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e information as the council. Mr. MacDonald said that the committee could be instrumental in the creation of Strategy C, and involved in the management of the changes resulting from the Eugene Decisions process. He termed the meeting the beginning of Eugene Transitions. III. WORK SESSION: DIRECTION ON PREPARATION OF FY94 BUDGET Mr. Wong said that preparation of the FY94 budget was underway. In the next 60 to 90 days, staff will be refining revenue and expenditure projections. Mr. Wong referred the council to a packet of materials previously distributed entitled "FY94 Budget Options/Issues." He employed the materials in his presentation. Mr. Wong reviewed a chart in the handout that compared the FY94 six-year forecast with the proposed FY94 budget with and without the impact of Eugene Decisions. Mr. Wong noted that revenue assumptions on the chart included the increased user fees and charges previously discussed by the council. In addition, the council had approved the addition of $300,000 to working capital in Supplemen- tal Budget No.1, which was reflected in the chart. The departmental require- ments assumed a carry-forward service system, incorporating the first year of the Eugene Decisions implementation plan. Mr. MacDonald asked for information regarding the difference between the e forecasted beginning working capital and proposed budget working capital figure. Mr. Wong said that the forecast assumed the $500,000 transition contingency was not expended in FY93. The $8.5 million in the forecast is an $8 million base and $500,000 from the transition reserved carried over from FY93 to FY94. Ms. Bascom asked about the relationship of the amount in beginning working capital on the City's bond rating. Mr. Wong replied that there are two reasons for beginning working capital: 1) in order to make payroll and accounts payables, the City requires the cash; 2) it does help the City's credit rating by carrying "reserves" for various reasons. Mr. Gleason added that in a worst case scenario, it is the last source of funds to draw down. Mr. Wong reviewed information in the handout regarding General Fund actual resource and requirement figures for FY94. Mr. Boles asked Mr. Wong for clarification of the capital budget figure of $4.5 million in the forecast. Mr. Nicholson reminded Mr. Boles that the deficit was forecast by council direction with a capital budget of $4.5 million. Mr. Wong said that the $4.5 million was part of the original deficit forecast for Eugene Decisions of $8 million. That figure was carried forward to the initial planning for the budget; the council's most recently agreed- upon figure of $3.7 million was included in the third column on the chart showing the budget with the implementation of Eugene Decisions. e MINUTES--City Council Work Session December 8, 1992 Page 5 4 p.m.