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HomeMy WebLinkAbout08/10/1992 Meeting (2) e M I NUT E S Eugene City Council O'Neil Room--Eugene Hilton August 10, 1992 6:30 p.m. COUNCILORS PRESENT: Ruth Bascom, Shawn Boles, Debra Ehrman, Bobby Green, Randy MacDonald, Paul Nicholson, Kaye Robinette, Roger Rutan. LEGISLATORS PRESENT: Representative Jim Edmunson, D-District 39; Representa- tive Carl Hosticka, D-District 40; Representative Marie Bell, R-District 41. The regular meeting of the Eugene City Council of August 10, 1992, was called to order by His Honor Mayor Jeff Miller. 1. EUGENE DECISIONS WORK SESSION WITH EUGENE AREA LEGISLATORS Those present introduced themselves. e Mayor Miller said that the meeting was being held for the purpose of sharing information on the process and progress of Eugene Decisions. Input from 1 oca 1 area legislators is being solicited before the council begins deliberating in the final round of the Eugene Decisions process to produce a community- supported, sustainable, multi-year service and funding strategy. Mr. Boles noted that intergovernmental coordination/cooperation has been one of the major themes supported by the public in the Eugene Decisions process. Mr. Robinette described how the Eugene Decisions process began, saying that the council decided right away that community involvement would be critical in addressing a long-term solution to the financial impact of Ballot Measure 5. Thus, the City Council initiated the process, and the City hired University of Oregon (U of 0) Professor Ed Weeks to assist in the process and develop the community involvement tools which would be used in the public input components of the process. He said the $350,000 effort, representing half of one percent of the City's annual General Fund budget, will be well spent if it results in the council adoption of a community-supported, sustainable, multi-year funding and service package. Mr. Weeks provided an overview of the executive summary of the "Eugene Decisions--Results of Citizen Input, Summer 1992" document. He highlighted the 70-30 percent correlation indicating that most respondents to the "Budget- Balancing" random survey and the tabloid questionnaires received favored a budget-balancing strategy that includes both service changes (30 percent) and e MINUTES--Eugene City Council August 10, 1992 Page 1 6:30 p.m. e new taxes (70 percent). The restaurant tax and hotel room tax each received a majority of support. The least preferred taxes were the personal income, payroll, and property tax. Mr. Boles commented that the City Council recognizes that the City must solve its financial difficulty without relying on the State. Responding to a question from Mr. Edmunson, Mayor Miller said the restaurant industry has recently organized to gather signatures in opposition to a local restaurant tax. Mr. Rutan said that Lane County Commissioner Jerry Rust held a press conference earlier today to announce a proposal regarding a county- wide increase in the hotel room tax, and that he understood that the hotel/ motel industry would be supportive of such an increase. Responding to a question from Mr. Rutan about preemption, Mr. Hosticka said it was possible that legislative action could preempt local home rule authority. Ms. Bell said that public support for new taxes in Oregon was very limited and that a cap on any new tax would have to be incorporated into the State Constitution to have a chance of being approved by the voters. Mr. Edmunson noted that the real estate industry successfully lobbied the legislature to pass legislation which preempted local home rule authority regarding local real estate transfer taxes. He said that the more broader-based a new tax is, the greater likelihood that it will receive the legislature's attention. Responding to a question from Ms. Ehrman, Mr. Hosticka advised that if the legislature approves a statewide tax measure which is similar to one that has e already been enacted at the municipal level, the statewide measure would likely include a grandparent clause, allowing the existing municipal tax to continue. He pointed out that the only significant increases in State taxes have been enacted by the legislature itself and added that tax measures that have been referred to the voters have all been defeated. Mr. Edmunson said that taxes that are narrower in scope usually receive greater public support. Mr. MacDonald asked representatives to consider how the City could work together with the legislature to address the state's financial difficulties. Mr. Boles expressed concern about a potential reduction in State revenue- sharing which would be a disproportionate burden for the City to carry in solving the State problem. Ms. Bell agreed with Mr. MacDonald that solving the state's financial diffi- culties will require a team effort and added that cooperation was a two-way street. She expressed concern about a local tax measure being placed on a November ballot, saying that it could generate negative feelings locally and possibly have a negative impact on the legislative session next year. She noted that she did not hear input from municipalities, including Eugene, regarding the Governor's Plan. Mr. MacDonald responded that the legislature itself had minimal time to review the Governor's Plan. Responding to a question from Mr. Green about representatives' perspective on the Eugene Decisions process, Mr. Edmunson said that the Eugene-Springfield e MINUTES--Eugene City Council August 10, 1992 Page 2 6:30 p.m. e metropolitan area was unique in that preemption issues here are not as relevant as they are in the Portland metropolitan area, and that it does not rely financially on the State to as great an extent as do smaller municipali- ties. He suggested proceeding with the process and not waiting for legisla- tive action. Responding to a question from Ms. Bascom about the City downsizing to provide only legally mandated service levels, Mr. Hosticka said that this would be a strong political issue. He said the City, as with other government agencies, is a major employer in its community. He noted that a legislative subcommit- tee was currently reviewing State services to determine core services. Mr. MacDonald suggested exploring more intergovernmental cooperation in service areas that are provided by both the State and the City. Ms. Bell suggested carefully analyzing the impact of any new tax before enacting it. She said she felt that a negative public perception of State government has resulted in similar feelings about local government. Mr. Edmunson reiterated that taxes that are narrower in scope tend to receive greater public support. Mr. Hosticka suggested analyzing the impact of a restaurant tax, noting that such a tax would likely be a regressive tax. Mayor Miller thanked the representatives for attending and suggested maintain- ing dialogue to avoid possible surprises. Mr. MacDonald urged representatives to analyze the adequacy and investment of revenue and services. e Mr. Boles announced that an open house will be held at the newly renovated Tiffany Building, Willamette Street and 8th Avenue. The meeting adjourned at 8:05 p.m. ~~ Micheal Gleason City Manager (Recorded by David Straub) cc630l0.082 e MINUTES--Eugene City Council August 10, 1992 Page 3 6:30 p.m.