Eugene Budget Committee Meeting - April 26

EUGENE, Ore. -- The continued rising costs associated with the retirement of the baby boomers were a highlight of discussion Wednesday evening as the Eugene Budget Committee was given a presentation by Eugene City Manager Jon Ruiz, which covered the proposed budget for fiscal year 2018.

The total amount of money collected for retired persons will continue to rise through the Public Employees Retirement System, or PERS, a system that is paid for by Oregon taxpayers. .

According to Ruiz, the city is expected to contribute a $4 million increase towards PERS next year. It was noted that at this point in time the city is actually paying more money towards retired employees than active ones.

The city’s forecasting suggests that PERS costs will continue to increase through most of the 2020s before leveling off around 2030.

Overall, the city faces a $3 million deficit in the budget over the next three years. Ruiz was adamant that efforts will be made to shorten the budget gap partially through making government services more efficient rather than cutting them all together.

However, it was made clear that the city still needs to find a source of savings of up to $1 million during this time.

A substantial portion of the budget overview focused on Eugene’s general fund, and within that the main subfund, which contains the discretionary resources of the city. The goal of the city is to keep 8 percent of the general fund as a reserve for future uncertainties or shortfall.

It is estimated the main subfund will increase by 7 percent from last year to up to $197.4 million, but that number could potentially be higher for a number of reasons.

For the first time since Oregon’s legalization of marijuana in 2015, Eugene will receive funds as the result of taxation on the drug. Currently it is estimated that Eugene will receive $325,000 from marijuana taxes, but it was noted that this estimate is highly conservative and serves as a safety precaution given that the city does not know what to expect.

Construction throughout Eugene has increased within the past year as the city continues to grow in population. Property taxes, which make up roughly 63 percent of the main subfund, are expected to increase as a result of the construction over the next fiscal year.

One noticeable change that Eugene residents may notice in their everyday lives is the increase of police officers equipped with body-worn cameras. The Eugene Police Department began testing body worn cameras in 2012, and this year will receive an additional $250,000 to buy more cameras.

Among the primary concerns of the other committee members is that the city needs to be careful when shortening the budget gap, making sure to keep long term consequences and interests in mind when allocating funds or altering services.

“We can’t approach the budget as just this self-contained, 12 month period,” said councilor Chris Pryor when discussing the ripple effects that budgetary decisions could have in the future.

The Budget Committee will continue to deliberate on a weekly basis at the public library through May before deciding on a budget May 24.