HomeMy WebLinkAbout10/24/1983 Meeting
M I NUT E S
e Eugene City Council
Dinner Work Session
Rogue Room, Valley River Inn
October 24, 1983
5:30 p.m.
PRESENT : MaY9r "Gus" Keller, Freeman Homer, Emily Schue, John Ball, Brian Obie,
Cynthia Wooten, Mark Lindberg, Betty Smith, Richard Hansen, City
Councilors; Jim Ellison, Mary Sherriffs, Budget Committee; Micheal
Gleason, City Manager; Dave Whitlow, Assistant City Manager; Gary
Long, Administrative Service Director; Charles Dallas, Financial
Operations Director; Pat Lynch, Council Administrator; Barbara Bellamy,
Public Information Director; Bob Deis, Financial Analyst; Marilynne
Musso, Assistant Budget Manager.
Mayor Keller opened the meeting and introduced Mr. Dallas, recently appointed
Director of Financial Operations, and Bob Dies, Financial Analyst.
I. FINANCIAL PLANNING COMMITTEE RECOMMENDATION (MATERIAL DISTRIBUTED)
e Mr. Long explained the Financial Planning Committee was formed to find an
alternative to the Eugene Plan. During the four-year period, the Eugene Plan
revenue was doubled and yet it was necessary to cut many City services. The
Financial Planning Committee has: 1) examined the existing City service system;
2) looked at the financial policies and priorities; 3) looked at the last five
year1s financial activities and projected the next five years; 4) focused on
alternative strategies for cooperation with the State, the County, and Springfield;
and 5) agreed upon an acceptable service level to recommend to the City Council.
For the future, FPC needs to review financial options in the distributed material.
They also need to develop a strategy for getting new revenue source approval.
II. COUNCIL DISCUSSION
Mr. Long, in answer to Mr. Obie, said the State sales tax plan is replacement
income, not new income, and will not provide additional City revenue. The State
estimates 40 to 45 percent property tax relief. City tax rates will be regulated
but can be overridden by a vote of the people. With a one percent growth rate
and a five to six percent growth rate in income, the City would not have to go
to the voters. The sales tax plan will result in more enterprise funds or a new
method of bookkeeping. The new plan would take affect in 1985-86. The City
should gradually phase back services before that time.
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MINUTES--Eugene City Council October 24, 1983 Page 1
e Mr. Lindberg asked if user fees as a revenue source had been used up. Mr. Long
answered that $300,000 to $500,000 might be realized, but not a significant
amount.
Members discussed the agenda for the sales tax plan referred to the City Council
November 9 for a public hearing. If a City tax issue were referred to the
voters, it would have to be in March or May for a replacement to the Eugene Plan
which expires in June. A tax-base election can be held only during a primary or
general el ection (May). Ms. Schue pointed out that the reason for the Eugene
Plan was the no-longer-relevant State-30 percent-property-tax relief plan.
Mr. Lindberg asked for a staff recommendation on the service package outlined in
the distributed material. Mr. Long said a recommendation would grow out of
political and financial considerations. Consensus of the City Council was
needed in defining the problem or service level before continuing the search for
a solution or revenue source.
Ms. Schue referred to the FPC recommendation of a service level second from the
highest service level (orange) which would be higher than the present service
1 evel . This service level would result in a revenue gap. Members agreed they
would discuss the service levels and the FPC recommendation at the City Council
goal-setting session on the weekend.
Mr. Lindberg urged members to discuss new revenue sources. Ms. Schue questioned
whether the City Council had accepted a service level recommended by the FPC.
e Without the agreement on the service level, revenue sources could not be fruit-
fully discussed. Other members agreed they needed to look at the assumptions
made to form the FPC service level line. Ms. Wooten reminded members, FPCls
charge was to look at other revenue sources. Because property taxes were too
high, she urged members to seek a solution before June. She asked for staff to
develop several scenarios such as a three-year package. A review of the deadlines
for ballot measures was also requested.
Mr. Ball was cri tical of the process so far. He said it was one diversion after
another and one request after another for more information. He said it was time
to make a decision. Ms. Wooten said that they were waiting on the legislature
and could not afford to play "catch up."
Mr. Long said the assumptions were on the Apple Computer in the City Hall. The
driving forces were inflation of salaries and inflation of materials. He
invited members to come in and add and subtract assumptions. No matter how the
assumptions were manipulated, he saw a $4 to $7 million problem. A one percent
increase in wages and a two percent increase in materials and supplies resulted
in a bal anced budget. He did not recommend this. It did not include the
restoration of services.
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MINUTES--Eugene City Council October 24, 1983 Page 2
e Ms. Schue urged a decision on service levels and asked members not to get
entangled in the figures. Mr. Holmer added that they needed to review the
political climate and ask what kind of service levels voters could support.
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