CC Minutes - 02/25/02 Work Session

Home Browse Search

Responding to a question from Ms. Bishop, Ms. Hardt estimated personnel costs at about 70 percent of the General Fund budget; that figure did not include consulting services. Any contracts within the wage category were included. Ms. Hardt then discussed City staff's recommendation to the Budget Committee regarding EWEB's proposal that the City fund additional Iow-income energy assistance. She said that staff recommended that the City not provide that additional funding in fiscal year 2003 because the CILT revenues, while still substantial, were less than projected; the City's General Fund was already financially constrained and reductions were planned for fiscal year 2003; EWEB had provided increased funding for Iow-income energy; and the City Council had recently taken action to dedicate $55,000 to energy assistance for Human Services Commission Fund contract agencies who provide housing or direct client support in Eugene. Ms. Anderson acknowledged Eugene's financial position. She said that the problem the board was having with the CILT issue was that it was often criticized because Eugene's CILT rates were higher than Springfield's CILT rates. The Springfield Utility Board pays only three percent in a CILT to the City of Springfield, and by mutual agreement EWEB pays a six-percent CILT to Eugene. Now the board was "hammering" its constituents with rate increases, and for that reason the board had hoped Eugene could provide the requested assistance funding. In response to Ms. Anderson, Mr. Kelly said that if the City's finances were in better shape he would give EWEB's proposal very serious consideration. However, the City's was looking at finding $1.5 million in budget reductions in its own services. Regarding the CILT money dedicated to the Facilities Reserve, Mr. Kelly said that the reserves would be allocated to relocating the police personnel from the basement of City Hall, which he described as an unreasonable and unsafe environment. Mr. Meisner said he appreciated the action the council took to support the human service providers with assistance for their increased costs of energy. He thought that providing type of assistance, one-time or emergency assistance, was a more appropriate role for the City. He did not support using the CILT moneys for an ongoing program, saying that the council needed to consider its mission as a government. He said that the City Council needed to consider carefully when the City could take on new ongoing services and ensure that they were affordable and sustainable and within the City's mission. Mr. Meisner hoped that the outcome of the FERC process was favorable to EWEB. Ms. Bishop questioned the distinction made between the wholesale and retail CILT. She thought it somewhat misleading to state that the City would get less CILT money. She said that EWEB was asking the City to use the CILT money for Iow-income energy assistance because of the nexus between the source of the funds and the use. Ms. Bishop believed that the City had an obligation to spend the money in a way that was directly related to those who paid it. She was trying to find a fair and equitable way to regain some of the CILT money for that purpose. Ms. Bishop said that while the City was getting less than projected, it was getting more than expected before because of EWEB's rate increase. Mr. Johnson emphasized the impact of Qwest's refusal to pay franchise fees on the General Fund budget, and said that even if the City prevailed in court, he did not expect any payment would be received until fiscal year 2005. He believed that if Qwest had not refused to pay the franchise fees, the discussion that was occurring would be very different. MINUTES--Eugene City Council February 25, 2002 Page 6 Work Session