08/19/10 - City Council Newsletter

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If the Walls Could Talk Summer at the Hult Center is a time for projects that are difficult to do during the presenting season. One of the projects underway concerns climate control and energy savings. The Hult is converting its heating system from steam heat, previously supplied to downtown businesses by Eugene Water & Electric Board (EWEB), to natural gas. EWEB is phasing out the steam heat delivery system. Fortunately, the Hult was “shovel ready” for an energy grant from the Federal Stimulus Program that is offsetting a large portion of the conversion cost for the City of Eugene. Hult Center Facilities Services Manager Mark Loigman is overseeing the project. In mid-July, workers arrived and cut a larger-than-life hole in the exterior concrete wall above the pedestrian bridge. Within a few days, a large crane was positioned in the Hult Center alley; working in teams, one on the ground and another in the building, two new compressors were hoisted up and over the bridge and into the hole in the wall. Workers engineered a mini-rail transport system for the new equipment to “ride” into the interior work zone deep inside the Hult Center, where they have been installing new piping and routing. The hole in the wall was closed and sealed this week. The new natural gas system will start working in early September – right on schedule for the beginning of the fall season. For more information, contact Marketing and Public Relations Manager Libby Tower at 541-682-8380. Eugene Well-Positioned to Weather Stormy State Budget News that the State of Oregon is facing a potential $1 billion revenue shortfall in the current biennium leads to an obvious question: How does this affect the City of Eugene? First, it’s important to note that this is a State general fund shortfall. Eugene receives very little revenue directly from the State general fund. The most direct tie Eugene has to the State from a budget perspective is that Eugene receives State-shared revenues derived from alcoholic beverage taxes, cigarette taxes and grants. Eugene budgeted to receive about $3.5 million in its General Fund from State-shared revenues in FY11. The distribution of those funds is governed by statute and cannot be changed unless the legislature changes State law. The League of Oregon Cities and the City of Eugene have taken the position that State-shared revenue with cities should not be reduced in the future. Therefore, no impacts are anticipated in the near future to this important revenue source, and staff will remain vigilant regarding potential changes to State statutes that would reduce these shared revenues. Of course, reductions in State services to Oregon citizens may put pressure on local governments, including counties and cities, to provide additional services at the local level. Local governments are experiencing their own fiscal struggles, and Lane County, in particular, is faced with a reported $10 million decline in revenue in its next fiscal year. Eugene’s ability to take on new levels of services in response to State reductions is extremely limited. Perhaps the most important message to the community, and to City employees, is that Eugene has been proactive in making significant budget adjustments over the past two cycles to bring finances into a sustainable position. There is more work to do, and an ongoing commitment to a sustainable budget should serve the City well in the years ahead. For more information, contact Finance Director Sue Cutsogeorge at 541-682-5589. C O U N C I L B R E A K: A U G U S T 1 2 – S E P T E M B E R 8 UPCOMING SEPTEMBER EUGENE CITY COUNCIL NEWSLETTER PAGE 2 August 19, 2010