01/21/1986 Meeting - Laserfiche WebLink

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e The financial strategy, Mr. Wong said, is: 1} to transfer increasing 20 per- cent increments of the collected delinquent property taxes to the CIP for five years (in the sixth year all the delinquent property taxes will be in the CIP); 2} to consider serial levies when projects can logically be financed that way; and 3} to initiate new user fees and other revenue sources or decrease services. e Mr. Wong proposed that the CIP projects be divided into two tiers. Tier 1 projects will be those that can be paid for with known, existing funds. Tier 2 projects will be those dependent on the new financial strategy. When funds for Tier 2 projects are obtained with one of the strategies, the pro- jects can then be moved to Tier 1. Mr. Wong said new serial levies should be for specific projects from the approved CIP. The terms of the levies should be specified, and savings or arbitrage should reduce the levies. He recommended the Fire Department Redeployment Plan in FY88 and FY89 be financed with a serial property tax levy. He said the debt service of the City is decreasing and none of the existing general obligation bonds will be outstanding in 1998. Answering questions, Mr. Wong said the surplus cash carried forward can be transferred to capital projects. The estimated delinquent property taxes will be about $3 million annually for five years. The forecast indicates that user fees could be stopped in FY88, but they probably will be needed after that because the forecast does not include population increases. Revenue from the Trojan facility to be received in FY87 is classified as "other" in existin9 resources. The contingency fund is not included in the forecast because the amount in it is not certain until after the audit. A list of traditional revenue sources was included with the material on the financial strategies. Answering other questions, Mr. Wong said the six percent increase in property taxes permitted by State law will produce about $1.2 million in 1987. Mr. Gl eason sai d it is di ffi cul t to freeze expendi tures at the present 1 eVE!l without laying people off. Fuel for police cars must be purchased even if its cost increases. G. Discussion/Further Direction Mayor Obie suggested that each of the councilors comment on the financial strategies. The councilors said the presentations were excellent. Mr. Hansen said discussing opportunities to raise money for City government before the council considers ways to decrease expenditures bothered him. He said people want the City to "tighten its be1t," although he realized that has been done. Ms. Schue said much has been cut from the City budget, and the suggestions for additional cuts were horrendous. She knew citizens do not want new taxes, but perhaps they can be asked in different ways. She suggested a combination of cuts and new sources of revenue may be the solution. e MINUTES--Eugene City Council January 21, 1986 Page 4