Item 3: FY10 Proposed Budget for City of Eugene

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the summer of 2009 on funded pavement preservation projects on improved streets as a result of lower than projected street repair contract costs, those funds can be reprogrammed later this year to backfill funding for the planned unimproved street overlays. A suggested amendment to reduce the Road Fund operating budget is included in the City Manager’s recommendation. On June 15, 2009, the City Council held a public hearing on the FY10 City of Eugene Annual Budget. The City Council received public comments from two citizens regarding the FY10 City of Eugene Annual Budget as summarized below: ? The Chair of the City of Eugene Budget Committee noted that at its May 20, 2009 meeting, those citizen members of the Budget Committee present voted unanimously to recommend that the City Council impose a 5% surcharge on solid waste fee collections to fund operations and maintenance of local city streets. He expressed concern that the decision not to impose the surcharge may result in funds being diverted from the pothole repair program. The speaker asked the council to consider other revenue sources in order to make up the $900,000 shortfall in the Road Fund budget. ? The second speaker asked whether adopting the FY10 City of Eugene Annual Budget appropriates funds for the Chad Drive and Crest Drive capital projects, and whether those funds can be used for the pothole repairs instead. In response to the second speaker’s comments, the City Engineer explained that the funds for the Chad Drive and Crest Drive capital projects were appropriated in prior fiscal years and are being carried forward into the FY10 budget. Policy Issues Annual Budget: ORS 294.435 provides that after the public hearing “has been held, the governing body shall enact the proper ordinances or resolutions to adopt the budget, to make the appropriations, to determine, make and declare the ad valorem property tax amount or rate to be certified to the assessor for either the ensuing year or each of the years of the ensuing budget period and to itemize and categorize the ad valorem property tax amount or rate as provided in ORS 310.060.” State Revenue Sharing: The City’s Revenue and Collection Policy 1 states, “The City will decrease the dependence on property taxes and diversify the supporting revenue base in the General Fund.” Electing to receive State Revenue Sharing supports this policy. Financial and/or Resource Considerations Financial and/or resources considerations are detailed in the FY10 Proposed Budget document and Budget Committee motions. A summary of the Budget Committee actions is provided in Attachment A. If Lane County does not enter into the proposed fund exchange agreement approved by the Budget Committee, supplemental budget action will be required to restore $1.0 million of Facility Reserve funding transfer to the Road Fund. State Revenue Sharing The FY10 estimated revenue from State Revenue Sharing is $1,204,000. The funds will be used to support General Fund services. A public hearing on possible uses of these funds was held by the Budget Committee on May 18, 2009. Budget Committee Recommendation Budget Committee review consisted of six work sessions and one public hearing. Public comment was received at three work sessions. A public hearing on the budget proposal was conducted on May 18, Z:\CMO\2009 Council Agendas\M090622\S0906223.doc