11/02/1987 Meeting - Laserfiche WebLink

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-- Answering questions, Mr, Wong discussed special utility districts. He said a special bill would be sent to residents to support specific services. At thi s e time, the City does not have a general billing system. EWEB has a general billing system. Estimates for special districts for park and recreation maintenance do not include the Hult Center. The estimates are for maintenance of the present parks, community centers, and pools. The cost for a special district could be for each resident, The current fees might continue or be eliminated. He said charges in a traffic signal utility district could be based on each residence and equivalent residential units for commercial and industrial properties, Replyi ng to other questions, Mr, Wong said some capital projects in the downtown area could be paid with Tax Allocation funds. Probably none of the current Genera 1 Fund downtown operating expenses could be paid with Tax Allocation funds. The Tax Allocation funds total about $1.9 million annually and about $1.4 million is needed for debt service on the Conference Center and parking structure. The balance is used for programs such as the awning program, Answering questions, Mr, Wong said the counci 1 has been increasing the beginning working capital about $200,000 a year and it now totals about $6,8 million. He said the City would have to borrow funds to meet operating expenses for about five months before property taxes are received if it did not have working capital. Mr. Gleason said a low ranking from the ballots for "Beginning Working Capital" would mean that the councilors want to discuss it, Ms, Wooten said the working capital helps to maintain the City's bond rating. She said it has not been proved that the City needs the $6.8 million to meet e obligations before property taxes are received. B. Service System Discussing the system of City Services, Mr, Wong said the system is based on such things as population, condition of streets and sewers, and demand. He said City services increased in the last ten years. There were 751 full-time employees in 1976 and there are 776 in 1987. The City provides fairly good levels of service now but levels were decreased in 1983, working capital was spent, and employees were laid off because of the recession, Si nce then, the working capital has been increased, resources have been re-allocated, and some services have been increased. Efficiency has been increased by automation. Mr. Wong said the City organization and financial system are sound and productive. However, the six-year forecast indicates that deficits will occur. He said there are demands for additional services, State and Federal taxes seem to have stabilized, Some user fees might be increased but high fees are counter-productive. Several councilors and the Mayor discussed possible causes of the deficit. Answering questions, Mr. Wong said the tax base may increase six percent annually and the City realizes about a 5.2 percent increase. Property taxes provide about half of the General Fund. e MINUTES--Eugene City Council November 2, 1987 Page 2