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<br /> Mr. Rutan said the current task was to finalize a fair and reasonable proposal <br /> to submit to the community for a decision. He commended efforts to respond to <br /> - and follow through on community concerns. He noted that the City's share of <br /> airport financing was about $6 million, which was less than the amount spent <br /> on the Community Conference Center. Mr. Rutan said he expected debt service <br /> to be a key decision for the council, and he said he thought the annual debt <br /> service payment for the project could be funded internally, as proposed in the <br /> recommendation on page 3 of the agenda attachment. <br /> Ms. Wooten asked about Recommendation 1 on page 3, to pay the debt service <br /> with revenues from increased growth in working capital. Mr. Wong said the <br /> proposal would decrease growth in working capital from the forecasted increase <br /> of $500,000 per year to $200,000 per year. He said that would continue until <br /> the fund reached $7 million, and it thereafter would be increased only as <br /> necessary to meet cash flow requirements. He said the fund now contained $6.6 <br /> mill ion. Ms. Wooten said that $300,000 also might be applied to the shortfall <br /> that was forecast. Mr. Gleason said he recommended dealing with decisions on <br /> the operating budget separately from those on airport financing. Mr. Rutan <br /> said the feeling among subcommittee members was that the airport was a capital <br /> project, and if it was a priority, it should be funded out of the CIP. <br /> Ms. Schue said a General Obligation bond could be funded by a property tax <br /> outside of the 6 percent limitation. She said she expected the current <br /> council to continue whatever funding was decided upon, but future councils <br /> might act differently. Mr. Rutan asked about the extent the counci1 could go <br /> to in directing future council decisions. Mr. Gleason said an ordinance could <br /> be passed, or the charter could be amended, but future councils still could <br /> retract those actions. He also said the debt service on the airport had been <br /> e funded through a GO bond within the operating account of the airport for the <br /> past 15 to 20 years. Mr. Hansen said airport construction, but not <br /> operations, had been funded by an increase in property taxes. Mr. Gleason -- <br /> ...-~_'- <br /> said the first few years of the airport's existence may have been funded by a , <br /> property tax levy, but as soon as the airport was financially solvent, the GO <br /> debt service had been brought within the airport account. <br /> Mr. Hansen said he had suggested specifying some measurable item, such as the <br /> Pacific Northwest Bell tax revenue, as a funding source, but the subcommittee <br /> had not favored that idea. He said he thought future councils would be <br /> hesitant to overrule a commi tment on the project and he woul d favor a <br /> resolution to continue funding the airport as a priority until the debt was <br /> paid or could be covered by airport revenues. Mayor Obie agreed and suggested <br /> passing an ordinance requiring future councils to refer the item to the public <br /> for any change. Mr. Gleason warned against merging operating and capital <br /> issues because of the possibility that a future council might want to increase <br /> the operating levy of the City. <br /> Mr. Obie asked about the potential for enhancing the income stream from the <br /> airport, so that it could assume a larger portion of the burden over 20 years. <br /> Mr. Gleason said much of the income stream already had been included in <br /> financing plans. He noted that the project also would increase operating <br /> costs, and he said negotiations with the airlines did not separate capital and <br /> operating costs. He said he thought it would be overly optimistic to assume <br /> that any significant revenues would be available for debt service payments in <br /> e MINUTES--City Council Dinner/Work Session December 15, 1986 Page 2 <br />