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e e - rate. Ms. Wooten suggested obtaining advice with the Power Council and BPA. Mr. Gleason stated it would be hard to factor down the Power Council northwest area projection figures to the Eugene area. In regard to the Trojan issue, Mr. Gleason stated that the tax law required that a municipality running the utility must distribute any benefit to its owners as a minimum payment of three percent to reduce the property tax. He said the major issue was the amount of the gross receipts; he said the auditors did not see the Trojan contract as a separate issue. He stressed the need for a process by which to approach the issue. In response to a question, Mr. Long stated that the figure involved was approximately $1.5 million per year. The councilors and staff then began a discussion on EWEB, its charter, and the payback of taxes from the utility. Mr. Gleason stressed the need for negotia- tion of the issue, warning the council of the possible legal and political problems involved. Mayor Keller stated that the City Council would become involved in the issue if EWEB deviated from the goal of resolving the issue in the near future as agreed upon several years ago. It was suggested that Mayor Keller contact the chair of the EWEB board to duscuss the auditors' statement, the general situation, and the options available to the council. Ms. Wooten asked staff to present a report on the jurisdictional authority of the City Council over EWEB. Mayor Keller added that the report should include a review of the EWEB charter. Mr. Gleason briefly reviewed the authority of the council over EWEB. Ms. Wooten asked to see the original ordinance covering the EWEB operation. Mr. Gleason stated that the City did not have a clear relationship with EWEB although it was operating under a City charter which gave EWEB the responsibility to manage the utility. Mayor Keller stressed the need for the issue to be addressed publicly and well-defined. Mr. Gleason stated that it could be a three- to five-year agenda for the City in redesigning its relation- ship with EWEB but the winners would be the property owners and the rate payers. D. Franchise Tax Mr. Wong stated that the tax was assuming an increase based on increases in consumption and prices. Mr. Gleason stated that the water utility was not included in the assumptions. Ms. Wooten stated that most cities have a water revenue, thereby decreasing the property taxes. In regard to Schedule 1.1, Mr. Holmer asked why the business licenses and permits were scheduled for a three percent increase when inflation was at six percent. Mr. Wong responded that staff had taken a conservative approach on this issue. Ms. Wooten stated that the City was trying to eliminate some of the business licenses. Mr. Gleason acknowledged that the City has been slow to keep the permit fees at the cost of the regulation. Ms. Wooten said Terri Vanderpool had reported that the City was attempting to deregulate the system. Mr. Gleason stated that building fee increases were not included in the budget; he said staff was preparing a report for the council to associate the cost of the system and the coordinated permit counter. Ms. Smith recommended putting the system in place. Mr. Gleason said the system will cost approximately $200,000 due to the space required. He said the system could be financed from the capital side of the budget. MINUTES--Eugene City Council April 11, 1984 Page 3