Income distribution and revenue generation

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Income Distribution and Revenue Generation Q. WHICH IS FAIRER, AN INCREASE IN THE UTILITY FEE, PROPERTY TAX OR SOME OTHER SOURCE OF REVENUE GENERATION FOR ADDITIONAL PUBLIC SAFETY AND PARKS SERVICES?

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Transcript of Income distribution and revenue generation

Page 1: Income distribution and revenue generation

Income Distribution and Revenue GenerationQ. WHICH IS FAIRER, AN INCREASE IN THE UTILITY FEE, PROPERTY TAX OR SOME OTHER SOURCE OF REVENUE GENERATION FOR ADDITIONAL PUBLIC SAFETY AND PARKS SERVICES?

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Income Distribution as Basis of Revenue

Utility Fee Utility Fee is seen as a service fee and not a tax

Utility Fee is not based on the principle of tax on the valuation of property assets so it is not seen as a hardship on those on a fixed income

Utility Fee is easier to manage because it is spread over 12 month period by most residents

Utility fee when seen as pay for service when detailed and described become a residence involvement and feedback process

All pay equally not burdening those in retirement and fixed income which makes up a large segment of Gresham residents.

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Property Tax as Basis for Additional Revenue Generation

Property Tax Only the Federal income tax is consistently rated as worse then property tax in opinion polls

Primary reasons public resents property tax:◦ 1) the taxation of unrealized capital gains by the property tax;◦ 2) the fact that it is paid in large lump-sum payments by taxpayers;◦ 3) public anxiety about reappraisal of property values;◦ 4) inequitable assessment and appraisals◦ 5) all the issues in an around compression seriously undermine property tax increases◦ 6) the number of districts/jurisdictions that have taxing authority over a single resident◦ 7) the method of computing the property tax is arcane and not easily understand by most residents causing

confusion and anxiety◦ 8) in difficult economic times where wages and income are on the decline it is nearly impossible to pass such

increases without clear examples of direct benefit to residents

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Is Gresham Attempting to Solve an Issue that is Regional and Not Local?

Metro Government created the concept of Regional Centers for Economic Development◦ Rockwood Planned as a Regional Center◦ Downtown Gresham Planned as a Regional Center

Multnomah County◦ Justice Center◦ Social Services Responsibility

City of Gresham and State of Oregon Resources Available?◦ Urban Renewal Performance◦ Poor Representation◦ Neighborhood Image◦ Consequences of Gentrification

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SW Neighborhood Meeting on Proposed Property – 2nd of 3 Meetings

Summary of Meeting at Butler Middle School, Oct 3, 2013

Very poor attendance of residents at meeting. I counted less than ten

Notables in attendance:◦ Mayor Shane Bemis provided introductory remarks and than excused himself to leave for a prayer meeting◦ Panel members were Councilors Lori Stegmann, Mario Palmaro, Mike McCormick, Eric Chambers, and Chief of Police and

Fire◦ In the audience was City Manager, Erik Kvarsten, and a numbers of people from the City Public Relations Staff◦ Interesting discussion on the city public safety and parks needs, presented by Councilor Stegmann. The part where Eric

Chambers and Carol Rulla discussed the issue of COMPRESSION as it relates to Property Tax hurt the City’s presentation. The panel needs stronger arguments then that they love the City of Gresham

◦ I gave a short statement about my distributed Power Point with ideas and concerns, and asked the panel to get back to me. I was surprised that the panel was surprised at the number of households in Rockwood

◦ One attendee from Rockwood talked about the problems in his neighborhood◦ Another attendee challenged the panel about what results they can expect in their neighborhood based on increased

revenue

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