Item 7: PH and Adoption of FY07 Budget

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State Revenue Sharing: The City’s Revenue and Collection Policy 1 states, “The City will decrease the dependence on property taxes and diversify the supporting revenue base in the General Fund.” Electing to receive State Revenue Sharing supports this policy. Financial and/or Resource Considerations Financial and/or resources considerations are detailed in the FY07 Proposed Budget Document and Budget Committee Motions. A summary of the Budget Committee actions is provided in Attachment A. State Revenue Sharing The FY07 estimated revenue from State Revenue Sharing is $1,000,000. The funds will be used to support General Fund services. A public hearing on possible uses of these funds was held by the Budget Committee on May 15, 2006. Budget Committee Recommendation Budget Committee review consisted of five work sessions and one public hearing. Public comment was heard at the beginning of all but the last work session. The public hearing on the budget proposal was conducted on May 15, 2006. The Budget Committee recommendation consists of the City Manager’s Proposed Budget for FY07, with several amendments. The Budget Committee recommendation, approved on May 17, 2006, is as follows: “Mr. Demboski, seconded by Ms. Rygas, moved that the Budget Committee recommend to the Eugene City Council a fiscal year 2007 budget for the City of Eugene that consists of the City Manager’s proposed fiscal year 2007 budget, including the property tax levies and/or rates contained therein, amended to reflect appropriations for prior year encumbrances and prior year capital projects, and the amendments to the manager’s proposed fiscal year 2007 budget which have been adopted by the Budget Committee. In addition, the property tax levies and/or rates contained in the City Manager’s fiscal year 2007 proposed budget are recommended with the following provision: the youth and school services levy will be certified under the $10 general government tax limitation in the event that the Supreme Court rules in the City’s favor in the Urhausen versus City of Eugene case prior to September 1, 2006. If the Supreme Court has not decided by that date, or if the ruling upholds the Tax Court decision, the levy would be certified as determined by the Tax Court ruling.” The motion passed unanimously. An overview of the Budget Committee’s recommended changes to the City Manager’s Budget are shown by fund and department below. All change proposals and the committee votes are shown in Attachment B. Attachment A reconciles the recommended budget to the proposed budget. General Fund Operating Budget Central Services Department: $7,900 increase to the Lane Regional Air Protection Agency agreement ? $100,000 one-time placeholder for the Sustainable Business Initiative ? $70,000 for City Council Support Staffing, including $5,000 in one-time funds ? L:\CMO\2006 Council Agendas\M060612\S0606127.doc