Item 1: Ordinance on Charges for Stormwater and Parks Service

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing: An Ordinance Concerning Charges for Stormwater and Parks Service and Amending Sections 6.411, 6.416, 6.421, 6.426, 6.431, 6.436, 6.600, and 6.605 of the Eugene Code, 1971 Meeting Date: January 22, 2013 Agenda Item Number: 1 Department: Public Works Staff Contact: Fred McVey www.eugene-or.gov Contact Telephone Number: 541-682-5216 ISSUE STATEMENT This public hearing is to consider an amendment to the current stormwater fee structure to allow a transition of the costs of operating and maintaining City parks, open space and natural areas from the general fund to the stormwater fund. BACKGROUND At the November 14, 2012, council work session, the City Manager presented information as background for the start of a financial strategy discussion, including discussion of a potential new revenue source. He described the City’s efforts over the past several years to close a persistent structural gap in the budget. Despite several years of hard work and decisions to live within our means, the lingering impacts of the recession have widened the gap between revenues and expenses. At the November 26 council work session, the council received an updated General Fund Six-Year Financial Forecast that showed a projected budget gap of $6 million. The main reason for the increased gap was the significantly lower property tax revenue to be received this fiscal year and each year into the future, due to the depressed economy. At the December 10 work session, the City Manager presented a four-part FY14 Plan of Action to address the budget gap. The Plan is included as Attachment B. The four parts of the Plan are: 1.Economic Prosperity – Grow the Property Tax Base 2.Cost Control – Lower Costs and Find Efficiencies with Minimal Service Impacts 3.Transition Funding for Parks Costs to Stormwater Fee 4.New City Service Fee The council voted 6-1 to move forward on the path identified by the City Manager for the financial strategy. S:\CMO\2013 Council Agendas\M130122\S1301221.doc