02/01/1988 Meeting - Laserfiche WebLink

Home Browse Search

e will have to discuss that issue when it discusses the restaurant tax and other alternatives. Ms. Wooten suggested that February 15 be set aside as a work session for the council to discuss those issues. She said the council should discuss specifically $500,000 in unidentified revenue for FY89, and how new revenues should be incorporated for upcoming capital projects. Mayor Obie asked if anyone disagrees with the City Manager drafting a budget based on the blue sheet. Mr. Bennett said he does not agree with that proposal. Ms. Wooten said she would like the council to work on short-term and long-term projects. Ms. Schue asked if the council expects Mr. Gleason to return with a balanced or unbalanced budget. Mr. Gleason said he would not return with radically different projections if he was asked to balance the budget. However, he said the budget document has to be examined in periods of more than one year. He said the council is not experiencing a financial crisis because there are still significant cash reserves in all funds. If the council does nothing, it will run into serious problems by the third year. e Mr. Rutan moved, seconded by Mr. Miller, to direct the City Manager to prepare his executive budget utilizing the Strategic Financial Plan Implementation Proposal as a general guideline for developing the FY89 budget. Roll call vote; the motion carried unanimously, 8:0. Mayor Obie said a restaurant tax can be passed if the City installs a cap on property taxes. Ms. Bascom said she wants to submit the restaurant tax to voters when it has a chance of passing. Mr. Rutan said the average voter will view the tax as "just another tax. II He said the council should develop a good plan to ensure the tax passes if that is what it decides to support. Ms. Schue said she assumes the restaurant tax will be used instead of additional property taxes. She said it should be made clear what the tax will be used for because the public has hardly considered the issue. Mayor Obie said the public may not understand the magnitude of a $500,000 deficit in the FY89 budget as a result of not being able to find the additional revenue needed. But he said the public will understand a $2 million deficit in three years. Ms. Ehrman said the council should determine if the City of Springfield is interested in a restaurant tax. She said the council would not want to see Eugene residents traveling to Springfield to eat out. - Mr. Miller asked if a restaurant tax would be in place of the annual 6 percent property tax increase. Mayor Obie said his idea is that a MINUTES--Eugene City Council February 1, 1988 Page 14