04/22/1985 Meeting - Laserfiche WebLink

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e . - Replying to other questions, Mr. Wong said a State sales tax will reduce the tax increment funds for the Downtown Project by $15 million to $20 million over 20 years. The burden on the General Fund for operating and maintaining the projects when they are completed has not been calculated. The Entrance Beautification Project involves the planting of trees at many entrances and the reconstruction of the edge of Highway 99 North. The Oregon Highway Department maintains the entrances on State highways. Mr. Obie noted that private funds will be invested in the Riverfront Science Park and the Downtown Projects. Mr. Holmer noted the Ferry Street Bridge is not included in the Transportation Systems Project. Mr. Wong summarized by saying that $24.1 million to $30.1 million is needed to fund the Eugene Agenda. In addition, the City will lose about $2.7 million in Federal Revenue Sharing funds and $2.8 million to $4.8 million is needed for the unfunded part of the Capital Improvement Program. Consequently, new income of $8.3 million to $11 million will be needed. Answering a question from Mr. Rutan, Mr. Wong said capital improvement funds are needed for street overlays and maintenance, sidewalk repair, and the replacement of major facilities. Mayor Obie wondered if the councilors wanted to seek new income for just the Eugene Agenda or if they wanted to address one package that would include the Federal Revenue Sharing funds, the unfunded part of the Capital Improvement Program, and the Eugene Agenda. Ms. Wooten said the council had indicated it wished to seek funding for the library and also a swimming pool. Ms. Ehrman said the loss of Federal Revenue Sharing funds and the Capital Improvement Program should be included in deliberations about financing the Eugene Agenda. Responding to a question from Ms. Wooten, Mr. Gleason said the City will need an additional $2.8 million to $4.8 million for capital improvement each year indefinitely. The City has $1 billion in assets which need to be maintained. An income stream that is committed to capital improvement is needed. Deci- sions about how the stream is used can be made each year. He noted the Eugene Agenda will add capital projects to the City's inventory and those facilities will have to be maintained. Federal Revenue Sharing funds were used to main- tain the City's assets, but they will be lost soon. Answering a question from Mr. Hansen, Mr. Wong said $3.5 million would be needed each year to service a $30 million 20-year bond. The total cost of borrowing $30 million for 20 years would be $70 million. Mr. Holmer said it is very important to maintain the capital assets of the City. If funds cannot be found to maintain all the assets, then the council should decide to abandon some of the new projects and maintain the ones that are kept. MINUTES--Eugene City Council Work Session April 22, 1985 Page 2