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<br />.... <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />to address this disadvantage on an interim basis in the manner set <br />forth therein until such time as a more comprehensive manner of <br />addressing this disadvantage can be achieved." Brand has contacted <br />both Tom Hoyt, an active builder in this area and Kip Oram who is <br />the President of Alpine Lumber. Oram initiated discussion of this <br />problem in the past when we were losing sales tax revenue when <br />builders were purchasing residential materials outside the City to <br />avoid paying the taxes. Both Mr. Hoyt and Mr. Oram saw no problem <br />with imposing the use tax on residential building materials. They <br />recommended that we look at our service expansion fee which has <br />money built into it to offset sales tax and use tax, although it is <br />not specifically identified as such. If we look at the service <br />expansion fee we are going to be doing things during the budget <br />process this year and carrying that out in next year's action <br />program that will affect this; one of the things we are doing is <br />evaluating as part or the comprehensive plan the cost to the <br />general fund to deliver services to homes. Public Works will be <br />studying, analyzing and investigating the cost to deliver <br />water/sewer and whether or not the income from those services is <br />actually paying the cost or whether we are sUbsidizing from the <br />general fund. In short-term we really can't do a good analysis on <br />the service expansion fee at this time. <br /> <br />Hornbostel: Expressed her concern that this was <br />approved by voters and Council had stated <br />it would be corrected the next time <br />election was held. If we put use tax on <br />residential building material at that <br />time we would have sales tax to cover <br />what was in town and use tax for out of <br />town which would put everyone on an even <br />par. Hornbostel stated that she felt <br />uncomfortable with the credit, also felt <br />that the service expansion fee was <br />another issue. The administration of the <br />interim program with the credit is very <br />complicated. <br /> <br />Davidson: Felt that the service expansion fee <br />should be a revenue neutral issue, <br />whatever revenue the use tax on <br />residential building materials permit <br />causes the City to gain there would be a <br />corresponding reduction in the service <br />expansion fee. The program of looking at <br />what the fees should be should continue <br />but that is a separate issue from this. <br />We should attend this as a revenue <br />neutral issue. Of all the other cities in <br /> <br />11 <br />