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<br /> e noted that the Budget Committee had not funded the CIP at its full amount for <br /> several years, so the deficit was overstated by about $1 million. Mr. Wong <br /> combined the projected deficit and anticipated revenue loss from Ballot <br /> Measure 5 on the General Fund at $5.35 million. <br /> Responding to a question from Mr. Rutan, Mr. Wong did not anticipate that the <br /> City would lose more than $2.6 million from the State. He added that the <br /> property tax revenues could be adversely affected by a recession. Mr. Wong <br /> said that it was his opinion that State shared revenues would be lost to the <br /> City. Mr. Gleason believed that the loss in revenues could be higher over <br /> time if the State chose to fund schools with Gas Tax Trust Fund dollars or <br /> changed the allocation of County timber receipts. Responding to a further <br /> question from Mr. Rutan, Mr. Gleason said that there are Federal guidelines <br /> covering timber tax expenditures that stipulate the states allocate the money <br /> to school districts and counties on a 25-75-percent ratio. <br /> Mr. Wong described strategies developed by staff to mitigate the impact of <br /> the measure. He said it was staff's goal to carry forward additional <br /> resources into FY92 to enable the council to complete the strategic plan, <br /> making FY92 a transition year. Mr. Wong believed the operating budget <br /> strategies could realize approximately $800,000. <br /> In response to a question from Mr. Rutan regarding the relationship between <br /> the $800,000 goal identified by staff and the operating deficit of $297,000, <br /> Mr. Gleason said the items being cut included such items as materials and <br /> supplies, holding positions vacant, and travel and training. Staff is trying <br /> e to avoid impacting community services. Mr. Gleason said that, however, <br /> before the deficit had been calculated, there had been considerable <br /> discussion regarding anticipated baseline cuts. Mr. Gleason said that those <br /> cuts will affect the ability of the organization to respond to community <br /> demand. He said that staff will attempt to keep such service cuts to a <br /> minimum in order to avoid starting an argument with the community before the <br /> council can start a conversation. <br /> Mr. Wong said as a further method to realize savings, staff was proposing <br /> cuts of $1,328,365 to the current capital budget. He showed the council an <br /> overhead listing the cuts and clarified that they were projects for which <br /> funds are currently appropriated. In some cases, the projects are ready to <br /> be started or might already be contracted. Mr. Gleason added that the total <br /> was not precise because of uncertainty over the status of all the projects <br /> and their relationship to other projects. He recommended acceptance of the <br /> concept to deauthorize the capital projects on the list. Mr. Gleason said <br /> that the action would give the council needed time and flexibility to process <br /> the strategic plan. He said that if the State does not take away revenues as <br /> anticipated, it would be possible to add the items back to the budget in the <br /> future. <br /> Mr. Boles asked if the staff recommendation was predicated on the concept <br /> that no new revenues would be sought. Mr. Gleason said staff would present <br /> the council with options for new revenues. Mr. Boles questioned whether the <br /> organization could afford to make such cuts, noting that they included an <br /> e <br /> MINUTES--Eugene City Council November 19, 1990 Page 5 <br />