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increment flow will increase because of the new development, and thi s additional flow will be used to pay the new debt service. And at other times e during the life of the Urban Renewal Plan, capital project spending will increase (e.g., for infrastructure improvements). Chapter 7 of the draft report on the updated plan contains an analysis of estimated incomes and expenditures for the 20-year life of the plan. Mr. Byrne emphasized that this is not a budget or plan; rather, it is simply a financial feasibility forecast. It demonstrates the financial feasibility of the plan's goals for development intensity and public expenditures. He said this is a very generalized model of overall financial feasibility. Specifi c decisions about incurring new debts or funding new capital projects will be made on a case-by-case basis. Ms. Schue asked what an acceptable ending working capital for the agency is. Mr. Byrne said the agency must have an ending working capital able to pay for at least three months of operating expenses (about $165,000) because of the lag between the beginning of the fiscal year and when the agency begins to receive taxes. In addition to this, the agency must maintain a debt service reserve in its ending working capital. He said this money is set aside in case some unforseen financial catastrophe occurs. Mr. Gleason said that such a catastrophe for the agency is always a possibility--for example, a tax revolt or a property tax 1 i mi tat ion. Assistant City Manager David Whitlow estimated tha t the agency would have to have a minimum ending working capital of $500,000. Referring to a table in Chapter 7 of the report on the updated plan (Table 6: Estimated Income and Expenditure Analysis), Ms. Schue asked why the annual e debt service changed only gradually from year to year. Mr. Gleason said this was because the agency would try to structure its debt so that the yearly debt service did not change drastically from one year to the next. He emphasized that the table mentioned by Ms. Schue portrays only one possible financial scenario for the updated Urban Renewal Plan. How the agency structures its debt, what its debt service reserves are required to be, what its bond ratings will be, and other factors will affect the actual course of the agency's financial picture during the life of the updated plan. F. Siting of Future Downtown Transit Station and Library In response to a question from Ms. Ehrman, Mr. Byrne said the Lane Transit District (LTD) Board has not chosen a site for its future downtown transit facil i ty. Ms. Ehrman mentioned that the Future of Our Library Commi ttee has not recommended a site for the future 1 i bra ry . Pat Decker of the Planning Department said the committee's final report is expected by November. The committee will hold a public hearing on the subject in November; and the council will hold a hearing in December. Mr. Byrne said that both the transit facility and library are somewhat special issues within the Urban Renewal Plan. He sa i d they dea 1 wi th inter-agency issues, that are not the primary responsibility of the Eugene Renewal Agency. e MINUTES--Eugene City Council June 24, 1987 Page 15