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e e e have been identified that would be defined as a property tax and that would be subject to the $10 cap. He noted, however, that the downtown development "right to own property" tax and tax increment might be affected. Further evaluation is also being done on the City's ability to generate revenue through local improvement districts (lID), formerly referred to as Bancrofting. One solution being considered to replace lID monies is through the levying of assessment bonds. Mr. Wong said that the existing funding sources are insufficient to support the current level of public services to maintain existing facilities. This applies to the General Fund, as well as other funds. He provided the council with an update of the City's six-year financial forecast and highlighted projections of the best- and worst-case scenarios with respect to Ballot Measure 5 and the impacts it would have on the City's financial resources. In order to maintain a sustainable service system under the best-case scenar- io, the City would have to cut $4.5 million from its budget before FY93; in the worse-case scenario, it would have to cut $6.5 million. Responding to a question from Mr. MacDonald, Mr. Wong said that under the worse-case scenario, property values would have to grow at a rate of 8.5 percent annually to maintain a tax base under the $10 cap. Eugene is already above the $10 cap in this fiscal year, but because of the projected increases in assessed property values in the next fiscal year, Eugene will not likely be above the cap. In response to a question from Ms. Bascom, Mr. Wong said that the City does not have the data to determine whether other cities in Oregon are also above the $10 cap. Ms. Bascom observed that if other cities are above the cap, Eugene might be able to explore the possibility of involving other cities in an effort to get the State legislature to take action. Ms. Bellamy explained the process for the leadership SWOT on June 3. Partic- ipants in the administrative SWOT will be divided into two groups--one group will identify strengths and threats and the other will identify weaknesses and opportunities. Mr. MacDonald questioned the grouping of the categories and noted that it makes more sense to group the strengths with the weaknesses and the opportu- nities with the threats. Ms. Bellamy pointed out that strengths and weak- nesses are an internal focus; opportunities and threats are an external fo- cus. Categories were grouped in this way to provide each participant with an opportunity to work on both an internal and external focus area. The council discussed the possibility of regrouping the category areas, but agreed to go with the staff recommendation. (The council recessed for five minutes at 12:55 p.m.) II. ITEMS FROM THE CITY COUNCIL, MAYOR, AND CITY MANAGER A. Purchase of Schaefers Building MINUTES--Eugene City Council May 29, 1991 Page 4