Item 3: FY10 Proposed Budget for City of Eugene

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: Resolution 4980 Electing to Receive State Revenue Sharing Funds Pursuant to Section 221.770 of Oregon Revised Statutes; Resolution 4981Certifying that the City of Eugene Provides the Municipal Services Required by Oregon Revised Statues Section 221.760; and Resolution 4982 Adopting the Budget, Making Appropriations, Determining, Levying and Categorizing the Annual Ad Valorem Property Tax Levy for the City of Eugene for the Fiscal Year Beginning July 1, 2009, and Ending June 30, 2010 Meeting Date: June 22, 2009 Agenda Item Number: 3 Department: Central Services Staff Contact: Kitty Murdoch www.eugene-or.gov Contact Telephone Number: 682-5860 ISSUE STATEMENT Resolutions electing to receive State Revenue Sharing in the Fiscal Year beginning July 1, 2009, and ending June 30, 2010, and certifying that the City of Eugene provides municipal services required for receipt of state-shared revenues are required in order to continue receiving those state funds. ORS 294.434 requires the City Council to pass a resolution adopting the budget, making appropriations, determining, levying and categorizing the annual ad valorem property tax for the City of Eugene for the fiscal year beginning July 1, 2009, and ending June 30, 2010. BACKGROUND Council Action History Oregon Local Budget Law requires the City to conduct a public hearing to hear testimony on the FY10 City of Eugene Annual Budget as recommended by the Budget Committee on May 20, 2009, and on the proposed uses of State Revenue Sharing funds. The City Council has consistently met the requirement of Oregon Local Budget Law which requires that a jurisdiction adopt an annual budget by June 30 of each year. If a jurisdiction elects to receive State Revenue Sharing funds, it must hold a public hearing on the proposed uses of the funds and adopt resolutions or ordinances electing to receive the funds and certifying that the City provides qualifying municipal services. On June 10, 2009, the City Council voted 5-3 not to adopt an ordinance which would have established a 5% surcharge on solid waste fee collections to generate an estimated $900,000 for the operations and maintenance of local city streets. Estimated revenues and expenditure appropriation associated with this surcharge are included in the FY10 City of Eugene Annual Budget as recommended by the Budget Committee on May 20, 2009. To address this change, staff proposes to amend the Road Fund FY10 budget by $900,000 by eliminating the surcharge revenue, reducing the enhanced pothole repair program and instead redirecting those funds to maintain core street operating services in the upcoming fiscal year. The likely result of this reduction in operating budget is that the City will not be able to fund planned overlay projects on unimproved neighborhood streets to address severe pothole issues. If additional savings are realized in Z:\CMO\2009 Council Agendas\M090622\S0906223.doc