08/26/1968 Meeting - Laserfiche WebLink

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347' . I 8/26/68 . Mr. Anderson moved seconded by Mr. Lassen that Item 1 of the Committee report be received and filed. Motion carried. 1 2. Charter Amendment, EWEB Nuclear Power Bonds - The Eugene Water & Electric Board re- quested submission of a Charter amendment to the voters on the November 5, 1968 ballot which would authorize issuance and sale of $225,000,000 revenue bonds to finance a nuclear power program. John Tiffany, chairman, and Byron, Price, general manager, of EWEB explained the proposed participation inthe program with other utilities, estimated costs, rate structures, capacities, use of bond funds for generation and transmission, management and operating procedures, marketing surplus power, etc. Mr. Price said the Board would expect to continue payments in lieu ~ taxes to local governments within which facilities are located. Dr. Purdy moved seconded by Mr. Lassen to submit the proposed Charter amendment to the voters at the November 5 election. Councilman Anderson inquired about the time element for construction of a nuclear . power plant. Mr. Price said a decision to participate would be necessary not later than spring 1970 for the first plant to be completed about 1974, but money costs would appear to be more favorable if bond authority is given now. Mr. Anderson called attention to the money measures the City itself is taking to the voters in November. He said the City should not sacrifice its program in gaining approval of the EWEB program. In answer to a question from Councilman Lassen, Mr. Price said II EWEB would probably go to a special election if the measure is not on the November ballot in order to gain advantage of lower interest and construction costs now com- . pared to the anticipated increase. A vote was taken on the motion as sm ted, and motion carried. Mr. Anderson moved seconded by Mr. Lassen to approve Item 2 of the Committee report. Councilman Lassen asked if it would be feasible to submit a measure for a smaller amount of funds with the idea of asking for additional authorization over a 10- ot IS-year period. Mr. Price said it would be important to have the total authorization so the planning and construction of the entire project could proceed. With piecemeal authorization there would be the risk of starting the project and find- ing additional authorization withheld. . Mrs. Betty Niven urgedEWEB to withdraw its request for submission of the bond measure on the November general election ballot. She said it could be submitted at a special election, and it would be foolish to submit it at a time when so many other money measures are being voted upon. In response to questions from Council members, Mr. Price reviewed the Board's reasons for participat- ing with other agencies in the power program and the operating economies involved. Mr. Tiffany said it was the Board's consensus that the general election is the proper time to present the issue since it would gain the opinion of the greatest number of voters. He also cited the cost of special elec- tions, plus the anticipated increase in money and construction costs if the authorization is delayed. A rollcall vote was taken on the motion as stated, and motion carried, all councilmen present voting aye. - 2 3. Election Measures a. Tax Base/Serial Levy - If approved, the l~% tax limitation measure would require a 20% majority of registered voters for approval of any financing measure. The City Manager said it was fel t, since a greater number of people vote at State-wide elections, that a 20% majority would be more likely at general elections than at special elections in intervening years. For this reason, it was suggested the three- . year serial levy as an alternative to the tax base should the l~% measure be approved be changed to a four-year levy in order to carry financing through 1972-73. This would mean a levy outside the 6% limitation of $1,600,000 for 1969-70; $2,100,000, 1970-71; $2,600,000, 1971-72; and $3,100,000, 1972-73. Mr. Anderson moved seconded by Mr. Wingard to change the levy to a four-year levy as recommended. Motion carried. With regard to the new tax base and the suggestion that some guarantee be written into the measure to assure the total increase would not be levied in one year, the Manager explained that because of the figures involved it is difficult to spread the amount equally over a three-year period and write it into the measure so as to make it easily understood by the voters. He recommended selling the new tax base . on the basis that entire increase would not be used for operating expense in one year, or instead of a limitation for operating purposes to write in an indication of a percentage within the 6% to be used for debt service. II Dr. Purdy moved seconded by Mr. Wingard to submit the measure for a new tax base without a limitation on operating and debt servLce. Motion carried. The City Manager said further consideration was given to submitting a new tax base measure to be ef- fective if the l~% tax limitation measure fails, with the alternate of a serial levy should the l~% tax be approved, and while the alternative provisions may be acceptable there appear to be some legal questions. Tax Commission attorneys indicated the Attorney General has advised the State Legislature .. 8/26/68 - 15 ...oIIIl