12/02/1987 Meeting - Laserfiche WebLink

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B. Central Eugene Project Budget e Bob Hibschman of the Development Department said councilors had received tax increment budgets for the Central Eugene Project and the Riverfront Research Park. He said the budget for the Riverfront project was in flux, and because no recommendation yet had been made about the source of the loan, that decision was planned for a future meeting. Mr. Hibschman distributed extra copi es of the Central Eugene Project budget, noting that they had been reviewed by a subcommittee of the Downtown Commission but not by the full commission. Mr. Hibschman reviewed revenues for the Central Eugene Project. He said the most significant revenue had been revised to reflect a decrease of about $200,000, because of a loss of $9.5 million in the assessed value of the downtown district. He added that assessed value was made up of 60 percent real property land and improvements, with personal property and accounts utilities accounting for the rest. Mr. Hibschman said the largest decrease had been about $3 million for the Hilton Hotel. He added that about 80 percent of personal property and accounts had depreciated by about 10 percent, while the number of accounts also had been reduced. He said utilities had accounted for about $2.2 million in losses because of the shift of equipment from AT&T to Pacific Northwest Bell. Mr. Hibschman said the decrease in assessed value, which amounted to about 9 percent of the total, was expected to stabilize next year and not to be part of a long-term trend. Mr. Hibschman noted that the revenue of $188,000 listed under item A.3. was e for the payoff of the Hilton debt for the use of the Conference Center, which had been amort; zed over seven years. He said total di stri ct resources remained in the range of about $6 million. Mr. Hibschman reviewed expenditures, noting items B.I.b. for current EDD projects, B.2.a. for debt service on parking garages and the conference center, and B.2.b. for half of the development funds for loans set aside to be approved by the City Council. Responding to Mayor Obie's question, Mr. Byrne said parking income and expenses were included in the ODD fund, not in the Central Eugene Project tax increment budget. He said B.2.c. represented overhead for the General Fund, B.2.d. represented beginning working capital for FY90, and B.2.e. was a reserve set aside for debt service. Mr. Miller asked about the formula used to determine B.2.c., the central service allocation. Mr. Whitlow said every fund was determined on the basis of the financial cost plan, and $100,000 was very close to the actual cost of servicing the fund. Mr. Byrne added that the actual fig u re wo u 1 d be established in January, after the Downtown Commission had finished its work on the project, and minor adjustments then would be made to the balance available. Mr. Whi t low agreed to p rev i de the counc i 1 wi th a one-page description of policy on that process. e MINUTES--Eugene City Council December 2, 1987 Page 5 ~