CC Minutes - 02/11/12 Workshop - Laserfiche WebLink

Home Browse Search

City Manager Ruiz then discussed the strategy he proposed for reducing the City's anticipated $7 million budget shortfall over two years by reducing the organizational footprint through position eliminations and recapturing recession revenues through the City's investments in the Joint Elected Officials Regional Prosperity Plan, business assistance loans, and downtown development efforts. He acknowledged staff had proposed little by way of new revenue increases and attributed that to recognition of the fact that taxpayers were facing a similar gap. City Manager Ruiz anticipated that some employees would be laid off. He indicated he would present his full recommendation to the committee on February 22. Councilors and lay committee members asked questions clarifying the details of the manager's strategy. Mr. Poling suggested the City would be deeper in the hole after two years if the projections were not realized and the gap grew even more. City Manager Ruiz believed the two -year period gave the City time to make course corrections without creating financial instability. He pointed out that the more revenue the City captured in the first years, the less it would have to capture in the out years; if the City was able to capture more than half of the shortfall in the first year it would reduce the risk in out - years. Ms. Taylor requested information about the ten -year tax exemptions granted by the City. Responding to a question from Mayor Piercy about steps the organization had taken to reduce health care expenses, Ms. Hammitt said that Risk Services Manager Myrnie Daut had evaluated an on -site clinic but it did not appear to be a cost - saving strategy when investigated. Ms. Daut focused on prevention and wellness to lower the City's overall health expenditures. Ms. Hammitt promised to provide additional information. Ms. Ortiz suggested the City could direct staff to the County's community health centers for regular care and buy catastrophic insurance for other issues. Ms. Hammitt said the City continued to look for opportunities to reduce costs through cooperation with other regional agencies. She reminded the committee that employee benefits were bargained for through the contract process. Ms. Hammitt led the council and lay committee members though a PowerPoint presentation entitled Sustainable Funding for City Services that highlighted the City's progress toward achieving a stable budget. Councilors and committee lay members asked questions clarifying the details of the presentation. Ms. Ortiz determined from City Manager Ruiz that when he talked about employee layoffs he was also talking about service reductions. Ms. Ortiz acknowledged that several employees were doing several jobs. She hoped that the organization moved forward in a way that was true to the council's goals and the community's values. Mr. Poling asked if Eugene was aware of service reductions contemplated by the other local jurisdictions that involved services delivered through intergovernmental agreements. If that was the case and if Eugene could no longer fill the funding gap, he questioned whether those functions could continue and if it was worth it to go forward on such a diminished basis. City Manager Ruiz noted his frequent meetings with the chief executive officers of those jurisdictions and said they attempted to keep those issues in mind while also being aware that the elected officials had their own priorities. He said it was a balancing act. The council and committee lay members discussed the proposed process. Concerns included the truncated process associated with the official budget message scheduled on April 18, uncertainty surrounding the budgets of other jurisdictions, inadequate time for the committee to provide the input necessary to achieve a service mix that was in accord with community goals and available funding, and a desire to do more than meet the minimum legal requirements. Those supporting the process found it more strategic than past budget reviews, believed there was adequate time for public input built into the MINUTES— Eugene City Council/ February 11, 2012 Page 2 Budget Committee Workshop