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<br /> documents will be issued, and a bid award will be made. He said the City <br /> will do the preliminary work to secure the long-term fi nanci ng, an <br />e economic analysis will be done, project administration costs will be paid, <br /> and some site work will be done in spring 1987. He said that after <br /> completion of the audit on the last fiscal year, $194,922 was identified <br /> as money that is available and not currently obligated to any service or <br /> capital project. He said this money is net of funding the FY87 Capital <br /> Budget. He discussed the options that staff i dent ifi ed in order of <br /> increasing impact on existing operating and capital service levels that <br /> are funded by the General Fund. <br /> Mr. Wong discussed the proposed deferral of FY86 and FY87 capital projects <br /> in the Parks Department and Public Works Department. He said staff is <br /> confident that the projects listed can be deferred without creation of an <br /> emergency situation. He described the options available to make debt <br /> service payments if the City issues some type of long-term debt. He said <br /> that staff recommends the issuance of a Revenue-Backed General Obligation <br /> Bond for long-term financing. He said it will require a vote and it would <br /> authorize the City Council and the Budget Committee to levy a property tax <br /> if necessary. He said it is the lowest-cost financing of all the long- <br /> term debt instruments that are available. He described possible funding <br /> sources to be used for debt service repayment. <br /> Mr. Wong said that at a previous meeting, Mr. Hansen had asked if the City <br /> could get a revenue bond measure approved and also place a restriction on <br /> the levying of the tax. Mr. Wong said that after discusstng the question <br /> with bond counsels, it appears that restricting the levying of the tax is <br /> not possible. He said that the voters cannot be asked to approve a <br />e revenue-backed general obligation measure which allows the City to levy <br /> property taxes and at the same time state that the City will never levy <br /> property taxes--it could appear to be a sham. <br /> Proposed debt service repayment schedules were discussed. Mr. Wong said <br /> that there would be a positive surplus for the first several years which <br /> would be placed in a reserve. He said the reserve would be used to make <br /> debt service payments. He stressed the importance of not defaulting on <br /> the debt. He discussed the adopted subcommittee recommendation of a long- <br /> term debt issuance of $5.221 mi 11 i on and what the debt servi ce and <br /> deficits would be. He said that if the entire debt service was levied as a <br /> property tax--under the $4 million issue--it would add $0.15/$1,000 to the <br /> levy, and--under the $5.2 million issue--it would add $0.20/$1,000 to the <br /> levy. He then described current tax rates and said that the debt service <br /> rate, given the outstanding General Obligation Bonds, will be going down <br /> from $1.22/$1,000 to zero over the next several years since additional <br /> general obligation debt has not been issued. <br /> He said that the staff recommendation is a consolidation of an external <br /> financing instrument using existing internal resources and new resources <br /> to pay the debt service. <br /> Mr. Miller noted that the 6.32 percent and 8.0 percent finance rates <br /> almost cost the same. Mr. Wong said that bank issuance loan costs are <br />e MINUTES--Eugene City Council Dinner Session November 17, 1986 Page 2 <br />