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e the Executive Director should be the person to make the decisions in regard to bookings. He said the continued attraction of the Bach Festival to Eugene requires the attention of the Executive Director. He said he was pleased with the emphasis of the report on areas of importance. e In response to a question, Mr. Fredrickson stated that the $600,000 operating deficit for FY 1984/85 could be achieved by incorporating all the changes outlined in the report. He stated that the approach of the report was develop- ing an appropriate staffing configuration for this type of facility in its present stage of growth. He said the present staffing pattern would not be appropriate for the future. To reach the $400,000 deficit level, Mr. Fredrick- son stated that it was his professional experience that that amount should be a target for an operating deficit. Mr. Baer stated that several computer models were run and these results were developed using the recommended condi- tions and parameters. Mr. Gleason added that the assumption for the proposed operating deficit was that all changes could be made pursuant to the operating budget; however, he did not feel it was achievable due to the time involved. Mr. Fredrickson stated that it was assumed that all could be achieved for the 1984/85 year, but he added that the $600,000 level was a target for a two-year period. Ms. King stated that it is important to maintain the cultural diversity of the five users of the center, adding that three of the groups are in poor financial condition. She asked for clarification of the interest-free loans suggested in the report. Mr. Fredrickson said the report made a distinction between past and current debts. He said the report was suggesting that a moratorium be provided on the payment of past debts for some period of time. In addition, the report was suggesting that current rent of the center be paid on time so that the users cannot continue to increase their debts. He stated that the Eugene Arts Founda- tion should clarify its funding organization toward those user groups and develop a specific framework for funding. Mr. Baer stated that it is not unusual for performing arts organizations to have financial problems, but he added that it is unfortunate that in this case it is interrelated in the form of rent. In considering residency status in the center, he stated that the center must determine the impact of rent on the user groups and the center itself. He stated that the Madison Center renegotiates the resident status of its user groups every three years. In response to a comment on restaurant tax, Mr. Baer stated that the one-percent restaurant tax did not appear to be major or unusual. He said the issue in Eugene is one of fairness and balance, while the impact on the restaurant or facility appears to be nominal. Mr. Baer stated that the tax, which is used in other cities, will benefit the center. Ms. Smith stated that she had suggested during the interviews conducted that restaurant personnel be contacted for their input. She asked what alternative revenue resources were considered. Mr. Baer stated that both a gasoline and a cigarette tax were considered. Mr. Fredrickson said this issue was not greatly studied because the focus of the report was on the Hult Center. Mr. Baer suggested that the City may wish to study the relation- ship of the other communities with the center. e MINUTES--Eugene City Council/Performing Arts Commission Feb. 27, 1984 Page 10