09/15/1986 Meeting (2) - Laserfiche WebLink

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Answering a question from Mr. Miller, Mr. Wong said the Tax Allocation Fund cannot be used for the Hult Center operating or capital budget. e Replying to a question from Ms. Wooten, Mr. Gleason said an example of micro- service adjustments was the reorganization of the Development Department and the elimination of a position. Replying to questions from Ms. Erhman and Ms. Bascom, Mr. Wong reviewed the transfer of delinquent taxes from the operating budget to the capital budget and said it increases the projected deficit in the operating budget. He sa i d the tax bills received by most citizens will not go down even though the City's General Obligation Bonds are being paid because the property tax rate is increasing. Responding to Ms. Bascom, Mr. Papel said the taxes of other jurisdictions, such as the school districts, are included in a taxpayer's bill and some of those jurisdictions are increasing taxes. Answering a question from Ms. Ehrman, Mr. Gleason said Corvallis has been very successful in funding its capital budget with serial property tax levies. Ms. Ehrman asked Mr. Gleason to provide additional information about Corvallis later. Mr. Hansen asked if any Oregon cities have thoroughly evaluated their role and Mr. Gleason responded that Springfield did so. As a result, revenues about equaled expenses for one year. Subsequently, expenses have risen. Mr. Mi 11 er wondered i f any State Legislature committees are considering e measures to stabilize local governments. Mr. Wong said some committees are considering specific local programs such as State-mandated programs but they are not working on a comprehensive solution. Mr. Wong said the State reserves a number of revenue sources for itself. For example, local governments cannot tax vehicles or increase their tax bases when new buildings are constructed. Answering questions from Mr. Papel about utility districts, right-of-way charges for public utilities, and infrastructure fees in the list of possible revenue sources, Mr. Wong said a street and road utility district could be established to provide revenue for the City, EWES could be charged for its use of the public right-of-way, and a fee could be charged to construct and maintain storm sewers. Ms. Wooten suggested the City consider i ssui ng mi ni -bonds as EWEB did recently. Mr. Wong said the City Attorney is analyzing the State law to see if the City can issue such bonds but the overhead costs for them are great. Responding to questions from Ms. Ehrman and Ms. Wooten, Mr. Wong said the infrastructure in the Riverfront Research Park will be funded by the tax increment district; however, expenses, such as the expansion of a fire station, might have to be funded by the General Fund. He said the revenues from annexations balance the operating expenses but they do not fund capital e MINUTES--Eugene City Council September 15, 1986 Page 4