Agenda Packet 12-10-18 Meeting - Laserfiche WebLink

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In April 2018, the Budget Committee was provided with the Unfunded Needs Assessment (UNA) as part of the FY19 budget process. In May 2018, the UNA was revised to reflect changes to the April 2018 UNA due to the passage of the Parks and Recreation Bond (Measure 20-289) and the Operations and Maintenance Levy (Measure 20-288) at the May 15, 2018 election. The UNA is a compilation of significant unfunded financial challenges that the City of Eugene faces in providing current services and anticipated service needs as the community grows and the organization evolves. It is compiled by asking City staff throughout the organization to describe what they see as service needs in their areas. The purpose of the UNA is to provide policy makers, City staff and citizens with a better understanding of the full range of unfunded needs throughout all of the service areas at a particular point in time. The results are designed to help inform the City’s Executive Team, the Budget Committee and the City Council as they are making financial decisions. It is also designed to provide information about the organization’s priorities for financial discussions and how those priorities will advance important City plans, policies and goals. The UNA identified 138 items with approximately $53.4 million in unfunded ongoing costs and $307.0 million in limited duration or one-time costs. Limited duration or one-time costs are more concentrated in the Library, Recreation and Cultural Services Department (LRCS) and Public Works. The largest unfunded projects in LRCS are for new or renovated community centers and pools, while large items in Public Works revolve around transportation system needs and maintenance and repair of wastewater service laterals. Many of the limited duration items would also have ongoing fiscal impacts on the operating budget that would also need to be considered in order for the City’s budget to be sustainable. With the significant amount of future capital projects, as well as identified unfunded needs, the City also recognizes the need to be thoughtful and deliberate in planning future debt levels. As a result, the City has developed a Debt Capacity Analysis. This study looks at not just the legally allowable level of debt, but the level of debt that the community would consider affordable, given the community’s ability and willingness to pay for that debt. The Budget Committee adopted a debt policy limit of net direct debt of no more than 1% of real market value of property. The Debt Capacity Analysis measures future debt plans against this debt policy limit to determine whether those plans are considered affordable and those results are included in the CIP. The City’s net direct debt to real market value was 0.25% at the end of FY18. City Council Vision, Goals and Outcomes The City Council adopts goals that provide major policy direction for budget allocations and service delivery. The City Council adopted the following vision, goals and outcomes in spring 2010. City Council Vision  Value all people, encouraging respect and appreciation for diversity, equity, justice, and social well-being. We recognize and appreciate our differences and embrace our common humanity as the source of our strength;  Be responsible stewards of our physical assets and natural resources. We will sustain our clean air and water, beautiful parks and open spaces, livable and safe neighborhoods, and foster a vibrant downtown, including a stable infrastructure; and  Encourage a strong, sustainable and vibrant economy, fully utilizing our educational and cultural assets, so that every person has an opportunity to achieve financial security. City Council Goals and Outcomes Safe Community A community where all people are safe, valued, and welcome.  Decreased property crime  Greater sense of safety (especially downtown)  Visible and accessible police presence  Better police/community relations 5 December 10, 2018, Meeting - Item 2D