Laserfiche WebLink
<br /> ~ <br /> e the annual operating costs) the total annual financing needed for the project <br /> would range between $2 million and $2.4 million. Mr. Mounts said the <br /> estimated annual tax increment revenue that would be generated by the new <br /> project would range between $600,000 and $800)000. This leaves a range of <br /> $1.2 million to $1.8 million in resources to be identified annually. <br /> Mr. Mounts reviewed several assumptions staff made when estimating the amount <br /> of revenue to be generated by a one-percent utility consumption tax. These <br /> assumptions included the following: governmental customers would not be <br /> charged a utility consumption tax; future annexations are not included in the <br /> revenue base; growth in the utility rates were taken into consideration; a <br /> portion of the utility tax proceeds would be used to offset collection costs <br /> for the utility companies; utilities included in the estimates are EWEB <br /> electric) steam) and water) City sewer, Northwest Natural Gas, TCI Cable, US <br /> West Communications, and potentially local electrical co-ops; and <br /> administrative costs for collecting unpaid taxes were included. <br /> Mr. Mounts reviewed staff's estimates of revenue to be generated by a one <br /> percent utility consumption tax. He said the forecast includes an optimistic <br /> and a pessimistic scenario. The tax would generate approximately $800,000 <br /> during FY90 which would have an annual impact of about $13.05 per household. <br /> If the $800,000 were to be raised through a property tax, the annual cost per <br /> household would be close to $19. <br /> Mr. Holmer said this financing proposal falls short of the annual costs of <br /> the project by approximately $400,000. He asked how the additional revenue <br /> e would be generated. Mayor Obie said the subcommittee would be working with <br /> the community to identify additional revenue sources. He added that there <br /> are several potential revenue sources which have not yet been taken into <br /> consideration, including selling the existing library building, selling the <br /> property under the development site to Pankow, and private fund-raising. <br /> Mayor Obie said he would also like the City Manager to negotiate a long-term <br /> lease for the library with Pankow. <br /> Referring to a letter councilors received from EWES, Ms. Ehrman said EWES's <br /> suggestion that the council consider utilizing the windfall in projected <br /> revenue increases as a source of funding for the library is not viable; the <br /> City has already built 2/3 of that windfall into the budget. Ms. Ehrman said <br /> the subcommittee feels one approach to meeting additional revenue <br /> requirements not generated by a one-percent utility consumption tax is a <br /> phasing of operations in the library building. <br /> Mr. Bennett said he was concerned by EWES's letter. He said the costs of <br /> City operation increase annually, so the money generated by increases in <br /> utility fees cannot be considered a windfall. Mr. Bennett felt the letter <br /> reflected an adversarial relationship between the City and EWEB which he does <br /> not feel is there and should not be there. Mayor Obie agreed with <br /> Mr. Bennett's assessment. He said he hopes EWEB will put aside its own <br /> interests and be supportive of the library project if it is in the best <br /> interests of the community. <br /> e MINUTES--Eugene City Council November 16, 1988 Page 5 <br />