11/17/1986 Meeting - Laserfiche WebLink

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significantly lower and certificates of participation often require a debt service reserve and insurance. e Mr. Wong said a Room Tax increase is a possible source of revenue but it was not included in the proposal because the rate in the metropolitan area is the same for Eugene and Springfield. If the rate is increased by one percent in Eugene, it would not match Springfield. He said the existing Room Tax proceeds could be re-allocated to the airport project. Ms. Bascom said Springfield may also want to increase its room tax. Mr. Gleason discussed the transfers at the end of the year. He said that when the money is transferred at the end of the year when the books are closed, since expenditures are held back, and revenues forecasted, the City ends up with a cash balance that rolls forward. He said that that money has always been allocated to the capital account. He said that if the money was first allocated to the airport account, it could amount to a significant increase in funds. Mr. Wong said that money usually amounts to a couple of hundred thousand dollars a year. He did not include this money on the chart because there is never a guarantee that the money is there until the end of the fiscal year. He said that for the last six years the City has had positive balances in the budget, with the exception of 1982. Ms. Schue said that Lane County has tentatively committed to funding part of the land development, but she was concerned since there is no contract and there is a new Board of Commissioners. She asked what the City would do if that money or the EDA money is not available. Public Works Director Christine Andersen said that a Lane County Circuit Court judge is to e decide on this issue before the end of 1986. She said that staff is working on a contingency plan in case the money is not available. She said that the parking area is being contended in the courts, not the entire project. She said about $1.3 million is in controversy--by eliminating the porte cochere ($225,000) and the additional ticket counter area ($315,000), and by using the $315,000 contingency which is built into the current budget, $500,000 in additional funds woul d be required if the City did not receive the $1.3 million in question. She said there is an EDA application of $440,000 that is not included in the subcommittee recommendation. She said that the debt service could be increased to fill the funding gap. The councilors were told that by the way the road funds are matched from va ri ous sources, it would not be possible to defer parking lot construction until a later date. Ms. Andersen said the only way to defer parking lot construction would be to reduce the City's amount of lottery participation. Mr. Wong said that a straight revenue bond or a certificate of participation (which would not require a vote) are under consideration. Mr. Wong said it would be complicated to put the public's share and the airline's share together in one bond package. Mr. Gleason said a key issue of negotiations addresses who benefits from which revenue package. He said the City wants to maximize its benefit, even though the airlines tax benefit may be different. Mr. Obie asked if the airline revenues would grow over the next 20 years. Mr. Wong said that the City is e MINUTES--Eugene City Council Dinner Session November 17, 1986 Page 3