HomeMy WebLinkAbout1990-0626 Adjourned Mtg PACKET
Important:
Any citizen attending Council meetings may speak on any item on the agenda,
unless it is the subject of a public hearing which has been closed. If you wish to
speak, please rise and after you have been recognized by the Chair, give your
name and address. The Chair will then allow you to speak and also inform you as
to the amount of time allotted to you. The time granted will be dependent to some
extent on the nature of the item under discussion, the number of people who wish
to be heard, and the length of the agenda. 7L~
AGENDA"FOR THE ADJOURNED MEETING
ASHLAND CITY COUNCIL
JUNE 26, 1990
I. CALL TO ORDER: 7:00 P.M., Civic Center Council Chambers
II. STUDY SESSION:
Joint meeting requested by Jackson County Fire District No. 5
to discuss feasibility of merger, consolidation, or functional
cooperation with the Ashland Fire Department.
III. PUBLIC HEARING:. 8:00 P.M., civic Center Council Chambers.
Consideration of calling a special election for August 14, 1990
by mail ballot to submit to the voters, the following
proposals:
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1.
An amendment to the Charter to provide for voter approval
of funding measures for the Open Space Parks Program,
ending the funding measures in 20 years, and prohibiting
the use of condemnation to acquire property. '
2. An ordinance for voter approval increasing the hotel/motel
tax on guests from 6% to 8%, and increasing the business
tax from an'annual base fee of $40 to $80 and supplemental
fees based on the number of employees in each business.
IV. ORDINANCES. RESOLUTIONS & CONTRACTS:
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w ~. ADJOURNMENT
Second reading by title only of an ordinance amending
Chapter 6.28.020 F of the Ashland Municipal Code relating
to taxicabs.
'f- 3.
Second reading by title only of an ordinance amending
Section 10.68.090 of the Municipal Code with respect to
alcoholic beverages on Calle Guanajuato.
Resolution calling a special election regarding Charter
amendment requiring voter approval of funding for Open
Space Park Program and prohibiting condemnation.
Resolution calling a special election regarding proposed
ordinance to be referred to voters increasing hotel/motel
taxes and business license taxes for Open Space Park
Program.
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June 26, 1990
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Honorable Mayor & city Council
Brian L. Almquist, City Administra~
JIf rom:
~ubjed:
Indexing of Hotel/Motel Tax
In connection with the proposed ballot proposal to increase the tax rate
from 6 to 8 percent for the Open Space Park Program, Councilor Acklin
requested that the Staff investigate the concept of indexing the tax for
the smaller B&B's.
The' following table indicates the impact on total revenues if the tax ~ere
indexed beginning at 4 percent.
Present 6%
Proposed 8%
Hotels/Motels
B&B's' :
Totall "
414,240 (86.3%)
67.760 (13.7%)
480,000 I,
552,320 (+138,080)
87.680 (+21.920)
640,000 (+160,000)
Proposed 8%
with Index
552,320 (+138,080)
76,680 (+10.920)
629,000 (+149,000)
The proposed indexing brackets for the smaller B&B's would be as follows:
GROSS RECEIPTS
B&B'S
TAX RATE
NO. OF BUSINESSES
$0-7 ,500
$7;500-15,croO
$15,000~,25,000
$25,000-50,000
Over $50,000
4
5
6
7
8
Total
4
5
11
10
J.
33
The following is a breakdown of the gross receipts of the various Hotels
and Motels:
HOTELS/MOTELS
$50,000-150,000
$150,000-250,000
$250,000 and over
8
8
8
Total
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4
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Indexing of Hotel/Motel Tax
June 26, 1990
Page Two
The indexing would be implemented by establishing the tax rate on July 1 of
each year by using the gross receipts for the preceding 12 month period
which ended on March 31. Secondly, the amounts in each gross receipts
category would increase on July 1 of each subsequent year by the consumer
price index. Every 5 years the entire structure could be reviewed and
adjusted as appropriate, taking into account the fact that room 'rental
rates do not necessarily track the rate of inflation (the C.P.I.)
SUMMARY: From the above, it is apparent that indexing would have a minor
impact on total revenues. If the normal split is used for the $11,000 in
lost revenues due to indexing, the result in 1991-92 would be as follows:
Open Space Program
City General Fund
V&CB
OSFA
Arts Grants
Total
2 , 750'
4,400
2,502
1,073
275
$11,000
However, ~t is expect7d that with normal growth there will be a net
increase 1n revenues 1n 1991-92 for all funded programs, in spite of the
index~Ii9 loss. The adjustedl, total revenue available f<:>r t~e Open Space
Progl;."am would be reduced from $261,000 to $258,250, wh1ch 1S not a
significant" loss.
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June 26, 1990
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Honorable Mayor & City Council
Brian L. Almquist, City Administra~
Business Tax Increase for Open Space Park
Program
JJf rom:
The City Council on June 12, 1990, selected a package funding proposal for
the Open Space Parks Program which initially included the following
elements:
2% Increase in Hotel/Motel Tax
50% Increase in Business License Tax
A 50Q monthly fee on Residential utile Bills
Systems Development Charges
Total
$160,000
35,000
36,000
30.000
$261,000
After further discussion, it was decided to drop the 50Q utility charge and
instead increase the business tax to replace this element.
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At the June 19 Council meeting, Councilor Acklin suggested that we should
also consider a new formula that would be less regressive. It is apparent
from the following schedule of existing fees, that small business bears a
disproportionate share of the business tax:
PRESENT SCHEDULE:
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$40.00 Base fee (includes up to 2 employees and/or owners)
$1~~00 Per employee for next 3-5 employees
$5.00 Per employee for the next 6-10 employees
$2.00 Per employee for the next 11-20 employees
$1.00 Per employee for the next 21-30 employees
$.50 Per employee for all employees in excess of 30 employees
It is also readily apparent that if the per employee fees were to be
doubled', the presently unfair burdens would be compounded.
In determining how to structure a new fee schedule, it is important to keep
two goals in mind:
1. The amount of revenue possible from an increase in the base fee
versus the amount from additional employees. ,:'~f
2. A system that raises the desired amount of additional revenue
($71,000) .
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Business Tax Increase
June 26, 1990
Page Two
PROPOSED SCHEDULE:
$80.00 Base fee (includes up to 2 employees and/or owners)
$12.50 Per employee for next 3 or more employees.
The above schedule would result in the following percentage of increase for
businesses with these employee counts:
NO. EMPLOYEES NO. BUSINESSES ~ OF BUSINESSES ~ INCREASE
0 0
4-8 181 13.0 68-82
3 and 9-11 186 13.4 85-98
2 or less (Base) 966 69.3 100
12 - 24 45 3.2 107-1S2 '
25 plus J2 --1..J. 206 plus
Total 1393 100.0
The above schedule would increase revenues by $71,039 from the present
total of $68,682.
The staff also looked at several other schedules whiqh included a reduced
basic;~ee and an increased.per em~loyee fee. The foregoing, however,
appe~rs' to be the most equltable ln that:
a)
c)
Over 81% of the business tax revenue presently is raised by
the basic fee;
The corresponding need to place a substantially higher fee on
additional employees would discourage new businesses from
locating in Ashland; and
A.flat employee fee'is the easiest to administer, and treats
all businesses in a non-disciminatory manner.
b)
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RESOLUTION NO. 90-~~
A RESOLUTION CALLING A SPECIAL ELECTION FOR THE 14TH DAY OF AUGUST
1990 IN THE CITY OF ASHLAND FOR THE PURPOSE OF SUBMITTING TO THE LEGAL
VOTERS OF THE CITY A MEASURE CALLING FOR THE AMENDMENT OF THE CHARTER
OF THE CITY OF ASHLAND RELATIVE TO FUNDING Q~THE OPEN SPACE PARK
PROGRAM AND PROHIBITING THE USE OF CONDEMNATION TO ACQUIRE FEE SIMPLE
OWNERSHIP OF ANY REAL PROPERTY FOR OPEN SPACE PURPOSES.
BE IT RESOLVED BY THE CITY OF ASHLAND AS FOLLOWS:
SECTION 1. A special election is hereby called to be held in the City
of Ashland, Oregon the 14th day of August, 1990 by mail ballot, at
which election there shall be submitted to the legal voters for their
adoption or rejection the following proposed measure, to-wit:
CHARTER AMENDMENT PROPOSED BY THE ASHLAND CITY COUNCIL
AN ACT
That there shall be added to Article XIX A - Open Space Park Program,
a new sentence to Section 2, Land and Easement Acquisition
Procedures, and that the Charter, as' amended, be, and the same is
hereby amended to add thereto the following sentence:
"The City Council shall not use the poweX:...?L.S9!1demnation to
acquire fee simple ownership of any land~n Space
purposes .~ bJ7'77z.-~ , r/ ,
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.. That there shall be added to Article. XIX A - Open Space Park Program,
a new paragraph to section 3, Resources, and that the Charter, as
amended, be, and the same is hereby am,ended to add the~eto the
fonowing paragraph: V J<iY~ - '-~
"The tax measures for funding C b-;he Open Space Park Program
shall be approved by the voters, and the tax rates approved
tRerein by the voters shall not be i for Open Space
'.
1., purposes by the City Council without further approval by the
electorate. Said tax measures for funding of the Open Space Park
Program shall expire on December 31, 2010, unless extended by a
vote of the electorate."
SECTION 2. The ballot title is as set forth on Exhibit "A", which is
attached hereto and incorporated herein.
SECTION 3. The City Recorder is hereby requested and directed to give
due notice of such special election hereby called as provided in the
laws of the State of Oregon and the Charter and Ordinances of the City
of Ashland, Oregon.
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SECTION 4. For the purpose of this election, a mail ballot ~ay be
used as directed by the Jackson County Clerk.
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The foregoing Resolution was READ and DULY ADOPTED at a regular
meeting of the City Council held on the ____ day of
1990.
Nan E. Franklin
City Recorder
SIGNED and APPROVED this
day of
, 1990.
Catherine M. Golden
Mayor
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EXHIBIT "A"
No. 15-1
CHARTER AMENDMENT PROVIDING OPEN SPACE PARK PROGRAM
FUNDING; PROHIBITING CONDEMNATION.
Question:
Shall Ashland Charter be amended to YES
provide Open Space Park Program
funding and prohibit condemnation. NO
EXPLANATION
Funding fsr _tpe Open Space Park Program will be only by
methods~~p~ed by the voters of Ashland and the
funding process will end on December 31, 2010, unless
extended by a vote of the people of Ashland. Further,
the measure will provide for the prohibition of the use
of condemnation with respect to the acquisition of fee
simple ownership of any real property connected with
th,e Open Space Park Program~ ft-ih~i<J;
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RESOLUTION NO. 90-
A RESOLUTION CALLING A SPECIAL ELECTION FOR THE 14TH DAY OF AUGUST,
1990 IN THE CITY OF ASHLAND FOR THE PURPOSE OF REFERRING TO THE LEGAL
VOTERS OF THE CITY A MEASURE APPROVING AN ORDINANCE INCREASING
TRANSIENT OCCUPANCY AND BUSINESS LICENSE TAXES FOR THE OPEN SPACE PARK
PROGRAM.
BE IT RESOLVED BY THE CITY OF ASHLAND AS FOLLOWS:
SECTION 1. A special election is hereby called to be held in the City
of Ashland, Oregon on the 14th day of August, 1990 by mail ballot, at
which election 'there shall be referred to the legal voters for their
adoption or rejection, the following proposed ordinance, to-wit:
ORDINANCE REFERRED BY THE ASHLAND CITY COUNCIL
AN ACT
To refer to the electors of the City of Ashland an ordinance as
follows:
BE IT ORDAINED BY THE PEOPLE OF THE CITY OF ASHLAND, OREGON:
SECTION 1. Section 4.24.020 of the Ashland Municipal Code, pertaining
to the tax imposed on transient occupancy within the city of Ashland,
shall be amended to read as follows:
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"4.24.020 Tax Imposed. For the privilege of occupancy in any
hotel, each transient is subject to and shall pay a tax in the
amount of six percent (6%), plus two percent (2%) dedicated for
the Open Space Park Program, of the rent charged by the operator.
The city Council may, by ordinance, provide for an indexing of
the tax rates for small establishments at lesser tax rates. Said
tax constitutes a debt owed by the transient to the city which is
extinguished only by payment to the operator or to the City. The
transient shall pay the tax to the operator of the hotel at the
time the rent is paid. If the rent is paid in installments, a
proportionate share of the tax shall be paid with each
installment. The unpaid tax shall be due upon the transient's
ceasing to occupy space in the hotel. If for any reason the tax
due is not paid to the operator of the hotel, the Tax
Administrator may require that such tax shall be paid directly to
the Tax Administrator. II
SECTION 2. Section 6.04.080 of the Ashland Municipal Code pertaining
to th~business license tax schedule, shall be amended to read as
follows:
"6.04,.080 License Tax Schedule. A person licensed under this
chapter shall pay an annual license tax in the follow{~~ amounts:
A. If the business is carried on by not more than two (2)
individuals, the license fee is $40.00, plus'$40.00 dedicated for
the Open Space Park Program.
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B. For each individual in excess of two (2), add $6.00 per
individual, plus $6.50 per individual dedicated for the Open
Space Park Program."
SECTION 3. The foregoing ordinance shall be effective upon its
passage by the electorate at a special election to be held on'August
14, 1990. The portion of the tax rates dedicated to the Open Space
Park Program shall expire on December 31, 2010.
SECTION 4. The ballot title is as set forth on Exhibit "A", which is
attached'hereto and' incorporated herein.
SECTION 5. The City Recorder is hereby requested and directed to give
due notice of such special election hereby called as provided in the
laws of the State of Oregon and the Charter and Ordinances of the City
of Ashland, Oregon.
SECTION 6. For the purpose of this election, a mail ballot may be
used as directed by the Jackson County Clerk.
The foregoing Resolution was duly passed at a regular meeting of the
City Council on the
day of
, 1990~
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Nan E. Franklin
City Recorder
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SIGNED and APPROVED this
day of
, 1990.
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Catherine M. Golden
Mayor
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EXHIBIT "A"
No. 15-2
ORDINANCE PROVIDING FUNDING FOR THE OPEN SPACE PARK
PROGRAM.
Question:
Shall the Transient Occupancy tax and
Business License tax be increased for
the Open Space Park Program.
YES
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NO
EXPLANATION
The Transient Occupancy (Hotel/Motel) tax would be
increased by 2 percent, and the average Business
License Tax would double from the present annual base
rate of $40 plus employee fees. Tax rates for Open
Space could not be increased without voter approval,
and would expire in 20 years on December 31, 2010.
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