Council and approval by the Mayor. '. Passed by the City Council this Approved by the Mayor this day of , 1985 day of , 1985 City Recorder Mayor - Ordinance .,:". 2