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HomeMy WebLinkAbout10/27/1990 Meeting - ---- e M I NUT E S Eugene eity eouncil Studios Band C--eommunity Conference Center October 27, 1990 8:00 a.m. eOUNeILORS PRESENT: Emily Schue, Robert Bennett, Ruth Bascom, Shawn Boles, Freeman Holmer, Debra Ehrman, Roger Rutan, Bobby Green. FAeILITATOR: Sharon Thorne The special Eugene eity eouncil meeting of October 27, 1990, was called to order by His Honor Mayor Jeff Miller. Ms. Thorne said that if the council spent approximately 45 minutes on each item, it would be able to meet its targeted noon adjournment time. 1. GOAL-SETTING SESSION A. Financial Stability e eity Manager Mike Gleason presented an outline budget for FY92. He noted that the loss in Federal shared revenues in FY81-82 has been the primary cause of the eity's financial problems. As a result, the budget is approximately $2 million out of balance. He pointed out that while the half of the eity that relies on users' fees to pay for services is running well financially, the half which relies on General Fund support is doing poorly. Mr. Gleason said that budgetary problems must be corrected by FY93. Whil e it would be possible to present a budget that was similar to last year's, doing so would only aggravate existing financial problems. He also noted that it will take approximately one full budget cycle to begin making budgetary changes. This is the time that would be required to educate citizens about the existing financial problems. Mr. Gleason recommended that the City reduce its General Fund Capital Budget to $0. Doing so would reduce the debt by $1.3 million. A critical component of this strategy is the implementation of a comprehensive communication plan to determine what citizens want local government to look like. Failing to offer citizens the opportunity to have input would likely generate hostility in the community, making it impossible to communicate with the public in the future. Mr. Gleason emphasized that City inefficiency is not responsible for the City's financial problems. He pointed out that one-half of the General Fund e MINUTES--Eugene City Council October 27, 1990 Page 1 Goal-Setting Session - ------~~ e budget is in the Department of Public Safety, which is currently operating with a below-average number of personnel. He also said that the salaries, wages, and fringe benefits of the employees who work out of the General Fund are at the market rate. The council discussed the perception which exists within the community that operational inefficiency in the City is largely responsible for financial problems. It agreed on the need to implement a comprehensive educational program for citizens, particularly in the area of City operations to correct any misperceptions which might exist. Mr. Bennett acknowledged that the internal workings of the eity are difficult to understand and felt that the best way to regain public faith that the eity is not wasting taxpayer's money would be to commission an independent audit of City operations. Mr. Gleason indicated that performance audits should be done on a yearly basis; in light of the upcoming budget cuts, this is not an appropriate time to implement an expensive audit program. Mr. Rutan also acknowledged the complex nature of the eity's financial matters and said that he does not often feel confident of his understanding of the eity's budget issues about which he is being asked to make a decision. He asked that the council receive information on the budget in the future and have an opportunity to discuss the major components of the capital budget. e The council discussed what the budgetary impacts of State Ballot Measures 4 and 5 might be if they were successful. Mr. Gleason said that regardless of election outcomes, budget cuts in FY92 will still be necessary. B. Develop and Execute a Long-Term Strategic Financial Plan The council discussed the role of the Strategic Financial Planning Committee. Mr. Rutan explained that the role of this committee is to develop a set of recommendations and outline a process which the council and Budget Committee might use to make the necessary budgetary cuts. The council agreed on the need to educate the community about the City's finances enough so that they can understand and effectively participate in the upcoming budgetary decisions. Mr. Bennett reiterated his interest in hiring an external audit of eity operations. The council discussed the possibility of focusing this audit in an area where the community perceives there is the greatest problem. It also discussed the possibility of broadening the effort to involve community citizens in the audit process. Mr. Holmer questioned whether an external audit would be an effective means of determining budgetary efficiency. He suggested that the audit process might be more valuable if it came from an internal source already familiar with the local budget needs. e MINUTES--Eugene City eouncil October 27, 1990 Page 2 Goal-Setting Session - ------- e Mr. Green advised the council to be prepared to deal with the results of an audit. After discussion, the council agreed to reconvene the ad hoc Performance Audit Subcommittee with Mr. Boles and Mr. Rutan as members. Mr. Boles and Mr. Rutan agreed to bring back to the council an action plan and a list of possible options for an audit of a City department. Ms. Schue suggested that the City bring the Budget Committee on board with the City's financial planning process. The council discussed the current Budget Committee member appointment process. Mr. Gleason noted that although tradition dictates that each councilor is responsible for appointing a committee member, the council has been somewhat unsatisfied with the constituency because member appointments are often patronage appointments. The council did not reach a resolution on this issue but agreed that it needed further discussion. The council did not reach consensus on the wording of the goal, but agreed that the wording should reflect that the council has worked on this goal in the past and should indicate the council's intent to implement a community education component. B. Li brary e The council agreed that the goal for the upcoming year would be: Present a specific plan and receive public approval for constructing a new library. (At 10 a.m., the council meeting recessed for 10 minutes.) e. Transportation Mr. Bennett pointed out the need to have a specific transportation plan which would include both short- and long-term strategies for a shift toward alternate modes of transportation. As a specific long-term strategy, he suggested that the eity begin forecasting and acquiring right-of-way to satisfy future needs. Mr. Boles said that the City should immediately begin working down the list of possible alternative modes projects. He also noted that the eity needs to become a good role model for its citizens--by replacing its gas-operated vehicles with electrical machines, for instance. Ms. Ehrman felt that the best way to make headway on this goal would be to focus on one alternate mode, rather than dividing efforts among modes. The council acknowledged the long list of possible strategies and felt that the best way to proceed with this goal would be to focus on projects which e MINUTES--Eugene City eouncil October 27, 1990 Page 3 Goal-Setting Session e were most important or which were likely to be successful. One strategy which seemed to be favored by the council was a reduction in the assessed payroll tax for those employers who are willing to participate in a free bus pass program. Ms. Schue acknowledged the need to begin land-use planning efforts right away, but questioned the feasibility of acquiring right-of-way without having some certainty about future land needs. Mr. Holmer noted that completion of the environmental impact analysis for the Ferry Street Bridge and securing of preliminary financing from the Federal government is one area in which the council will be able to achieve its transportation goals. He emphasized that handling the Ferry Street Bridge issue correctly is one of the most important things the City can do to convince the public to spend money on transportation issues. Mr. Green felt that the average citizen will not understand what this goal entails and noted that he would not support raising parking fees as a strategy in this goal. Mr. Gleason spoke about the T-2000 plan. Noting that a transportation goal will require a large capital investment, he suggested that the eity work with the County to secure County Road Fund support. The council discussed whether its alternative modes goal might not be more successful if it were to focus on a single alternative mode. Mr. Bennett e reasoned that because it is more likely that the average citizen would shift from the automobile to the bus system rather than the bicycle system for commuting, the bus system should be given more council attention. The council agreed on the following wording for its upcoming transportation goal: Implement new strategies for alternative modes of transportation--special focus on increasing bus ridership and supporting the use of bicycles. D. Social Goal: Housing Ms. Thorne summarized that the council decided during its discussion Friday evening to continue with housing as its social goal for this year, but that this would be the last year for that as a social goal. She noted that the council might need to implement a process for making the transition into another social goal next year. Mr. Gleason indicated that he has a possible means of financing public construction of long-term, affordable housing projects. He suggested that the eity float a revenue-backed General Obligation (GO) Bond. Even if the revenue generated from rental payments did not fully cover the bond payments, he said that the amount would be so small that it would be easy to solve the problem through accounting procedures in its levy statement. e MINUTES--Eugene City Council October 27, 1990 Page 4 Goal-Setting Session e Mr. Boles reminded the council that the County bears the responsibility for social service provision in the community. Employing GO Bond financing for housing construction would force the City to assume this responsibility. Acknowledging that the County has not stepped-up fully to its housing responsibility, Ms. Bascom emphasized that the eity cannot ignore the housing problem. The council seemed to agree that local government would need to become involved in the housing issue, if any progress was to be made toward a solution. It also considered the possibility of floating a GO Bond and agreed that the eity would not necessarily have to be the entity responsible for floating the bond. In particular, it hoped that the County might be willing to participate in this effort. Ms. Ehrman suggested that councilors might need to work individually with members of the Lane County Board of Commissioners to persuade them to share in this responsibility. The council discussed the participation of the eounty Housing Policy Board on this issue. Mr. Bennett expressed frustration with the Housing Policy Board's progress in this area. Ms. Bascom urged Mr. Bennett to have patience and she assured him that now that there is a structure in place, the board would begin making progress soon. e The council considered the possibility of having a Eugene/Springfield housing authority. Mr. Gleason noted that the GO Bond approach to housing construction is a novel approach; it is uncertain whether this will work. However, he emphasized the importance of communicating to the public that the City is not in competition with the private sector for the construction of low-income housing. The council agreed on the following wording for its goal: Through intergovernmental cooperation, provide funding for low-income housing units. E. Downtown Mr. Boles suggested that the council implement the Downtown Redesign Principle component of the Retail Task Force's Downtown Redesign plan. He suggested that the City might make better headway on the entire redesign process if it has fewer groups working on the downtown issue and less overlap of duties. Ms. Ehrman said that the Retail Task Force's recommendations are not comprehensive enough to address the entire downtown issue. - MINUTES--Eugene City Council October 27, 1990 Page 5 Goal-Setting Session e Mayor Miller emphasized the need to have a comprehensive program that will cover all downtown issues. He suggested an update of the Downtown Plan as a means toward redesign that would incorporate many of the Retail Task Force's downtown strategies. The council discussed what type of actions should be taken on downtown redesign. While the council agreed that redesign needed to move forward, it did not agree on the most effective means. Mr. Bennett felt that the council should assume the responsibility of the Downtown Commission, in terms of having the ultimate responsibility for determining downtown redesign. He also felt that much of the work of the Downtown eommission should be performed by private groups. Mr. Holmer concurred with Mr. Bennett that the council, acting as the Urban Renewal Agency, could perform the functions of the Downtown eommission. Mr. Gleason noted that the council would be presented with a report soon from the Downtown Commission on this issue. The council agreed on the following wording for its goal: Begin to implement the downtown redesign, following a public vote. F. Other Issues e The council discussed the initiative petition currently circulating in the community requiring that a charter amendment be passed before Willamette Street could be closed to traffic. Mr. Gleason noted that the council had made a tentative decision to put a conceptual model for downtown redesign before the voters in May and said that the council could deal with this petition in several ways. The council could choose either to take no action on the petition, placing it before the voters at the next general election in November 1991, or it could choose to act on the petition, bringing it before the voters at the March election, prior to its tentative conceptual design vote. Mr. Bennett said that the intent behind the initiative petition is to allow citizens a chance to vote on downtown redesign and street access issues, in particular. He suggested that the council take no action on the initiative. He reasoned that by allowing a vote on the conceptual design, the council would be acting consistently with the intent of the initiative. Mr. Holmer cautioned the council that it would run the risk of destroying council credibility if it chose not to recognize the citizen initiative. He also warned that such an action might jeopardize the conceptual design if voters chose to retaliate by rejecting all further downtown proposals. Mayor Miller noted the importance of having the new councilors have ownership of the goals for the upcoming year. The council discussed what the term e MINUTES--Eugene City eouncil October 27, 1990 Page 6 Goal-Setting Session --- - "ownership" meant in this regard. It agreed that it would not be willing to modify the list of goals, but recognized that new councilors would need to buy off on next year's work plan and its strategies for implementation. The council agreed to spend a half-day session with new councilors explaining and discussing the council's goals for the upcoming year. The meeting adjourned at 12:20 p.m. Respectfully submitted, ~~ .. '" "1fb"i""f' ". Micheal Gleason City Manager (Recorded by Traci Northman) mncc 102790-GOALS e e MINUTES--Eugene City Council October 27, 1990 Page 7 Goal-Setting Session