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City of Eugene, Oregon Fiscal Year 2007 Budget Message <br />$ in Thousands FY07 FY08 FY09 FY10 FYll FY12 <br />Operating Surplus/(Deficit) (1,649) (1,850) (109) 244 218 (16) <br />Reserve for Revenue Shortfall 9,333 7,483 7,374 7,618 7,836 7,820 <br />Six-Year General Fund Forecast <br />ls,ooo <br />io,ooo <br />-... <br />5,000 <br />0 <br />.ra <br />E 0 <br />a <br />.,, <br />~ (5,000) <br />(7.0,000) <br />FY07 FY08 FY09 FY10 FYli FY12 <br />Operating Surplus/(Deficit) - -Reserve for Revenue Shortfall <br />Future Challenges <br />There is significant work ahead. We must carry out the remaining work on the priority action <br />plans and make progress on some of the key funding issues identified in the Multi-Year Financial <br />Plan. <br />Another issue on the Multi-Year Financial Plan that affects nearly everyone who resides in, works <br />in, or visits Eugene, is the chronic and steadily worsening under-funding of our transportation <br />system. A sustainable solution to the $102 million (and growing) road maintenance backlog and <br />eroding road operations budget has been sought for over a decade. The citizen members of the <br />Budget Committee studied the issue in 2001 and recommended atwo-pronged approach - a city <br />tax on motor vehicle fuel dealers and a Transportation System Maintenance Fee assessed to all <br />users of the transportation system. The City Council approved a 3-cent gas tax in 2002 and added <br />another two cents in 2005, but the gap still grew. The council approved a Transportation System <br />Maintenance Fee in 2002, but rescinded it based on feedback from other jurisdictions and <br />promises of a joint approach to transportation funding. Despite our best efforts, no better funding <br />alternatives have been found, so in February, the City Council directed me to draft an ordinance <br />implementing a Transportation System Maintenance Fee for consideration this fall. Revenues - <br />from such a fee are not included in this budget. <br />Eugene's two local option levies both expire at the end of FY07. <br />• The Library Local Option Levy, with an estimated tax rate of $0.47 per $1,000 of <br />assessed value, currently provides funding for 53% of Library operations, including <br />full funding for the two branch libraries in the Bethel and Sheldon regions. In FY08, <br />the General Fund Forecast absorbs $700,000 of the program costs now picked up by <br />the levy. The levy expires at the end of FY07, which would leave a large hole in the <br />Library's budget in FY08 if it is not renewed. The City Council preliminarily agreed <br />5 <br />_ __ <br />