12/08/1992 Meeting - Laserfiche WebLink

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e Mr. Wong reviewed General Fund FY93 estimates for resources and requirements. Mr. Wong reviewed FY94 proposed budget figures reflecting the changes result- ing from Eugene Decisions. Responding to a question from Mr. Green regarding the difference between FY92 actuals ($1.1 million) and FY92 estimates ($4.5 million) for nondepartmental expenditures, Mr. Wong said that the $4.5 million included a transfer of $2.3 million for the capital budget and to address Fleet expenditures, $1.1 million in transition contingency discussed the previous evening by the council, and miscellaneous line items. Mr. MacDonald asked what accounted for increases between FY93 requirements and FY92 operating costs. Mr. Wong attributed a portion of the increase to carryover purchase orders and reappropriations for projects not completed in the fiscal year in which they were authorized ($2 million to $2.5 million). Another portion of the increase was the transition reserve ($1.1 million). He noted that increase also reflected the recent addition of $300,000 to begin- ning working capital. Mr. Wong discussed FY94 General Fund budget assumptions: I} implements first year of Eugene Decisions without enhancements (except Safer Schools); 2) attempt to carry-forward remaining service system; no dollars for increased demand or costs above inflation; 3} 3.5 percent baseline adjustment; 4} no loss of State or County funding; 5} property tax collection rate of 90.5 percent; 6} no significant economic upturn or downturn; and 7) continued e operation of Trojan at current levels. Mr. Green asked Mr. Wong what the uncollected property taxes represented in dollar value. Mr. Wong estimated the total at $3 million to $4 million, adding that the taxes were not collected in the year levied, but over a five- year period the City recovers most of that money. It is incorporated into the revenue assumption as "prior year's tax collections." Mr. Wong said that at this point in the budgeting process, projections indicate that the City will have a $3.9 million deficit on June 30, 1994. He said that the City is not legally allowed to adopt a budget with a deficit; the budget must be balanced. Mr. Wong reviewed "upside/downside" risks with a potential impact on the General Fund deficit as identified by staff. The meeting recessed at 5:45 p.m. and resumed at 6 p.m. Mr. Wong referred the council to a list in the handout of unfunded service additions and enhancements related to increased service demand and the Eugene Decisions process, noting that the items in the list were not included in the deficit figure. e MINUTES--City Council Work Session December 8, 1992 Page 6 4 p.m.