05/20/1985 Meeting - Laserfiche WebLink

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e e e Mr. Whitlow reviewed page by page the "Eugene Agenda Capital Financing" report. The report included the five projects in the Eugene Agenda, the library expansion, and a swimming pool/community center. The report indicated phased bonding for the downtown revitalization, the Riverfront Science Park, the library expansion, and a swimming pool. In addition to the cost of finan- cing the Eugene Agenda over a 20-year period, the report incorporated the costs of financing the unfunded balance of the CIP, the costs of the general capital projects currently funded by Federal Revenue Sharing receipts, the projected deficit in maintaining the current service system, and the costs of the projected workload increase due to growth in the City's population. Huge fluctuations in annual costs were avoided by assuming that some projects will be paid for by bonding and some projects will be paid for by cash and by ini- tiating projects in different years. Responding to questions, Mr. Whitlow said the proposed financing of the air- port expansion includes principal and interest. The net cost of the River- front Science Park is $6.6 million, but interest will bring the total cost to $10 million. The estimate for the debt service for the Riverfront Science Park is less than the estimate for the debt service for the library because it is assumed that some cash from a new income stream (income tax or payroll tax) will be used for the Riverfront Park. The library debt service is typical for a 20-year general obligation bond. State law indicates tax increment funds must be used in the district. The funds cannot be put into the general fund. Mr. Holmer noted that the library expansion will be constructed within a short time and the Riverfront Science Park will be constructed over 15 or 20 years. Mr. Whitlow said the net annual cost for the Eugene Agenda plus the library expansion and a swimming pool/community center is highest in the second year at $5.1 million and lowest in the 20th year at $508,000. The total cost would be $52 million, which includes both principal and interest. Mr. Wong noted that some bonds will not be redeemed until after the 20th year. Mr. Whitlow said the City will lose Federal Revenue Sharing funds of $2.7 mil- lion in 1986-87. The estimate of those funds was increased 5 percent each year and added to the Eugene Agenda costs, as was the unfunded part of the CIP. The addition of the unfunded part of the CIP would maintain the City's assets much better than they are maintained now. Mr. Whitlow cautioned the councilors that the operational and maintenance figures were only estimates. Answering questions, Mr. Whitlow said the second year operational and mainten- ance costs for the Riverfront Science Park increased greatly because of the need for consultants. He will check to see what other costs were included in the estimate. The Riverfront Science Park will not increase the proceeds from the City's property tax because the tax base will not be increased. The esti- mates of the general fund service system indicate that there will be no gen- eral fund deficit in the sixth year. Responding to questions about a new revenue, Mr. Whitlow said a one-percent income tax would generate enough money to fund the Eugene Agenda, the library expansion, a swimming pool/community center, the Federal Revenue Sharing fund MINUTES--Eugene City Council Work Session May 20, 1985 Page 3