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<br />M I NUT E S <br /> <br />. RECEIVED BY ./'\ ( <br />CITY-l\IANAGER 7 <br /> <br />.J UN 2 1 1984 <br />AM PM <br />~1819IWllll~liI2,3,415,6 <br /> <br />e <br /> <br />Eugene Council Work Session <br />McNutt Room, City Hall I <br /> <br />March 14, 1984 <br />5:30 p.m. <br /> <br />PRESENT: Mayor "Gus" Keller, Freeman Holmer, Emily Schue, Joyce Nichols, <br />Brian Obie, Dick Hansen, John Ball, City Councilors; Mike Gleason, <br />City Manager; Dave Whitlow, Gary Long, Warren Wong, Tim Birr, Pat <br />Lynch, Robert Deis, Bill Guenzler, Eugene staff; Springfield City <br />Manager Steve Burkett, Data Processing Director Ray Anderson, <br />Springfield Finance Director Ann Phlugg, Springfield staff. <br /> <br />I. FINANCIAL PLANNING COMMITTEE <br /> <br />Mr. Wong said it appeared that the consensus of the council is to eliminate <br />the Financial Planning Committee and have the City Council take over the issues <br />of alternative revenue sources and the service system mix/level for the City. <br />The Financial Planning Committee is presently set up in the City Code. <br /> <br />e <br /> <br />Mr. Gleason added that the process for change would be in the form of an <br />ordinance change unless staff is told differently by the councilors. No <br />objection was made to such an ordinance change. <br /> <br />II. SIX-YEAR FINANCIAL FORECAST (material distributed) <br /> <br />-- <br /> <br />Mr. Wong said that staff had prepared an update of the General/Federal Revenue <br />Sharing Fund Financial Forecast that was done last year. It was updated on <br />the basis of revised revenue and expenditure assumptions, including changes in <br />the 1984 budget process. Mr. Wong reminded councilors that the FPC had <br />identified service levels that they wished restored. Restored service levels <br />were incorporated into the financial forecast ($2.9 million indentified by the <br />Financial Planning Committee, plus the $500,000 in cuts made last July). <br />The restoration was phased-in in FY86, FY87, and FY88. The forecast was <br />prepared on a microcomputer. It is to a very low 1 eve1 of detail. A five- <br />percent inflation rate was assumed. Utilities were assumed to be more than <br />five percent. On the revenue side, each source was identified and projected. <br />Assumed was an increased property tax collection rate in FY86-FY90. Mr. Wong <br />reviewed the projected deficits. He showed the councilors a graph of the <br />projected deficits. He reviewed the percentage of budget going to various <br />departments. He identified the projections in the capital budqet. He said <br />after taking out land and equipment (in the operating budget) it leaves $231 <br />million in replaceable assets, primarily in infrastructure. Assuming an <br />estimated useful life of 25 years, the City would need to replace the capital <br />assets on an average of $9.3 million/year. In FY85, the City will be putting <br />in $1.9 million toward the general capital project budget. This is a short- <br />fall of $7.4 million. If the average useful life were 40 years, the shortfall <br />would be $3.9 million. <br /> <br />MINUTES--Eugene Council Work Session <br /> <br />March 14, 1984 <br /> <br />Page 1 <br />