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HomeMy WebLinkAbout04/26/1984 Meeting M I NUT E S - Eugene City Council Work Session McNutt Room e April 26, 1984 5:30 p.m. PRESENT: Mayor Gus Keller, Brian Obie, Emily Schue, John Ball, Richard Hansen, Freeman Holmer, Cynthia Wooten, Betty Smith (5:55-7:40), councilors; Mike Gleason, City Manager; Dave Whitlow, Assistant City Manager; Gary Long, Director of Administrative Services Department; Warren Wong, Finance Director; Pat Lynch, Council Administrator; Bob Deis, Marilynne Musso, Carol Calkins, Finance Department; Susy Wagner, Risk Management Manager. Mr. Keller called the meeting to order. I. STATUS OF SPRINGFIELD'S REVENUE TAX PROPOSALS e Mr. Long reported that the Springfield City Council was still considering the possibility of putting a gas tax measure on the ballot in June. If the measure was put on the ballot in Springfield, it would be contingent upon passage of a similar measure in Eugene. The tax would be three cents a gallon, and it would be levied against wholesalers. It would be a business occupation tax. May 23 is the last day such a measure could be put on the June ballot. e Councilors and staff discussed the gas tax for some time. It could be put on the ballot so that the City councils of Eugene and Springfield could each decide whether to levy the tax if it passed. More people would be voting in November than in June; consequently, if the City wanted public involvement, it might be better to have the measure on the November ballot. It was important to indicate to the Springfield City Council where the Eugene City Council stood on the matter. Eugene could indicate it would put a measure on the ballot if the measure had previously won in Springfield, or Eugene could indicate it will put the measure on the ballot when Springfield does, or Eugene could indicate it is not at all interested in the matter. It is important for Eugene to know what it would accomplish with a gasoline tax. The Eugene tax should be similar to the Springfield tax if they are levied. - The current State Gas Tax generates $1.4 million annually, and current expenses for road/street operations and maintenance are about $5 million annually. Grants provide most of the money used for street development. Councilors discussed how gas tax revenues might be used and their effect on the general fund. For example, it could be used to finish the Chambers overpass, do design work on the Ferry Street Bridge, or maintain the city streets. Some councilors thought there had been an agreement to ask the voters for additional sources of revenue if the Hult Center deficit affected - MINUTES--Council Revenue Work Session April 26, 1984 Page 1 - the General Fund; some councilors thought no commitment had been made to a tax specifically for the Hult Center. / Mr. Gleason emphasized the importance of educating the public about the City's needs, particularly if a measure is put on the ballot. Mr. Hansen hoped some way could be found to judge whether a gas tax measure would pass. e II. SERVICE RESTORATION SCHEDULE e Mr. Long reviewed the April 6 memo from Mr. Gleason to the Mayor and councilors about a service restoration schedule. The schedule indicated service restora- tion would be accomplished at $900,000 a year for three years. It would restore about 50 percent of the cuts that had been made since 1981. When services are restored, they are often done differently because new ways of doing things are often better and more economical. Services would be restored in the areas of public safety, public development, support services, and cultural and leisure services. The program would add 69.5 full-time employees to the City payroll. If the service assumptions were changed by the council, the financial estimates would also have to be changed. Councilors discussed asking the voters if they want the level of services restored. Responding to comments, Mr. Gleason said the Fire Suppression Division is increasingly at risk because the Fire Prevention Program has been decreased. The City is short of Fire Department staff. The department is trying to keep ISO from dropping the City's rating from 3 to 4 because the City does not have enough staff for the pumpers. The rating would affect the insurance rates on large buildings and businesses. The Police Department equipment is deteriorating. The Patrol and Detective sections are lean. The streets system is being damaged because of the lack of maintenance. The audit section disappeared two years ago. City investments are not managed as well as they could be with additional staff. The information program of the City has to rely on the private media, which is usually interested only in contro- versial matters. e III. SIX-YEAR FINANCIAL FORECAST--REVISED BY THE COUNCIL AND COUNCILOR HOLMER --.__.__0 Mr. Wong reviewed his April 20, 1984, memo to the Mayor and City Council concerning the three versions of the six-year financial forecast for the General/Federal Revenue Sharing Fund. The councilors and staff compared the staff version, the council version, and Councilor Holmer's version. Councilor Holmer often ~plained his version. Regardless of service restoration, Mr. Gleason did not believe the City would get by for the next three years within the forecast because of things beyond the City's control. Mr. Holmer said additional taxes placed the City at a disadvantage in its economic diversifi- cation efforts and he had tried to find a way to operate the City for the next three years without additional taxes. Mr. Ball pointed out that the quality and level of City services was important in economic development. Levels of services and City salaries, as well as salaries in the private sector, were discussed. - - MINUTES--Council Revenue Work Session April 26, 1984 Page 2 e e e Mr. Gleason described an ideal organization. It included rate-based utilities. Expenses would be reduced, he said, if Eugene adopted the system which would take several years to implement. - Councilors discussed possible alternatives if the six-year forecast was wrong or if an emergency developed. Much of the discussion on the six-year forecast involved salaries and fringe benefits for City employees. The effects of possible annexations in the next few years and various types of taxes that would raise needed funds were discussed. The work session was adjourned at 7:40 p.m. (Recorded by Betty Lou Rarick) BLR:pv/CM7b23 e e MINUTES--Council Revenue Work Session April 26, 1984 Page 3