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FAIR, STABLE AND ADEQUATE FINANCIAL RESOURCES - A local government whose ongoing financial resources are based on a fair and equitable system of taxation and other revenue sources and are adequate to maintain and deliver municipal services. Financing of alley improvements through the formation of local improvement districts fairly and equitably allocates the cost of the improvements to the benefitting properties. Financial and/or Resource Considerations The Eugene Code pertaining to the procedures and assessments for public improvements states that the City shall be responsible for the cost of improvements at the intersection of two alleys or at the intersection of an alley with a street. Staff evaluated both alternative eligible funding sources for the City's share of alley improvement costs and amending the Eugene Code to assess all costs associated with alley improvements (see Attachment B). Timing Per the Municipal Charter, ordinances amending the sections of the Eugene Code pertaining to the procedures and assessments for public improvements are effective six months after City Council adoption. The council initiated the West University Neighborhood (WUN) alley improvement project at the January 12, 2004, City Council meeting. This action allowed staff to proceed with the public outreach, design and bidding of the improvements. It is anticipated that the council will adopt a resolution forming a local improvement district (LID) for the WUN alley improvements in early April 2005. This will allow construction of the improvements to occur in the summer of 2005. Amendments to the Eugene Code must be adopted by early November 2004 to be applicable to the WUN LID. More importantly, staff has initiated a public communications plan for the WUN alley improvement project and information on individual assessments is likely to be the most frequently asked question. Therefore, the timely adoption of amendments to the Eugene Code will ensure a successful public communications plan. OPTIONS The council has several options in providing direction to staff including: 1. Rely on the existing method of apportioning assessments for alley improvements outlined in the Eugene Code and to pursue CDBG funding for the City's share of the WUN alley improvement project. 2. Proceed with amendments to the Eugene Code to change the method of apportioning assessments for alley improvements and to assess all costs associated with alley improvements. 3. Evaluate additional methods of apportioning assessments for alley improvements. STAFF RECOMMENDATION Staff recommends that the existing sections of the Eugene Code pertaining to the procedures and assessments for public improvements be amended to: 1. Change the method of apportioning assessments for alley improvements to a method that is based equally on property area and alley frontage; and 2. Assess all costs associated with alley improvements. SUGGESTED MOTION Move to direct staff to prepare an ordinance amending the Eugene Code pertaining to the procedures and L:\CMO\2004 Council Agendas\M040308\S040308C.wpd