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