08/15/1979 Meeting - Laserfiche WebLink

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be a review by the Commission of user charges, the direct cost to those 4f who are using the sewer service, and this information will be brought before the Council. Ms. Smith reaffirmed what Mr. Martin had said and added that the Commission had reviewed the budget and hoped that the three governing bodies would approve. They are unsure of the Federal funding and continue to be in contact with the Congressional delegation, but they feel they must proceed. To Mr. Lieuallen's question about the availability of Federal funds, Assistant Manager replied there is some concern about the level of Federal grants that are going to be made available to the City. The concern is not only with the allotment from Congress to the State of Oregon but, in turn, how the Department of Environmental Quality and the Environmental Quality Commission will allot the funds among the different projects. That decision has not been made, and the Commission is very active in working with the EQC. To Mr. Lieuallen's question regarding the use of sludge as a gasohol source, Ms. Smith replied that she would request that the question be put on the Commission's agenda and that they would get a staff response back to Mr. Lieuallen. Ms. Smith moved, seconded by Mr. Hamel, to authorize the budget for the Metropolitan Wastewater Management Commission. Motion carried unanimously. ~ IX. ISSUANCE AND SALE OF GENERAL OBLIGATION BANCROFT IMPROVEMENT BONDS, SERIES IIFlle Assistant Manager explained these are the beginning of calling for bids on three separate bonds. These three items were discussed with the Council recently and rather routine. Each can be dealt with separately. Mr. Lieuallen asked about the first bond issue. He asked what interest rate the citizen would be charged for Bancroft payments. He was told that the rate was established by State law at seven percent. The bids come in at the six-percent range. On a bancroft bond, the payback period is 10 years. Mr. Lieuallen asked if it had any effect on the tax rate. Assist- ant City Manager said that it had no effect, except possibly the airport bonds, and those bonds are being picked up by the air carriers. He explained that the surplus from Bancroft funds comes back to the General Fund. In the past year, $300,000 in closeout interest revenue from Bancroft funds were used to offset the property tax. The bond sale is for those who wish to pay overtime and it allows the City to borrow the money. Bancrofts have no effect on the tax rate. The other kind of bond is a general obligation bond which requires a vote of the people. CB 1973--An ordinance authorizing the issuance and sale of $1,020,000 General Obligation Bancroft Improvement Bonds, Series IIF,II of the City of Eugene, Oregon, and directing that they be adver- tised for sale, all in accordance with the provisions of Chapter 223, Oregon Revised Statutes, commonly known as the Bancroft Bonding Act, and declaring an emergency. . Lfb/ 8/15179-8