The Eugene City Council got a sobering review of the city’s financial forecast Monday night, ahead of a budgetary planning session later this month.
During their work session, councilors learned that inflation, personnel costs, state retirement expenditures, liquor tax disbursements and other factors have created a $5.1 million budget gap in the upcoming biennium.
The Ambulance Transport Fund, the Cultural Services Subfund, and the Parking Services Enterprise Fund are among the programs expected to be short on money in the coming years.
The Community Safety Payroll Tax, which the council passed in 2019, has generated $25 million annually for the City of Eugene. But it’s slated to end on Dec. 31, 2028, unless it’s extended.
Currently, services and programs such as the downtown safety and wildfire mitigation teams, and the Community Court — an alternative to municipal court — benefit from it.
Councilor Randy Groves thanked the presenters who explained the forecast, but said, “It feels like we’re always dealing with one of three levels of budget: bad, worse, and the worst it’s ever been.”
Twylla Miller, the city’s chief financial officer, said plans to save money mid-biennium include a hiring pause — where only critical positions are filled — and holding off on spending roughly $3 million across departments. She acknowledged that federal programs, like those administered by the U.S. Department of Housing and Urban Development and trickle down to local housing programs, are in flux.
“There still remains a lot of uncertainty at the federal level,” she said, “and things are changing.”
Programs including services for the unhoused, downtown cleanup and beautification, and central services communications have received one-time funding to get them through June 2027. Councilors will then need to address funding for these going forward.
Near the end of last night’s session, Councilor Lyndsie Leech moved to approve a phased-in approach to staffing, replacing a motion approved in April. Her motion directed the city manager to add a business development manager position, charged with increasing commerce in the area, to the immediate supplemental budget. As a trade-off, the city then deferred hiring in two other analyst positions until the next biennium.
Councilors approved the idea on a 7-1 vote, with Matt Keating voting against it.
Councilors and other city officials will continue their long-range financial planning during a two-day workshop that begins on June 30.
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