02/24/1986 Meeting (2) - Laserfiche WebLink

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e lobbyists to urge the increase of the national debt, taxes, inflation, and unemployment. He said the nation is a debtor nation which has an unfavorable balance of trade. To advocate less than compliance with Gramm-Rudmann- Hollings or anything other than a revenue-neutral tax reform is an invitation to economic, political, and social disaster, he said. Mr. Holmer said defense spending, social security, and federal pensions do not have to be exempted from reductions in the Federal budget, but we should not recommend that everything should be cut except Federal borrowing to save city officials from hard fiscal decisions. The motion passed unanimously, 7:0. B. Federal Priority Position on Community Development Block Grant (CDBG) Funding (memo distributed) Responding to a question from Ms. Schue, Development Director Abe Farkas discussed ways CDBG funds have been used in Eugene. He said the City has received about $1.3 million in CDBG funds annually that have been critical in leveraging jobs, private funds, tax funds, and community improvements. He said the City proposal for 1986 CDBG funds is to use 30 percent for economic development primarily in the business development loan program, 30 percent for housing rehabilitation, 12 percent for joint social services, 10 percent for neighborhood improvements, and 18 percent for planning, implementation, and administration. e Discussing the business development fund, he said $1.3 million of CDBG funds has leveraged $7.2 million in private funds and created 359 new jobs in 30 businesses. He said people with low and moderate incomes got about 80 percent of the new jobs which resulted in a payroll of $10.6 million and tax payments of about $2.2 million in two years. He also discussed other things accomplished with CDBG funds. He said $1.3 million in taxes received resulted in $2.2 million in taxes returned. Elizabeth Cherry of the Intergovernmental Relations Division said the staff had anticipated cuts of about ten percent in the CDBG program, but additional deferrals of about 20 percent have been proposed. She said there is strong national support for maintaining the CDBG program and lobbying efforts may be successful. Discussing relationships with other organizations, she said the elimination of the deferrals is a core item in the league of Oregon Cities legislative priorities, one of the top concerns of Portland officials, and a top priority of the National League of Cities. She said other western cities will be lobbying against the deferrals and those cities will count on support from Oregon cities. She said unity and Eugene's relationship with other cities is an important consideration. She said the council must decide about including the item in the priorities and about lobbying for it when the councilors go to Washington. She said the Executive Managers recommended that the council give the retention of CDBG funding a top priority and that councilors lobby for it in Washington. e MINUTES--Eugene City Council February 24, 1986 Page 6