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Mr. Johnson reported that the City also identified three non-own-source revenues for consideration, including <br />general obligation bonds, which would be issued for the construction of parking. The City would end up with <br />an asset, which the City would own. Of the $25 million package, $17.6 million would be general obligation <br />bonds which would require voter approval in September. The other two revenue sources identified included 1) <br />business registration/business license fee, which would generate an income stream that would have to be <br />bonded over a 10- to 20-year period, and 3) an income tax surcharge, which has the capability of generating a <br />larger revenue in a shorter period of time. The analysis of the income tax surcharge for a two-year period was <br />included in materials distributed. <br /> <br />Mr. Johnson said that if the City Council wanted to provide a financial package to PeaceHealth, the staff <br />recommendation would be to fund $25 million, of which $7.6 million would be a reasonable but high-end <br />estimate of what might be provided from own-source revenues and the remainder would be financed through <br />general obligation bonds. Mr. Johnson said that the business registration fee and income tax surcharge were <br />revenue sources which the City Council might consider for non-property tax, general fund revenue, which was <br />also a City Council goal and priority. Mr. Johnson noted that Sue Cutsogeorge of the Administrative Services <br />Department (ASD) was available to answer questions about the revenue projections and invited questions <br />from council members. <br /> <br />Ms. Taylor said that she was glad to see that several other sources were identified, which she said could be <br />used to reduce the amount of property tax collected. She said that it was inappropriate for the City Manager to <br />talk about the City's position, when no official position had been taken. She said that the City Council should <br />take a position on purchasing property and potential construction before financing was discussed further. She <br />added that she did not support destroying the neighborhood around PeaceHealth. <br /> <br />Mr. Rayor said that he wanted the public to know that he and other City Councilors have only had <br />approximately ten days' notice on this issue. He said that it was important to deliberate about the location of <br />the hospital, including the public good, the impact to the fabric of the City of having the hospital move versus <br />not-moving. He said that the development option that he favored was expansion one block at a time, but that <br />six blocks at once was too much. Mr. Rayor said that building in downtown Eugene should not be any harder <br />or different than building in the downtown area of other metropolitan cities. He said it was important to keep <br />in mind continuing public input and that all corporations should be treated equitably. <br /> <br />Mr. Kelly reminded City Councilors that at Monday evening's meeting, land use issues were targeted to be <br />discussed at this work session and asked that time be allocated for land use issues. He said that the financial <br />information was a separate issue which should be discussed and asked that it be considered as an intellectual <br />exercise to debate how a financial package might be structured. Mr. Kelly said that he respected staf?s <br />concern about precluding specific options for the future, but said that he did not believe it was necessarily true. <br />Mr. Kelly suggested that although a GO bond was familiar, it would be yet another property tax which would <br />fall on homeowners. Mr. Kelly asked for further discussion of an income tax surcharge, for a two-year period. <br />He said that while it would be painful for a couple of years, it was more progressive and thought it would have <br />a better chance for success at the voter polls. <br /> <br />Mr. Fart said that he had spent the last six years on the City Council advocating for affordable housing. He <br />did not want to go through the intellectual exercise proposed by Mr. Kelly. He said that the estimates for <br />development at the Crescent site were only 40 residents per acre. The removal of 350-360 residences from the <br />housing stock, by taking the six blocks as proposed, would take nine acres from the inventory. The <br /> <br />MINUTES--Eugene City Council June 27, 2001 Page 3 <br /> Work Session <br /> <br /> <br />