Item 4: Adopt FY06 Budget - Laserfiche WebLink

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COUNCIL OPTIONS According to ORS 294.435, the City Council is limited to increasing expenditures in a fund by no more than $5,000 or 10 percent, whichever is greater, of the Budget Committee-approved total in each or any fund. If a larger expenditure increase is desired, republishing the budget and conducting a second public hearing is required. The City Council may reduce revenues, move allocations within a fund and may decrease expenditures; however all actions must result in a balanced budget, where revenues equal expenditures, for each fund. Any increase to property taxes above the rate or amount approved by the Budget Committee requires republishing the budget summary and conducting a second public hearing. If a motion to amend the budget resolutions is made, the motion must contain the specific appropriation line(s) being altered in the resolution and each motion must be self-balancing, meaning that a resource and a requirement must exactly offset each other. CITY MANAGER'S RECOMMENDATION The City Manager recommends passage of the two state revenue sharing resolutions and the resolution adopting the Budget Committee's recommended budget with two changes. Subsequent to Budget Committee action, city staff met with officials from the County to discuss the animal control contract. As was discussed during the Budget Committee meetings, the cost of the existing service level was increased significantly by Lane County in FY06 to reflect the rising cost of their operations over the past several years. The contract service level in the FY06 Proposed and Recommended Budgets is decreased to match the FY05 funding level plus a two percent inflationary increase. In these discussions, Lane County staff indicated willingness to increase their budget estimate for Eugene and Lane County license revenue by $100,000 and the City Manager recommends using $133,000 from the Reserve for Revenue Shortfall in FY06 to add to the contract in the Central Services Department. The combination of these additional funding sources means Animal Control will deliver the same level of service to Eugene in FY06 that was delivered in FY05. Lane County takes action on their budget on Wednesday, June 22, 2005 at 9:00 a.m. The $133,000 is a one-time funding source that will be replaced with Eugene license revenue in future years. The second change results from the timing of Budget Committee actions on May 18, 2005. The Committee agreed to increase the newsletter budget by $10,200 for the River Road/Santa Clara neighborhoods so that all addresses in the area could receive newsletters. The funding source for the increase was the existing budget for Transition Services in the River Road/Santa Clara area. The Committee later agreed to move $50,000 from neighborhood matching grants to neighborhood newsletters. In order to achieve parity on a per address basis, this funding level increase requires an increase to the River Road/Santa Clara area newsletter budget for non-city addresses by $5,650. L:\CMO\2005 Council Agendas\M050613\S0506134.doc