02/17/1992 Meeting - Laserfiche WebLink

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e e e Mr. Miller asked Mr. Gleason to examine the cross-organizational strategies suggested by the council to determine a way that they can be processed in the context of Eugene Decisions. Mr. Mounts described how several of the issues could be processed, and added that several of the strategies could be assigned to the City Manager in light of the proposal accepted by the council. Responding to a question from Mr. Miller, Ms. Bellamy reminded the council that there was an annual process for the review of boards and commissions. That review had not occurred on a large scale for five years. She suggested that the council retain that review as part of its regular work plan. Mr. Boles pointed out that the council did not have a policy in place regarding the creation of boards and commissions, their lifespans, and the functions of those groups. Ms. Bellamy noted that, in general, the council officers and the Mayor have initiated such policies for the council's review. Mr. Miller suggested that the council officers accept the charge of making recommendations regarding such policies within the context of the annual review. IV. OTHER ISSUES Mr. Wong raised the issue of recent Federal changes in rules governing bond issuance. He said that the City had begun to lay interceptor trunk lines in River Road/Santa Clara in 1987-88. That construction had been funded in part by internal City funds from the Sanitary Sewer Fund. Mr. Wong said that laterals are being connected to private properties at the current time. When the benefiting property owners are assessed, the assessment is for both the lateral lines and a share of the interceptors. The City planned to sell bonds to pay for construction loans on the current construction activity. Those bonds will reimburse the Sewer Fund. Mr. Wong said that unless the City takes action prior to March 2, 1992, it will not be able to reimburse the Sewer Fund under the new Internal Revenue Service (IRS) rules, meaning that current ratepayers will have subsidized the system by several million dollars. Mr. Wong explained that the IRS had issued regulations in spring 1991 that had been the subject of considerable complaint. Consequently, the IRS had withdrawn and revised the regulations and reissued them again in January 1992 without changing the implementation date of March 2, 1992. Mr. Wong said that in order for the Sewer Fund to be reimbursed, the City must borrow money outside its own system through the sale of bonds. Staff will be seeking council authorization to borrow from the banks in order to repay its sewer funds in September. Responding to a question from Mr. Nicholson, Mr. Wong estimated the increase in assessments to benefiting property owners at $2 or $3 each year. He said that the extra cost would reflect the interest costs between March 2 and time reimbursement occurs. MINUTES--Eugene City Council February 17, 1992 Page 10