03/14/1984 Meeting (2) - Laserfiche WebLink

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M I NUT E S . RECEIVED BY ./'\ ( CITY-l\IANAGER 7 .J UN 2 1 1984 AM PM ~1819IWllll~liI2,3,415,6 e Eugene Council Work Session McNutt Room, City Hall I March 14, 1984 5:30 p.m. PRESENT: Mayor "Gus" Keller, Freeman Holmer, Emily Schue, Joyce Nichols, Brian Obie, Dick Hansen, John Ball, City Councilors; Mike Gleason, City Manager; Dave Whitlow, Gary Long, Warren Wong, Tim Birr, Pat Lynch, Robert Deis, Bill Guenzler, Eugene staff; Springfield City Manager Steve Burkett, Data Processing Director Ray Anderson, Springfield Finance Director Ann Phlugg, Springfield staff. I. FINANCIAL PLANNING COMMITTEE Mr. Wong said it appeared that the consensus of the council is to eliminate the Financial Planning Committee and have the City Council take over the issues of alternative revenue sources and the service system mix/level for the City. The Financial Planning Committee is presently set up in the City Code. e Mr. Gleason added that the process for change would be in the form of an ordinance change unless staff is told differently by the councilors. No objection was made to such an ordinance change. II. SIX-YEAR FINANCIAL FORECAST (material distributed) -- Mr. Wong said that staff had prepared an update of the General/Federal Revenue Sharing Fund Financial Forecast that was done last year. It was updated on the basis of revised revenue and expenditure assumptions, including changes in the 1984 budget process. Mr. Wong reminded councilors that the FPC had identified service levels that they wished restored. Restored service levels were incorporated into the financial forecast ($2.9 million indentified by the Financial Planning Committee, plus the $500,000 in cuts made last July). The restoration was phased-in in FY86, FY87, and FY88. The forecast was prepared on a microcomputer. It is to a very low 1 eve1 of detail. A five- percent inflation rate was assumed. Utilities were assumed to be more than five percent. On the revenue side, each source was identified and projected. Assumed was an increased property tax collection rate in FY86-FY90. Mr. Wong reviewed the projected deficits. He showed the councilors a graph of the projected deficits. He reviewed the percentage of budget going to various departments. He identified the projections in the capital budqet. He said after taking out land and equipment (in the operating budget) it leaves $231 million in replaceable assets, primarily in infrastructure. Assuming an estimated useful life of 25 years, the City would need to replace the capital assets on an average of $9.3 million/year. In FY85, the City will be putting in $1.9 million toward the general capital project budget. This is a short- fall of $7.4 million. If the average useful life were 40 years, the shortfall would be $3.9 million. MINUTES--Eugene Council Work Session March 14, 1984 Page 1