Item 1: Local Option Levy for City Services

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Under the revised recommendation, the council would amend the stormwater ordinance to put the mechanism in place to add a parks services fee component. The decision about setting the initial fee level and funding from the new parks services fee would occur during the FY14 budget process this spring. It was understood that the proposed changes to the parks services fee would be developed in a way that matches EWEB’s current practices for billing customers in different tiers. The proposed local option levy to maintain City services would be a flat amount levied each year from FY14 through FY18. It would total $3.6 million per year, and would fund fire and ambulance services, human services, economic development and restoration of library services. It is estimated that the tax rate would be approximately $0.28 per $1000 of assessed value, and the median home (currently valued at $172,965 by the Lane County Assessor) would pay about $51 per year in additional property taxes for the levy. The levy would include a provision for an oversight committee that would review the levy each year to ensure that the dollars were spent in accordance with the ballot measure approving the levy. The council chose this direction over the option to balance the FY14 budget without new revenues. The City Manager presented information to the council that included a list of alternate budget reductions that would be the basis for preparing a no-new-revenue budget in FY14. That list is included as Attachment B. In addition, the City Manager pointed out that the revised recommendation does not fully close the anticipated $6 million budget gap. This would mean that the FY14 Proposed Budget will include additional measures to close the gap. Those measures could be identifying ongoing services from the alternate budget reduction list to reduce expenditures, or could include using one-time funding to temporarily support the additional services for one more year. Timeline and Next Steps: If the council should decide to move forward with asking voters to consider placing a local option levy to maintain services on the May ballot, action must be taken no later than February 13. Immediately following the public hearing on February 4, the council will be asked to provide any additional input or direction to the City Manager so that a resolution can be drafted ahead of the February 11 follow-up work session. RELATED CITY POLICIES Council Goal of Fair, Stable and Adequate Financial Resources. COUNCIL OPTIONS There are three options presented for the council: 1.Direct the City Manager to develop a resolution placing a $3.6 million local option levy for City services on the May 2013 ballot. The levy would pay for fire and ambulance services, human services, economic development services and restoration of library services, and would include an oversight committee to review spending. S:\CMO\2013 Council Agendas\M130204\S1302041.doc