04/11/1984 Meeting (2) - Laserfiche WebLink

Home Browse Search

e e - restoration. He in the forecast. long stated that 40 FTE. recommended adopting the service restoration budget outlined In response to a question, Director of Staff Services Gary this restoration would mean an increase of approximately Mr. Wong then began his review of the 19 assumptions as outlined in his April 6, 1984, memorandum to the City Council. The following statements reflect the discussion held in relation to the 19 assumptions. A. froperty Taxes--Current Mr. Wong stated that the figures presented were the best estimate of the assessor prior to the February collections and assumed a collection rate increasing to 88 percent as of FY90. Mr. Gleason added that any future annexations to the City will be a net wash. In response to a question, Mr. Gleason stated that speeding up the collection process would require a change in State law. He reviewed the levy process; he added that he felt the people would not vote to pay their taxes prior to when the State levies its rates. The councilors discussed the options of changing the penalty process to address those individuals who do not pay their taxes and moving the tax collection date from November to October. Another suggestion raised was changing the City's fiscal year to coincide with that of the Federal govern- ment. Mayor Keller stated that any return to the previous lifestyle of people moving every seven years would force individuals to pay their taxes. Mr. Wong stated that staff was currently working with the 8S-percent collection rate, adding that delinquent taxes were increasing significantly. It was the consensus of the council to adopt the rate as outlined. B. froperty Taxes--Prior Years Mr. Wong stated that the collection rate was averaging 38 percent, with staff expecting the rate to increase to 45 percent by FY90. He said that staff usually saw delinquent taxes being paid off by one-third each year under good economic conditions. In response to a question, Mr. Wong explained that the 15 percent rate of the current levy going delinquent each year would result in a total of delinquent taxes averaging one-third. Mr. Gleason added that this assumed a payment of approximately 85 percent of the current taxes and one- third of the delinquent taxes. He stated that property assessments were currently stable. Consensus was reached on the proposed rates. Mr. Ball entered the meeting at this time. C. In-lieu-of Taxes--EWEB Trojan/Electric Mr. Wong stated that the proposed rates assumed a rate increase and a growth factor in terms of consumption. Mr. Gleason stated that the proposal did not resolve the outstanding Trojan issue. In response to a question, Mr. Wong stated that the rates listed were based on the price increase per unit and the growth factor. Mr. Gleason stated that the growth rates had not been as high as expected. While Ms. Wooten said the need to use Trojan was lower than expected, Mr. Gleason added that not using Plants 1 and 2 might place the utilities in a deficit position. Ms. Wooten felt the figures were optimistic given other factors. Mr. Holmer suggested a rate of one or two percent above the inflation MINUTES--Eugene City Council April 11, 1984 Page 2