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%XXEGLQIRX% <br />CityofEugene <br />APlanofActiontoAddresstheFiscalChallenge: <br />Closinga$6MillionDeficit <br />CurrentSituation <br />TheCityofEugenehascontinuedtoexperiencethedistressingeffectsofthesteepeconomicdecline <br />thatbeganin2008.Thebusinessandpropertyimpactsexperiencedbythecommunityresultinreduced <br />revenuestosupportCityservices.Otherdifficultdecisionshaveledtoreducedrevenues,suchas <br />decidingtolettheLibraryLocalOptionLevyexpire.Overthepastfouryears,therevenuereductions <br />havebeenaddressedthroughspendingandpersonnelreductionswithafocusonmaintainingservices <br />tothecommunity. <br />Overthenextseveralyears,theCityofEugeneisanticipatinganadditional$6millionbudgetshortfall. <br />Thisprojection,generatedfromtherecentlyupdatedGeneralFundforecast,doubledthe$3milliongap <br />thatwasprojectedinMay2012.Propertytaxesmakeup66%oftheGeneralFundandchangescan <br />significantlyimpacttheabilityoftheCitytofundservicesinthecurrenteconomicenvironment. <br />Becauseofthedepressedeconomy: <br />TheCityreceivedsignificantlylessincomefromcurrentyearpropertytaxesthan <br />anticipated. <br />Cityofficialsexpectlowergrowthratesinfuturepropertytaxes. <br />WithoutactiontofilltheGeneralFundgapinFY14,theimpactoflowerthanexpectedrevenues <br />gapwilllikelygrowinfutureyears,resultingin <br />(income)overtheforecastperiodwillcompoundandthe <br />significantservicereductionsthatwillnegativelyimpactthequalityoflifeforƵŐĞŶĞ͛Ɛresidents. <br />Likeothercommunities,theCityofEugenehasfaceddeficitsoverthelastseveralyears.Nonetheless, <br />byexercisingsoundstewardshipofpublicresources,theCityhasachievedbalancedbudgets,lived <br />withinitsmeans,andnotraisedtaxes.Atthesametime,wehavecontinuedtoinvestincommunity <br />goalsandminimizedimpactstocommunityservices.Stridesmadetoaddressthesefiscalchallenges <br />haveincluded: <br />fouryears. <br />Cutting$24millionfromtheGeneralFundbudget(about20%)overthepast <br />Eliminatingmorethan100fulltimepositions. <br />Maintainingprudentreservestoaddressunexpectedimpactsduetoshiftsinincomeand/or <br />expensesthatcouldnotbeanticipatedinadvance. <br />ManypartsoftheŝƚLJ͛Ɛorganizationwereaffectedbytheseactions.Twoexamplesofservicestothe <br />wereaffectedbytheactionsareparksmaintenanceandlibraryservices.Parksmaintenance <br />publicthat <br />serviceshavebeenreduced,suchasmowingofgrassintheparksandmaintenanceoftheOwenRose <br />December2012 <br />