01/21/1986 Meeting - Laserfiche WebLink

Home Browse Search

e B. Historical Perspective Mr. Long reviewed the history of budget planning through a series of visual exhibits, which reflected the background information distributed to the coun- cilors. In summary, Mr. Long reported several conclusions: 1) Federal and State government assistance is either flat or gone with no increases in sight; 2) the City is more productive and is meeting the service demand; and 3) property tax dependency, if it continues to increase, will cause an imminent crisis. . Gleason encouraged the council to look carefully at diversification strategies. C. Financial Management Policies Mr. Whitlow referred the councilors to the draft Financial Management Goals and Policies document, which was distributed. The current policy document is three years old, and the proposed draft reflects changes suggested by the staff. No final action is expected at this time, but will be requested before the FY87 Budget is adopted. Mr. Whitlow commended the City Council and staff for past major accomplishments, especially the movement of Federal Revenue Sharing out of the budget. Mr. Whitlow highlighted the proposed changes and additions in the draft statement. Questions were addressed and discussion was held as each item was explained. e D. Oregon Property Tax System Mr. Wong compared the Oregon system to rate systems in other states. He explained that the dollar amounts levied in Oregon do not increase if the value of property increases. He reviewed the tax base and how it can be increased without a vote or with a vote of the people. He also explained the formula for increasing the tax base when property is annexed. Mr. Wong explained how supplementary operating and capital levies can be used. The property tax system in Oregon does not grow with the economy. E. Operating/CIP Requirements Mr. Wong distributed copies of the FY88-FY93 Operating Budget, which is a draft of the City's Six-Year Forecast. He said the forecast was in draft form because the FY86-FY87 budget has not been completed. Mr. Wong reviewed the Operating Budget. He said the staff tried to hold variables as constant as possible. For projected revenues, it was assumed the tax collection rate will return to 88 percent, the delinquent tax collection rate will be 60 percent, and no new user fees or charges, revenue sources, new taxes, or annexations will be approved. For expenditures, it was assumed the service system approved in FY86 will continue, there will be no enhancements or additions to services, there will be no annexations, and there will be no population increase. e MINUTES--Eugene City Council January 21, 1986 Page 2