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was financed by tax increment financing and interest on investments. Expendi- - tures included payment of debt service on parking structures, improvements in the downtown area and the renewal district, and operating expenditures to staff the agency. The public hearing was opened. There being no testimony presented, the public hearing was closed. Mr. Whitlow stated that this item was scheduled for action on June 27. At 8:18 p.m., Mayor Keller adjourned the meeting of the Urban Renewal Agency and reconvened the meeting of the Eugene City Council. C. 10th and Oak Assessment District--Application of Remaining Funds (memo, background information distributed) Assistant City Manager David Whitlow introduced the agenda item. He noted that the City Attorney.s function will be filled by Robert Thrall and D~vid Jewett. Mayor Keller turned the chair over to Councilor Obie at this time and temporarily left the meeting, having previously stated a potential conflict of interest on the issue. Finance Director Warren Wong presented the staff report, stating that staff was asking for direction from the council on the disposition of the remaining funds. He stated that the financial status of the 10th and Oak Assessment District Fund as of April 30, 1984, was approximately $2.4 million, $900,000 of e which would be used to redeem the outstanding bonds. The net operating revenue amounted to $1.6 million, $900,000 to be rebated to the Downtown Development District Fund and certain DDD property owners, and the balance of the net operating revenue to be used to reduce the assessments owed to the City by the 10th and Oak Assessment property owners. He stated that staff will then equalize the assessments among the property owners, resulting in approximately $300,000 of remaining funds. He added that this figure actually ranged from $150,000 to $500,000 due to the unknown amount of interest earned and any possible legal and administrative costs. While the City has traditionally surplused any excess funds after paying off the bonds, Mr. Wong stated that five options were possible as described in his June 20, 1984, memorandum to the City Council. Having reviewed the 1966 City Council minutes addressing the assessment district, he stated that a commitment had been made to return any excess funds to the property owners; however, he stated that the Eugene Code had not incorporated that commitment into any contractual agreement or bond indentures and therefore no legal mandatory requirement existed. Mr. Wong stated that the Downtown Commis- sion had reviewed the issue on June 12 and had unanimously recommended that the City Council adopt Option 5, that of returning the remaining funds to the 10th and Oak property owners and assessment payers. He said staff had established an optimistic timeline for completion of the process, the first step being to present the net operating revenue and distribution formula issue to the circuit court. He said the City could complete the rebate by December if the court favorably decided on the City.s position. He stressed that staff will not proceed e MINUTES--Eugene City Council June 25, 1984 Page 5