Item A: City Council Goal - City Hall Complex

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The tax rate impact from the G.O. Bond options is shown in the following chart. Each option shows the impact of G.O. Bonds repaid over 20 years. The tax rate in the first year would be the highest and would go down over time. The 20-year average impacts are shown. The cost to the average tax payer assumes an average home with an assessed value of $143,135 in FY07 (per the Lane County Assessor). G.O. Bond Amount 20 Year (millions) Average Impact Tax Rate Average Cost Option A $130 $0.69 $135 Option B $110 $0.58 $115 Option C $90 $0.47 $95 Facility Reserve: The City has been setting aside funds for replacement of City Hall for several years. As a result, the FY08 budget includes a balance in the Facility Reserve of over $27 mil- lion. Additional funds will be contributed to the reserve during the next few years from capital replacement charges and interest earnings. Therefore, approximately $30 million could be avail- able for funding of the City Hall Complex by FY10 from this source. It is recommended that the furnishings, fixtures and equipment, temporary relocation costs, and moving costs be funded from this source, because G.O. bond proceeds cannot be used for those items. The remainder of the Facility Reserve could be used for general construction costs. City of Eugene Limited Tax Bonds: It is assumed that the City could issue approximately $10 million in limited tax bonds for these projects. Limited tax bonds do not require voter approval and they are secured by the City’s promise to pay the debt service from all available funds. The annual debt service on the bonds will be made from the annual capitalization charge of about $900,000 paid by downtown City office space that is currently directed to the Facility Reserve. Asset Sales: In the case of partial or full consolidation of City Hall, some City-owned property might be available for sale. It should be pointed out, however, that asset sales typically take several years to accomplish, and they frequently do not generate the level of proceeds that have been estimated; therefore, it is difficult to guarantee this funding source for projects unless the sale has occurred and proceeds are already in the City’s coffers. If the asset sale proceeds fall short, another funding source may need to be used to supplement the financing plan. A small placeholder is shown as a funding option from asset sales, but the specific amount or the timing of any funds that could be counted on for this project is not yet known. Other Miscellaneous Funds: Anumber of other miscellaneous funding sources could be applied to this project. For instance, it might be possible to use telecommunications tax funds for the telecommunications portions of the project, to sell energy tax credits, to receive EWEB energy rebates, or to receive grants from other levels of government for the project. Depending on where the project is located and what is included in the project, it might be possible to apply urban renewal funds to a portion of the project cost, such as a parking garage. A small place- holder is shown for these kinds of items. Specific identification of the miscellaneous items that are included in a finance plan will be refined over time.