07/11/1988 Meeting (2) - Laserfiche WebLink

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e supported the Lane County serial levy, 57 percent to 43 percent. Mr. Wong reviewed several options the council could consider regarding the affected library services: (1) reduce library operating hours, staffing, and bookmobile services; (2) recommend a three-year City serial levy of about $241,000 (nine cents per $1,000 of assessed valuation) to fund the affected library services beginning in FY90, and authorize an inter-fund loan to pay for the affected services during FY89; (3) use contingency funds to provide the affected library services during FY89; (4) apply any marginal beginning working capital that is identified during the audit of the FY88 budget (this potential source of funds has already been identified for two other areas); and (5) reduce other programs or line items in the FY89 budget in order to obtain funding for the affected library services. Mr. Wong said staff recommended the second option, a City serial levy and an inter-fund loan. In response to a question, he said staff believes it is somewhat early in the fiscal year to spend about 40 percent of the FY89 contingency fund (option 3). In response to another question, he said the serial levy, if passed by voters, would remain constant throughout the three years. Ms. Schue said a City serial levy would not really represent a new tax for Eugene residents, because they used to pay for the library services through the Lane County serial levy. This, combined with the fact that Eugene voters supported the Lane County serial levy, inclined her to be comfortable with staff's recommendation. She did indicate, however, that she does not generally support serial levies. ~s. Schue also said that if a serial levy is referred to voters, it should be done during the general election in November rather than during a special election in September, because the e former would cost the City less. Mr. Miller expressed a concern that the present property tax rate in Eugene is already high. He was also concerned about approaching the voters too many times for liPrary financing measures (for example, once for a serial levy to fund operations and perhaps once again to finance construction of a new library). He said it might be more prudent to refer to the voters an entire package dealing with library financing. Mr. Miller, therefore, recommended against a City serial levy. He supported using contingency funds or making adjustments to the FY89 budget. Mayor Obie reiterated Mr. Miller's concern about the number of times voters should be approached for library financing issues. He suggested that contingency funds be used for a short period of time (perhaps 90 days) to fund the library services affected by the failure of the Lane County serial levy. This would give the City more time to deal with library financing issues as a package. Mayor Obie added that libraries in the entire region are in jeopardy. He said some type of comprehensive solution needs to be found, perhaps through some non-general funding source. Ms. Bascom and Mr. Bennett supported the Mayor's suggested to use contingency funds for a short time period; however, Mr. Bennett was concerned that 90 days might not be enough time to address the library financing issues. e. MINUTES--Eugene City Council July 11, 1988 Page 6