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property tax to support the airport or a district tax to support it, and how that approach affected the issue of compression. She asked how a district with broader boundaries affected compression. Ms. Taylor was interested in the answers to Ms. Bettman's questions. She asked if the expected changes in the fare structures for business travel would make it impossible for nonbusiness travelers to get Iow fares in Eugene. She also asked about the airport's General Fund contribution. Mr. Noble clarified that the airport paid the General Fund for indirect and direct service costs. Mr. Meisner said that Ms. Bettman had asked most of his questions. He believed that Mr. Noble's comments highlighted the high-risk future facing the airline industry. Mr. Meisner maintained that the Eugene airport provided free service to people living outside the city limits. He believed that the cost of the airport should be spread beyond the Eugene taxpayers. Like Ms. Bettman, he also wanted to avoid asking the taxpayers for funding for the airport's capital improvements. He said that the service was a regional one. Mr. Meisner did not have a preference at this point as to a regional form, but he thought the City should begin a discussion of what was the best form. He suggested that another work session would be needed. Mr. Noble noted that the issue of whether to form an airport district would not be a council decision. It would be a decision of the Lane County Board of County Commissioners. The council could state a preference for the form of governance. Mr. Meisner said that later that day, the Council Committee on Intergovernmental Relations would consider a new grant proposal for new service, and he believed that the council should be informed of what the airport was trying to do. Mr. Kelly emphasized the importance of the airport as a fundamental municipal service. He wanted to see the airport services maintain an upward trend. He said that initially, he had supported the idea of regionalizing the airport but then he had realized that the service was all user-fee funded and there were no General Fund dollars going to the airport. He questioned what the City would gain by regionalizing the airport. It would not lower Eugene residents' property tax payments or add new resources. Mr. Kelly said that Ms. Bettman and Mr. Meisner had articulated very well the need to look forward. He asked what was the best way to ensure the airport's continued viability and good service levels if airline service became more challenging for smaller markets. He believed that in that case, it would be more useful to be able to turn to a larger group of voters. He asked staff for feedback. Ms. Nathanson said for her the question was what Eugene would gain versus what it would lose. She thought the airlines' problems began with deregulation, when smaller airports lost out to larger hub airports. She noted that United Airlines had decreased flights from Eugene because it wanted to compete with Southwest Airlines in Portland. That move had nothing to do with the airline's profitability in Eugene. She suggested that in addition to fare and seat availability, the airlines' schedule had much to do with the airport's usage levels, particularly in terms of travel to the east coast, which was difficult for those wishing to reach the east coast and return without an overnight stay. She asked if there was a point at which the City would lose a critical mass of MINUTES - Eugene City Council June 25, 2003 Page 4 Work Session