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Mr. Meisner did not think the timing of the proposal propitious, given the recent Six-Year <br />Financial Forecast and the eventual impact of the proposal on the General Fund and the services its <br />supports. <br /> <br />Mr. Rayor suggested that staff project the long-term implications of the proposal on a downtown <br />department beyond the six-year forecast and the point it occupied a new building, as far out as 20 <br />years. <br /> <br />Mr. Rayor termed the proposal a "shell game" but said that was okay with him, because it would <br />allow the council to more accurately evaluate the costs of expanded City services against the costs <br />of outsourcing a service. He thought that many cities in general believed they could deliver <br />services at a lower cost than the private sector because they were not accounting for facility <br />replacement. Mr. Rayor said the proposal would help keep the departments aware of their true <br />costs. <br /> <br />Mr. Kelly said there appeared to be some confusion about the proposal among councilors as well <br />as some opposition. While he appreciated Mr. Rayor's remarks about the proposal as an <br />accounting procedure, he reiterated his concern about the potential impact on services in the long- <br />term. While he supported the concept of setting aside facilities reserves, he was not comfortable <br />with the proposal before the council, and supported instead continuing the policies to build the <br />reserves that the council had adopted over the past few years. He advised staff to take into <br />account the council's sentiments when it developed the Supplemental Budget that was to <br />implement the proposal. <br /> <br />Ms. Nathanson generally supported proposals that illustrated the full cost of service delivery, and <br />agreed with Mr. Rayor that to some degree the proposal was an accounting procedure. However, <br />she also agreed with Mr. Meisner that the timing of the proposal was poor, and suggested the best <br />time for establishing a rainy day fund was when times were good, not when they were bad. When <br />times were bad, the demand for all types of government services frequently went up at a time when <br />revenues were going down. <br /> <br />Ms. Nathanson also expressed concern about the proposal because it was not clear what <br />departments were affected or what buildings would be built or replaced with the funds collected. <br />If the proposal affected departments currently occupying leased space or departments that needed <br />a new space, such as the Police Department, she would understand it better. Absent a list, it was <br />hard for her to see where the money was going. <br /> <br />Ms. Bettman said she wanted a way to fund a new City Hall and police and fire facilities, but she <br />was concerned about the proposal. She was concerned that the contributions to the reserve would <br />become automatic and when there was a need for funding for other purposes, the Budget <br />Committee would forget that the department's budgets were artificially increased and the money <br />could be used for other, higher priorities. She appreciated the concept of accounting for the actual <br />department costs, but continued to be concerned that the expenditure would be "lost in the shuffle" <br /> <br /> MINUTES--Eugene City Council November 26, 2001 Page 6 <br /> Work Session <br /> <br /> <br />