05/23/1984 Meeting - Laserfiche WebLink

Home Browse Search

e e - the amount should be $7.1 million. He said that the only safety net if the General Contingency Fund was depleted would be the General Fund services. In response to a question, Mr.. Holmer reviewed his proposal which he calculated would save $200,000 each year. He said the percentage ratio for the FY1985 budget was adequate for succeeding years. In response to a question, Mr. Holmer stated that he had first assumed no new taxes and then made decisions to stay within current revenues. Mr. Obie said he supported Mr. Holmer's proposal. Ms. Schue and Ms. Nichols stated that they would support the staff recommendation. Ms. Smith said she would support Mr. Holmer's proposal for one year, with a review to take place at that time. She asked if the City would end up paying more in interest if it had to borrow to resolve any cash-flow problems without an adequate fund balance. Mr. Wong stated that this situation will occur during the next year, it being necessary for the City to borrow the difference between the $5.8 million and $7.1 million in tax anticipation notes. Based on available information, he said this could mean a net add to the budget of $100,000. Ms. Smith said she wanted the situation reviewed on a yearly basis. Mr. Ball said he would support the staff recommendation on a one-year basis, stating that he wanted to study the effect of the tax anticipation notes. Mr. Obie stated that no consensus had been reached on this issue. With regard to Federal Revenue Sharing, Ms. Schue said she did not want to speculate on whether the entitlements would remain constant; therefore, she said she would support the staff recommendation. Mr. Holmer said that staff apparently felt that the Presidency and Congress would remain unchanged; he said he was guessing at the outcome of the November elections. Ms. Smith, Ms. Nichols and Mr. Obie said they would support the staff recommendation. Mr. Obie said that a general consensus had been reached in support of the staff version. Mr. Gleason said he did not want the discussion characterized as the City Manager versus Mr. Holmer. However, he said the debate was important. He stated that the deficit for the next year would be between $400,000 and $500,000. He asked what direction the council wished to choose for the future. While Mr. Holmer was suggesting using the beginning cash balance, Mr. Gleason urged that the cash balance be carried forward. Mr. Obie said the council had made several assumptions on the revenue sources and that some decisions would have to be made on the differences in the future. He said that the council should look at revenue sources other than taxation if the deficit came within the $400,000 to $500,000 range. Ms. Smith temporarily left the meeting at this time. In response to a question on the capital side of the budget, Mr. Wong stated that he had been working with Bill Guenzler of Public Works. He explained that the FY1985 budget has a backlog of approximately $4 million, with street overlays to cost approximately $800,000. Referring to the list of capital projects as listed in the May 21, 1984, memorandum on the CIP for 1984/85 through 1993/94, Mr. Wong stated that the City was looking at a funding liability of $500,000 to $1 million each year on non-street projects. He stated that staff could provide the council with a list of those streets that should have been paved. Mr. Obie said he would like to see a list of those MINUTES--Eueene City Council May 21, 1984 Paee 6