Item 1: Local Option Levy for City Services

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing: Local Option Levy for City Services Meeting Date: February 4, 2013 Agenda Item Number: 1 Department: Central Services Staff Contact: Sue Cutsogeorge www.eugene-or.gov Contact Telephone Number: 541-682-5589 ISSUE STATEMENT This public hearing is an opportunity for council to hear from the community about the proposal to place a local option levy for City services on the May 2013 ballot. The levy is one piece of the four-part FY14 Plan of Action to address a $6 million deficit. BACKGROUND At the November 14 council work session, the City Manager presented information as background for the start of a financial strategy discussion, including discussion of a potential new revenue source. He described the City’s efforts over the past several years to close a persistent structural gap in the budget. Despite several years of hard work and decisions to live within its means, the lingering impacts of the recession have widened the gap between revenues and expenses. Over the past four years, the City has driven down costs to balance the budget, live within its means, and not raise taxes. Over the past four years, the City has already: Cut $24 million from the General Fund budget (about 20 percent) over the past four years; • Eliminated more than 100 full-time positions; and • Maintained reasonable reserves to address unexpected impacts. • At the November 26 council work session, the council received an updated General Fund Six-Year Financial Forecast that showed a projected budget gap of $6 million. The main reason for the increased gap was the significantly lower property tax revenue to be received this fiscal year and each year into the future, due to the depressed economy and current state property tax structure. At the December 10 work session, the City Manager presented a four-part FY14 Plan of Action to address the gap. The four parts of the initial Plan were: 1.Economic Prosperity – Grow the Property Tax Base 2.Cost Control – Lower Costs and Find Efficiencies with Minimal Service Impacts 3.Transition Funding for Parks Costs to Stormwater Fee 4.New City Service Fee S:\CMO\2013 Council Agendas\M130204\S1302041.doc