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

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e Mr. Holmer said Eugene has used COBG funds wisely. He said whether taking money from the private sector and returning it to cities to leverage private funds is more productive for economic development than leaving the money in the private sector to leverage funds can be questioned. He said the COBG program will probably be eliminated and the City should advocate phasing the COBG program out over a period of time which will allow the City to find ways to replace the funds. He said the risks the nation runs if local governments do not show restraint are severe. e Ms. Wooten said she appreciated Mr. Holmer's position, but she does not support the Gramm-Rudman-Hollings proposal. She said the U.S. Congress should decide how to lower the Federal deficit. She said local jurisdictions will be self-reliant by the year 2000, and Eugene is making progress in economic development, job creation, the physical assets of the community, and self-reliance. She said it would be short-sighted to indicate in Washington that the COBG program should be phased out. She did not think the community would support that should it be the council's position. She said lobbying for the continuance of the CDBG should be a high priority of the City. She said the City has an obligation to other cities to do so. Mr. Hansen moved, seconded by Ms. Ehrman, to accept the position of the majority of the Legislative Subcommittee and give continued COBG funding a top priority in the City's lobbying efforts in Washington, O.C. Mr. Rutan pointed out that the Legislative Subcommittee did not vote on the issue. Ms. Ehrman and Ms. Schue said an informal poll was taken, and when agreement could not be reached, the matter was referred to the council. Mayor Obie ruled that the motion indicated that lobbying in Washington, O.C. in favor of continuing the COBG program will be a top priority of the City. Mr. Hansen said the Federal government should balance its budget, and the City has an opportunity to dedicate about $600,000 to that although some of the City's programs for people with low and moderate incomes will be decreased. He said other cities are lobbying for the COBG and he would rather not have it as a Eugene priority. He will reluctantly vote against the motion. Mayor Obie said he will be happy to lobby as indicated in the motion, but he personally believes the necessary cuts should be made in the military budget or other ratcheted programs. He said Congress would be short-sighted to cut the COBG program. The motion carried 5:2 with Councilors Schue, Ehrman, Miller, Rutan, and Wooten voting aye and Councilors Holmer and Hansen voting nay. e MINUTES--Eugene City Council February 24, 1986 Page 8