02/03/1986 Meeting - Laserfiche WebLink

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e e e M I NUT E S City Council Work Session Umpqua Room--Valley River Inn February 3, 1986 5:30 p.m. PRESENT: Brian Obie, Mayor; Richard Hansen, President; Debra Ehrman, Vice President; Cynthia Wooten, Ruth Bascom, Jeff Miller, Emily Schue, Roger Rutan, councilors; Mike Gleason, City Manager; Warren Wong, Dave Whitlow, Gary Long, Barb Bellamy, Cathy Freedman, Susan Smernoff, staff; Jim Boyd, The Register-Guard; John Selix, KUGN. The meeting was called to order by the Mayor at 5:50 p.m. I. CONTINUED DISCUSSION OF FINANCING STRATEGY FOR OPERATING AND CAPITAL BUDGETS Mr. Wong reviewed the financial strategy for the operating budget and the Capital Improvement Program (CIP), allowing for a $1.5 million operating fund gap and a minimal CIP budget. He explained that the planning number for the budget is a 3 percent increase, but the actual increase is probably between 4 percent to 4-1/2 percent. The strategy calls for transferring, in increas- ing 20-percent increments, each fiscal year's projected delinquent property taxes to the CIP. Currently the delinquent taxes are used to balance the operating side, so by moving them to capital, a funding gap is created in oper- ations. The proposal, as outlined in the materials distributed, also called for serial levies and funding the gap through user fees and charges, new revenue sources, and service reductions. If the revenue sources generate more than the amount needed to fill the funding gap, the excess will go to the CIP. The User Fee Study was outlined and explained by Mr. Wong. This study is being conducted now in all departments and will take from 6 to 18 months to complete. The study will include all General Fund departments as well as the Hult Center and Airport funds. The study will include all user fees that already exist as well as potential or enhanced user fee revenues. Mr. Wong projected the results of the study which include: generating revenue through increases in user fees; establishing new user fees; and identifying subsidiza- tion. User fees will be systematically updated and there will be a correlation between the service and the benefiting party. Mr. Wong referred the councilors to the "Time Frame for Implementation of New/ Enhanced Revenue Sources and User Revenues. II Mr. Miller commented that people will ask what their taxes are going for, and during such a study the council needs to address the minimal expectations citizens have for the taxes they pay. MINUTES--City Council Work Session February 3, 1986 Page 1