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

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- e - E. Federal Revenue Sharing Mr. Wong said the City was receiving approximately $3 million each year but the amount would be reduced by $300,000 due to the inclusion of the State Property Tax Relief Program as part of the taxing effort. He assumed the Federal Revenue Sharing would remain at $2.7 million and that the program will be continued. He added that there was some discussion in Congress about restricting the use of these funds for high unemployment areas. Mr. Holmer stated that the City should attempt to operate without going to new taxes. He felt that the City should be more generous in estimating that Congress might recognize inflation in the Federal Revenue Sharing. He said a four- to five-percent inflation rate would result in an increase of $105,000 to $125,000. Ms. Wooten said she assumed that the program will be re-enacted without the inflationary increases. Mr. Gleason stated that there were no inflationary increases in Federal Revenue Sharing for the past six years. Ms. Nichols left the meeting at this time. The meeting was recessed at 7:15 and reconvened at 7:20 F. State Shared Revenues G. State Cigarette Tax Mr. Wong stated that the FY84-85 estimates were from the League of Oregon Cities. He stated that the projections called for an increase of two percent per year for both items. Mr. Holmer stated that an increase of four percent would mean an additional $13,430. Mr. Gleason stated that the City was being optimistic in these projected rates of two percent. Mr. Holmer, refer- ring to Schedule 1.1, stated that the "Otherll intergovernmental revenues were projected at approximately $246,800 from FY84 through FY90. He felt the City could be more generous in estimating this revenue area. Mr. Gleason explained that the grants included in this section were budgeted only after received; grants cannot be forecasted. Mr. Holmer stated that this was a resource area which should be assumed; he suggested that the average for the past four years should be used for budget calculations. He did not believe that the resource, as part of the General Fund, could be deleted. He said he would agree to take the figures out of both the revenue and expenditure sides. Mr. Wong stated that the FY85 figure should be used as a benchmark. In response to a question, he stated that staff would attempt to segregate the various funds. Mr. Gleason explained that people were hired and fired based on avail- able grant funding. Ms. Schue felt that attempting to identify the source of funding in each of the departments was unnecessary. Mr. Gleason stated that any revenue would also have to be shown on the expenditure side as well. Mr. Hansen suggested that the average grants over the past five years be used as the State Shared Revenue figure. It was decided to retain the State Cigarette Tax figure as recommended by staff. MINUTES--Eugene City Council April 11, 1984 Page 4