The Springfield City Council is considering a new payroll tax.
It’s meant to help balance the city’s general budget and offset future deficits. But community members have mixed feelings about it.
Nearly a dozen Springfield residents spoke at a hearing Monday night about the proposed ordinance.
If passed, a 0.1% tax would be levied on both employees and employers and would take effect next January at the earliest.
The tax is expected to generate about $2.45 million in the first year.
Springfield Finance Director Nathan Bell explained Monday night that the proposed ordinance includes guardrails, such as no rate increases for at least three years, as well as annual reports to both the public and council for transparency.
Some small business owners testified that it would have significant and negative impacts on them and their families during an already fragile financial time.
Libby Smith told the council that she and her husband own a business in Springfield and are raising three young children.
“I can say, personally, that every dollar counts,” Smith said. “Most schools have had to drastically cut back enrichment programs and school-sponsored sports, which has impacted our kids.
“These dollars that you're considering taking from us are the ones that allow us to pay for music lessons, dance classes, or to put our kids in sports programs or send them to summer camp,” she said, “or for someone to help pay for their dependent care.”
However, many people spoke in favor of the tax, particularly so that staffing and hours aren’t cut at the Springfield Public Library.
Perhaps the youngest to give testimony was a 5-year-old named Evelyn.
“I think we need to get librarians back, because the librarians help us,” she said. “The library helps kids learn to read and do other fun things, like crafts and games.
“The librarians are important to me,” she continued. “I would feel sad if the library got rid of storytimes. I like when the librarians read books to us. Please keep our library safe.”
And a few people said they would support a tax, but that the lower rate the council agreed to isn’t enough to actually cover the city’s needs.
Ky Fireside, who is running for the Democratic nomination for a seat in the Oregon House, argued the tax is crucial and insufficient, saying a 0.1% rate “dwarfs when compared to Eugene or other similarly sized cities.”
“Some people have asked for a .01 percentage point increase. … We're asking for one 10,000th of the thing,” Fireside said, “and we're asking that you contribute that money to the library, which is an absolutely vital service.”
A second and final reading is scheduled for May 18.
