CC Minutes - 09/25/02 Work Session

Home Browse Search

Mr. Carlson noted that the City always planned to use urban renewal moneys to pay for the fourth floor, but had planned to do so when paying off the remaining debt when the district was closed. Because the City had a better understanding of its needs, it had the available cash resources to pay for the bulk of fourth floor construction costs. Mayor Torrey called for council comments and questions. Ms. Taylor said that the item seemed completely uncontroversial and she endorsed the staff recommendation. Ms. Bettman said she agreed with the concept underlying the recommendation. She was concerned that the staff was proposing to reallocate $365,000 through the suggested motion rather than have the funding go through the budget process. She said the council would then have no control over the money, and there were several high-priority items, including service reductions, that the council had discussed funding. She said she would move to amend the motion by deleting the element that directed staff to prepare a request in Supplemental Budget #1 to move $365,000 from nondepartmental transfers to departmental operating budgets and reserves. Mr. Rayor determined from City Attorney Glenn Klein that the City would differentiate between what urban renewal dollars would be used for and what they would not. To the extent that urban renewal dollars were being used for the construction of the fourth floor, that would occur whether the library or Information Services were to be housed there. Urban renewal dollars could not be used for fixtures, for example, needed to serve Information Services, given the council's action to reserve urban renewal funds for the library. Responding to a question from Mr. Rayor, Mr. Carlson clarified that under the staff proposal, $365,000 would go to capital accumulation, not bond payments. He said that staff was proposing about $275,000 go to the General Fund to implement the Downtown Space Plan. Mr. Kelly commended the Agenda Item Summary for its clarity. He indicated acceptance of the cash flow proposal, but shared the concerns expressed by Ms. Bettman. He suggested that alternatively, the money be put aside in a newly named reserve pending a council discussion about its use. He wanted further discussion of the recommended split as he was unsure of its origin. Mr. Kelly said that there was nothing in the materials before the council to indicate where the $90,000 would go. He suggested the council discuss restoring some of the budget cuts it made for fiscal year 2003. Mr. Kelly expressed concern that the staff recommendation would result in the depletion of urban renewal funds that might be used to implement the Downtown Plan. Moving the funding to the library foreclosed that option. He acknowledged that the money was now fully dedicated to the library by council action taken in 1998, but suggested that the decision could be revisited by the council. Mr. Kelly noted the element of the staff recommendation suggesting that funding be directed to the Facilities Reserve. He suggested that alternatively, the council could leave the funding in the Urban Renewal Fund, and determine where to allocate it later, such as for a new city hall. MINUTES--Eugene City Council September 25, 2002 Page 2 Work Session