01/09/1985 Meeting - Laserfiche WebLink

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e e e IV. FIVE-YEAR FORECAST AND STATE REVENUE-SHARING ORDINANCE (memo, projection, ordinance distributed) City Manager Michea1 Gleason introduced the agenda item. Finance Director Warren Wong presented the staff report, briefly reviewing his January 3, 1985, memo to the City Council which explained the need and the process for the development of the five-year financial forecast. Stating that some ques- tions had been raised regarding the integrity of the forecast, he said staff was discussing with the League of Oregon Cities, the Oregon Municipal Finance Officers Association, and the Executive Department the options of either deleting the forecast or making it a more viable instrument. Councilor Wooten said she was pleased with the measures taken by staff in revising the forecast format. In response to a question by Ms. Wooten, Mr. Wong said staff has not performed any analysis of the accuracy of the financial forecast. He explained that the City was prohibited by law from budgeting a deficit, adding that any deficit must be balanced in the budget. Councilor Holmer commented that he noticed the need for an increased cash flow of $3,000,000 as reported in the Register-Guard that morning had already been included in the forecast. In response to a question by Councilor Schue, Mr. Wong explained that the "Other Local Revenue" included user fees, charges, and miscellaneous revenue generated by the City. He said the majority of the revenue was beginning working capital and reserves for future year expenditures. CB 2800--An ordinance electing to receive State Revenue Sharing funds pursuant to Oregon Revised Statute (221.770) and declaring an emergency. Ms. Wooten moved, seconded by Mr. Hansen, that the Five-Year Forecast be approved and that the bill be read the second time by council bill number only, with unanimous consent of the council, and that enactment be considered at this time. Roll call vote; the motion carried unanimously, 8:0. Council Bill 2800 was read the second time by council bill number only. Ms. Wooten moved, seconded by Mr. Hansen, that the bill be approved and given final passage. Roll call vote; all councilors present voting aye, the bill was declared passed (and became Ordinance No. 19302). Mr. Gleason reported that the City performs a formal five-year financial forecast as part of its financial planning process. He said this forecast was more detailed and accurate in terms of the City financial operation independent of the State requirement. MINUTES--Eugene City Council January 9, 1985 Page 3