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e It was also clarified that the Eugene Celebration expenditures match receipts and makes money. Ms. Wooten addressed the Destination-Point Activities and reported that an economic impact survey is being done for all activities such as Butte to Butte, etc. Mr. Gleason added that economic development has been the number one priority adopted in the Six-Point Program. J. Parks and Recreation Program Areas It was clarified in discussion that some programs are self-sufficient, others are not, and all require some overhead administrative cost. Mr. Rutan asked if there could be a ten to fifteen-percent across-the-board cut. Mr. Whitlow said that most costs are recovered by fees, but a cut like this would cut positions, which would, in effect, cut the programs entirely. Direct costs are covered by fees, but some support costs are not covered. e K. Contingency Mr. Holmer suggested that it was far better to cut the full amount than to increase taxes to cover deficits. Mr. Wong said that a contingency is not legally required and that the $600,000 contingency figure represents 13 per- cent of the budget ending balance. Mr. Holmer's suggestion is not possible because other fund accounts cannot be used to cover emergencies. Over the past five years, 70 percent of the contingency was used and the balance trans- ferred to capital projects. The account is used for items like replacing a ladder on a fire truck, a back-up communication system in the Police Depart- ment, bulletproof vests, excessive-snow removal, special election costs, and the library roof. Mr. Holmer commented that the staff recommendation about the ending balance has been accepted. Recognizing the fact that it is an end- ing balance, the contingency fund will only be used if there is contingency; it would be appropriate to take the recommended level, reducing it by $600,000, and putting it in the contingency fund. There would then be the money needed for contingency without being subject to the legal restrictions Mr. Wong pointed out. L. Miscellaneous Reductions It was agreed that cuts in this area be considered, especially council and staff travel and training, as well as consultant and professional fees. M. Fleet Fund The discussion centered on productivity and the ability to maintain equipment at a level that is adequate. $1.1 million includes all areas and represents a figure to maintain, not to improve. It was also agreed that more information was needed in this area in order to make any decision. e MINUTES--Eugene City Council Work Session February 25, 1986 Page 5