Politics & Government

Eugene has a few weeks to decide between significant budget cut or unpopular fee

KLCC | By Rebecca Hansen-White

Published January 16, 2025 at 5:14 PM PST

An ambulance and Eugene Springfield Fire Department engine respond to a call in downtown Eugene in December, 2024. Eugene City Council is considering a fee that would support existing fire services and potentially an additional squad.

The Eugene City Council has just a few weeks to decide whether to cut $11.5 million from next year’s budget, or implement an unpopular fee.

City leaders say the general fund budget deficit is caused by stagnant property tax growth - an essential part of most local government budgets that are restricted by the state.

This week, council members learned they’ll likely have to slash millions in library, admin, fire and police spending if they don’t pass a fire fee, or find other new revenue.

Potential budget cuts the city may make based on each department's percentage of the general fund budget. The general fund is the most flexible part of the budget that pays for services that aren't self-sufficient, or aren't covered with state or federal funds. Some departments - like public works - are split between several funds. — Potential budget cuts the city may make based on each department's percentage of the general fund. The general fund is the most flexible part of the budget that pays for services that aren't self-sufficient, or aren't covered with state or federal funds. Some departments - like public works - are split between several funds.

The fee – which has been criticized by many community members as well as the Eugene Chamber of Commerce – would cost the average homeowner $10 a month and the average business $38 a month.

The fee’s amount would be based on the square footage of structures and EWEB would collect it on the city’s behalf.

During Wednesday’s meeting, Councilor Lyndsie Leech said widespread budget cuts might end up costing more than they will save.

"If we're reducing the prevention programs that we currently have, we will feel that in all of our programs across time,” Leech said. “We will be spending a lot more money addressing those."

Council member Mike Clark opposes the fee - saying it would come at the same time many Eugene residents' utility bills are going up. He said the city council should be focusing on its core services, like the police and fire departments.

“Library, recreation, cultural services–those are important parts of the livability of our community,” Clark said. “At the same time, I don't think they're as important as whether or not somebody’s house burns down.”

The City Council has debated the fee since fall, and on Wednesday agreed they likely won’t make a decision until the end of the month.

City Manager Sarah Medary requested the council make a decision soon, saying she’s required to present a balanced budget by May, and that staff need time to roll out a fire fee, or prepare for big cuts.

“On July 1, if we don’t have a revenue source in place, we’re going to be necessarily laying people off,” she said. “There’s not enough reserves to carry us through this.”