05/23/1984 Meeting - Laserfiche WebLink

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e e - Mr. Gleason cautioned the council that the projections were not precise enough on which to base decisions. He said he felt that the City was spending more than it was taking in; therefore the City will either have to cut services or use its cash reserves. Mr. Obie stated that some choices did exist based on the assumption of a five-percent increase per year on fringe benefits and wages. Mr. Gleason stressed that the council must choose its future and then act on its decision. He said staff was suggesting a decision that was more active on the resource side of the budget for operations and capital, thus maintaining the beginning cash balances. In response to a question on service restorations, Mr. Ball stated that he would support restoration of the Fire and Police prevention and public edu- cation programs and reinstating the Libary hours, programs, and book materials to FY1981 levels. Ms. Smith, referring to the April 6 letter from the City Manager, stated that she had some reservations about restoring additional services. While she sup- ported obtaining voter input on the levels of services desired, she stressed that the council must be cautious in restoring any services. In response to a question by Mr. Obie, she said she would vote against service restorations. Ms. Nichols said she would not presently support any service restorations. She said the council discussion begged the question of whether the current local economic situation was short- or long-range. She stated that the council would have a better picture of the situation in January based on the presidential election and federal programs. She felt that some issues might be corrected if the City could maintain its current levels for a while longer. While she said she supported the Library, she said that the City did not have the current resources to perform those restorations. Ms. Schue said she disagreed with Ms. Nichols' analysis, stating that the City has maintained its level of funding by raising property taxes. She said the situation was becoming worse because the City realized that it could not continue to raise taxes. She also disagreed that a better economy would solve Eugene's current economic problems. Ms. Nichols said she recognized that a better national economy would not solve all of Eugene's problems, but that as people felt more secure they would be more supportive of City programs. Ms. Schue responded that the City could not continue to increase property taxes even if people felt more secure. Ms. Nichols questioned how the council could assume public support of any additional tax if the public was not in favor of increased property taxes. Ms. Schue stated that some questions must be asked in this regard. In regard to restorations, Ms. Schue said she was flexible, stating that she would like to see some service restorations such as those identified by Mr. Ball. She said the question must be put to the public. Mr. Ball said he would buy Ms. Nichols' argument on the economy. He agreed that the voters should have the opportunitY to state what levels of services they wanted. He suggested that the council wait a year to study what changes have occurred. Mr. Holmer said he would vote in favor of service restorations at an appropriate time, especially those that could be provided by revenues without new taxes. Mr. Ball said he would be willing to pursue specifically targeted revenues for capital infrastructure. MINUTES--Eugene City Council May 23, 1984 Page 4