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About Eugene weekly. (Eugene, Oregon) 1993-current | View Entire Issue (March 21, 2013)
NEWS WHAT ABOUT THOSE MILLIONS IN CITY FUNDS? Some city leaders are asking voters to approve a city service fee on the ballot in May, but others are saying “not so fast” — the sacrifi cial services on the chopping block don’t have to be the fi rst cut. After the city manager announced a projected $6 million shortfall in general fund revenue for fi scal year 2014 (the year beginning this July 1), the City Council voted to refer to the ballot a monthly city services fee of up to $10 per housing unit and $30 for businesses, with an undetermined form of assistance for low-income residents. Council and staff also put forth a list of services to be cut should the fee fail at the ballot box. Former city councilor Bonny Bettman McCornack is now co-director of Citizens for Truth, Justice, and the American Way (CiTJAW), a political action committee of liberals and conservatives who oppose the proposed fee. As a city councilor, Bettman McCornack was part of the city’s Budget Committee, which is composed of eight appointed citizens and the City Council. “Almost every year, the assumptions and the proposed budget underestimate the amount of revenue,” Bettman McCornack says. As a result, City Council usually meets again during the fi scal year to create a supplemental budget to disperse the funds, which Bettman McCornack says is “very often millions and millions of dollars.” For example, Bettman McCornack says that the FY2012 budget predicted an ending fund balance of $34 million, but the true ending fund balance was $43 million. Sue Cutsogeorge, Eugene’s fi nance director, says sometimes the listed dollar amount of the general fund’s total resources looks larger because of other factors. (Eugene’s supplemental budgets for the past several years list total resources that hovered around $159 million from FY2008-10, then jumped to the $170 million neighborhood in FY2011- 13.) For example, she says carryover balance, the amount of one-time-use funds from projects started in one fi scal year and fi nished in another, can be included in the second year’s general fund total and make it look artifi cially large. Without factors such as carryover balance, Cutsogeorge says that revenues have increased an average of 1.1 percent per year from FY2008 through FY2013, slower than costs of health care and comparison points in the Consumer Price Index. “It’s a shell game,” Bettman In addition, Cutsogeorge McCornack says. Instead of says that the city has been hard looking at the general fund and at work paying back into the not seeing money for the Sheldon reserve for revenue shortfall Pool or library hours, she says the (RRSF), a fund that some liken BONNY BETTMAN MCCORNACK council should be looking at ways to the general fund’s savings to stop moving money out of the account. She says that the city general fund by cutting expenses received praise in Moody’s like the $275,000 sent from the general fund to Urban Investor Services’ latest report on Eugene, and a high Renewal for the Downtown Loan Program or delaying the “Aa1” bond rating, in part for maintaining “sound reserve $1 million moved to the facilities services fund to save for the levels.” rebuilding of City Hall. “City Manager Jon Ruiz has also emphasized the need The institutional problem, Bettman McCornack says, is to maintain an adequate reserve level, and to ensure that that expenditures like essential services don’t have to compete those reserves (one-time funds) are not used to pay for with expenditures that occur outside the budget process, like ongoing services,” Cutsogeorge says. “We consider the MUTPE tax breaks and other special expenditures. “Those use of reserves to patch over some ‘fi nancial potholes’ expenditures happen outside the budget process while from time to time, in instances where use of reserves can they’re moving all this money out of the general fund,” she smooth over temporary shortfalls. We did that in FY2013, says. “This happens year after year to various degrees.” for instance (in combination with signifi cant budget Read more about the cases for and against the fee at reductions), in order to allow for more time to develop a votenocityfee.org and wkly.ws/1fv. — Shannon Finnell sustainable solution to the budget gap.” It’s TAX TIME save 25 % off ‘It’s a shell game’ Unique Business Opportunity with this ad through April 15 • 2012 Long Or Short Form • starting at $95 after discount Applies to Federal/State long/short form and attachments Does the Government owe you money? When you have Accurate Bookkeeping & Tax Service prepare your 2012 return, we’ll review your 2009 through 2011 for FREE. 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