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Using a "rollover" rate of 2.9%, this figure achieves, through a multiplier e effect, the amount of $10,332,700. Using information from the Eugene/Springfield Convention and Visitors Bureau, Mr. Reynolds noted that several conferences booked Eugene solely because of the combined facilities of the Hult Center, Conference Center and the Hilton. He continued that for 1982-85, a direct economic impact of $6-1/2 million would be real i zed. Again, using a 2.9 multiplier, this signified a potential impact of $18,887,296. Mr. Reynolds continued with slide projections of the market study patron demographics. These included age distributions, age and performance relation- ships, socio-economic factors, income and educational levels, and socio- economic status and type of events attended. Mr. Reynolds stated that the findings demonstrate the center's marketing effectiveness in reaching all age categories with a broad range of events. In most categories, local statistics were similar to national demographic distributions. Then Hult Center Business Manager Bob Schutz presented budget projections for fiscal years 1985-89. With small inflationary increases and a 10% usage factor increase, a deficit in the range of $350,000 to $370,000 was projected. It was noted that on the income side, the largest single source of revenue was from the Eugene Arts Foundation in the amount of $327,185, which represented 39%. Rental s, room tax, patron user fees and box office commissions each accounted for 10 to 17 percent of the total receipts. While a reduction in marketing staff was considered to cut expenditures, this move was reconsidered as it was decided that this reduction would cause losses in income in the various categories. e Mr. Gleason summarized that while continued deficits were projected, the center's services should be viewed as a cultural and historical investment in the community. In comparison to other city investments, programs, and user fee systems, these potential loss figures are not "out of the ballpark." Extensive discussion followed the presentation. Mr. Lindberg suggested reconsideration of a room tax increase and/or a restaurant tax in view of the benefits accruing to hospitality industries. Mr. Hansen concurred with Mr. Gleason that the center be included with other departments and viewed as a good investment. Ms. Schue stressed that property taxes not be used to carry the burden, but other forms of revenue be considered. Mr. Obie said that funding options should remain open, and that the overall needs of the community should be examined at. Mr. Holmer and Ms. Smith agreed with Mr. Obie's concept, and recommended caution on "selective taxation." Mr. Obie suggested that the council settle the issue of whether the deficit should be covered by the general fund or if other tax sources should be considered to enable the budget committee to move ahead. Mr. Keller concluded the discussion by stating that the Chair would consider another council discussion and/or referral to the Financial Planning Commission prior to the regular council action. e MINUTES--Eugene City Council August 8, 1983 Page 2